February 19th Notes

Advertising 250 February 19th, 2009 KNOW FOR EXAM Consumer Behavior: 4 stages of consumer. READ IN BOOK Need and want: definitions Maslows Hierarchy of Needs Internal and External Search Evaluation Criteria 4 Modes of Decision making (extended problem solving) Attitudes, brand attitudes, and beliefs Chart: what else effects consumer Pg. 185-204 -Culture, values, family, reference groups, brand groups ______________________________________________________________________ Segmentation: break into little bits to hit a target audience, break down large, diverse market into more manageable sub-markets or customer segments, bunch of different ways*product usage -heavy users -medium users -light users -depends on business but above can be fragmented to be more specific *by commitment levels -brand loyal users -nonusers -switchers or variety seekers -emergent consumers (developing brand preferences) Demographic segmentation -age -gender -race -marital status -education -income -occupation Psychographics -attitudes, interests, and opinions -term introduced in 60?s to supplement demographic data (who but not about) -emphasizes consumer activities, interests, and opinions -goal is to reveal insights into consumer lifestyles -helps create advertising that taps into, lifestyle segmentation, relevant to consumers *VALS VALS: SRI Consulting Values and Lifestyle www.sric-bi.com *Benefit Segmentation -people want different things from the same product -bottled water -quench thirst -replenish body fluids -healthy drink -refreshment -taste -natural drink *Geographic Segmentation -Segment markets by chunks of territory -region -state or province -city -neighborhodds *PRIZM Be Creative in segmentation *dog food manufacturer segments by own relationship with dog -friend/partner -family member -pet -animal Target Segment *The subgroup (of the larger market) chosen as the focal point for the marketing program and advertising campaign *target segment or target market or target Identifying the Key Target Segments *What criteria can we use? 1. Segment need/want and ability to deliver against that need/want 2. Segment size and growth potential 3. Competitive field Targeting does not automatically mean you are being exclusionary to other groups! Relates to product: *Feelings/attitudes/beliefs about product or category *Drivers toward purchase *Role of product in life Starbucks double shot Targeting-our real challenge Bring target to right audience Positioning *Concept brought February 24, 2009 4 ways to think about positioning 1. Positioning graph 2. Positioning statement ex. Chi Chi?s is the restaurant that provides customers with a real Mexican experience *Krispy Kreme is the old-fashioned donut shop experience *M&M?s is the fun candy for people of all ages *Papa John?s is the bes quality delivery pizza 3. Positioning ?handle? or ?shorthand?: Snickers-hunger satisfaction Sheba-Luxurious dinner Michelin Tires-Security -to revive Dan?s key elements for positioning -simple, and understandable -distinctive -relevant to consumers -can the product/service deliver 4. Positioning strategy *Starbucks is successfully in the traditional district in Seoul now. *Starbucks understood what consumers expect when they visit the district *How ill you make consumers more receptive to your product? *To successfully launch new advertising you need to learn about consumers *Advertising research can help to understand target audiences here One more important reason for using advertising research *more than 290.3 billion worth of advertising gets spent in the u.s each year Advertisers want to know whether their investment in advertising is worthwhile Role of ad research *help a marketer determine target audience *help creative team understand audience members *help to make go/no go decision *estimate the effect of an ad campaign *evaluate the performance of an agency Expected outcomes from advertising research *When you use advertising, you are reaching so many audiences with large investment *Minimize risk of saying wrong thing or misrepresenting brand *Maximize effectiveness: message communication and is the message right for the target? Research in daily life? When you buy a bottle water, what do you usually do? Drink it Types of Research In general *Primary (New Research) -original research we conduct on our own with a specific purpose in mind -focus groups, interview surveys, participant observation, ethnography (you doing the research yourself) *Secondary (info previous collected) -existing research collected for other purposes and available for you: database searches, statistical abstracts, magazines, research conducted by others, etc (read magazines about automobile or read consumer reports) *Quantitative -systematic information-gathering activities which result in analysis of numerical data collected form a sample; such research includes sample surveys, experiments, analysis of sales data -generalizable but not predictive of consumers? behavior How often do you commute to campus? Number ranked 1-5 *Qualitative -those systematic information-activities which do not involve the assignment of numbers to results, includes focus groups one-on-ones, observation -Directional, non-generalizable Developmental Research Types of advertising research Developmental *to generate advertising opportunities and messages *to help creatives to understand the target audience Something you need to make sure whether it is a good research Quantitative research *Reliability: produce a consistent result *validity: are you measuring what it intends to measure It is especially important criteria for quantitative research Qualitative research *trustworthy: can you trust data? To what extent? *meaningfulness? what does a piece of research really mean? what are implications of consumer?s words> *it is especially important criteria for qualitative research February 26th, 2009 WHY? :purposes of developmental ad research Audience definition and profiling *creatives need to know as much as they can about the people to whom their ads will speak Demographic *environmental analysis Social and cultural environment *Idea Generation is to invent new and meaningful ways of presenting an advertised good or service to a target audience To foster fresh thinking about a brand *brainstorming sessions with customers *Extended interview with customers *Concept testing seeks feedback designed to screen the quality of a new idea -to get feedback on new product on advertising ideas *focus group *survey research for more generalizable feedback Now we know generating ideas and doing concept testing are important purposes of using developmental advertising research, then how can we do developmental ad research *focus group is for in-depth discussion with consumers Professional moderator guiding the discussion with 6 to 12 target customers Goals of focus group -to get or test a new idea and gain depth of information -greater depth of information allows for a greater understanding of the context of actual usage *projective techniques