Transcript Chapter 7, "The Marketing Society"

Chapter 7
 Global
advertising expenditures in 2005
estimated at $521 billion
 Spending on all forms of advertising in the
U.S. that year estimated at $280 billion
 So more spent in the U.S. alone than the rest
of the world combined: $241 billion
 300 million people in the U.S. versus 6
billion in the rest of the world
 Advertisers spent more than $800 per
person in the U.S. vs. $40 per person in all
other foreign countries
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Compiled by Ad Age magazine see figures
Marketing- deals with selling goods and services in general
Advertising- involves selling products and services by
creating texts (such as print advertisements and
commercials) that are paid for by a sponsor of some kind
To better target specific audiences, marketers have broken
down American society into various segments on the basis
of demographic factors (such as age, race, gender,
geographical region, education, income, and zip code)
And psychological factors (values, beliefs, lifestyle
preferences)
These typologies are classification systems to deal with the
various types of consumers in America
Marketers seek some typology that will help get people to
buy a given product or service
 9 Types
of
Consumers
(pages118-120)
 Need-Driven ($
restricted)
1. Survivors
2. Sustainers
 Outer-Directed (seek
approval)
3. Belongers
4. Emulators
5. Achievers
 Inner-Directed (satisfy
inner needs)
6. I-Am-Me’s
7. Experentials
8. Societally
Conscious
Individuals
 Integrateds (mature,
tolerant, self-assured)
9. Integrateds
Merrill Lynch switched its ad campaign from
“Bullish on America” (illustrated with a herd of
bulls) to “A Breed Apart” (illustrated with a lone
bull)
 “Bullish on America” appealed to belongers- the
essentially middle-class conservative members
of the mass market who want to fit in
 But Merrill Lynch decided belongers were not as
good a market as achievers
 Their research determined that those in the
“achiever” category liked the “Breed Apart” ads
much better than the “Bullish on America” ads
 And they had more money to invest
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This VALS typology understands the theory that
as people grow they fill certain needs for
survival and security
 Then they seek a sense of belonging
 Next, they strive for self-esteem
 And then move upward to
“self actualization,” developing their
inner self and realizing their full potential
 Thus using this typology, advertisers are able to
make appeals that will resonate most directly
with the deep-seated beliefs, values, and
lifestyles of different segments of the American
population
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The old saying “Birds of a feather flock together”
suggests that people who live in a given zip code
tend to have similar socioeconomic levels
 The Claritas Corporation used zip codes to classify
250,000 neighborhoods in the U.S. into consumer
clusters
 Claritas (now called Nielsen-Claritas) boiled the
tendencies down to 66 different categories of
consumers (see list on pages 125-126)
 The thinking is that by knowing who you are
targeting for your advertising, and what they are like,
you can do a better job of reaching them
 Take the test, see if you agree with the
generalizations!
 Click here
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Five Groups or Media Communities:
Home Engineers
Real Guys
Ethnic Pewneps (People Who Need People)
Information Grazers
Armchair Adventurers
(pages 127-128)
Another
List
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Strivers (23%)- middle-aged, materialistic; value status, wealth and
power; found in developing and developed countries
Devouts (22%)- believe in more traditional values such as faith,
obedience, duty, respect for elders; found in Middle East, Africa, Asia
Altruists (18%)- as a rule, are well-educated, older (median age
44); interested in social causes/political issues; tend to be found in
Latin America and Russia
Intimates (15%)- “People who need people”; primarily concerned
with relationships with spouses, family, friends, colleagues, significant
others; found mostly in UK, US, Netherlands, Hungary; heavy use of
media a common trait
Fun Seekers (12%)- youngest group; interested in excitement,
pleasure; adventure; value looking good and spending time in
restaurants, bars, clubs
Creatives (10%)- focus is on technology and knowledge; are
trendsetters who own computers, love the Internet, consume the
greatest amount of media- all kinds
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Marketing organizations are gaining valuable insights into
people’s attitudes towards various products by searching
through chat rooms, message boards, and the millions of
web logs on the Internet
The opinions of bloggers, unsolicited and honest, can be
seen as a gigantic focus group my marketers
Language-processing algorithms can track positive and
negative mentions of a brand and predict the age range and
gender of opinion sharers
Advertising agencies are also using blogs to get their
message out by purchasing space on popular blogs, some of
which are read by thousands, even hundreds of thousands
Ads have to be done in a way not to turn off the bloggers
and the blog readers