Chapter 4: Detailed Outline

I. Targeting
     - Targeting a specific audience is the key to all Marcom decisions (targeting, positioning, setting objectives and budgeting).
     - Targeting allows to:
          • More precisely deliver the messages
          • Prevent wasted coverage to people falling outside the targeted market

II. Consumer Characteristics
     - The audience characteristics influence what people consume and how they respond to Marcom. These characteristics can be measured through 4 different strategies:
          • Behaviorgraphics
          • Psychographics
          • Demographics
          • Geodemographics

III. Behaviorgraphic targeting
     a. Definition
     - Targeting based on people’s behavior, with respect to a particular product category or class of related products, through:
          • Online search activity.
          • Past purchase behavior: the best predictor of one’s future behavior is his/her past behavior.
     b. Method
     - Audience Management Systems track internet users’ surfing behavior in order to target them with specific advertisements.
     c. Privacy concerns
     - Web surfers are most likely to be targeting by ads of products that are relevant to their interests, which means that the privacy of consumers can be invaded.
     - The harm is that the Big Brother might be watching us.

IV. Psychographic targeting
     a. Definition
     - Targeting based on:
          • Psychological makeup.
          • Lifestyles including attitudes, values and motivations.
     b. 4 types of consumers (bank case)
          • Worried Traditionalists
          • Bank Loyalists
          • Secured Investors
          • Thrifty Bankers
     c. Cultural map of types
          • Individualists
          • Fatalists
          • Hierarchists
          • Egalitarians

V. Demographic targeting
     a. Definition
     - Targeting based on measurable population characteristics such as age, ethnicity and income.
     b. Considered Factors
          • Age structure of the population
          • Changing household
          • Ethnic population development

VI. US: VALS Segmentation
     a. Innovators
     - Successful, sophisticated people. They are characterized with high self-esteem. They are change leaders and most receptive to new ideas and technologies.
     b. Thinkers
     - They are motivated by ideals. They are mature, satisfied, comfortable and reflective. They are well-educated and well-informed about the world.
     c. Believers
     - They are motivated by ideals. They are conservative and conventional. They are people with concrete beliefs who act based on traditions and value family, religion, community and the nation.
     d. Achievers
     - They are motivated by achievement. They are goal-oriented and socially mobile. They value predictability, consensus and stability over risk. They are politically conservative and respect authority and status quo.
     e. Strivers
     f. Experiencers
     g.
     h. Survivors

VII. Geodemographic targeting
     a. Definition
     - Based on demographic of consumers who reside with a specific geographic cluster.
     b. Bohemian mix:
     - Young and mobile urbanites that represent the nation’s most liberal lifestyles.
     - They are more likely to be early adopters.