Survey of Broadcasting: Assignment 2, Question 3. Give an example of and define, in detail, the term “psychographics”.–Videos

Posted on June 30, 2011. Filed under: Advertising, Demographics, Psychographics, Radio | Tags: , , , , , , , , , , |

Advertisers and media buyers target their commercials or messages to the listeners of a radio station.

Radio stations in turn use one of about twenty distinct formats such as music, news, talk, and sports to attract listeners to their radio station.

Radio stations use both the demographics and psychographics of their listening audience to attract advertiser and advertising revenues.

Advertisers and radio stations need to know who are listening to their programs and commercials.

Demographic traits of an individual include their age, gender, income, marital status, racial/ethnic background and other attributes of the individual.

Psychographics are an individual’s personality traits such as their attitudes, beliefs, values, lifestyles, hobbies, political interests, passions, opinions and other motivating factors for listening to a particular radio station.

Listener psychographics, also known as qualitative, values or lifestyle research, are studies used to determine a radio station’s listeners or what the listeners are really like.

The station’s audience  is segmented by various personality traits and their listening or viewing behavior.

The individual rates himself on a number of different scales, such as active-passive, leader-follower, relaxed-tensed, romantic-practical, independent-dependent, and so forth.

Lifestyle surveys put more emphasis on values that influence consumer behavior.

The best known lifestyle survey is the VALS II developed at the Standard Research Institute that divides people into eight groups (Achievers, Actualizers, Believers, Innovators, Makers, Strivers, Strugglers, and Thinkers)

Advertisers develop ad campaigns that are consistent with their target audiences based on VALS II.

Background Articles and Videos

Psychographic Profile: Communicating with Your Target Market

Psychographics Who Is Most Likely to Buy?

Are You My Audience? – Intro to Surveys and Psychographics: Part 1

Are You My Audience? – Intro to Surveys and Psychographics: Part 2

Are You My Audience? – Intro to Surveys and Psychographics: Part 3

Are You My Audience? – Intro to Surveys and Psychographics: Part 4

NICHE – demographics vs psychographics

Psychographic

“…In the field of marketing, demographics, opinion research, and social research in general, psychographic variables are any attributes relating to personality, values, attitudes, interests, or lifestyles. They are also called IAO variables (for Interests, Activities, and Opinions). They can be contrasted with demographic variables (such as age and gender), behavioral variables (such as usage rate or loyalty), and firmographic variables (such as industry, seniority and functional area).

Psychographics should not be confused with demographics. For example, historical generations are defined by psychographic variables like attitudes, personality formation, and cultural touchstones. The traditional definition of the “Baby Boom Generation” has been the subject of much criticism[by whom?] because it is based on demographic variables where it should be based on psychographic variables[citation needed]. While all other generations are defined by psychographic variables, the Boomer definition is based on a demographic variable: the fertility rates of its members’ parents.

When a relatively complete profile of a person or group’s psychographic make-up is constructed, this is called a “psychographic profile”. Psychographic profiles are used in market segmentation as well as in advertising.

Some categories of psychographic factors used in market segmentation include:

  • Activity, Interest, Opinion (AIOs)
  • Attitudes
  • Values

Psychographics can also be seen as an equivalent of the concept of “culture” as used most commonly in national segmentation. “Psychographics is the study of personality, values, attitudes, interests, and lifestyles” [1] …”

http://en.wikipedia.org/wiki/Psychographic

VALS

“…VALS (“Values, Attitudes and Lifestyles”) is a proprietary research methodology used for psychographic market segmentation. Market segmentation is designed to guide companies in tailoring their products and services to appeal to the people most likely to purchase them.

VALS was developed in 1978 by social scientist and consumer futurist Arnold Mitchell and his colleagues at SRI International. It was immediately embraced by advertising agencies, and is currently offered as a product of SRI’s consulting services division. VALS draws heavily on the work of Harvard sociologist David Riesman and psychologist Abraham Maslow. [1]

Mitchell used statistics to identify attitudinal and demographic questions that helped categorize adult American consumers into one of nine lifestyle types: survivors (4%), sustainers (7%), belongers (35%), emulators (9%), achievers (22%), I-am-me (5%), experiential (7%), societally conscious (9%), and integrated (2%). The questions were weighted using data developed from a sample of 1,635 Americans and their partners, who responded to an SRI International survey in 1980. [2]

The main dimensions of the VALS framework are primary motivation (the horizontal dimension) and resources (the vertical dimension). The vertical dimension segments people based on the degree to which they are innovative and have resources such as income, education, self-confidence, intelligence, leadership skills, and energy. The horizontal dimension represents primary motivations and includes three distinct types:

  • Consumers driven by knowledge and principles are motivated primarily by ideals. These consumers include groups called Thinkers and Believers.
  • Consumers driven by demonstrating success to their peers are motivated primarily by achievement. These consumers include groups referred to as Achievers and Strivers.
  • Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by self-expression. These consumers include the groups known as Experiencers and Makers.

At the top of the rectangle are the Innovators, who have such high resources that they could have any of the three primary motivations. At the bottom of the rectangle are the Survivors, who live complacently and within their means without a strong primary motivation of the types listed above. The VALS Framework gives more details about each of the groups.

Psychographic segmentation has been criticized by well-known public opinion analyst and social scientist Daniel Yankelovich, who says psychographics are “very weak” at predicting people’s purchases, making it a “very poor” tool for corporate decision-makers. [3] VALS has also been criticized as too culturally specific for international use. [4]

VALS Framework and Segment

  • Innovator. These consumers are on the leading edge of change, have the highest incomes, and such high self-esteem and abundant resources that they can induldge in any or all self-orientations. They are located above the rectangle. Image is important to them as an expression of taste, independence, and character. Their consumer choices are directed toward the “finer things in life.”
  • Thinkers. These consumers are the high-resource group of those who are motivated by ideals. They are mature, responsible, well-educated professionals. Their leisure activities center on their homes, but they are well informed about what goes on in the world and are open to new ideas and social change. They have high incomes but are practical consumers and rational decision makers.
  • Believers. These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favor American products and established brands. Their lives are centered on family, church, community, and the nation. They have modest incomes.
  • Achievers. These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that show off their success to their peers.
  • Strivers. These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.
  • Experiencers. These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25. They have a lot of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services.
  • Makers. These consumers are the low-resource group of those who are motivated by self-expression. They are practical people who value self-sufficiency. They are focused on the familiar-family, work, and physical recreation-and have little interest in the broader world. As consumers, they appreciate practical and functional products.
  • Survivors. These consumers have the lowest incomes. They have too few resources to be included in any consumer self-orientation and are thus located below the rectangle. They are the oldest of all the segments, with a median age of 61. Within their limited means, they tend to be brand-loyal consumers.

[edit] References

  1. ^ Yankelovich, Daniel; David Meer (February 6, 2006). Harvard Business Review: 1-11. http://www.viewpointlearning.com/wp-content/uploads/2011/04/segmentation_0206.pdf. Retrieved 7 June 2011.
  2. ^ Beatty, Sharon E.; Pamela M. Homer, Lynn R. Kahle (1988). “PROBLEMS WITH VALS IN INTERNATIONAL MARKETING RESEARCH: AN EXAMPLE FROM AN APPLICATION OF THE EMPIRICAL MIRROR TECHNIQUE”. Advances in Consumer Research 15: 375-380. http://www.acrwebsite.org/volumes/display.asp?id=6655. Retrieved 7 June 2011.
  3. ^ Yankelovich, Daniel; David Meer (February 6, 2006). Harvard Business Review: 1-11. http://www.viewpointlearning.com/wp-content/uploads/2011/04/segmentation_0206.pdf. Retrieved 7 June 2011.
  4. ^ Beatty, Sharon E.; Pamela M. Homer, Lynn R. Kahle (1988). “PROBLEMS WITH VALS IN INTERNATIONAL MARKETING RESEARCH: AN EXAMPLE FROM AN APPLICATION OF THE EMPIRICAL MIRROR TECHNIQUE”. Advances in Consumer Research 15: 375-380. http://www.acrwebsite.org/volumes/display.asp?id=6655. Retrieved 7 June 2011.

Use of the VALS Framework

Marketing classes use this tool to determine the placement of a given product to a certain niche in an industry. …”

http://en.wikipedia.org/wiki/VALS

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Survey of Broadcasting: Assignment 2: Question 2. Strategize about what you would do if you were the weakest station in a market. How would you plan your media buys? What would you do to make your station more attractive to advertisers?

Posted on June 30, 2011. Filed under: Audio, Broadcasting, Business, Communications, Defamation, Demographics, Economics, Formats, Mass Communications, Music, News, Radio, Talk | Tags: , , , , , , , , , , |

Question 2. Strategize about what you would do if you were the weakest station in a market.

How would you plan your media buys?

What would you do to make your station more attractive to advertisers?

If I were the weakest radio station in a market I would first do an analysis of the current format of the station.

Success in radio programming requires finding a unique niche in a market that would attract a large radio audience and in turn attract advertisers and revenues.

I would look for the format hole in a market or listening area by considering internal and external factors.

An internal analysis would consider such factors as the station’s dial location, power, technical facilities, management philosophy and station ownership.

An external analysis would begin with a competitive market study and consider such factors as existing competitor station’s current formats, ratings, financial performance, and technical properties.

Both the strengths and weaknesses of each competitor station should be examined.

By searching for a format hole I should be able to find a new or different format that is not currently available in a market.

If no format hole is found, then I should be able to find at least one or more competitors with a format that I could compete with head-to-head.

I would plan by media buys by first ascertaining my station’s target audience or the primary group of people the station seeks to reach with it programming.

The target audience should be clearly defined in terms of its demographics including age, gender, marital status, income, racial/ethnic background and other descriptors.

In addition to demographics I would try to define the target audience listeners in terms of their psychographics including listener attitudes, beliefs, hobbies, interests, lifestyles and motivations for listening to the station.

I would make the station more attractive to advertisers by first having very low if not the lowest rates for advertising commercials.

This should attract advertisers looking for bargains especially local small businesses.

I would provide advertisers with both the demographics and psychographics of the station’s target listening audience.

This should attract advertisers of products and services whose customers have the same or similar demographics and psychographics of the station’s target listening audience.

Background Articles and Videos

Advertising Techniques : How Do Media Buying Services Operate?

Media Buying 101

5 Sins of an Accomplished Media Buyer

Media Buying 101 (Everything BUT Google)

Meet Media Buying Expert Dan Zifkin

Media Buying Strategy in a Web 2.0 World

Media Buying and Planning Services – Eliminate a Costly Learning Curve

Media Buying Testing Strategies – Discovering New Winners

Media Buying

“…Media Buying is a sub function of Advertising management. Media Buying is the procurement of the best possible placement and price of a piece of media real-estate within any given media. The main task of Media Buying lies within the negotiation of price and placement to ensure the best possible value can be secured.

Buyers

Media Buyers are individuals responsible for purchasing time and advertising space for the purpose of advertising.[1] When planning what to buy, they must evaluate factors based on but not limited to station formats, pricing rates, demographics, geographic, and psychographics relating to the advertisers particular product or service objectives. The Media Buyer needs to optimize what is bought and that is dependent on budget, type of medium (radio, internet, TV, print), quality of the medium (target audience, time of day for broadcast, etc.), and how much time and space is wanted. Media Buyers can purchase spot, regionally, or nationally. National Media Buyers might have to factor in determinates based on a state by state basis. Rates, demand of leads, space, and time, and state licenses will vary from state to state. National Media Buyers will need National Media Planning to generate National Media Marketing strategies and National Media Advertising that can be adaptable from area to area but also work on a national level.

There is an apparent distinction between General Marketing Media Buyers and Direct Response Media Buyers. General Market Media Buyers enact or actualize media plans drawn up by media planners. They negotiate rates and create media schedules based on a media plan constructed by a Media Planner. Through the Media Planner, General Market Media Buyers rely on published cost per point guides which in actuality, are often based on hypothetical benchmarks, and rather outdated models[citation needed]. An experienced Direct Response Media Buyer knows what stations generate a specific quantity of response and knows within reason, the break even point of the expenditure versus the return. With that information, the Direct Response Media Buyer is efficient in negotiating a functional rate and in purchasing media from the appropriate stations[citation needed]. The Direct Response Buyer attaches unique phone numbers to each station they purchase media from and track the sales, and make adjustments to the media plan and schedule as necessary to optimize results. With these differing methodologies, Direct Response Marketing can be considered a specialized arena. Few advertising and marketing agencies are qualified to support clients in their Direct Response efforts[citation needed].

Media Research Planning can be done by Media Buyers as well as Media Specialists. Depending on product and service, Media Buyers and Media Specialists must do a fair amount of research to determine how best to spend the allotted budget[citation needed]. This includes research on the target audience and what type of medium will work best to reach the largest amount of consumers with the most effective method. Media Planners and Media Specialists have a vast array of media outlets at their disposal, both traditional media and new media. Traditional media would include radio, TV, magazines, newspapers, and out of home. New media might include Satellite TV, cable TV, Satellite radio, and internet. The internet offers a number of Online Media that has surfaced with the improvement of technology and the accessibility of the internet. Online Media can include emails, search engines and referral links, web portals, banners, interactive games, and video clips. Media Planners and Specialists can pick and choose what and/or which combination of media is most appropriate and effective to achieve their goal, whether it is to make a sale, and/or to deliver a message or idea. They can also strategize and make use of product placements and Positioning. Inserting advertisements as print ads in newspapers and magazines, buying impressions for advertisements on the internet, and airing commercials on the radio or TV, can be utilized by Direct Response Advertisers as well as Remnant Advertisers.

All the major marketing services holding companies own specialist media-buying operations.

Prior to the late 1990s, media buying was generally carried out by the media department of an advertising agency. The split between creative agencies and media agencies is often referred to as “unbundling”. In 1999, WPP Group created MindShare from the media departments of its two advertising networks, Ogilvy & Mather and J Walter Thompson, now JWT.

In 2003, after purchasing Young & Rubicam and Tempus, WPP further consolidated all of its media operations including media buying and media planning through the formation of GroupM, which is now the number one media investment management company in terms of billings.[2] The other major media holdings include Omnicom’s OMD, Publicis’s Vivaki and ZenithOptimedia, Interpublic’s Mediabrands, Aegis’s Aegis Media and Havas’s Havas Media. …”

http://en.wikipedia.org/wiki/Media_buying

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