Groups and their implications on marketing...

''Identifying and understanding the groups consumers belong to is a key strategy for marketers. Doing so helps identify target markets, develop new products, and create appealing marketing promotions to which consumers can relate.''

(knowthis.com. [online], 2009)

There are many group types which can influence purchase decision:

Ascribed (born into)

Reference (looked to for lifestyle)

Aquired (join/move into e.g Guides or Brownies)

Aspirational (like to belong)

Disassociation (hate to belong to)

Contrived (formed for a specific purpose)

Associative (realistically belong)

Peer (people of equal standing)

The different group types can impact greatly on purchase decision, for example, as ''chavs'' are associated with the burberry pattern, this may deter a buyer purchasing a genuine burberry item as it could be seen as an association with a group which would not be desirable to be associated with. Furthermore, someone of a lower class could be influenced by careful marketing if a product is shown to be luxurious and something that they would ''aspire'' to be associated with. The glitz and glamour portrayed in the following Chanel advert would give a buyer a product which they could aspire to and also be able to afford.

Maslow's hierachy of needs includes the need to belong, which is a pivot on which marketers and advertisers often advertise their products. The need for belonging is re-iterated in the social comparison theory which states that we look to the behaviour of others to provide a guide to how we chose to behave. The person on which social comparisons are made tends to be a co-oriented peer or someone of equal standing. Hornstein et al (1968) conducted an experiment where they dropped a wallet containing trivial items (such as a letter), a return address and $2 in the middle of Manhattan. they observed what people did when they piccked it up and found that when the person who found the letter felt similar to the letter-writer, they were more inclined to return the wallet. However, when they felt similiar to the letter-writer, but the letter was written in a negative way they ''punished'' them by not returning the wallet. Therefore demonstrating our desire to belong, and feel good about the group that we belong to.

Consequently, we look to our reference group (colleagues/neighbours), for influence on purchase decisions such as luxury items often branded. Therefore if a marketer or advertiser can establish a strong brand, it will be more likely to be suggested by an individual's reference group and therefore have a better chance of succeeding in it's market.

Reference group influence: (Solomon, 2000)