Consumption, New Consumers, and New Communication in Economics

Consumption and New Consumers

Definition and Reasons for Consumption

1. Definition of Consumption: o The purchase of goods and services by the public (Oxford Dictionary).

2. Reasons for Consumption: o For necessity (basic needs like food). o To stand out ("I'm better than you"). o Aspirational consumption (e.g., low-fat or diet products). o Imitation (e.g., fashion trends). o For pleasure (influenced by neuroscience).

Consumer Society Characteristics

3. Consumer Society: o Past: Homogeneous consumption. o Present: Fragmentation of consumption patterns.

4. Features of Today's Consumer Society: o A complex, constantly changing environment (society, politics, economy). o Diversity of consumers requires direct research. o Distrust and skepticism towards advertising.

Marketing Fallacies

5. Common Marketing Fallacies (from Gerald Zaltman's How Customers Think): o Assuming consumers evaluate products logically and linearly. o Believing consumers can rationally explain their behavior. o Studying consumers without considering their cultural or emotional context. o Thinking consumers' memories are entirely accurate. o Assuming consumers think mainly in words. o Believing that advertising messages are interpreted as intended.

Consumer Society and Tourism

• In developed societies: o Consumption reflects lifestyle, not just economic capacity. o Growth of cultural, gastronomic, and adventure tourism. o Focus on emotional and experiential enjoyment.

New Communication

Communication Evolution

1. Communication Evolution: o The unidirectional model is obsolete. o Advertising 2.0: Engaging in a dialogue with consumers. o Consumers are now potential communicators and advocates.

New Communication Strategies

2. New Strategies: o Innovate in advertising and public relations. o Acknowledge planned obsolescence: products are not eternal, even in the tourism industry.

Conceptual Aspects of Advertising and Public Relations

What Is Advertising?

• Defined as producing advertisements for commercial products or services (Oxford Dictionary).
• Originates from the 15th century meaning "to warn" or "to give notice."
• By the late 18th century, it evolved to mean calling attention to goods for sale.

History of Advertising

1. Early Forms: o Shouting was the first communication/advertising method. o Sign shops and the advent of printing transformed advertising. o By the 16th and 17th centuries, posters began to emerge.

2. Milestones: o 1754: First hotel poster in Basel, alongside guides for fairs, exhibitions, and museums. o Advertising expanded to entertainment, medicine, and labeled products.

3. Why Advertising Succeeded: o Economic: Mechanization, mass production, credit availability. o Technological: Steam power, photography, printing advancements. o Cultural: Literacy growth, new leisure activities, artistic innovation. o Political: Spread of liberal ideas, shift from agriculture to industry. o Social: Differentiation between work and leisure, emergence of the middle class.

4. Advertising Evolution: o Print Era (18th century to WWI): Posters and newspapers gained prominence. o Golden Era of Posters (1914-1950): Artists like Cassandre shaped advertising. o New Media (1914-1950): Introduction of radio and cinema. o Television Era: Sponsored shows and commercials revolutionized reach and impact.

Public Relations (PR)

What Is PR?

• Maintaining a favorable public image for companies, organizations, or celebrities (Oxford Dictionary).

Key Observations on PR

• PR involves persuasive communication, not just managing feedback.
• PR is targeted and non-neutral, promoting client interests.
• Influences public perception through celebrities and stakeholders.

Types of Publics in PR

• Internal: Employees and stakeholders.
• External: Customers and the general public.

Core Concepts of PR

• Reputation: A long-term perception rooted in knowledge or assumptions about an organization.
• Image: A short-term evaluation shaped by organizational messages.

Brief History of PR

1. Early Examples: o Ancient Rome: Politicians gained prestige through gladiatorial sponsorship. o Renaissance: Emergence of public opinion and patronage.

2. Notable Figures: o Napoleon: Managed PR by controlling information and projecting an image. o Ivy Lee: Considered the first PR consultant; co-founded the first PR agency in 1904.

3. USA Leadership: o PR utilized for events like railway openings (1870) and international exhibitions (1892). o Modern PR began with targeted campaigns and media strategies.

4. PR After 9/11: o Crisis communication evolved to address terrorism and cultural integration. o Efforts focused on reaffirming democratic values and public resilience.

Consumers and Audiences

Are Consumers Free in Their Decisions?

• Classical theories suggest rational consumers make decisions to maximize utility.
• Critics argue consumer behavior is influenced by external forces, such as advertising, societal norms, and emotional desires.

Theories of Consumption

1. The Rational Consumer: o Assumes individuals act predictably, rationally, and selfishly to satisfy needs. o Failures: Does not explain differences in habits across income groups, societies, or irrational consumption (e.g., tobacco, fashion).

2. Marxist Economic Theory (Alienated Consumer): o Capitalism alienates consumers by creating unnecessary desires. o Advertising promotes envy and imitation, keeping consumers unaware of production processes. o Criticism: Consumers are not entirely passive; they are influenced by multiple factors like family and friends.

3. Symbolic Dimension of Consumption: o Consumption communicates social roles and exchanges cultural meanings. o Branding is key to creating consumer identities.

4. Pierre Bourdieu: Cultural Capital and Taste: o Habitus: Socially structured patterns that guide decisions and behaviors. o Taste is linked to social class and drives distinctions in preferences (e.g., music, fashion, tourism). o Cultural Capital: Non-transferable assets (e.g., education) that influence lifestyle and consumption.

5. Modern Perspectives (Lipovetsky, Bauman): o Happiness is now tied to experiences, not just objects. o Desire drives consumer behavior, replacing needs. o Planned obsolescence reinforces consumption by making products outdated quickly.

Advertising Today

• Focus on lifestyle, identity, and emotional connections.
• Innovation and customization dominate markets (e.g., Zara's rapid product cycles).
• Consumption reflects social inclusion/exclusion, particularly for youth.

Tourism and Consumer Behavior

1. Tourism as Consumption: o Vacations are seen as necessities, tied to aspirational groups. o Tourists are active, informed, and highly segmented.

2. Factors Influencing Tourism: o External: Cultural, social, marketing (e.g., brand image). o Personal: Psychological, loyalty programs, and PR strategies.

3. 21st Century Context: o Overload of information (infoxication) complicates decision-making. o Internet and social networks are vital tools for engagement.

4. Designing Tourism Products: o Shift from passive viewing ("see something") to active participation ("do something"). o Strategies must include understanding consumer behavior and offering unique, localized experiences.

5. The 7 O's of Consumer Research: o Objects, Objectives, Organizations, Operations, Occasions, Outlets, Orientation (e.g., motivations and processes behind purchases).

Advertising Campaign Overview

• Process Flow: Sender (agency/brand) -> Message (advertising campaign) -> Receiver (target audience) -> Response (buy/change behavior).
• Goals: Convert marketing objectives into communication goals.

Key Concepts in Advertising

1. Advertiser Identity: Global communication strategy includes visual identity (logo, colors, typography) and verbal identity (name, tagline). o Differentiate through mission, corporate philosophy, notoriety, and image.

2. Brand Elements: o Components: Name, logo, graphics, color identity. o Characteristics: Easy to read, memorable, unique, legally protected. Positive brand image fosters trust and satisfaction. o

3. Packaging: Represents direct contact with consumers and conveys brand identity.

Advertising Types

• By Medium: Above the Line: Traditional (TV, print, radio). o o Below the Line: Alternative (sponsorships, product placement).
• By Product: Tangible: Functional, impulse, high-cost, specialty. o Intangible: Services like banking and insurance. o
• By Purpose: Informative, prestigious, promotional, emotional, or rational.
• By Intensity: Intensive (short bursts), extensive (low frequency, long-term), or mixed.

Advertising Campaign Design

1. Research: o Market studies, product testing, SWOT analysis. Analyze target audience demographics and psychographics. o

2. Goals: o Must be clear, measurable, flexible, with a set timeline.

3. Strategic Platform: o Defines communication problem, orients creativity, and checks advertising goals.

4. Copy Strategy: o Focused on benefits, reason-why (evidence), and Unique Selling Proposition (USP).

5. Creative Strategy: o Content: What to say. o Coding: How to say it (tone, slogans, visuals).

Execution & Evaluation

• Briefing: Document summarizing market, competition, product, and audience details.
• Pretesting: Assesses campaign impact before release.
• Post-testing: Measures effectiveness to inform future campaigns.

Common Errors in Briefing

• Overloading or oversimplifying information.
• Being too rigid or overly creative, limiting the agency's role.

Key Takeaways for Success

• Align advertising goals with marketing objectives.
• Focus on clear messaging tailored to the target audience.
• Use creative, memorable strategies that resonate emotionally or logically.
• Continuously evaluate and adapt based on campaign performance.

Public Relations (PR) Campaign Overview

• Purpose: Turn marketing goals into communication goals.
• Process: Understand the client -> Identify problem/opportunity -> Define publics -> Research and diagnose -> Set goals -> Write objectives -> Design strategy -> Evaluate and control.

Steps of a PR Campaign

1. Know the Client: o Analyze the client's background (financials, reputation, past PR projects, SWOT analysis). o Understand organizational structure, products, and services. o Identify target audiences.