Developing Advertising Principles and Practices

(ABC 324) In the (3) evaluation stage, the customer must choose
between the alternative brands, products and services.
I. ADVERTISING AND THE CONSUMER BEHAVIOR
How does the customer use the information obtained?
1.1 Consumer Behavior is the process consumers go
An important determinant of the extent of evaluation is
through when they make purchases and it involves factors
whether the customer feels “involved” in the product. By
that influence their decision and usage.
involvement, we mean the degree of perceived
relevance and personal importance that accompanies
The consumer decision-making process involves five steps
the choice.
that consumers move through when buying a good or
service. A marketer has to understand these steps in order
(4) Type of purchase: Routine, Limited, Extensive -- why?
to properly move the consumer to the product and close
the sale.
High-involvement purchases include those involving high
expenditure or personal risk – for example buying a
1.2 Consumer Decision Making Process Model house, a car or making investments.

Low involvement purchases (e.g. buying a soft drink,

choosing some breakfast cereals in the supermarket)
have very simple evaluation processes.

In high-involvement decisions, the marketer needs to

provide a good deal of information about the positive
consequences of buying. The sales force may need to
stress the important attributes of the product, the
advantages compared with the competition; and
maybe even encourage “trial” or “sampling” of the
product in the hope of securing the sale.

The buying process starts with (1) need recognition. At this Purchase: Where, when and how will your consumer
stage, the buyer recognizes a problem or need (e.g. I am purchase your product or service?
hungry, we need a new sofa, I have a headache) or
responds to a marketing stimulus (e.g. you pass Starbucks (5) Post-purchase evaluation - Cognitive Dissonance
and are attracted by the aroma of coffee and chocolate
muffins). The final stage is the post-purchase evaluation of the
decision. It is common for customers to experience
An “aroused” customer then needs to decide how much concerns after making a purchase decision. This arises
information (if any) is required. If the need is strong and from a concept that is known as “cognitive dissonance”.
there is a product or service that meets the need close to The customer, having bought a product, may feel that an
hand, then a purchase decision is likely to be made there alternative would have been preferable. In these
and then. If not, then the (2) process of information search circumstances that customer will not repurchase
begins. immediately, but is likely to switch brands next time.

A customer can obtain information from several sources: To manage the post-purchase stage, it is the job of the
marketing team to persuade the potential customer that
• Personal sources: family, friends, neighbors etc. the product will satisfy his or her needs.

• Commercial sources: advertising; salespeople; retailers; 1.3 Consumer Decision Making Process - Factors
dealers; packaging; point-of-sale displays.
Influencing a Purchase
• Public sources: newspapers, radio, television, consumer
organizations; specialist magazines. 1. Cultural factors: Are there any cultural factors that
affect consumer buying decisions for your
• Experiential sources: handling, examining, using the product/service? The underlying elements of every
product culture are the values, language, myths, customs, rituals,
and laws that shape the behavior of the cultures, as well
The usefulness and influence of these sources of as the artifacts, or products, of that behavior as they are
information will vary by product and by customer. transmitted from one generation to the next. Culture is
Research suggests that customers value and respect pervasive, encompassing all the things consumers do
personal sources more than commercial sources (the without conscious choice. It is functional, giving order to
influence of “word of mouth”). The challenge for the society. It is learned from parents, teachers, and peers. It is
marketing team is to identify which information sources are dynamic, adapting to changing needs.
most influential in their target markets.
2. Social Factors: social factors that affect consumer  Family Members
buying decisions Social factors include family, reference  Relatives
groups, opinion leaders, social class, life cycle, culture, and  Co Workers
subculture. Consumers may use products or brands to
identify with or become a member of a reference group. All the above influence the buying decisions of
Opinion leaders are members of reference groups who consumers due to following reasons:
influence others’ purchase decisions. Family members also
influence purchase decisions; children tend to shop in They have used the product or brand earlier.
patterns like their parents’. Marketers often define their
target markets in terms of consumers’ life cycle stage, They know what the product is all about. They have
social class, culture, and subculture; consumers with similar complete knowledge about the features and
characteristics generally have similar consumption specifications of the product.
patterns.
Tim wanted to purchase a laptop for himself. He went to
3. Individual Factors: Identify and understand the the nearby store and purchased a Dell Laptop. The
individual factors that affect consumer buying decisions reason why he purchased a Dell Laptop was because all
Personal or individual factors include gender, age, family his friends were using the same model and were quite
life cycle stage, personality, self-concept, and lifestyles. satisfied with the product. We tend to pick up products
our friends recommend.
4. Psychological Factors: Identify and understand the
psychological factors that affect consumer buying A married individual would show strong inclination
decisions An individual’s buying decisions are further towards buying products which would benefit not only
influenced by the following psychological factors: him but also his family members as compared to a
perceptions, motivation, learning, and beliefs and bachelor. Family plays an important role in influencing
attitudes. These factors are what consumers use to interact the buying decisions of individuals.
with their world.
A consumer who has a wife and child at home would
1.4 Consumer as Social Being buy for them rather than spending on himself. An
individual entering into marriage would be more
Human beings are social animals. We need people interested in buying a house, car, household items,
around to talk to and discuss various issues to reach to furniture and so on. When an individual gets married and
better solutions and ideas. We all live in a society and it is starts a family, most of his buying decisions are taken by
really important for individuals to adhere to the laws and the entire family.
regulations of society.
Every individual goes through the following stages and
Social Factors influencing consumer buying decision can shows a different buying need in each stage:
be classified as under:
 Bachelorhood: Purchases Alcohol, Beer, Bike,
 Reference Groups Mobile Handsets (Spends Lavishly)
 Immediate Family Members
 Relatives  Newly Married: Tend to purchase a new house,
 Role in the Society car, household furnishings. (Spends sensibly)
 Status in the society
 Family with Children: Purchases products to
1.Reference Groups secure his as well as his family’s future.

Every individual has some people around who influence  Empty nest (Children getting
him/her in any way. Reference groups comprise of married)/Retirement/Old Age: Medicines, Health
people that individuals compare themselves with. Every Products, and Necessary Items. A Ford Car in the
individual knows some people in the society who neighbourhood would prompt three more
become their idols in due course of time. families to buy the same model.

Co workers, family members, relatives, neighbours, b.Secondary Groups - Secondary groups share indirect
friends, seniors at workplace often form reference groups. relationship with the consumer. These groups are more
formal and individuals do not interact with them on a
Reference groups are generally of two types: regular basis, Example - Religious Associations, Political
Parties, Clubs etc.
a.Primary Group - consists of individuals one interacts with
on a regular basis. 1. Role in the Society

Primary groups include: Each individual plays a dual role in the society
depending on the group he belongs to. An
 Friends individual working as Chief Executive Officer with
 a reputed firm is also someone’s husband and e.g. young people will always prefer Dove as a soap,
father at home. The buying tendency of whereas sports enthusiast will use Lifebuoy.
individuals depends on the role he plays in the
society. 3. Psychographic Segmentation- is one which uses lifestyle
of people, their activities, interest as well as opinions to
2. Social Status define a market segment. Psychographic segmentation is
quite similar to behavioral segmentation. But
An individual from an upper middle class would psychographic segmentation also takes the psychological
spend on luxurious items whereas an individual aspects of consumer buying behavior into accounts. These
from middle to lower income group would buy psychological aspects may be consumers lifestyle, his
items required for his/her survival. social standing as well as his AIO. Do refer more to
Activities, interest and opinions.

4. Geographic Segmentation- this type of market

II. MARKET SEGMENTATION segmentation divides people on the basis of geography.
Your potential customers will have different needs based
Market Segmentation – is the activity of dividing a broad on the geography they are located in.
consumer or business market, normally consisting of
existing and potential customers, into sub-groups of
consumers based on some type of shared characteristics. III. POSITIONING AND VALUE PROPOSITION

Main Bases of Segmentation Value propositions and positioning statements are part of
marketing strategies designed to differentiate small or
Geographic Demographic Behavioral Psychographic large companies from their competitors. A company's
E.g. E.g. “A level E.g. E.g. value proposition describes the benefits of its products and
“Customers and University “Customers “Customers services. A single value proposition may contain several
w/in 10 miles Students” wanting a who prefer to positioning statements, which are more focused messages
of M25” value for buy organic that form the basis of advertising campaigns.
money food”
impulse
buy” Value Proposition
Customer Age Rate of Personality Value propositions describe the functional and emotional
location Gender usage Lifestyles benefits of companies and their brands. Functional
region/urban Occupation Benefits Attitudes benefits are linked to specific product features, while
/rural Socio- sought Class emotional benefits refer to positive feelings that customers
economic Loyalty experience when using a company's products and
group status services.
Readiness
to For example, the functional benefit of a gardening tool
purchase could be the efficient removal of lawn weeds, but the
emotional benefit could be its ease of use by people with
knee ailments. Value propositions are not necessarily
Types of Market Segmentation about offering the cheapest products. They are about
convincing customers that they are getting value for their
1.Demographic Segmentation- is one of the simplest and money.
most widest type of market segmentation used. Most
For example, a consulting company may be able to
companies use it to get the right population in using their
charge premium rates for its services if it can demonstrate
products.
a record of accomplishment of cost savings and process
Variables of Demographic Segmentation: improvements.

1.1 age
1.2 gender Positioning Statement
1.3 family size
1.4 income Positioning statements flow from value propositions.
1.5 occupation Positioning statements should describe why customers
1.6 religion should use one product over another. For example, a small
1.7 race bakery's positioning statement could be its multigrain
1.8 nationality breads and custom-designed cakes that appeal to
customers who are looking for flavorful and creative
2. Behavioral Segmentation- this type of market products that are different from the standard mass-
segmentation divides the population on the basis 8of their produced items at big-box grocery stores. Correct
behavior, usage and decision making pattern. positioning could determine market-share gains and
profitability. In this case, the bakery is trying to position its
products in the market segment that includes customers
who want high-quality, high-priced goods. If it tries to
compete solely on price, it may not survive because
bigger companies can use their buying power to drive
down input costs. Companies should be prepared to
modify their positioning statements to respond to changes
in the business environment.
Considerations
Marketing strategies and advertising campaigns are
effective when value propositions translate into market
share gains. Successful advertising campaigns have
consistent messages across all media platforms, such as
television and the Internet. Advertising messages are
usually based on value propositions and positioning
statements. For example, if the value proposition of a
restaurant is its exclusive reliance on organic produce, its
advertising fliers and radio spots should highlight the
benefits of consuming organic foods.

References:

 Retrieved December 15, 2018

http://www.ccsfmarketing.com/consumer-
decision-making.html
 Retrieved December 15, 2018
https://www.managementstudyguide.com/socia
l-factors-affecting-consumer-behaviour.htm
 Retrieved December 15, 2018
https://smallbusiness.chron.com/positioning-
statement-vs-value-proposition-38299.html