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- Targeting
CHAPTER 4
© 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama
Eighth Edition
- Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate the importance of targeting marketing
communications to specific consumer groups and
realize that the targeting decision is the initial and
most fundamental of all marcom decisions.
2. Understand the role of behaviorgraphics in targeting
consumer groups.
3. Describe the nature of psychographic targeting.
4. Appreciate major demographic developments such as
changes in the age structure of the population and
ethnic population growth.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–2
- Chapter Objectives (cont’d)
After reading this chapter you should be able to:
5. Explain the meaning of geodemographics and
understand the role for this form of targeting.
6. Recognize that any single characteristic of consumers
—whether their age, ethnicity, or income level—likely
is not solely sufficient for sophisticated marcom
targeting.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 4–3
- Targeting
• Targeting Specific Audiences
Is considered the starting point for marcom decisions
Is
Allows for precise delivery of marketing
Allows
communications to targeted markets
communications
Prevents wasted coverage to people falling outside
Prevents
the targeted market
the
• Choosing a Targeting Method
How difficult to obtain data about the characteristic to
How
be use in targeting consumers
be
How predictive is the characteristic of consumer
How
© 2010hoice behavior a part of
c South-Western,
choice
Cengage Learning. All rights
reserved. 4–4
- Targeting Specific Audiences
Behaviorgraphics
Psychographics
Measureable Consumer
Characteristics
Demographics
Geodemographics
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Cengage Learning. All rights
reserved. 4–5
- Classification of Four General Targeting Characteristics
Figure 4.1
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Cengage Learning. All rights
reserved. 4–6
- Behaviorgraphic Targeting
• Behaviorgraphics
Describe how people behave with respect to a
Describe
particular product category or class of related
products
products
Assume that the best predictor of future behavior is
Assume
past behavior
past
• Online Behavioral Targeting
Tracks the online site-selection behavior of users so
Tracks
as to enable advertisers to serve targeted ads
as
• Privacy Concerns
© 2 Technological advances increase the ability to serve
Technological
010 South-Western, a part of
Cengage Learning.at the risk of invading their privacy
consumers All rights
consumers
reserved. 4–7
- Psychographic Targeting
• Psychographics
Describe aspects of consumers’ psychological make-
ups and lifestyles as they relate to buying behavior in
ups
a particular product category
particular
Attitudes
Values
Motivations
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–8
- Types of Psychographic Profiles
• Customized Psychographic Profiles
Are typically customized to the client’s specific
Are
product category
product
Contain questionnaire items related to the unique
Contain
characteristics of the product category
characteristics
• General Purpose Psychographic Profiles
Can be purchased as “off-the-shelf” psychographic
Can
data from services that develop psychographic
profiles of people independently of any particular
product or service
product
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–9
- Illustrative Statements Used In a Customized Banking-
Table 4.1
Related Psychographic Study
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–10
- Psychographic Study of Consumers’
Psychographic
Banking Practices
Banking
Psychographic Segments
of Banking Behaviors
Bank
Worried Secured Thrifty
Traditionalists Loyalists Investors Bankers
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–11
- Yankelovich MindBase Segments
Table 4.2
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Cengage Learning. All rights
reserved. 4–12
- Yankelovich MindBase Segments (cont’d)
Table 4.2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–13
- Figure 4.2
The 8 VALS
Segments
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–14
- VALS Psychographic Segments
Innovators Successful, sophisticated, take-charge, with high self-esteem
Mature, satisfied, comfortable, and reflective; valuing order,
Thinkers knowledge, and responsibility and motivated by ideals
Conservative, conventional with concrete beliefs based on
Believers traditional, established codes: family, religion, community,
and the nation; motivated by ideals
Motivated by the desire for achievement; have goal-oriented
Achievers lifestyles and a deep commitment to career and family
© 2010 South-Western, a part of
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reserved. 4–15
- VALS Psychographic Segments
Trendy and fun loving. Motivated by achievement out of
Strivers concern about the opinions and approval of others
Motivated by self-expression; are young, enthusiastic, and
Experiencers impulsive consumers; quickly become enthusiastic about
new possibilities but are equally quick to cool.
Motivated by self-expression; express themselves and
Makers experience the world by working on it and have enough skill
and energy to carry out their projects successfully
Live narrowly focused lives; with few resources with which to
cope, often believe that the world is changing too quickly;
Survivors are comfortable with the familiar and are primarily concerned
with safety and security
© 2010 South-Western, a part of
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reserved. 4–16
- Geodemographic Targeting
• Geodemographics
Consumers who reside within geographic clusters
Consumers
such as zip codes or neighborhoods also share
demographic and lifestyle similarities
demographic
• Typical Clusters (PRIZM NE)
Bohemian Mix
White Picket Fences
Suburban Pioneers
© 2010 South-Western, a part of
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reserved. 4–17
- Demographic Targeting
Demographic
Major Demographic
Aspects
Change in
Age structure Ethnic population
household
of the population developments
composition
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–18
- Demographic Trends
• World Population Growth
6.67 billion (2009) to 8 billion (2025)
6.67
to 9 billion (2050)
to
• Changing Age Structure in United States
Median age will increase to 38 by 2025
More middle-aged Baby Boomers
Fewer children, teenagers, and young adults
Fewer
due to decreased birthrates
due
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–19
- World’s 25 Largest Countries as of 2007
Table 4.3
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 4–20
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