Wednesday, July 16, 2008

My First Journal Article Review: Target Market

Title: Nontarget Markets and Viewers Distinctiveness: The Impact of Target Marketing on Advertising Attitudes

By: Aaker, J. L., Brumbaugh, A. M., Grier., S.A.

Source: Journal of Consumer Psychology, Vol. 9, No. 3, (2000), pp. 127-140

1.0 Introduction

This research examines the effect of target and nontarget marketing on members of the advertiser by involving nondistinctive groups (e.g., Caucasian, heterosexual) and distinctive groups (e.g., African American, homosexual). On the other hand, it examines the response of audience in particular advertisements. Generally, this research intends to:

a) investigate the effects of target marketing on consumers not intended target market. (Aaker, et. al., 2000)

- Researchers proposed that particular audience (e.g., Caucasian when watching an ad in Black American Channel) has negative effects towards an ad associated with feeling being excluded from the ad have consequences for advertising reactions. These negative consequences called nontarget market effects.

b) demonstrate the process by which target marketing operates is driven by consumers’ inference of similarity between some characteristics of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g., reality or desire of having the represented lifestyle; Grounhaug & Rostvig , 1978)

- Negative nontarget markets effects may happen when the elements in an ad are incongruent with some demographic or psychographic of the customer. This implies an ad may induce negative effects if it did not contain any interest of the particular audience. The audience may feel ignored, neglected, become alienated or offended if viewing an ad that has not been designed to appeal to their market segment.

c) distinguish between target marketing from the marketers’ (actual target market) vs. the consumers’ (perceived as being in the target market) perspective. (Aaker, et. al., 2000)

- Researchers focus on negative nontarget market effects (or the decreased preference for an ad by nontarget market vs. target market members).

1.1 Terms of Target Market
A target market is a group of potential clients who share certain characteristics, tend to behave in similar ways, and are likely to be attracted to a specific combination of products and services. A target market represents a defined market segment that contains identifiable clients who demand or represent a potential demand for microfinance service. (Ledgerwood, J 1999) From the book of Microfinance Handbook: "An Institutional and Financial Perspective."

2.0 Experiments

2.1 Experiment 1

It indicates nontarget market members respond less favourably to targeted marketing efforts and highlights the moderating condition of viewer distinctiveness. This shows minority groups have negative attitude toward target marketing effects, whereas individuals in a majority group are more likely to exhibit nontarget market effects.

Viewers’ interpretations of targeting cues involve their response of whether they are feeling similar to an advertisement.

The feeling of similarity toward an ad by an audience may be induced by creative cues, such as music type, slang, or tone of appeal, are frequently used by marketers to indicate the intended target.

In addition, the feeling of similarity with an advertisement shows the process underlying target and nontarget market effects may differ for distinctive versus nondistinctive viewers resulting in the observed asymmetric responses.

2.2 Experiment 2

It investigates target and nontarget market effects may occur and illustrates the distinctiveness of both consumers and advertisement sources influence the specific processes driving target and nontarget market effects.

The experiment shows again that target and nontarget market effects will be affected by the viewer distinctiveness. According to the result of the experiment, individuals in the nontarget market of an advertisement respond unfavourable attitudes than individuals in the target market. This implies again that viewers could not feel the similarity in an ad. Whereas, individuals in the target market of an advertisement had more favourable attitudes toward that advertisement than individuals in the nontarget market, and this effect was stronger for distinctive viewers.

2.3 Experiment 3

The final experiment confirms that these processes cause target and nontarget market effects to be more significant. According to their theoretical and practical understanding of consumer response to targeted marketing efforts, these implications of the existence of nontarget market effects and the psychological processes that underlie these effects are discussed.

Internalization happens when the attitude advocated is consistent with one’s value system and one finds it internally satisfying to accept the product or service.

Mackie (1987, p. 51) suggested that “the operation of factors such as majority endorsement illustrate difficulties of maintaining such distinctions as those between internalization and identification (Kelman 1958)” and highlights conditions under which internalization and identification can jointly occur.

3.0 Conclusion

a) In the context of consumer behaviour, viewer distinctiveness is an important element of source effects.

b) Target marketing operates through different mechanisms for distinctive and nondistinctive individuals. That is, the elements of an ad influence the positive and negative response by the particular group (e.g., Caucasian and Black American). Audience may be favourably when exposed to the targeted market, whereas they will be unfavourably when exposed to a untargeted market.

c) The feelings of similarity with the source drive favourable target market effects for distinctive viewers, advertisers courting minority segments may consider paying certain attention to the sources in advertisements that have the most impact on the intended target segment.

4.0 Application

In the context of Malaysia, the target market phenomenon happens in every TV channels too. There are several TV channels mainly playing different kinds of shows and drama to cater for different races in Malaysia. For instance, RTM1, RTM2, TV3, 9TV, 8TV, NTV7 are showing various shows for the Malays, RTM2, TV3, and NTV7 are showing Chinese shows for the Chinese and Indians too.

As for the period of Chinese shows, the TV commercials are mostly related to Chinese needs and necessities. For example, there will be an advertisement about the promotion of mooncake during the Chinese mid-autumn festival, promotions of packed drinks during New Year and so on. Whereas, as for the Malays’ festival, there will be promotions for the New Year and Hari Raya Puasa preparations.

Target market strategy should be imposed on certain audience to ensure that the message can be delivered to them in more effective way. According to the journal article, an ad must be able to induce the feeling of similarity and create a positive attitude towards the ad among the audience. For example; it is not appropriate to advertise mooncake in Malay channel and the audience may feel alienated toward the ad. Whereas, we can advertise an ad that caters for every category of audience in TV such as drinks, shampoo, snacks in every channel.


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