Consumer Behaviour
C H A PTE R
CONSUMER BEHAVIOUR AND TARGET AUDIENCE DECISIONS
3
Chapter Objectives
• To understand the consumer decision-making process and how it varies for different types of purchases. • To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. • To understand the similarities and differences of target market and target audience. • To understand the various options for making a target audience decision for marketing communication.
Marketers Seeking 50-Plus Consumers
Nintendo is famous for its video games. DaimlerChrysler features a wide selection of car brands. Tabi is known for its classic women’s clothing. While seemingly unrelated, these brands have recently shared a similar strategy. As these established companies expanded beyond their current customer base, each brand attempted new marketing communication programs containing a more emotional message aimed at the 50-plus demographic. The 50-plus crowd not only is a sizable market, but also is a very lucrative one; they control 55 percent of all discretionary spending in Canada due to their relatively high net worth. And while the brands all looked toward the fifty-plus market, additional segmentation based on an understanding of consumer behaviour revealed subtle differences in their approach. For Nintendo, the saturated youth market proved to be a no-growth avenue. With industry sales hitting the billion-dollar level, penetration levelling off at 30 percent of Canadian homes, and research indicating that 75 percent of teens perceived lower interest in gaming, Nintendo looked to new users. However, convincing 50-plus consumers of the value of buying a device to play “brain-training” games like Sudoku on a hand-held device appeared to be a significant communication challenge because these consumers use iPods, cell phones, and PDAs. DaimlerChrysler marketed its new vehicles— the Chrysler 300, Dodge Magnum,
CONSUMER BEHAVIOUR AND TARGET AUDIENCE DECISIONS
3
Chapter Objectives
• To understand the consumer decision-making process and how it varies for different types of purchases. • To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. • To understand the similarities and differences of target market and target audience. • To understand the various options for making a target audience decision for marketing communication.
Marketers Seeking 50-Plus Consumers
Nintendo is famous for its video games. DaimlerChrysler features a wide selection of car brands. Tabi is known for its classic women’s clothing. While seemingly unrelated, these brands have recently shared a similar strategy. As these established companies expanded beyond their current customer base, each brand attempted new marketing communication programs containing a more emotional message aimed at the 50-plus demographic. The 50-plus crowd not only is a sizable market, but also is a very lucrative one; they control 55 percent of all discretionary spending in Canada due to their relatively high net worth. And while the brands all looked toward the fifty-plus market, additional segmentation based on an understanding of consumer behaviour revealed subtle differences in their approach. For Nintendo, the saturated youth market proved to be a no-growth avenue. With industry sales hitting the billion-dollar level, penetration levelling off at 30 percent of Canadian homes, and research indicating that 75 percent of teens perceived lower interest in gaming, Nintendo looked to new users. However, convincing 50-plus consumers of the value of buying a device to play “brain-training” games like Sudoku on a hand-held device appeared to be a significant communication challenge because these consumers use iPods, cell phones, and PDAs. DaimlerChrysler marketed its new vehicles— the Chrysler 300, Dodge Magnum,