Product Analysis: SWOT Audience Analysis: Demographics, Psychographics Ad Plan: Situation Analysis

Strengths/Weaknesses –What are the unique consumer benefits the product will deliver? –What is the value of the product relative to the proposed price? –Are adequate distribution channels available? –Can quality control be maintained? –Etc.

–Product life cycle Pioneering StagePioneering Stage Competitive StageCompetitive Stage Retentive StageRetentive Stage –Positioning Creating a Product for Selected MarketsCreating a Product for Selected Markets Positioning to Expand Brand SharePositioning to Expand Brand Share Opportunities

Threats CompetitionCompetition Other factorsOther factors

Consumer research is used to identify who the company’s consumers are, why they buy, what they buy, and how they go about buying certain products.Consumer research is used to identify who the company’s consumers are, why they buy, what they buy, and how they go about buying certain products. Audience Analysis

Target Market Organizations Design Specific Marketing Strategies to Reach Markets’ Needs Effectively Organizations Design Specific Marketing Strategies to Reach Markets’ Needs Effectively Group of People (Segment) Who Are Most Likely to Respond Favorably to What a Marketer Has to Offer & to Provide the Highest Level of Profitability. Group of People (Segment) Who Are Most Likely to Respond Favorably to What a Marketer Has to Offer & to Provide the Highest Level of Profitability. Ad Team Tries to Understand How & Why Consumers Think, Feel, and Behave

Target Audience: People with lawns that have weeds

Demographics Age Gender Education Occupation Income Ethnicity Geography Family size Demographics Age Gender Education Occupation Income Ethnicity Geography Family size Age People in Different Stages of Life Have Different Needs Age People in Different Stages of Life Have Different Needs Gender Primary - Physical or Psychological Traits Secondary – Associated With One Sex More Than the Other Gender Primary - Physical or Psychological Traits Secondary – Associated With One Sex More Than the Other Education Level of Education Influences Behavior as A Consumer Market Differently to Better- Educated Than To the Less Educated Education Level of Education Influences Behavior as A Consumer Market Differently to Better- Educated Than To the Less Educated Demographics

Occupation People Identify Themselves by What They Do Increase in White-Collar & Service- Related Jobs Occupation People Identify Themselves by What They Do Increase in White-Collar & Service- Related Jobs Income Must Have Resources to Buy Products Discretionary Income – Money Left After Taxes & Necessities Income Must Have Resources to Buy Products Discretionary Income – Money Left After Taxes & Necessities Race & Ethnicity Determine Differences Between Ethnic Groups By Measuring Differences In Their Lifestyles Race & Ethnicity Determine Differences Between Ethnic Groups By Measuring Differences In Their Lifestyles Geographic Location Study Patterns In Different Regions to Discover Variations in Purchase Behavior ofConsumers Geographic Location Study Patterns In Different Regions to Discover Variations in Purchase Behavior ofConsumers Demographics

Income Wealth Education Occupation Family Prestige Value of Home Neighborhood Marketers Assume That People in One Class Buy Different Goods From Different Outlets and For Different Reasons Than People in Other Classes. It is Determined By: Social Class

Opinions Needs Attitudes Hobbies Interests Values Personality Traits Personality Traits Activities Psychographics Refers to all the Psychological Variables That Combine to Shape Our Inner Selves

Personality Attitudes Learned Predisposition Vary in Strength & Direction Vary in Strength & Direction Reflect Consumers’ Values Reflect Consumers’ Values Collection of Traits Psychographics Makes People Individuals Self- Concept

Values Are Hard To Change, Are Internal, and Guide Behavior Values Are Hard To Change, Are Internal, and Guide Behavior Self-Respect Sense of Belonging Security Excitement Sense of Accomplishment Sense of Accomplishment Fun & Enjoyment Fun & Enjoyment Self-Fulfillment Respect From Others Respect From Others Warm Relationships Core Values

High-Involvement Decisions Spending a Great Deal of Effort on Expensive, Personal, Emotion-Laden Products i.e. Cars High-Involvement Decisions Spending a Great Deal of Effort on Expensive, Personal, Emotion-Laden Products i.e. Cars Low-Involvement Decisions Acquiring Products Purchased Regularly i.e. Milk Low-Involvement Decisions Acquiring Products Purchased Regularly i.e. Milk Amount of Involvement Low- and High-Involvement Decision Process

VALS 2

Motivation And Needs Motivation And Needs Habit Repeat Process Many Times & Continue to be Satisfied Repeat Process Many Times & Continue to be Satisfied Decision- Making Shortcut Decision- Making Shortcut Breaking Consumer’s Habit Is Difficult Breaking Consumer’s Habit Is Difficult Forces that Influence Behavior Forces that Influence Behavior Motive – Internal Force That Stimulates You to Behave Motive – Internal Force That Stimulates You to Behave Needs – Basic Forces That Move You to Act Needs – Basic Forces That Move You to Act Psychological Influences on Consumers

The accurate identification of product users can mean success or failureThe accurate identification of product users can mean success or failure Research is the key to successful target marketingResearch is the key to successful target marketing Ads are aimed at consumers with a rifle instead of a shotgun approachAds are aimed at consumers with a rifle instead of a shotgun approach Advertisers place more importance on lifestyle characteristics than on demographic factorsAdvertisers place more importance on lifestyle characteristics than on demographic factors We need to keep abreast of changes in population and understand consumer lifestyles, identities, and motivationsWe need to keep abreast of changes in population and understand consumer lifestyles, identities, and motivations Summary