Transcript THE CONSIDERATIONS FOR CONSUMERS _2

Company
LOGO
THE CONSIDERATIONS
FOR CONSUMERS
• Where consumer power comes from
• Considerations for consumers
• The role of advertising
•Consumerism video 1
CONSUMERS IN THE
MARKETPLACE
• Consumers have power due to their
ability to buy goods and services
• These decisions affect the success of
producers and sellers in the
marketplace
• Consumer power depends on the
number of consumers who are doing
the same thing in the same market at
the same time
CONSUMERS IN THE
MARKETPLACE
• Prior to the Industrial Revolution most
goods and services were produced
after consumers placed their orders
• Today most goods are produced before
consumers decide to buy
• Producers today have to try and
anticipate demand, those who guess
correctly succeed
CONSIDERATIONS AS A
CONSUMER
• Does the product have a health
impact?
– Choices at the grocery store
• Low fat, sugar free, vitamins,
• Calories, fresh, frozen
– Choices about hobbies and
activities
• Active vs. passive
• Indoor vs. outdoor
• Aerobic vs. anaerobic
• http://www.youtube.com/watch?v=pKP7GTeIWj4
CONSIDERATIONS AS A
CONSUMER
• Is there a safety factor in
this purchase?
– Airbags in vehicles,
braking system, antiroll
technology
– Safety glasses, stop saws,
steel toed boots, hard hats
– Sports safety measures
visors, neck guards for
hockey
CONSIDERATIONS AS A
CONSUMER
• Is there a security component to
this purchase?
– Home alarms, car alarms
– Protective software
– GPS tracking systems
– Video cameras in convenience
stores
– http://www.youtube.com/watch?v=kX_rL32HsTA
CONSIDERATIONS AS A
CONSUMER
• Is this a product produced locally, does
one choice have a better impact for my
community?
– Produce, local is likely fresher
– Local hardware store versus Home Depot
– Handcrafted production versus mass
production
– Typically speaking in each of the instances
the trade off is higher price
CONSIDERATIONS AS A
CONSUMER
• How much does the environment factor in
to my purchasing decisions?
– Recycled products
– Disposable products
– Fuel efficiency of cars
– Types of light bulbs
THE ROLE OF ADVERTISING
• Advertising ensures that consumers
have information on new and existing
products or services before they make
their purchasing decisions
• http://www.youtube.com/watch?v=kDTJd1OLPHw
POSITIVES OF ADVERTISING
1. informs consumers about new
products
2. advertising results in lower prices
due to increased sales. These
increased sales lead to efficiency of
production because mass
marketing means each item
produced is less expensive
3. advertising gives consumers more
choice. Consumers can select the
products and services most
suitable for themselves
ARGUMENTS AGAINST
ADVERTISING
1. Advertising can be misleading
and misinform customers
2. Advertising can confuse
consumers by making poor
quality products look good
3. advertising encourages
dissatisfaction and wasteful
spending
THE GROUPS TARGETED BY
ADVERTISERS
• BELONGERS
– defend status quo, they are
traditionalists and conservative
– they drive a Dodge or Plymouth,
drink Pepsi or Coke, eat at
McDonalds or Pizza Hut
– advertisers prey on their loyalty
– 30% of consumers fit in this
category
THE GROUPS TARGETED BY
ADVERTISERS
• EMULATORS
– Young people, wannabees
– They are 15% of North
American market
– Will do anything to fit it
– Chase trends and trendy
products
– Advertisers prey on their
insecurity
THE GROUPS TARGETED BY
ADVERTISERS
• EMULATOR-ACHIEVERS
– Materialists, want the best of everything
– About 20% of North American
population
– Advertisers prey on their desire to keep
up with the Joneses
– Feel at home with high priced, exclusive
brands
– BMW or Mercedes, Dom Perignon
Champagne, imported foods and
designer clothes
THE GROUPS TARGETED BY
ADVERTISERS
• SOCIETALLY CONSCIOUS
ACHIEVERS
– Care more about inner peace,
environment, safety than
financial success
– About 20% of North American
Population
– Recycled products, no name
products, local products
THE GROUPS TARGETED BY
ADVERTISERS
• NEEDS DIRECTED
CONSUMERS
– Welfare recipients, people on
fixed incomes, minimum wage
earners, senior citizens on
pension, children in poverty
– Ignored by advertisers
– About 15% of the North
American population
– http://www.youtube.com/watch?v=xy4w1L90
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