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Overview of Advertising

UNIT 2 : UNDERSTANDING THE TARGET


AUDIENCE1
Structure
2.0 Introduction
2.1 Learning Outcomes
2.2 Receivers as Target Audience
2.2.1 Advertising Communication Process
2.2.2 Theoretical Foundations of Audience
2.3 Audience Motivations
2.3.1 Types of Motivations
2.3.2 Needs and Motives
2.3.3 Rational and Emotional Motives
2.3.4 Consumer
Coonsum
mer Decision Making Process
2.4 Ma
Mark
rket
e Seg
et
Market e meent
ntat
ation
Segmentation
2.
.4.1 Ne
2.4.1 eed
e fo
Need or M
for arrket S
Market egm
menttatioon
Segmentation
2.4.2 Bene¿ts
Beene¿ts off Audiences
Audieencess Segmenting
Au Seggmeentinng
2.5
25
2. Types
Ty
T Audience
ypes of Au
A Segmentation
diencee Seg
egmentat
eg a ionn
2.5.1
2. Geographic
Ge Segmentation
eographic S e me
egm nt
ntaationn
2.5.2
2. Demographic
De Segmentation
emographic Se
Segm
gmen
enta
tation
2.5.3
2. Geo
Ge -Demographic
eo -Demog
ograaph
og Segmentation
phicc Seg
gme
m nttatio
on
2.5.4 Behavioral
2.5.44 Be Segmentation
ehaviorall Seg
gment
n at
atio
ionn
io
2.5.5 Psychographic
2.5..5 Ps Segmentation
sychographic Segm
g entation
2.6
2. 6 Target
Target Ma
Marketingg
2.6.1 Cr
Criteria
i eria ffor
rit Effective
or Effe
fecctiv Targeting
ivee Targ
iv Targ
getin
ingg
in
2.6.2 T
Target
Tar
arget Audience Identi¿cation
2.6.3
263 T Target Marketing in the Digital Age
2.7 Let Us Sum Up
2.8 Check Your Progress: Possible Answers
2.9 Further Reading
2.10 Glossary

2.0 INTRODUCTION
Advertisers value exclusive audiences. Stimulation of demand, increase in
visibility and creation of purchase intent are the key advertising objectives.
The biggest challenge is, reaching out to the right target audience. An
advertising campaign is not directed at everyone, it is intended for a group of
people clubbed together on the basis of certain commonalities that share or
can potentially share a functional or emotional relationship with the product.

Unit 2 Writer : Dr. Kulveen Trehan


42
This group of people, classi¿ed on the basis of speci¿c characteristics or Understanding the Target
properties is called, the ‘target audience’ in advertising. Audience

In order to ¿nd this ‘group of people’, it is important to understand the


nature of audiences in the process of advertising as communication. In this
Unit, we shall explore target audience under the umbrella of integrated
marketing communication.

2.1 LEARNING OUTCOMES


After working through this Unit, should be able to:
Ɣ Understand the nature and characteristics of audiences in advertising
Ɣ Learn the theories and models of target audience composition and
identi¿cation
Ɣ Know about different kinds of consumers
Ɣ Gain insights into various types of market segmentation
Ɣ Use various segmentation strategies in campaign planning and
development

2.2 RECEIVERS
RE
ECEIVERS AS
AS TARGET
TARGE
ET AUDIENCE
AUD
DIEN
NCE
Iden
Identi¿cation
enti¿ccat
en atio
i n ooff ta
io target
argett auaaudiences
udienence
en c s ccreates
reatees be
bbetter
tterr re
return
etuurn on ad advertising
dvertissing
investment
innvesttment nt ass it rreduces
educes w wasteful
a teefu
as f l eexpenditure
xpenndit
itture on cre creative
reativ iv
ve aand nd me media
edia
mixes.
mixex s. A
xe Advertising
dver
e tisingg lleakages
er eakages i. ii.e.
e adv
e. advertising
d ertisin
dv ng mmessage
essage goigoing
oiing to un uunintended
inttendded
audiences
aud diencees cacan
an be hharmful.
armf
m ul
mf u . It ccan an ttrigger
riggerr a negative af
ri affect
ffe
fect amongst
ctt am monggst the
intended
inntended aaudiences
udiences ((Dahlen
D hllen & S
Da Shojin, 2013).
h jiin, 201
ho 13)
3 . Knowing th the
he target aaudience
udience
before
beefore the conconceptualisation
once
on cept
ptualiisas tion
on of a ca campaign
ampaiign makess the ccreative r attiv
re ivee teama use se
the
th relevant
he relevavantt m
va message
essage th theme
hemee (in ter terms
rms idea/story
m off thee idea/s ory oorr th
/ to situation),
thee situatio
i on)
n),
),
advertising
advevertissing apappeals
ppeals (b (based
bas
a ed d onn au audience
udi motivations)
diencee mot o ivationss) cr creative
creaeatitive
tive elelements
le ent
leme ntss
((headlines,
(heaadl
d in
nes, cocopy,
opy visuals
p , viisu
suals in n print
riint aads
pri d andd spoken
ds o en copy,
spok y music,
musicc, VO, VO scenes,
scennes,
SFX,
SFFX, VFX,
VFX X, jingles andd cameramera shots
c me
ca sho
hots
ho t in audio
a dioo –visual ads).
au ads)).
Deep
De ep iinsights
nsight
htss in
ht to ttarget
into arrge audiences
gett audiene ce
ences also n makingg eeffective
s help in
so ffeectiv media
ivee me
iv meddiaa pplans.
lan
ans.
ans.
Who
W
Wh o is tthe
he audience de
he de¿nes
de¿n¿neses the m
media
edia vehicle
veh where
hicle wh
herer thehe aadvertisement
dveerttisseme
dv mennt
me nt
should
sh
hou
o ld be plpplaced.
e . Itt aalso
acced lsoo helps in arriving at iinnovative
ls nnovativ
ivee m
iv media
edi
dia ch
di choices
choi
oiices an
and
scheduling
scheduduli
ling
ng strategies forr bran brands.
br
ran
a ds
d . No wonder, market strategy that deals with
understanding
understandin i g target markets and classi¿cation of target audiences comes
prior to message and media strategy in an ad plan. Many a times an audience
study leads to ¿nding a new target segment to advertise to. It reminds us of
the famous quote by Leo Burnett “advertising is selling cornÀakes to the
people who are eating cheerios”.
2.2.1 Advertising Communication Process
Advertising as communication has often been studied from information
processing view i.e. how audiences process information encoded in an
advertising message. Various information processing models have described
the communication between the advertisers and audiences through mass
media. Earliest being the St Elmo’s AIDA model. American advertising and
sales pioneer Elias St. Elmo Lewis coined the phrase AIDA in1899.

43
Overview of Advertising

Fig 1: The AIDA Model


Lewis talked about “catching the eye of the reader to inform him, to make
a customer of him.” The model explains how the audience or recipient of
advertising processes information and responds to the advertising product in
his/her decision making process. To begin with,the advertisement is created
with the intention to gain attention of the audience. After catching the eye,
the advertisement through mascots, celebrities, stories aims to pique the
interest of the audiences so that bene¿ts, attributes of the product can be
conveyed to build desire for the product in the advertised mind which will
prompt an action, immediate or delayed towards purchase or consumption
of the product
Receivers
Situating Recei erss in Advertising Communication Process:
eiv
Advertising suf¿ suf¿ces
f¿cess to iinform,
f¿ n orm,, ppersuade
nf ersuade and remind people about a good or
a service.
servicce. Th Through
hrouugh aadvertising,
dveertisi sing, a sp
si ssponsor manufacturer/producer)
onnsorr (aa manuf fac
a ture reer/
r/produccere ) aaims
imss
t comm
to communicate
municcatee withh grgroups
rouups ooff au audiences
udid en regarding
ncess reg gard din
i g thtthee na
nature,
atu attributes,
t re, attrrib
i utes,,
usse andd ef¿c
use ef¿cacy
caccy of a pproduct.
rodductt. Wh When
hen it eentails communicating
ntaiils co omm mun unicaating w with
ith large
h laargee
number
num mberr of au audiences,
udien mass
e cess, m asss memediad a sserves
edi ervees aass th
the channels
he chann nelss of co ccommunication
mmmunnic i attionn
wwhereas
herreae s for a ni ggroup
niche gr ouup orr set ooff aud audiences,
dien interactive
ncess, inte eracctive m media
edia aacts
c s ass tthe
ct h
he
conduit.
co ondui Therefore
u t. The
ui erefo
fore advertisi
fo advertising siing iiss bo
both m mass
ass communication and interactive
communication
com mmun unicattio
i n depending up upon the hee nature and extent of audience reach.
Advertisers
Ad channels
dverttisers usee channe nels
ne ls ooff mamass ss ccommunication
o mu
om muninica
ni cati
ca tion
tion too di diffuse
diffffus
usee de
us deliberately
delibe era
rate
tely
te ly
constructed
co onstrruc u ted memessages
essages inn order
orrdederr to persuade
per
ersu
s adde thethe audiences
audi
au dieencees and
di and gain
ga AIDA AID
IDA A
from
fr rom m them.
them. In a global world,
world d, advertising
ad
dve
vertrtis
rt i g shifts
isin
is i tss from
shif fro
rom m clusters
clus
cl ters of consumers
ustter
us cons
co nsum
ns umer
um ers
er
ttoo integrated
int
n eg
nt e rate stakeholders
ted staka eholders and the audience becomes co-creator of content
participating
pa arttic
i ipat actively
atiing ac
at ctively inn thtthee pr
pprocess
ocesss off ccommunication.
oc ommu
om muni
mu nica
ni cati
ca tion
tion. Be
on Beyond
Beyo y nd tthe
yo h pprocess,
he roce
ro cess
ce ss,,
ss
itt iiss a unique
unique formo m of communication
for commu muni catiionn bboth
niica othh crea
ot ccreative
rea
eati ve aand
tive
ti nd ccommercial
omme
om merc
me based
r iaal ba
rc aseed
on tthe h maxim ooff freedo
he freedom
om of m marketplace.
arke
ark tpla
tplaacee.
Advertising
Advertising ass Persuasive Communication:
As opposed to all communication is persuasive,
persuasive G.R.
G R Miller recognized
speci¿c communicative acts that lead to a pre determined element
in persuasion. Advertising falls under the de¿nition of persuasive
communication as the ad messages intend to shape, reinforce or change the
responses of others (Stiff & Mongeau, 2016).
Advertising as persuasive communication underlines the deliberate intention
behind creation of message. Vance Packard (1957) calls advertising a
hidden persuader stressing upon the persuasive nature of the creative
communication in both explicit and implicit ways.
Advertising as Social Communication:
Advertising is social communication as it recognises the interplay between
society, audiences and ad messages. Advertising mirrors a society when it
employs symbols, words and visuals to portray prevailing societal values
and norms. The audiences are not an aggregate of individual consumers
without any social context but are in fact immersed in their social setting
44
w.r.t. site, class and identity. Understanding the Target
Audience
'H¿QLQJ$Xdiences
Rossiter & Percy (1985) in their advertising communication models say
“a target audience consists of people who will be most responsive to
advertising”. As mediated communication evolves audiences too need to
re-de¿ned. Existing paradigms in mass media contend that audiences are
receivers towards whom the message is directed. However, the economics
of media industry presents to us many ways of describing the audience
i.e. Audience as a Product and Audience as a Consumer. In a business
organisation when a manufacturer produces a good or a service (product)
for consumers who are likely to buy it,the audience means consumer who
is a potential buyer. So in this case audience is the consumer. Now consider
the case of a TV channel, here the TV channel produces the audiences by
using its programmes for the advertisers. The advertisers buy the audiences
of the TV channel and the channel gets the revenue. The TV channel
must satisfy its consumers i.e. the advertisers
advertiserrs in this case. Now consider
an OTT platform (NetÀix, Amazon prime et etc.).
tc. produces
c ). It prroduces or distributes
programming for the subscribers. The subsc subscribers
cri rs aare
r bers r thee aaudience
re udieenc
ud nce wh
whoo
these
watch thhes programmes
esee prog
o ramm
mmese aand
es nd the OTT generates
T gen
ner
e at revenue.
ates reevennue..
Previously
Prev
ev
vio
iouslyly tthe concept
he con
he c pt ooff mass
nce maas audi audience was
iencee wa
w relevant.
as reelevvant Schramm
nt. Scchrammm in his
model of
mo o m mass
ass communication
com mmunicat atio
at ((ass quoted
i n (a d by
quuoted y Baran,2010)
Barran,,20010) refers
referrs too mass
mass
aaudience
udiien
e cee as a compcomposite
posite of m many
an ny rreceivers
eceiv involved
verss invvolveed iin the
n th pprocess
he pr occesss off
decoding,
dec
codingg, in interpreting
nterrpretitingg aand encoding.
nd enc codin ng. ThThe
he iindividual
ndivid
idua
ual rereceiver
rece
ceiv er is ffurther
iver
iv urtthe
herr
connected
onnecteed to a bbunch
co unch where
ch whehere
r the m message
esssa being
sage iss be decoded
eing decode acted
ed andd acteed upon.
But
ut in the convergent
Bu con
onnve
verg era as tthe
rgeent er he ddistinctions
istinc between
nctionns beetween media er erode
d tthe
ode he nature
and
an characteristics
nd char r stics of aaudience
arracteeri udieence is i bbeing
eing rreconsidered.
ei econ
o sidered.d MMass audience
ass au dience hhas
audi
di ass
now made
w ma ade way ay for audaudience fragmentation.
diencee fragagmeentatio on.
2.2.2
2 2.22 Theoretical
2. Theo
Th Foundations
e retiical Found
ndat ions ooff A
datio
io Audiences
udi
d encees in Advertising
Thee bedrock
Th b droc
be ockk of aaudience
udie
ud ienc
ncee desc
nc descriptions
scri
sc riiptions communication
nss is the commun
unicat
atio
at theory
on th
the
eory when
ry w henn
he
applied
appllie o advertising ppractice.
iedd to ract
ra ctic
icee.
ic
• Stern’s Multidimensional
Mult
ltid
idimension
id onaal Model of Advertising:
on A vertising:
Ad
Barbara StStern
tern (2013)
(201
(2 013) in her model of advertising describes how
advertisers, agencies and audiences communicate in an interactive process.
It is a postmodern theory to create a model of commercial text based
communication. Stern identi¿es three dimensions of three key elements
S-M-R in the advertising communication process.
The sender is of three types:
a) The Sponsor: It is the identi¿ed sponsor or the advertiser that intends
to initiate the process of communication with the receivers through
its ads. It is the one that decides to reach out to the audience with ads,
pays for the advertising and is responsible for the legal and ethical
conduct of the ad.
b) The Author: Authors are the ad makers or the message creators.
It is the creative and the media team in the advertising agency that
visualises and creates and places the advertisements. The agencies on
being hired by the sponsor assign authorship of a brand to a team of
copywriters, artists, production and media planners. Collectively, they
45
Overview of Advertising are the authors.
c) The Personna: It is the face of the advertisement. It is the entity
created by the author to diffuse the message; the protagonist,( a model,
an actor or any famous person) who presents the ad message to the
audience.
Message too is multidimensional
a) Autobiography: When the advertisement is presenting the story of
an individual or a group in a ¿rst person format. When the persona on
screen is telling its own story to the audiences.
b) Narrative: When the persona is presenting the view of others in the
message. It is telling the story of other people in third person format
to the audiences.
c) Drama: Here the actors in front of the audience play out their parts,
characters to tell the brand storyy directly
y to the audience. The audiences
are vicarious
vicariiou participants
o s pa
part
rtic
i ipants in the message sans any narration.
Three types of receivers:
r ceiv
re iver
erss: This model considers the active role of audiences
making
in makin meanings
ng m ean from
nings fro
om ththe messages.
he ad messaagess.
a
a) Implied
Im Receivers:
mpliedd Re
R verss: iiss th
ceiv the imagined
he ima audience
aginned aud that
diencce th
hat is ideally
i iddeally receptive
y rec
cep
e tivee
to message.
o the m esssagee.
b
b) Sp
ponsoorial
a Re
Sponsorial eceivvers:: Ar
Receivers: A
Aree th
the spponnsorrs’ pe
sponsors’ ersonnnell th
personnel tthat
at app
pppro
rove tthe
approve h
he
ad mes
messages.
ssage
g s. They aare
re ¿rst
¿ st in
¿r in li
line receivers of the communication
created
cr d fo
or the brands
for ds.
brands.
c) Ac
A tuall Rec
Actual e eivers
Receivers:rs:: iiss th
rs the ta
targ
rget
rg et ssegment
target egme
ment
me nt iidenti¿ed
dent
de nti¿
nt i¿
¿ed ffor
or a particular
par
artticula
larr ad
la
message.
m ssag
me a e. It is obt
ag obtained
taineed ththrough
thro
roug
ro ughh a sy
ug systematic
syst
stem
st em
mat
aticic pprocess
roce
cess
ce ss ooff cconsumer
onssum
umeer
research.
researa ch. It is this aaudience
ar uddienc
ie ce whwhich
whicichh iss aimed
ic ed aatt vi
via message
ia m ess
ssage an
ss media
andd me
medidiaa
di
strategy. Also,
straategy. Al
A so, the effectiveness of advertisingg is measured ed in terms of
the
th receivers’
he actuall receive ers’ re responses.
resp
ponnses.
• Elaborate
Elaboratte Likely Hood
ly Hood
oo Model
d Mo
M ode
del (E
de (ELM)
ELM
LM)
As an advertising
i g scholar, it is important to understand the various ways
advertisin
in which audiences process ad messages
messages. The involvement of the target
audiences decides the type of message appeals. In the Elaborate Likely Hood
Model (ELM) was propounded by Richard. E. Petty and John. T Cacioppo
in 1986 (quoted by Durmaz, Suher & Bir, 2016). According to this model,
there are two routes (ways) through which audience process communication
in advertising: the central route of persuasion (CRP) and the peripheral route
of persuasion (PRP) .If a product or the brand complements the audience
motivation it will lead to high involvement of the audience thereby leading
to central route of persuasion. In the central route of persuasion the audience
seeks information from the ads, there is a likely hood of more elaboration
needed from advertising content. This calls for use of rational appeals in
advertising.
If the product or the brand does not complement or converge with the
motivation, it leads to low involvement. Therefore the ad message is
processed through peripheral route of perception i.e. rather than seeking
46
information and elaboration, the emotional mind is persuaded to. The ad Understanding the Target
messages use emotional appeals to create a favourable attitude towards to Audience
the ad to create positive perception for the brand that results in purchase
intention. The model proposes an elaboration continuum based on factors
like audience motivation, ability to process, involvement and issue relevancy
(Durmaz, Suher & Bir,2016).
Check Your Progress: 1
Note: 1) Use the space below for you answers.
2) Compare your answers with those given at the end of this unit.
1. What is the AIDA model"
..............................................................................................................
..............................................................................................................
..............................................................................................................
2. Target Audiences’
De¿ne ‘Target Audiences in the advertising communication process.
................................................................................................................
..............................................................................................................
................................................................ ...............................................
..............................................................................................................
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..............................................................................................................

2.33 AU
AUDIENCE
UDIENCE MOTIVATIONS
MOTIIVATIO
ONS
S
The
T he uuses
sess andd grati¿cation theor theory
ory th
or throws
hrow ws lig
light
ightt on th
the
he aaudience
udiien
ence m motivations.
o ivaatio
ot ons.
In the
the UGUG construct
c nsstrucct au
co audiences
audid ences are ac media
active med consumers
e ia consume m rs who
me ho ar are
re wwell
ell
ll
aware
ware off ttheir
aw heir nneeds
eedsdss aand
nd m motivations.
otivatationss. They y uuse consume
se or consum
um satisfy
me to satis sfy
f their
needs
ne
eeds or to ac achieve
achi
hiev pre
evee pr determined
re detet rmin
te ned ggoals.
oals. It directs their ch choice
hoiice of media
content,
co n ent,, cchannel
ont n el and fformat.
haann ormaat. InIndividual
ndivididual aaudience
id udi members
d ence mem bers hhave
e be
em ave va
av vvarious
riiou
ouss
media
me d a aand
edi nd nonon
on media ssources
ourcces ttoo ggratify
ratify ttheir
ra i needs aand
heir ndd mmedia
ediaa ccompetes
ed ompeete
om tess
with
w
wi th other
h oth her
e sousources.
o rcess. H
ou Hedges
edgges aapplied
ppli ied it tto
lied o aadvertisingngg eemphasising
dvertising m ha
mp hasi
sisi
si sing
si ng uupon
p n
po
the
th need
he ne e tto
eed o explore wh what a cconsumers
hat mers ddo
onsuume o withh advertisingg more than what
advertising
adve
ad veert
r isinng do es tto
does them.
o th
themem. Ea
em Each consumer
ach consu s mer ex
su expects advertising
xpects ad
adve ng too pprovide
erttissin ro
ovidede
aesthetic,
aestthe
hetitic,
c, intellectual and em emotional
mototionaal rewards ((lannon,1992)
lannonn,11992
92) .
2.3.1
22. 3 1 Typess of M
3. Motivations
ottiv
vattions
According to Crossier
Cro
ross ierr (1983),
ssie (1 audiences consume advertising for seven
kinds of motives:
a) Product Information
b) Entertainment
c) Value addition
d) Implied warranty
e) Post-purchase reassurance
f) Vicarious experience: Living life which otherwise you do not have
access to
g) Involvement: pleasure derived from participating in the creative
executions like jokes, parody, Q&A, spoofs in advertisements O,
Donohoe (1994) identi¿ed the following audience motivations in
advertising:
a) Information: Audience seek ads to know about the product, its features,
47
Overview of Advertising composition, price, look and shape and availability. Advertisements are
actively sought to know about new products in the market.
b) Choice, Competition and Convenience: Audiences are forever trying
to know the better good or service by comparing the existing brands.
They consume ad messages because it enables them to compare the
products without actually going to the store. Hence advertising helps
them make choices conveniently.
c) Quality assurance and reassurance: The audience feels that an
advertised product is far more credible than a non advertised one.
So, seeing an advertisement makes them assured of a certain sense
of quality and value. Audience tends to feel that brand that no longer
advertises is on a decline in its life cycle.
d) Consumption Stimulation: When the audience motivation is to
consume, spend, buy advertising feeds onto that. Not only consumption
of goods, audience’s motive can be to buy a media vehicle that carries
ads. In a study
st y of S. Donohoe on Advertising Uses and Grati¿cations
(1994), a fem
female
male worker said she likes buying Vogue magazine to
look at ad
adverts
dve es aand
v rtts of clothes nd jjewellery.
ewelle
ew lery
ry
y.
e) Added
Added d Value:
Vaalue: Young
Yoounng consumers
co
ons merss usee add messages
nsum
um mes ges too form
essage for pperceptions
orrm pe rccep
e tiionss
about
ab sself
bout se society.
lff and soc Their iimage
cietty. Th magge ooff ac
accepted
ccepte body
t d bo d ttype,
ody ype, cchick,
hickk, hhip,
ip,,
modern,
modern pprogressive
rn, pr c are bbuilt
ogrressiivee etc.
c. through
uillt th the
he ads tthey
hrouugh th consume.
heyy cons
nssumme.
e
Besides product
Besiddes prod related
ductt rela motives,
ated moti
tive
ti there
v s, the some
me non
here are som noon marketing
mark
rk
ket motives
e ing mo
m t vees in
ti
ad consumption:
d connsu
sumpttionn:
a) serves
ves the goal off structuring
It serv stru
st ruct u ing time: Audiences may feel tired
ctur
ur
watching
hing a ¿lm
w tchi
wa m oorr a spor
sporting
orti
or ting
ti competition
ng com mpe
peti
titi
titiion oorr re
reality
real
alitty sh
al show
ow onn TV
TV..
Advertising
A veertisin
Ad a ess sstructure
ing messag
in messages
ag truc
tructu
uc ture
tu time
me as yyou
re tim ou gget
et a bbreak
et ak tto
reak
re o do oother
theer
th
chores.
chorees.
b)) Diversion:
Dive
v rsion
ve n: Boredom mayy creepp in w when
heen yoyyou reading
u are read
a ingg a longg articlee
in
n a magazine.
mag
gazine. PPresence
nc of tthe
reseence hee aadvertisement
dver
dv erti
er tisem
ti ment bbreaks
reak
re akss th
ak monotony
thee mo
m noto
tonny
to
of text an
and enhances
nd enha ncess tthe
anc he llooking
ookking
oo kingg vvalue
aluue ooff th
al page.
thee pa
age Audiences
ge.. Au
Audidien
di nceces sseek
eeek
aesthetics design
css in desi
sign
si gn aand layout
ndd lay
ayou
ay while
outt wh
ou hil
ile coconsuming
cons
nsum
ns umin
um ing ed
in editorial
edit
itor
itoria
or iall co
ia content.
cont ten
ent.
advertisement gratify the need for beauti¿cation and attraction
c)) Entertainment:
E i Need
N d to amuse oneselflf iis profuse.
f Advertisement
Ad i are
created with an added purpose to entertain.
2.3.2 Needs and Motives
/ongman 'ictionary of Contemporary (nglish de¿nes motive as a reason to
do something. In psychology, motive is the physical or psychological state
of arousal that guides our behavior. In advertising, motive is the underlying
purpose that stimulates the audience to consume the ad and the brand.
Kotler. et.al (2011) de¿ne motive as a drive or a need that seeks urgent or
immediate grati¿cation at a later stage. Needs are instinctive forces that
motivate the audience to act, whereas wants are the needs we acquire during
the course of our lives. So we note that motives are derivatives of needs and
wants.
Consumer psychology relies extensively on Maslow’s hierarchy of needs
and Sigmund Freud’s school of psychoanalysis.

48
Abraham Maslow’s hierarchy of needs serves as the template to categorise Understanding the Target
the motives as codi¿ed human needs. Physiological needs like hunger, Audience
sleep, thirst, sex are the most urgent ones that require most attention. Once
these are satis¿ed, audience motivations will change to the next level in the
hierarchy. Next level of needs are for safety like protection, health, security,
comfort etc. After ensuring them, the individual is motivated by love needs
(social needs) like love, belongingness, social identity, af¿liation, association
etc. Upon satisfaction of these, next important need is esteem needs i.e.
need for rewards, recognition, accolades, self esteem, status etc. As these
motivations are met, the highest form of needs take priority. At the top are
the self actualisation needs meaning for self discovery, self development,
engagement with self and realisation. It takes considerable time to seek and
satisfy the actualisation needs making it a rare motivation.

Figg 2 Ma
Maslow’s
aslow’s Hierarchy
Hiera
archy
hy of N
Needs-
eedds- Source:
Soource: Mcleod,
Mcleod
Mc od, S.
od S. (2018).
(20
2018
20 1 ).
Maslow’s
Masl
slow
sl w’s Hierarchy
i rarchhy off Needs
Hie
Source : hhttps://www.simplypsychology.org/maslow.html
ttps
ttps:/
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implypsy
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2.3.3
2.3.
3 3 Ra
Rational
R tionall and
nd Emotional
Emotion
onal
on al Motives
Mottiv
i es
With
Wit respe
respect
pect
ect tto
o th
thee bu
buying
uyi
y ng int
intent
nteent and beha
nt behavior,
avior, th
there
her
eree ar
aree tw
two
wo ty
type
types
p s ooff
motives
motive
vess in advertising: Ra
R
Rational
tioonal and Emotional Motives.
ti
1. Rational Motives: Rational
i l motivesi are iintentions
i to act ddriven
i bby
logical or objective thinking. It involves cognitive processing of the
brain to arrive at motives strictly based on rationale and tangible
bene¿ts. Rational motives are outcomes of physiological needs and
safety needs. They can be divided into the following sub categories :
a) Safety: Protection against harm is a rational motive. Paying
attention to an advertisement of a lock, a bank locker, a home
safe or a health insurance is an example of safety needs.
Security as a rational motive can be met by seeing/reading ads
on insurance and investments like health insurance, mutual
funds, real estate etc.
b) Economy: Saving is a form of investment in human psyche.
Hence saving on cost of consumption is strong rational motive.
Getting a price bene¿t is one of the most profound motives.
Seeking ads with sales promotion offers and bargains are also
49
Overview of Advertising frequently acted upon.
c) Comparative Price Advantage: Another rational motive is the
price bene¿t in comparison to rival brands in the same product
category or genre. Product comparison on price is a sought after
motive.
d) Suitability: Finding a perfect ¿t in your existing scheme of
things is a strong rational motive. Small houses drove the
average metropolitan households in Bombay to seek modular
kitchens that are compact and suited. Small four chair dining
sets too were motivated by limitations of space.
e) Durability: It is objective to think that products should last
a long time. Need for longevity of the product converts into
durability as a rational motive. Household items like sleeping
mattress that last for 25 years tend to serve the motive.
Emotional Motives: Are drives or needs that are driven by psychological
need for emotional
onal ggrati¿cation.
emotion
on ratii¿cation. Emotions are feelings that characterise our
state of being aand
n exp
nd expression.
xpre When
ression. W henn th feelings
these fe
feelinings
g become th
gs ppurpose
thee pu rpose fo
for
consuming
consumming bbrand
ran communication
nd or com mmu unicati around
t onn aroun it,
nd itt, we
we say audiences
y aud guided
uddiences aree gui
idedd
by emotional
b emot tional motives.
al m otivees.
a) Fear:
ear: Fear
Fe a off losingng a person/oneself
lossing persson/ooneeselff or a possession
poosssessiion iss a strong
strrongg
emotional
em
motio motive
onall mo that
otivee tha seeks
haat seek
ek
ks reredressal, solutions
edreessaal, so combat.
olutionss or comb bat
at. FeFear
of bad
d debt,
e t, hhealth,
deb lth, pproperty
ealt rope
ro p rt makes
rtyy maakes th target
the targ ett segmentt emotionally l
aroused
arouseed thereby
ar th
h seeking
seek ingg remedy
kin dy in ads and brands.
b) Humour:
H mo
Hu our:: A desired
desi
sire
si redd st
re statee of m mindi d is iinduced
in nduc
nd uced
uc ed tthrough
hrou
hr ough
ou ghh tthe
he ffeeling
eeliing ooff
laughter.
laught
la hter. That is whwhy
w audience
y au
audid en
ence seek
ce see humour
ek hu
humo
mour
mo ur ooff va
various
ari
riou
ouss ki
ou kinds fr from
om
ads. Funny
ads. F unny elicit
n ads eli icit vvery
ci ve ryy hhigh rrecall
ighh re
ig across
caall acros pproduct
osss pr
os oduc
od uctt ca
uc categories.
catego ori
ries
es..
es
c)) Prestige:
e tige: A desire to bbee recogn
Pres
es recognised
g ised as a resp respected
peccted or a valuable
member
member iin ssociety
n the soociet induced
etyy iss ind
et nduc
nd uced
uc through
ed thrhrou
hr ough
ou gh rreinforcement
einf
einfforrce
ceme
ment
me status.
nt off st
tat
a us.
That why
That is wh
w premium
y prem
mium br brands
ran
andsd uuse
see sstatus,
tus, pposition
tatu
tatu osit
os on in tthe
itio
itio he ssociety
o ie
oc y ass aan
iety n
appeal.
d) Love: seeking love in various forms is perhaps the biggest motive.
Love in various forms like romantic love, siblings love, ¿lial love,
love between parents and children and love variants like friendship
and kinship form the most popular advertising appeals to care to the
motive of love.
e) Vanity and Pride: Vanity is self conceit, the desire to show off
one’s possessions and belongings whereas pride is a sense of esteem
emerging out of one’s material achievements. Both are emotional
motives that guide advertising messages to cater to their ful¿llment.
2.3.4 The Consumer Decision Making Process
Consumer decision making is about external inÀuences, the process and
the post decision behavior. The external inÀuences come from ¿rstly the
advertising and marketing efforts and secondly socio-cultural aspects like
family, reference groups, non commercial sources, social class, culture and
sub culture. The decision making process is a step by step progression from
50
Need Recognition (dependent upon the psychological ¿eld that includes Understanding the Target
motivation, perception, learning, personality and attitudes) to Information Audience
search (before buying) leading to evaluation of the alternatives ending
into experience. Consumer behavior ¿nally includes buying the product
and evaluating it post purchase.
FCB Grid was created by Richard Vaughn of the FCB (Foote, Cone and
Belding) advertising agency in USA. It was shown ¿rst at the seminar of
FCB research managers in London in 1979. Vaughn later published his
article on FCB grid in Journal of Advertising in 1988. He proposes 4 primary
advertising strategies to reach out to target audience based on consumer
psychology, behavior and decision making process (Fig 3).
1. To be informative: caters to rational audience motivations driven by
logic and variables of price, utility and supply.
2. To be affective: caters to the emotional audience motivations driven
byy emotions.
3. To be habit forming: caters to the cconditioned
onddit
itio
ioned behavior of the
consumer in which buying is stimulated ed through
d thr
rou
ouggh repetitive response
to aan message
n ad m essa
s gee w
sa which become
hich has bec hhabit
come a ha bit nnow.
oww.
4. To
To bee self
sel satisfactory:
sat
atis
issfa c oryy: caters tto
fact need
eed ffor
o ne or ppersonal
ersonaal ch taste
choicee andd ta
aste
along
alon
al with
ongg w peer
ith pe approval.
eer appr rov
oval.
The
The FCFCB
F B gridid ddistinguishes between
istingguishes bet
ettwe low
w en lo involvement
nvollvemeent aand
ow inv ndd hhigh involvement
igh in
invo
v lv
vem
ment
in eeach
ach ooff the
h ffour
he qquadrants.
our qu adra
ad r nts.

Fig.3 : The FCB Grid on consumer behavior -


6ource httpswww.researchgate.net¿gure
7heFCBGrid9aughnB¿gB
1. Is high involvement where the consumer passes through hierarchy of
effects. Actively receives information from the advertisement to form
a well of knowledge so as to decide on action. Since need for lot of
information is a rational motive, the advertising message is based on
rational appeals to give more product information through text and
visuals. Learn-feel-do. In this process, one acquires information from

51
Overview of Advertising the ad, develops attitude towards it and engages in purchase.
2. The products in this quadrant too are high involvement. The process of
communication is guided by the psychological needs. Here the need
for information is completely superseded by emotional motives of
love, self esteem, prestige and recognition. The advertising messages
use humour, sex, fear etc to create a bond beyond product attributes
and price through storytelling and narrative point of views. The target
audience experiences a range of emotions and in many ways connects
to reÀect their individual personalities. It is based on the feel-learn-
do process in which you develop positive feelings for the product
after attending to the ad leading to understanding the ‘what and how
to’ about the product ending in actual buying behaviour
3. In the third quadrant, the product involvement is low. It means the
consumer is not inclined to get more information or get connected
to the brand. The stimulation to buy is created by a classically
conditioned
conditione response
need re
esp
spon
o se to a repeated ad message. As the same response
continues, becomes
s it be
s, beco
commes a routine or a habit to buy. This quadrant deals
with
with cconsumer
onsus mer ac
su action
t onn ¿rst,
cti ¿rst, lleading
eadiing to le
learning about
ng abo
bout aand
ut whatt an d hhow
ow
w
to
o w.r.tt the product
oducct aand
hee pro nd llater
aterr ddevelopment
eveeloppmeent ooff fee
feeling
elin (over
ng (o period
overr a peri
r odd off
time
me bbrand
tim r nd
ra loyalty)
n loy yaltyy) ffor
or tthe product.
he prroduuct.
4.
4 n the ffourth
In ouurt quadrant,
r h qu
uadrrant cconsumer
ntt, the co nsum
mer invinvolvement
volvem llow.
mennt iss lo wT
w. The
he audaudience
u ieenc
ud n e
motivation
motivaation attend
o to at tennd tto
atte o th advertisement
thee ad
adverrtisem
emen and
ent an subsequently
nd su
subseque ueent l tthe
ntly
ly he brandnd
is based
baseed oonn the belief that
ef tha consumption
h t consnsum
ns u ption of this product will satisfy
personal
personnal nneeds
pe eeds like taste andd choice.
h So after seeingg the advertisement,,
you buy
yoou bu
uy th product
the prod uct ¿rst,
duc ¿rst
¿r consume
s , co
con nsume it develop
it,, de
deve feelings
vellopp fe
feel
elin
ings
in gs ffor
orr iitt andd le
learnn
to repeat
peat ppurchase
o rep depending
urchasee dep pen
e di
dingng upon yoyyour
u eexperience.
our xperieienc
ie nce.
e.
Marshall
rshhall ccontends
Maars onteends that buying behavior is guided by rational needs and
economic
econ
economic
on i calcu
ic calculations
c lationns prproviding
rovid
ovididin
i g ba
in basis
siss of rrational
basi
si atio
at motives
ionnall moti
io m oti
tive amongst
vess am
ve amonongs
gt
gs
audiences.
audien
enc responsive
nces. Thee respon ttheories
nsiive theo
h ori
ries
es mmaintain
aiint
ntaainn that cconsumers
that onsu
onsu m rs bbuy
sume
me through
uy th
hrouugh
rote
te aand purchasing
nd purchasa ing is iinÀuenced
as nÀue
nÀ uenc
ue nceed
nc ed bby
y cconditioning
ondi
nditio
itio
oningng aand
nd rrepetition.
epeetit
etit
itio
ion.
io Consumers
n C onssume
on mers
me
are considered tto o be lazy and want to exert minimum effort when purchasing
products. Habits are developed through stimulus-response learning;
consequently information serves as a reminder, rather than thoughtful
purpose. Products purchased under this theory are normally inexpensive
and the risk involved in making the wrong purchasing decision would not
have grave ¿nancial consequences. Many routine items may require little
or no thought, but once purchase habits are established, they can serve ad
in¿nitum (Vaughn,1979).
Check Your Progress: 2
Note: 1) Use the space below for you answers.
2) Compare your answers with those given at the end of this unit.
1. As per Crossier, the various motivations that guide consumers to
advertising message use and need grati¿cation are"
..............................................................................................................
..............................................................................................................
52
............................................................................................................. Understanding the Target
Audience
2. According to Maslow’s Hierarchy of Needs, what are the human
needs that one is constantly seeking grati¿cation for"
..............................................................................................................
..............................................................................................................
..............................................................................................................

2.4 MARKET SEGMENTATION


Reaching out to the target audience is an elaborate process. Once you
understand the consumer motivations, next step is to segment the market.
Market segmentation is the process of dividing the market into distinct
groups of buyers with different needs, characteristics, or behaviors. A
marketer may bear wasteful expenditure by adopting mass marketing
that involves developing one product for all without taking into account
the differences within the audiences. It is very challenging for the product
to suit everyone and survive in the market. On O thehe oother
ther hand, marketers
consumer.
cannot cater to individual needs of each consu umer. Segmenting
r S egmenting the market
create
allows to cr
create sspecialised
eate peeci
cial
alis
alised
e products fo speci¿c
for sp i c groups
peci¿
i¿ groupps (Fig
Fig 4).
(Fi

Fig: 4 Managing Marketing Strategies and Marketing Mix - Kotler, P.


 . Principles of 0arketing,6outh Asian Perspective, p .
53
Overview of Advertising There are many reasons for doing market segmentation. One of the major
reasons is to create custom marketing mix for each segment and cater them
accordingly. It will enable the marketers to connect with the target audience,
develop relationships, and communicate messages that resonate.
2.4.1 Need for Market Segmentation
Segmenting a market, simply put, is separating the undifferentiated
consumer market into smaller groups with similar needs and behaviours.
In doing so, a company establishes a target for their marketing efforts (i.e.
target market) and can therefore, better customise its services and products
to meet the target’s preferences. This is an affordable, effective and ef¿cient
way to reach potential clients and generate revenues.
As you develop a clear understanding of which your consumers are; what
they want and demand, you’ll be able to speci¿cally target marketing
and advertising towards them. For eg. if you manufacture nutritional
supplements,
pp , yyou may y make pproducts targeted g towards men,, children,,
pregnant women enn andd oolder
lder women. It will take a different strategy to reach
ld
each of these di diverse
ive
v rsse gr
groups. To advertise children’s vitamins you can run
commercials
commer rci
cial children’s
alss onn chi ild
ldre television
ren’s te
tele
levi
visi
vi s on sho
si showsw oorr in
hoows parenting
n paren enti
ting
tin m
ng magazines.
agazin
ag nes
es..
To reach pregnant
h preegnan a twwomen
om
menn whwho
ho ar market
aree in thee mar rke vitamins,
kett forr viita
taminsn , ta
ns ttarget
rge yyour
get ourr
marketing
m
ma rketin and
ng an aadvertising
nd ad verrtisinng to vvenues and
enuees annd mmedia
edi that
dia thhat
a rereach
eacch hhealth-conscious
ealth--co
c nssciiouss
younger
u gerr women.
youn
un wom men. n E.g.
E.gg. Horlicks,
Horrlickks, Lite Horlicks,
Liite H orrlick Horlcks
ks, Ho orlcckss forr You
Young
ung Adults,
Aduults,,
Women’s
W
Wo men’s HoHorlicks,
Horlic i ks, andd Ju Junior
unior H Horlicks.
orlickss. OOr. Chawanprash,
r. Chhawwanppra Sugar
r shh, Su
S gar Free
ga Fr
Chawanprash,
Chhaw
wan
anprassh,h CChocolate
hoco ola Chawanprash
latte C h wa
ha wanp etc.
nprrashh etc
tc.

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Market
Ma
arket segmentation
e segm
et ment creates
n ation cr
crea
e te
ea value
tess va ue ffor
alu h tthe
orr both
th he ccompany
ompa
pany
pa nyy aand
nd tthe
he eend
nd uuser.
ser.
Forr th
F
Fo customer:
thee cus
stom
mer:
Ɣ Provides
Prov
ovides
v ggreater
reater choice of products/services
Ɣ Products/services
Products/s
Pr
r should
/ ervices shou
ould
ou dmmore
ore cl
or closely
losel match
e y ma
m tchh th
tc needs
the need
ne edss of cconsumers.
eed onsuumers.
on rs
tthe
Forr thhe company:
compan
any:
n
Ɣ marketing
Better m a keting planning as reactions to marketing activities can be
ar
predicted
Ɣ It helps organisations to identify prospects who are most likely to buy
Ɣ Marketers will get to know their customers better so that they can
provide a better service
Ɣ Budgets can be more closely allocated on the basis of the investment
and returns needed from different segments
Ɣ Smaller segments may be easier to dominate
Ɣ Marketing and sales activity will be closely focused leading to more
sales, lower costs and higher pro¿tability.
Better Understanding of Customer Needs and Wants: By doing
segmentation it becomes easy to retain your customers. Over a period when
user’s preferences change you can identify and provide a solution with
your product. Everyone will have speci¿c needs or problem. Segmentation
identi¿es different customers segments and their preferences. By knowing
it you can provide a customised solution.
54
Effective Communication Reach: Communication plays a major role in Understanding the Target
marketing. It is very important to communicate to right buyers and it in an Audience
effective way. Sending a message to the mass will not help you as it may
lose its importance. By segmentation, you get to know your audience, their
media consumption habits and preferences which help to reach the message
through the right medium to the targeted audience.
Provides Direction: Market segmentation helps in identi¿cation of
consumer segments that consist of potential target customers. Hence, market
segmentation provides a direction to the businesses for adopting a feasible
marketing approach and developing a workable marketing strategy.
Value Creation: Businesses can develop a better understanding of the
dynamics of smaller market segments, comprising of their target consumers,
as well as that of a large consumer market as a whole. This helps businesses in
making informed decisions with respect to the deliverance of their products
or services, to their target consumers. Gaining insight into the perceptions
and preferences of their target consumers, they are better able to project
entities
their offered goods and services as valuable entntities for their consumer base.
Competitive Edge: Since market segmentatio segmentation on is cconsidered
onssidered as a facilitator
towards thee id identi¿cation
idene ti
ti¿c
¿ ation of speci speci¿ed
i¿e consumer
¿edd consn um
mer segsegments
gmementntss an their
andd th
hei
eirr
respective
respecti tiive needsd and requirements,
nd requi uire
rements, as elabo
re elaborated
orat
ated earlie
at earlier,
er, iitt hel
helps
elps
elps bbusinesses
usinessses
in ooffering
fferin
ff their
ng th
thei goods
eirr gooodds anand se services
r ices iin
erv accordance
n ac
ccord with
rdancce w ithh ththe acknowledge
he ackknow wleddge
consumer
coonsum merr ddemands.
eman Consequently,
a ds.. Conseq que
uentlyly,, thro
ly through market
oughh ma segmentation,
arket segmement i n,, bbusinesses
n attio usinessses
aare bbetter
re be tter able
err abl ful¿ll
le to ful¿l needs
¿ l the need ed and
ds an nd rrequirements
ments of ttheir
equirrem heirr tattarget
rget cconsumers
onssum
mers
attain
andd attai in a ccompetitive
ommpeti titivee eedge
d e ov
dg over
ver oothers.
thers.
th
Opportunity
Op
Opportun nitty for Gr
Growth:
Grow
o thh: Segmentation
Segmgmen helps
ntationn hel identify
e ps to identi fy tthe
tify
ti he ppotential
otential
customers
cu
ust who
s omerrs wh
w o may be iinterested
ntereestedd in oour product.
ur pro Through
oduuct. Thro
roug
ro ughh segm
ug ssegmentation,
e men entatati
ta tion, we
ti
know
knoow our
our customer base
custtomer bas se andd m make “niche”
ake a “nicche” market aand
nd aattract
ttra
tt ct ccustomers
ract
ra ustome
us mers
me rs
who
w
wh would
o woul like
u d likke to look forr ddifferent
look ifffe
ferent
n alter
nt alternatives
rnative the
v s for th same
he saame pproblem.
robl
ro blem
blem.
em
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mark
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etterr th pprice
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ri e st
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raate Since
onsumeer. S nce ssegmentation
in egme
eg m nt
ntat
atio
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ccreates
cr niche
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nichchee market w wee ca
ccan target aattractive
n ta segments
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tt egmentss and
nd mmarket
arke
kett le
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eadersh
ad shshipip.
ip
A competitive
comp
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posi
siti
tiion creates es bbrand market
rand value inn the ma rk
kett andd improves th the
h
relationship.
relationsh ship these
ip.. In all the
hesesee tturns
urns we get higher pro¿ts and increase pro¿tability.

2.5 TYPES OF AUDIENCE SEGMENTATION


A market segmentation strategy is aimed at dividing a mass heterogeneous
market into different segments of buyers. Each segment has individuals who
have similar interests. The interests of each segment may vary with regard to
products. Traditionally there were two approaches in market segmentation:
Product oriented and People oriented. Product oriented approach measures
the product related aspects by segmenting the consumers to understand the
market and people oriented approach measures the people and relates it to
the product (Plummer,1974).
For example, a cosmetic company can increase their customer base, by
targeting audience of different age groups with products designed to meet
their speci¿c needs. E.g. L’Oreal and Garnier are some of the leading
cosmetic producers that cater to the needs of male and female customers of

55
Overview of Advertising different age groups. A cosmetic company must focus on marketing products
according to seasonal changes. The demand for sun protection products
increases during summer months. So, seasonal changes play a major role in
marketing of such products. In short, products should be tailored to ¿t the
needs of each segment. Apart from seasonal changes, age group and gender;
there are various other factors that have to be considered, while marketing
products.
There are four types of segmentation strategies determined because of their
measurability, accessibility, substantiality and action-ability (Drayton &
Tynan, 1978).
2.5.1 Geographic Segmentation
Location plays a vital role in de¿ning the needs of individual geographic
areas. In geographic segmentation, the market is divided on the basis of
geographic location of the consumers i.e. nations, states, regions, counties,
cities or neighborhoods. It helps in localising the products, advertising and
sales effort to ge ggeographic
ogrraphhic differences in needs and wants. Marketers also
study the population
popula l tionn ddensity
y oorr regi
ensity regional
o al cclimate
gion limate
li te aass factors of ggeographic
eograp phi
hic
segmentation.
segmen Kotler
ntationn. Ko
K (1993)
19933) in pplace
tleer (1 marketing
laace m arrketit ngg cam
ti campaigns
mpaig gns for a ccity
ig i y oorr a
it
rregion,
re this
gion, in thi ccase
is ca ase GGermany,
erm any, ffound
man four
oundd fou ur ggeographic
eoggraphhic ssegments:
eg
gment
nts:
a) Visitors:
V Visitors
isitorrs: Vi
V sito potential
tentiaal ttourists
ors aree thee pot who
ouriists w may
hoo m ay be interested
b int
ntter
e esstedd in
n
travelling
tr
ravelli the
lingg to th city
he ciity
b)) Residents
R esideentss and workers:
worke rs:: Include
k rs
ke ncludde both the inhabitants and the new
In
citizens
citizen
ci ns
c) Business
Bu
B sineess aand Industry:
nd Ind
dus
ustr
try:
tr includes
y It in
incl
clud
cludees m
ud multinational
ulti
ultina
tinati
na tion
tional
on al ccompanies,
ompa
ompani
pa nies
ni iinvestors,
es,, in
es veest
stor
ors,
or s,
civil sservants
ci vants and tthe
erv he ddomestic
omes
om ticc ccompanies
esti
es ti omp
mpan
mpanie
an iess
ie
dd)) Export
E xpoort Markets:
Markets: Includes
Includdes foreign
i companies
foreign companiies and
ndd consumers
2.5.2
2.
2.5. Demographic
5.22 De a hic Segmentation
emograp Seegm
gmen
enta
tati
t on
Demographic
De
D mo
mog ssegmentation
ographic se gmentatati
ta means
t on m n tto
eans
ea segregate
o se
egr
greega market
egatee a ma
mark
rket
rk et oon
n th basis
thee ba
asiss of
population
pop
po (socio-economic)
pulation (sooci
c o-econ
onnom
omiic) based
ic) baase variables
sedd vari
riab
riablees su
ab such
ch ass ag e, eeducation,
age, duccatiion,
du on
income, family size, race, gender, occupation, nationality etc.. Demographic
segmentation is one of the simplest and most commonly used forms of
classifying audiences because the products and services we buy, how we
use those products, and how much we are willing to spend on them are all
measurable data and are can be gathered through
Subsets of demographic segmentation are:
Ɣ Age: Classifying audiences on the basis of age is most profound. It
is usually done by using age cohorts. Age cohorts are grouping of
consumers/audience of same age with similar experiences. A popular
age cohort applied in American advertising, now adapted globally is:
Baby Boomers: Baby boomers were children of post World War II era. It is
the liberal market economy era in which consumerism was at its peak and
families expanded to create a baby boom. BB’s were born between 1944
and 1964. At present, they are 54-74 years old. In current age classi¿cations,
they are also referred to as GenS (Generation,Senior citizens). According
to a study ‘Changing Patterns of Income & Expenditure of Older People
56
in India: An Assessment’, by Agewell Foundation, the Gen S is using its Understanding the Target
disposable income and have signi¿cant purchasing power and also spending Audience
their accumulated savings making these baby boomers a sought after age
cohort. Patanjali’s success lies in the way they have targeted the boomers
(55 and above) for their wellness goods.
Gen X The term was coined by Charles Hamlett and Jane Deverson (originally
referring to the Baby Boomers in their teenage years). Gen X was born
between 1965 - 1979 and are currently between 39-53 years old.
Gen Y: Generation Y – were identi¿ed by American authors William Strauss
and Neil Howe as those graduating high school in the year 2000. They
are also called echo boomers. Gen Y, or Millennials, were born between
1980 and 1994. They are currently between 24-38 years old. The term
“Millennial” has become the popular way to reference both segments of
Gen Y (more on Y.1 and Y.2 below). Millennial population in India is on the
rise, the average age will be 29 in 2020 in India (World Economic Forum
Report,2012). Millennials are opinionated, hea
e vy ssocial
ea
heavy ocia
oc i l media consumers,
restless and looking for change, they are dr riven
drivenn byy instant grati¿cation
thereby pushingg brands towards quick ¿x solutions.
s lu
so utions.
s.
Gen Z:Z: It is thethe current
current nname
a e for the aage
am gee coh
hort bor
cohort orn fr
born from
m thee m id-
mid-
19
990
90s. Itt is
1990s. i tthe
h agee gro
he oupp tha
group at ha
that hhass gr
rown in a comm
grown mmunnicattion te
communication echnnoloogy
technology
driv
dri en
drivenn wororld. Al
or
world. A tern
rnatively th
Alternatively they aarere aalso
lso re
rreferred
ferred
fe d to as iGe
en,
n ccentennials,
iGen, entennnials,
postt-milllennnials. Ge
post-millennials. G
Genn Z is the nnewest
e es
ew e t ggeneration
enerration
o to be nam
med
e andd w
named erre born
were
betw
t een 1995
tw
between 95 and
and 2015.
20115.
5
Ɣ Gend nd
Gender: der
e : Classifying
Classsififfyi
y ng pproducts
r duuct
ro c s an
and bu
uying
ng prospects ass ma
buying m ale
malele aand
nd female
hass been
beeen
e a llongong estab blishe
established hed prpracticce iin
practice n mark ket
etin
marketingingg comm
in mmun
mm unic
un
communication.i attio
ion.
n.
Most products
Most prroducts use us gender
gendeer ass a dichotomous
ge diichot
otomous concept
ot c nccep
co eptt (MM/F
(M/F)/F)) of fte
tenn
often
noot payi
not ying hee
paying eeed to aalternate
heed lter
errnate
t sexu
te ual id
sexual dentities llike
identities ik
ke LG GBT
BTQ.
LGBTQ. Q M
Q. ost
Most
p odducts continue to uuse
pr
products se tra adiitionnal sex
traditional x roles in segmenting audience
illu
lust
uststra
ratiing
illustrating ng tthe
hee nneed
eeed fo
fforr fr
fres
essh rese
fresh s arch int
se
research n o new
into w ggender
end
nderr ddistinguishing
istting
is ngui
ng uish
uishin
sh ng
cate
ca t gories. Fo
categories. F
Forr eg: Ma Mast
Masti stii Cond
st ndoms “ Ma
nd
Condoms M
Man n off th
he M
the atch
ch”” ca
ch
Match” amp
mpai
campaignaign
ai gn
targ
rgget
targetsetss sm
smalalll to
small ttown
own
wn m arried
married dm en who are
men r goodd at w orkk an
work nd hhome
and ome
me i.e e.
i.e.
th are allrounders to establish the act
they ctt of sex as an equal agency.
Ɣ Marital Status: Products are trying to ¿nd customised audiences
right from the development stage in their life cycle. Therefore,
grouping prospective buyers on the basis of their marital status means
creating classes like: singles, newly married couples, single parents,
dual income couples, divorced individuals and married parents. It
gives a clear idea of the needs and the demand of the household. For
eg.: Uber eats targets singles in their campaign “Everyday Moments”;
similarly Tata luxury Àats targets dual income married couples for
their high end real estate products. The demographic segment for
Azwa, the new jewellery line of the World Gold Council is urban
modern brides; urban from SEC A, in the age group of 23 to 30 years,
seeking unique designs and having aspirations of wearing a product
that has a contemporary appeal (Vipin Sharma, Director, Jewellery,
World Gold Council).
Ɣ Family Life Cycle: Family is a social group of individuals related
through blood, marriage or adoption who live together and interact
57
Overview of Advertising to satisfy their personal and mutual needs (Shiffman, Kanuk,
Kumar,2011). In India, family life cycle is a critical demographic
subset. Family life cycle is the phases through which a family
passes from its formation to the end. It includes social and economic
indicators like marital status, income, employment status etc. There
are three types of family set ups. Nuclear family means a husband and
a wife along with their children, whereas an extended family means
a nuclear family together with their grand- parents living together. A
Joint family includes many extended families tied by blood staying
together under one roof.
Ɣ Income: Income categories like low middle class, middle class, upper
middle class and afÀuent are critical to target a rational consumer. At
times a blanket class, the middle class is targeted. The Indian middle
class has doubled in size from 300 million in 2004 to 600 million in
2012 (World Economic Forum Report, 2012). It tells us about their
spending power and their demand status. Brands are adopting various
line exten
extension
nsion sstrategies
trat
tr a egies based on income-based segmentation. For eg:
low priced ed variants
d var
aria
iant
nts by Cadburys chocolates, Close up in toothpastes
are targeted
arre ta r etted att llow
targ ow income
w in co e cclasses.
ncome lassses. An
A O Onida
nida inch
ida 29 in
nch TTVV ad
a sasays:
ays::
strictly
sttrictly
y for
o richh an
or and
nd ffamous,
amo illustrating
ustraatingg tthe
mouss, illu
mo income
he inc
com
me an social
andd so
socia
al classs
based
baased sessegmentation.
g enttatioon..
gm
Ɣ Education:
Educaatioon: Levels o education
Leveels of school
eduucationn like scho going,
ool goi college
oiing, co
coll
llegee leve
ll level,
v l,
University
Univerrsity
ty inhabitants,
y inh
habittants formal
ts, fo
orm
rmal formal
a orr noo fo education
ormall edu
ucatio forms
ionn form
io rm classes
ms clas sse
ses
for th nniche
fo both products
iche produ uct
c s likee ddata
like ataa packs , mobile handsets etc.
Ɣ Employment:
E plooyme
Em m nt: employment
employm ymenentt categories like self-employed, public
sector/govt.
sectorr/gov
se employee,
ovvt. empplo
loye
yee,
ye private
e, pri iva
vatete eemployee
mplolo
oye
yeee no
nott on ly ssegments
only egme
eg ntss aaudiences
ment
me nt udiien
encess
for
fo goods
gooodss but also soo aidid tthe
he sservices
ervvicees se
er sector.
sect
cttor.
or FiFinancial
Finnanccia products
iall pr
prodoductss llike
od ike
ik
banking sschemes
b nkking sc
ba hemes an and hohhospitality
sppital
ital
alit ppackages
ityy pa
it ckagess aare
ck re ccreated
ateed ccatering
reeat aterin ng to tthese
in hesse
he se
exclusive
excl
clusivee employ
cl employment categories.
yment categ gories. Another asp aspect
pect of ssegmentation
eggmentation
on
n the basis
bas eemployment
a is of em mplloyme ment
me nt iss th type
ype ooff em
thee ty employment:
empl ploy
pl oyme
yme
ment permanent,
nt:: pe
nt perm
rman
rm anenentt,
en
contractual,
contractua daily
u l, dail ly w wage
age et
age eetc.
tc.
c T This especially
hiss is esspec
eciiall
ec ia ly rerelevant
rel
leva
leva nt iin
vant FMCG
n FM
FMC CG
targeting create
g to creat pprice
te a pric
r ce anand volume/size
nd vo
volume combination.
me/sizze co
me combmbiinat
mb atio
at ionn.
io
2.5.3 Geo-Demographic Segmentation
Instead of creating isolated groups separately on the basis of geography and
demographic variables, a hybrid segmentation mode has become more in
use. Geo-demographic segmentation means people from one area/location/
region will reÀect similarities or likeness in age /income/education/gender/
family life cycles. In India, the Punjabi community is targeted by the dine
out eateries and restaurants because of their desire for eating out. Neilson
Company in USA created a geo-demographic application called as the
Claritas PRIZM NE classi¿cation. It uses the ZIP code and the postal address
to classify all the households into 66 segments. There are four segments in
this application
Ɣ Movers and Shakers: Who are adult primes and seniors in the age
group of 35-64. They are around 2 of the total population. They
are at least graduates and are professionals aspiring or have already
set up their own business. Their median income is 95,372$. They
are dual income executives or white-collar professionals with high
58
salaries. They reside in elite suburbs and are at the parenthood and Understanding the Target
post-parenthood stage in the family life cycle. They are often nuclear Audience
families, who travel, are technology lovers, heavy users of internet
and own luxury products.
Ɣ Nitin Makdani, business head, consumer electronics, Cheil Worldwide
said for Samsung washing machines, “Our core TG is YMC (Young
Minded Consumers), who do not just seek Value for Money, but are
genuinely interested in products with the latest technology, which are
also aesthetically designed. And they are ready to pay a premium for
the same.”
Ɣ New Empty nests: They are generation S, or senior citizens in the
age cohort (64 +). They are graduates, older but active. They are
afÀuent. They have recently moved on from the post parenthood to the
dissolution phase when the children have moved to their respective
places of work. They are energetic and want to spend on travel and
lifestyle.
Ɣ Boomtown singles: They are under 35 w working
orking class
ng cl
lass usually employed
in servi
servicece ssector.
vice ecto
ec tor. They are not mamarried
marr
rrrie pursue
i d and pu rsue uupwardly
purs pwar
ardl mobile
d y mo
dl m b lee
bi
lifestyles.
liife They
f styles.. Th hey aree rreferred
e erred to
ef young
o as youn u g aachievers
chiiev who
vers wh
w consume
hoo connsuume
media
meedidiaa in pprint,
nt, TV aand
rint nd iinternet platforms.
n ernet platfo
nt formms.
Ɣ Bed
Bed d Rockationals:
Roock
c at ionals: These
atio hese aare
The
he re ssmall workers
malll jobb wo with
orkerrs w h llow
ith incomes.
ow inc com
mes.
They
Thhey aare
ree yyoung
oung
ou live
ve in eeconomy
ngg and liv conom colonies.
my colon They
oniess. The
heyy ar
he are generally
re gen neraallyy
clustered
redd in sspeci¿c
cluustere
re tthee regi
pecii¿c areas of th region.
ionn. They are mmodestly
oddes
estl educated
tlyy ed
ducated
and hhave
d ha ve no inincome
come ffor
inco
co high
o hig
or end
gh en entertainment.
nd ent terttai
a nment.
2.5.4
2.55.4 Behavioral
Beh
ehav i ral Segmentation
avvio Segm
menta
tation
n
Behavioral
Beha
h viooral
ha or sesegmentation
attion oorganises
egmentat rga consumer
gaanisees thee cons market
n umer m k t on ppurchase
arrke u ch
ur hase
related
relate
re factors.
ted fa
fact
c ors.
Itt involves
inv
nvolvees di ddividing
ivi
vidi
ding
ng the market
he marke
kett w.r.t. behavior,
t. buyingg behav cconsumption
vioor, cons
o sum
umpt pttio
on anand
nd
usage
usag patterns.
ge pa t erns. For instance
patt ncee younger
instan ngeer buyerss may ttend
young
ng purchase
ennd too pu
purc rcha
rc hase
ha see bbody
odyy
od
wash,
wa whilewhhil older
ilee ol
olde consumer
derr co
cons umer groups
nsum
um u s may lean ttowards
group
up owards ssoap
oapp ba
oa bars.
barrs Se
rs. Segmenting
Segm
gmmen nti
tinng
markets
mark etss based off purchasee bbehaviors
ket ehaviors
h enables marketers to develop a more
targeted approach
approach. h.
It can be subdivided on the following measures, Arens. W,(2008)[ Exhibit
6-1, p172]
a) Purchase Occasion: It entails determining the segments based on the
usage situation. Buying prospects are classi¿ed upon why they buy or
make purchase depending upon their likelihood of use. On this basis,
they can be classi¿ed as regular buyers and special occasion buyers.
Purchase occasion takes into account the seasonal concentration /
density of use of a good or a service, frequency of use of a product
and emergence of a new trend or fad. This segmentation allows the
manufacturer/ wholesaler to develop seasonal consumer incentives
aimed at a right target.
b) %HQH¿WV 6RXJKW: It is also referred to as bene¿t segmentation by
the marketers. It involves categorising consumers on the basis of the
advantage they seek from the product. Bene¿ts include rational and
59
Overview of Advertising emotions bene¿ts like quality, durability, economy, prestige, ¿tness,
status, sexual pleasure, sensory pleasure etc. Orth, McDaniel, Shell
hammer&lopetcharat (2004) gave ¿ve types of bene¿ts: 1. Functional
bene¿ts 2. Value for Money 3. Social bene¿ts 4. Positive emotional
bene¿ts 5. Negative emotional bene¿ts Bene¿t based segmentation can
be the starting point in market research for most product categories. It
is the driving core of the entire segmentation process. A study (2005)
on mobile digital devices identi¿ed six types of bene¿ts: Location
related services (Functional), communication services, entertainment
motives, social engagement /chat, value added shopping, ¿nancial
services.
c) User Status: Markets can be segmented on the basis of who is the
user. It entails grouping of prospective buyers on the basis of their
attributes as a user of brand i.e. the kind of user, he/she is. Stephan
and Tanenholz (Arens,2004.p.172) gave the following categories of
user status :
1) lee Users:
Sole Useers: They are consistent with their brand choice. They
likee to us
se a particul
use ular
ar bra
particular rand
n and
brand nd the
heyy st
they stick to it. T heyy are bran
he
They and
brand
loyaal.
loyal.
2) Semi
m Sole Users:
Semi Useers: T hey hhave
They av
ve a clea ar cu
clear ut br
cut ran
brandnd prreferen nce, bu
preference, ut in
but n
casee the preferred
case preferrrred choice
choicicce iss no
ot available,
not avvailab
ble, thhey bbuy/consume
they u /cconsuume ann
uy
alteernativ
ve pproduct.
alternative rodduc
u t. T heey can bbee in
They nÀueenceed tho
inÀuenced houghh prom
ho
though motio ona
promotionaln l
effoorts by tthe
efforts he ccompeting
o pe
om peti
tinng br randd eespecially
brand speciaall
llyy if the
h ir
ir bbrand
their rand
ra nd is shor
ortt
short
on supply.
on supply.
3) Disc
sccount Users:
Discount Use
sers
rs:: Th
rs They
ey ddo o no
nott haave a ppreference
have refe
re feere
renc
ncee for yo
nc your
ur
bran
nd, in fact
brand, ct are
re tthe
he ssemi
emii sole
em le uusers
sers
se rs ooff yo
yyour
ur ccompeting
ompe
om peti
pe tinng bbrand.
ti rand
ra nd.
nd
Howe
w ver, iff yo
However, youu of ffe
ferr at
offer attr
tracti
tive ddiscounts,
ti
attractive issco
coununts
un ts,, th
ts theye aree likel elyy to
el
likely
use//buy your brand.
use/buy
4)) Aware
Awara e Nonn Triers:
Trie
Tr iers
iers: Th
rs They y ttry
ry sseveral
ever
ev al ooptions
eral
er ptio
pt i ns iin
io tthee sa
n th same
samme pproduct
rodu
roduct
du ct
category
cateegory bbut
utt hhave
av
ve no developed
nott de
dev velo
velo
lope
pedd a pr
pe ppreference
e eren
ef ence
en ce ffor
or a pparticular
articu
ar ular
brand.
bran
annd.
5) Trial/rejectors:
Tria
i l/rejectors: Are the ones who make a decision against the
product after trying it.
it
6) Repertoire Users: They develop liking for two or more brands
in the same category and tend to use/buy both at different points
in time. They Àuctuate between the two based on their needs
and desires.
d) Usage Rate: Usage rate means the frequency or the quantum of use.
It is also called as volume segmentation. Prospects are grouped as:
 Heavy Users: They use the product in bulk proportions or more
often.
 0edium Users: They use the product frequently but not all the
time. They are less frequent in their purchase as compared to
the heavy users.
 Light Users: Use the product sporadically i.e. once a while. The
frequency of their use is quite less.

60
 Non Users: The group of consumers who do not subscribe to Understanding the Target
the use or consumption of your product category. For eg: Non Audience
smokers for the Wills cigarette brand
2.5.5 Psychographic Segmentation
Psychographic segmentation takes into account the psychological aspects of
consumer behavior by dividing markets according to lifestyle, personality
traits, values, opinions, and interests of consumers. Large markets like
the ¿tness market use psychographic segmentation when they sort their
customers into categories of people who care about healthy living and
exercise.
Lifestyle segmentation uses the AIOS (Activities, Interests and Opinions)
acronym. Activities can be described as the ways in which the consumer
engages himself/herself. It includes hobbies, special interest activities
like trekking, mountaineering, kitty parties etc. Interests are consumer
preferences
p and choices in fashion,, books,, leisure and recreation and food.
Opinions are the consumer views on self and society.
societ
etyy.
9AL6 9alues and Lifestyles is the most ppopular opullar cclassi¿cation
lassi¿cation used in
psychographic
psychograp ap
phi ssegmentation.
hicc se gmmen t tion. It was ddeveloped
nta evel
elloped
e byy ArArnold
rnold d Mitchell
Mitch e l aatt S
chel
ch SRI
RII
international
intern nattional in USA.
n USA classi¿es
SA. It clalaass
s i¿es aud audiences
diencees iinto
nto eeight
ighht ggroups
rouups oon
n thee babasis
asis
attitude,
atti
tiitu beliefs
tude,, be
beli
lief personalities.
efss andd pers
ef son
onalittieies. segregation
s Thee segr rega takes
g tionn tak
ga account
kess intoo accoounnt ththree
hree
audience
audien
au ence
nc m motivations:
otiv vat
atio ideals,
ionns: ideals achievement
ls,, achi
hiev
hi e em
mentt anand expression
nd selff exxpreessio (Fig 88).
on (F ).

Fig.5. VALS Framework


6ourcehttpswww.d.umn.eduarvaidyanmktg
9AL6Framework.pdf 'escription of the 9AL6 segments.

61
Overview of Advertising 1) Innovators: They are leaders with high self esteem who experiment
and come up with new ideas. They are tecno-savvy and are forever
looking to use /buy niche goods and services. They show all the three
motivations (ideals, achievement and self expression) in their lifestyles.
They exhibit positive attitude to new ideas and developments.
2) Thinkers: Thinkers are the educated lot. They use their knowledge
and experience to seek functional bene¿ts. They are mature and
reÀective. They use cognitive thinking in decision making as a
consumer. They aim to satisfy rational motives like durability, price
advantage and value during purchase. They show motivations like
ideals and resources.
3) Believers: They depend on existing norms and code of conduct while
making decisions. They stick to tradition often going in for tried and
tested (established) brands instead of a new product. There primary
motivation is ideals and are driven by low resources.
4) Achievers: Achievers are dictated by success and acknowledgement.
They aree goa goal oriented
al or riented and focused on family and careers. The
primary mo motivation
m tiva
vati
tioon is achievement driven by high resources. They y
are
ar willing
re nott wi l ingg to eexperiment
ill xpperi entt iiff itt lea
erim leads
ads to uncertainty
t uncer rta
t in
nty change.
y or channge
g .TThey
heyy
prefer
pr premium
refer pre emium m bbrands
raands ssoo aass to pro
project
oject themselves
ct theheemseelve
vees as successful
a suc
ucccess
ssfu
ul in
n
front
ront ooff the
fr their
h ir ppeers
eerrs aand
nd ssocial associates.
ociall ass sociiatess.
55) Strivers:
St r : Strivers
triveers Striiverss are upwardly
ree upw
pwaardly mo
pw mobile seekers
obilee seeke success.
k rss off succ
cces
cc They
esss. They are
trendy
tre ndd funn lloving.
endyy and oving.
ov g TThey
heey te
tend to bu products
buyy prod duc
uctts thatt give a rreÀection
give eÀecti
tion
on
material
of mat ter
e iaal wealth. Th Their primary
heir pr
prim
imarry motivation is achievement but have
im
low resources.
lo u ces. They have
reesour have less
esss disposable income and therefore pick
les
speci¿c
speci¿
sp pproduct
¿c pr oductt cacategories/types
cate
tego
tegories
go es/ttyp
es es forr ppurchase.
ypes urch
ur chas
chasee.
as
6)) Experiences:
E xpeeriennces: They
The
heey are fascinated
are fa in d bby
asciinated y th thee nnew,
w, qquirky
ew, uirk
uirkyy andd th
rk the
uunorthodoxo goodss and
norrthodox ndd services.
ser
ervi
er cess. They
vice
vi ce hey are
The
he arre grati¿cation
graati¿
gr ati¿
i¿ca
cation
ca o of em emotional
emot
otio
ot iona
io nal
na
motives
mo oti
tives li identity,
like freedom of choice,, identity y, self love and en entertainment.
nte
t rtainment.
Their
Thh primprimary
imary mo
im motivation
m vationn is sself
otiva
va elf eexpression
xpre
xp resssiion
re ion ssupplemented
upp
pple
leme
lement
me nted
nt ed byy hihhigh
gh
resources.
r sources.
re s They y llike
ik o sspend
ke to pend
pe nd oon entertainment,
n en
ent
te tai
tert nmeent, ttravel,
ainm
nm vell, pparties
rave
rave arti
arties anand
nd
fashion.
7) Makers: They are involved with their family and social groups. They
are practical in nature
nature. They seek emotion motives like pleasure and
entertainment but with limited spending and restrict it to families
gathering and close friends. They have low resources to satisfy their
primary motivation of self expression. They purchase basic goods
and services for self suf¿ciency.
8) Survivors: They struggle to remain aÀoat in the needs versus purchase
continuum. They have very less resources, hence are not driven by any
of the three motivations. Their lifestyle is centered around rational
motive of safety and security. Hence their purchases are guided by
sales promotion offers, seasonal bargains and discounts.
Besides these four forms of market segmentation, audiences can be
classi¿ed on the basis of their socio-cultural values and beliefs. Consumer
clusters can be created based upon their core cultural values, sub-cultural
memberships or cross cultural af¿liations (Schiff man et.al,2011).Cultural
distinction is especially useful in selecting appropriate advertising appeals
and creative elements.
62
Understanding the Target
2.6 TARGET MARKETING Audience

Grouping audiences into a cluster of homogenous attributes leads to


a market segment. However, every segment cannot be pro¿table for the
marketer (Meyers & Morgon, 2013). Targeted marketing is a tool used to
speci¿cally pinpoint the buying power of one group by tailoring a campaign
or promotion speci¿cally toward that group’s needs and wants. Hence it is
important to know the criteria for effective targeting.
2.6.1 Criteria for Effective Targeting
Schifmman et.al. (2011) described the following factors on which effective
targeting can be determined.
a) ,GHQWL¿DEOH The shared characteristics being searched must be
identi¿able i.e. the attributes or motivations serving as basis of
segmentation are clearly visible in the audiences to put them in a
certain segment.
b) Sizable: Advertising is aimed at a largee sect tion of population, hence
section
the size of th he segment is veryy im
the mpo
p rttant. IItt mu
important. m st bbee a si
must sign
gni¿ca
caantt
signi¿cant
grou
grouup to bbee ab
group ble to de
able deve
v lop a me
develop essag
ge an
message nd m
and ediaa st
media trateegy
gy. Ot
strategy. O heerwise,
Otherwise,
targ
get
etin
ingg few
targeting w co
cons
nsum
u errs will m
consumers akee th
make he ef
the ffort uunpro¿table
effort nproo¿tablel ffor
or the
adveert
ad rtiserr.
advertiser.
c) Staablee: Itt is an
Stable: an advantagee if tthe
he aaudience
udieencee is cclassi¿ed
lasssi¿ed
d oon
n homogenous
hoomo
m genoous
varriable
less is rrelatively
le
variables elativ
ivel
ively stabab
ble ii.e.
stable .e. the
.e ey ddo
they o not chan ange ttheir
change heir
he ir at
ttitude,
attitude,
lifest
styl
st y e and uusage
lifestyle sag
age pa
ag att
t ernss swi
patterns wifftly.
swiftly.
d)) Accce
c sssib
i le: It is important
Accessible: impoortantt to kn knoww bef forehannd if tthe
beforehand he aadvertiser
dver
dv erti
er tisser ca
ti cann
reeach thee audience
reach ce clus ster.. O
cluster. nee m
One ustt hhowever
must ow
wever notte that
note at w itth in
with inte
teracttiv
te
interactiveivee
meedia, tthe
media, he advver
ertiserr cann now
advertiser w disseemin nate inform
disseminate rm
mattio
informationion an
andd re
rea achh oout
reach ut
to auudiences verti
audiences ica
c ll
llyy andd ho
vertically horizoontally
horizontally. y.
e)) C ngru
Co ruen
ruence
Congruence: ce:: Every
Every
ve company
com
ompa
p nyy has a business
businesss vision
visi
sionn that
si tha
hatt includes
incl
incluudes
cl udes
crea
creaati
ting
ng / produ
creating uci
cing
producing ngg pproducts
roduuct
c s for spec
e i¿c se
speci¿c et off peo
set eopl
eo ple.. S
pl
people. Soo it iiss
importr an
rt
important nt th
that
att m arket se
market egmentation str
segmentation trrategy ad
strategy dop
optted
ted iiss iin
adopted n li
ine w
line ith
it
with
th
he corporate
the corp
co porate vision
visiion and
and business goals.
 ,GHQWL¿FDWLRQRI7DUJHW$XGLHQFH
The business head of Sony Entertainment Television Danish Khan says
³Positioning is all about sacri¿ce you can¶t offer everything to everybody´
After segmenting the markets, the next step is to implement targeting
strategies. The marketer identi¿es which segment to target and prepares
the ways and means to do so. There are times when a ¿rm decides to target
a particular segment at the introduction stage gradually including other
target segments as the brand grows or matures. There are various ways of
identifying the target audience and communicating to them.
a) Concentrated Marketing: When a marketer decides to concentrate
on one segment and develops a marketing mix to target it singularly,
it is called as concentrated marketing. It is a strategy quite effective
during the decline phase of a product life cycle i.e. when the demand
for the product is low and new consumers.

63
Overview of Advertising b) Differentiated Marketing: When the marketer identi¿es multiple
segments to target and develops their respective marketing mixes, it
is called differentiated marketing. It is commonly used during the
growth and maturity phase in PLC.
c) Counter segmentation: When two or more identi¿ed segments are
combined and a synergistic marketing mix is designed, it is called
as counter segmentation. As brand differentiation goes down, this
strategy is becoming critical to ad planning.
Targeting a speci¿c segment in social marketing campaigns has been subject
of debate. While some argue that an un-segmented mass audience should
be exposed to the ad message, bene¿ts of the campaign increase if done for
identi¿ed needy and vulnerable groups. For eg: UNAIDS (1998) revealed
that the successful HIV AIDS campaign aimed at risk reduction was
targeted at low income and high risk groups. If you are targeting different
demographies, the ads tend to feature diverse ethnicities. In sharp contrast is
Mcguire’s distinctiveness theory where the emphasis is upon assertion of an
Individual consu
consumer/audience
suumerr/auddience as people tend to see themselves as different
beings than part herd
rtt of a he
her sharing
rd shari
ring common
ngg com characteristics.
ommonn ch
char
arac
acte
teristics.
Example:
Example: 0DKLQGUD
KLQGUUD 
0DK  &&
 &&
&0 0RMR ELNH¶V
NH¶V LLGHQWL¿FDWLRQ
RMR ELN GHQW
GH Q L¿ WLRQ RRI
¿FDWL
WL I WKH WDUJHW
H WDUUJHWW
segment:
s gmen
se nt:
It iiss nott for ppan Indian
ann Indi audience
ian aud dienc
ncce bu rich
but ri rural
ich rura al andd ururban
rban
an cities
n cit ies aand
i ie
it nd ttowns.
owns.
If you o look
ou o k at
loo at tthe biking
he biikin
ng grgroup,
rou
o p, fro from
rom a ddemographics
ro emo ograp phiccs per perspective,
erspectivee, it’ss tthe
er h
he
20-40
200-400 ageage group. p But more
grrouup. morre than
tha the the demographics
demographics (of 20-40, 20-400, SEC E A), it’s
SEC it’’s
about
abbout th psychographics.
the pssychoh graphics. Th They
T ey are llooking
o king at the guy who wants to live
oo
life.
life
fe. Hee wanwants
nts too spendd ti
time with
mee w itth hihimself
hims
msselff an wanderer.
andd iss a w ande
an dere
de That’s
r r.. T hat’
ha t s thee kikind
nd
off pro¿le
pro¿l¿le wee wan
¿l want. cchanging
a t. Withh chan
han g ng llifestyles,
angi
gi festylees, ppeople
ifes eopl
eo p e in
pl n tthe
hee bbigger
igge
ig ccities
gerr ci
ge tiess hhave
avee
av
the
th
he af affordability
ffo
ordab so.
bilityy to do so was
o. It w ass ffound
o ndd tha
ou that this
at th
thi TG
is T G iss m more
oree pprevalent
or reval
alent in
al n the
h
metros
m tro
me trros andd tier 1. That’s wh why
hy it ffocuses
ocuses on these citi cities.
iti
ties.
2.6.3
2.6.
2. 6.33 Target
6. Taarget Marketing
ng in
M rketin
Ma in n the
he Digital
Digittal Age
igit Agee
It is a very different
diffferent ttarget
argeet au
ar audience
audi
dien
di encee tha
en that
hatt hhave
ha ve eemerged
ave merg
me rg amidst
ged amimids
mi dstt tthe
ds he Ne
New
Media
M dia Landscape
Me Landscap created
a e crea ate by tthe
tedd by Digital
hee D gitall ddisruptions.
ig isru
upt
ptions. In tthis
ions
ns hiss er
hi social
eraa of soc
occial
networking andd omnipresent internet usage, it is pertinent to understand
and target the emerging breed of segmented, fragmented audiences with
reduced attention spans.
The era of mass marketing is long gone. As the digital capacities of the ¿rm
grow, new media technologies have become intrinsic to target marketing.
Market segmentation has become more pointed and penetrative. Advertisers
are looking to deliver personalised messages to audiences catering to their
individual motivations. Hence we see the emergence of micro targeting.
It means collecting individual consumers into small groups based on
the online databases of their geo–demographic and usage indicators and
targeting them through one on one or one on a few communications. It uses
narrowcasting transmission devices and personalised execution formats. In
the case of social media, imagined audiences are catered to. The imagined
audience is a “mental conceptualisation of the people with whom we are
communicating” (Litt, 2012, p. 331). In advertising on social networking
sites we refer to its subset: targeted imagined audiences. Targeted imagined
audiences are made up of virtually connected social surfers who share
personal/social/community or phantasmal ties (Litt & Hargittai, 2016).”
64
Check Your Progress: 3 Understanding the Target
Audience
Note: 1) Use the space below for you answers.
2) Compare your answers with those given at the end of this unit.
1. What are the subsets of Demographic Audience Segmentation"
..............................................................................................................
..............................................................................................................
..............................................................................................................
2. What do you understand by Targeted Marketing
..............................................................................................................
..............................................................................................................
..............................................................................................................

2.7 LET US SUM UP


Target audience analysis is an integral part off anyy ma marketing strategy. The
only way to kn know
o w
ow what
hatt you should tal
ha talk
lk ab
abou
about
o t iinn an
any
ny m marketing
arke
keeti
ting ccampaign
a paaignn is
am
to kno
know
noww who you
yoou are
arre talking
talkinin
ng to
t and whwhat
hat th
they
hey w want
antt to kknow.
now. C
no Consumers
onnsu
s meers are
becoming
beco
coming
co ng mmore
oree andd mo
or more
oree dem
demanding
man
a dingg withh lolots
ots off bran
brands
andds too chochoose
oosee fro
from.
om.
Andd their
A
An th r attention
attent
n io
nt ionn spans ha have
v ssigni¿cantly
ave i ni¿
ig ¿canttly rreduced
educced du due
ue to clutter,
o clu lu
uttt er, chaos
andd ttime poverty.
imee pov
overrty
ov ty.. Th
Thus, it is im imperative
r tive tto
mpeera kknow
o kn ow your
w you target
ur ta rget ggroup-
arg roupp- th
ro their
heir
needs, interest,
neeeds, innteres
est, motivations
t, mot o ivatattio
ions
n and aspirations
ndd asp
spiiratio
ons in life. Ad Advertising
dvert rtis
rt isin
in
ng ai aims to
persuade
peersuade aand propel
n prope
nd el the
th
he coconsumer CTA
onsumeer too C (call
TA (cal a l to action) m making
akingg it vital to
ak
identify
id e tify aand
den nd segment th the consumer,
he cononsummer, kknow
now their
w thei buying
e r buyiyiing bbehavior,
ehav
eh vio r, aand
ior, n w
nd what
hatt
ha
inÀuences
inÀÀuencces them
em in theirr life..
For
F r an
Fo aany aadvertising
y ad dvert
rtis
tisin message
ingg m essagage to
ag successful,
o be su
succes targeted
ssful, it must be tararge
arg te
tedd an
andd talk lk
k to
the
th consumers
he cons nsum
ns umers it is meanmeant for.
antt fo
an for Hence
r. Henncee it iss eessential
en ssenti know
now yyour
t al to kn ourr Ta
ou Target
arg
rget
et GGroup
r upp
ro
threadbare.
th
hre adbare. In tthis
r ad hiss Un
hi Unit,
U it, we hhave
it av
ve gonen through
ne g the jjourney
ourn ey ooff ac
ney acquainting
acqu
quuaiaint
ntin
nt inng
you
y u TA iin
yo n detail. We bbegan egan
eg an by seseeing the rreceivers
eceiveers ass TaTarget
arg
rget Audience
et A udieieenc
ncee
off tthe
he advertising
advd er
dv erti
t si
tis ng ccommunication
ommunica cat process.
ation process Theoretical
s. Theore eti
tica
call fo
ca foundations
foun tioonss ooff
ndati
dati
the ad advertising
dveertrtis audience
isingg audien nce w were
ere then covered. Audience Motivations were
unearthed,
th d bby ddealing li with the ttypes off motivations,
ith th ti ti consumers needs d and d
motives that include rational and emotional motives and analysing the
consumer decision making process.
In the proceeding sections, we saw the importance of Market Segmentation
– its needs and bene¿ts. How to demarcate your audience on the basis
of geographic, demographics, behaviours and psychographics was then
explored. We also studied Target Marketing and the criteria for effective
targeting along with the target audience identi¿cation methods.
The media scene is changing owing to disruptive technologies coming
up every moment. In such a situation, it is of paramount importance to
understand the digital audience. The ways to reach our TA in this Digital
age propagated by the new media were explained.
Equipped with this knowledge about the TA, you should be able to identify
them and create effective communication strategies to reach them.
65
Overview of Advertising
2.8 CHECK YOUR PROGRESS: POSSIBLE ANSWERS
Check your Progress: 1
1. American advertising and sales pioneer Elias St. Elmo Lewis coined
the phrase AIDA in1899. Attention – Interest – Desire – Action
The model explains how the audience or recipient of advertising
processes information and responds to the advertising product in his/
her decision making process.
2. A target audience is a group of people identi¿ed as likely customers of
a business. People in a target audience share demographic similarities,
such as age, location, or socioeconomic status. De¿ning a target
audience helps create more ef¿cient marketing messages.
Check your Progress: 2
1. According to Crossier (1983), audiences consume advertising for
seven kind
nds of motives:
kinds
Ɣ Prod
Product
duct Info
Information
ormation
Ɣ E
En
Entertainment
teertainnmeent
Ɣ Valu
ue ad
Value dditiionn
addition
Ɣ IImplied
mpl warranty
p ied war
rran
anty
Ɣ Post-purchase
Post reassurance
st-purrchaase re
eassuraanc
n e
Ɣ Vicarious
Vica
c rious expe
ca experience
eri
rien
nce
c
Ɣ IInvolvement
nvo
volvement
o
2. Ab
A raha
Abraham ham
m Maslow ow’’s hi
ow
Maslow’s hhierarchy
erar
a ch
chy of nneeds
eedds
ee ds sserves
erve
ervess as tthe
ve he ttemplate
emplat
em atte to
ccategorise
atego orisee the mot
otives
ot es aass co
motives codi
di¿edd hu
di
codi¿ed huma
mann ne
ma
human need
e s,, tthat
needs, hatt we see
ha eeek tto
seek o
ssatisfy
sa tisffy on
ne after th
one he ot
the ther,
r rrising
other, isin
isingg high
in gh in th
thee hi
hier
errar
arch
chy.
ch
hierarchy.y The
Theyey ar
are:
e:
Ɣ Phys
y iologiica
cal ne
Physiological eed
ds li
needs ike hhunger,
like u ge
un g r,, ssleep,
leeep
ep,, th
thir
irst
s , se
st
thirst, ssex.
x.
Ɣ Need
e s for ssafety
Needs afety
ty lik
ikee pr
ik
like prot
tecttion
on, he
on
protection, heal
alth
alth,, ssecurity,
th
health, ecu
curritty,
cu ty co
comf
m or
mfortt et
comfort tc..
etc.
Ɣ Love
v needs ds ((social
soociial
al nee
eedds) li
ee
needs) ike lov
like ovee, bbelongingness,
ov
love, elon
elon
ongi
ging
gingne
ng ness
ness, so
ss ociial
social
iden
entity, af¿liation, association etc.
en
identity,
Ɣ Esteem needs i.e. need for rewards, recognition, accolades, self
esteem, status etc.
Ɣ At the top are the self actualisation needs meaning for self
discovery, self development, engagement with self and
realisation.
Check your Progress: 3
1. Subsets of demographic segmentation are:
Ɣ Age
Ɣ Gender
Ɣ Marital Status
Ɣ Family Life Cycle
Ɣ Income
Ɣ Education
Ɣ Employment Status
66
2. Targeted marketing is a tool used to speci¿cally pinpoint the buying Understanding the Target
power of one group by tailoring a campaign or promotion speci¿cally Audience
toward that group’s needs and wants.

2.9 FURTHER READINGS


Ɣ Baran, S.J.( 2010). Introduction to Mass Communication, Media
Culture and Literacy, New Delhi: Tata McGraw Hill. 4-20
Ɣ Kotler,P., Armstrong,G., Agnihotri, P.Y. &Haque, E. (2011).
Principles of Marketing, A South Asian Perspective (13th ed.). New
Delhi: Pearson Prentice Hall
Ɣ Mcleod, S. (2018). Maslow’s Hierarchy of Needs. https://www.
simplypsychology.org/maslow.html
Ɣ Meyers, Y.J & Morgan, A.J. (2013).Targeted marketing and African
American millennial consumers, Journal of Research in Interactive
Marketing,7( 1) . 6-17
Ɣ Plummer, J.T. (1974). The Concept and an nd Application
Appl
Ap plic
i ation of Life Style
Segmentation. -ournal of 0arketing, 3( (a)
a 33
3(a) 3-377
33-37
Url’ss :
Ɣ (22008)).Rep
.R
Re orrt on
(2008).Report o the G l bal HI
lo
Global IV Ep
HIV pid
demicc –Ju
Epidemic unee 199
–June 998 hhttp://data.
1998 ttp:://daata.
un
nai
a ds.oorg
rg/puub/repor
ort/
or t 19989 /1999811225_gl
98 g obaal_epiddem
unaids.org/pub/report/1998/19981125_global_epidemic_report_en. mic_repportt_enn.
Ɣ hhttps://www.campaignindia.in/article/samsungs-new-campaign-for-
ttp
tp
ps:///ww
w w.ca c mpaignin india.
in a in
a. i /aarticlle/ssamsuungss-neneew-ca
camp
ca mpaiggn-ffor-
mp
waashin
ng--mamach
chin
ines
in e -targetsts-preemium--seg
washing-machines-targets-premium-segment/410517 gmentnt/4
/41105117
Ɣ http
tp
ps:///ww
w w..ca campai a gninddia.in
ai in/videeo/m mahindra-m
https://www.campaignindia.in/video/mahindra-mojo-woos-those- mojo-woos- s-those-
s-
bornfo
fort
fo rtheroaad/4
rt 424
bornfortheroad/4249172 9117
Ɣ htttp
tps://
//w
// www.cam mpaiggninddia.in in/artiicle//the-youung
in n -aand
https://www.campaignindia.in/article/the-young-and-dissatisfied- nd-d
-dis
-d issati
is t sfie
ied--
ie
hansa-ce
ha equity-rerepport-o
-on-ccx/4
hansa-cequity-report-on-cx/441391 44141391

22.10
.110 GLOSSARY
GLOSSARY
Y
Conv
Conversion
nvver
ersi
siion Rate: The ccalculation
allcu
alcu
cullationn of the nu
number
umber ooff vi
viewers
iew
wer
erss to qquali¿ed
uali
li¿e
li¿edd
¿e
business
bu or
or sales
sale
sa less off your
youur onlinee marketing
marketing ad/page
ad/
d/page
d/
Customer
Custom
mer RRelationship
elationshiip M
Management
anagement (CRM): a system that manages a
company’s
’ iinteractions
t ti with
ith existing
i ti and
d potential
t ti l customers.
t
Demographics: Selected characteristics of a population, such as ethnicity,
income, and education that de¿ne a particular consumer population.

Forums: Social message boards or online discussion sites.


Horizontal Publications: Business publications intended to appeal to
people of similar interests in a variety of companies or industries.
Lead : Details about a potential customer, which may be gained through an
Inbound Marketing Program.

67

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