MMGT 104 - Advertising Consumer Behavior PDF

MMGT 104 - ADVERTISING JOSEPHINE N. BIADORA, MBM What is Consumer Behavior? It refers to the study of how individuals, groups, or organizations make decisions related to the acquisition, use, and disposal of goods, services, ideas, or experiences. It encompasses various factors, including psyc...

MMGT 104 - ADVERTISING JOSEPHINE N. BIADORA, MBM What is Consumer Behavior? It refers to the study of how individuals, groups, or organizations make decisions related to the acquisition, use, and disposal of goods, services, ideas, or experiences. It encompasses various factors, including psychological, social, cultural, and economic influences. Understanding consumer behavior helps marketers and policymakers create effective strategies that resonate with people’s minds and hearts. Factors that influences consumer behavior CULTURAL FACTORS Culture: Values, ideas, and attitudes learned and shared within a group shape behavior. For instance, cultural norms dictate wedding attire (e.g., red for Hindu brides, white for Christian brides). Subculture: Environmentalists, bodybuilders, and other groups with shared values impact consumer choices. Factors that influences consumer behavior SOCIAL FACTORS Family: Family members influence preferences and buying decisions. Reference Groups: People look to others for guidance. Reviews, testimonials, and social media play a role. Roles and Status: Social roles (e.g., parent, student) affect needs and behaviors Factors that influences consumer behavior PERSONAL FACTORS Income: Personal and family income impact affordability and preferences. Lifestyle: Hobbies, interests, and daily routines shape choices. Age and Occupation: Different life stages and professions lead to distinct preferences. Factors that influences consumer behavior psychological FACTORS Perception: How consumers interpret stimuli (e.g., ads) affects behavior. Motivation: Needs, desires, and goals drive decision-making. Attitudes and Beliefs: Evaluative judgments about products influence choices. Factors that influences consumer behavior situational FACTORS Market Economy: Economic conditions affect consumer confidence. Corporate Policies: Company practices impact perceptions. Environmental Factors: External events (e.g., pandemic) alter expectations. The Consumer Buying Process Problem Recognition Information Search Evaluation of alternatives Purchase Post Purchase Evaluation Consumer Behavior Model EMOTIONAL APPEALS vs. RATIONAL APPEALS Emotional Appeals: These ads evoke feelings, resonate with viewers, and create a memorable experience. Emotions are processed more quickly than rational thought, capturing attention and enhancing recall. Rational Appeals: These focus on facts, features, and logical arguments. While they have their place, emotional appeals tend to be more influential.  CREATING EMOTIONALLY RESONANT ADS 1 2 3 4 Understand Craft Use visuals Maintain their compelling and music to emotional emotions, stories evoke consistency desires, and around your specific across all pain points. product or emotions. touchpoints. brand.  target audience identification PROCESS: Identifying the specific group of people Market Research or organizations that a product, Buyer Profiles service, or campaign aims to reach. Segmentation Criteria  GEN Z GEN Y HOUSE HUSBANDS 10% HIGH SCHOOL SOSYALS 8% & WAIS CITY PARENTS 42% MASIKAP HUMBLE ACHIEVER Market 28% Segmentation SUCCESSFUL ENTREPINAYS 12% Dividing the overall market into smaller, distinct segments based on shared characteristics. types of Demographic segmentation Demographic: Age, gender, income, education. Psychographic: Interests, Psychographic Buyer Behavioral values, lifestyle. Behavioral: Usage patterns, loyalty, benefits sought. Geographic Geographic: Location, climate, culture. CRITERIA FOR SEGMENTATION Homogeneity: Common needs within a segment. Distinction: Uniqueness compared to other groups. Reaction: Similar response to marketing efforts. EVALUATING THE EFFECTIVENESS of SEGMENTATION: key metrics Conversion Rates (make a purchase or sign up) Customer Lifetime Value (total value a customer brings over their entire relationship with you) Segment Profitability (revenue vs. cost) Market Share (how much of the market it represents)  Conclusion Mastering consumer behavior and audience segmentation is essential for creating impactful advertising strategies. By understanding the psychological and social factors that influence consumer decisions, advertisers can craft messages that resonate deeply, enhancing brand loyalty and engagement. Effective segmentation allows for precise targeting, ensuring that campaigns reach the right audiences with tailored messages. As the advertising landscape evolves, staying attuned to consumer trends and leveraging data-driven insights will be crucial for maintaining relevance and achieving marketing success.  Group Research Article Presentation on Consumer Behavior Form Groups of Three: Choose a research article from the attached list. Comment your group members and chosen article title in the comment section. Prepare a Report Presentation: Follow the outlined structure to present the article in class. Focus on the research problem, methodology, key findings, implications, and critical analysis. Submit Presentation: Upload a copy of your presentation slides (PowerPoint or PDF) on the submission page by 09.09.2024, Monday. Present in Class: Be prepared to present and discuss your findings on 09.10.2024, Tuesday.