An Examination of Advertisements and Their Influence on Consumers

This report analyzes the consumer impact of advertisements from L'Oreal, Pepsi, Telstra, and Toyota. It begins by describing the target markets and segmentation strategies (demographic and psychographic) for each brand. The report then explores the concept of market segmentation, defining it as the division of a broad consumer market into subsets of consumers based on shared characteristics. The benefits of market segmentation, including increased profitability, customer satisfaction, and a stronger market position, are also detailed. The report uses the examples of L'Oreal, Pepsi, Telstra, and Toyota to show how companies tailor their marketing efforts to specific consumer segments. Finally, the report includes a list of references for all the sources used in the assignment, along with the appendix showing the advertisements used in the analysis.

Running head: ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Advertisements and Their Consumer Impacts
Name of the Student:
Name of the University:
Author Note:

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Answer 1:
The four prints advertisements chosen are of L’Oreal, Pepsi, Toyota Camry Range
and Telstra. The four advertisements are described as below:
L’Oreal:
The L’Oreal advertisement is displaying the hair care product range called ’Elive’ on
the official website (Appendix). One can think that the target markets of the advertisement
are the young and middle-aged female customers who take care of their hair regularly. The
first demographic characteristic of the customers of L’Oreal are, they are upper class people.
The product attracts women between ages of 15 to 65 years. The third demographic
segmentation of L’Oreal products are that they attract female customers living in the urban
areas. This is because the L’Oreal products are expensive and the advertisements are very
sophisticated. These features attract the rich urban female customers who have sufficient
disposable incomes to buy L’Oreal products (lorealparis.com.au. 2017)
The psychographic segmentation of the customer segments of L’Oreal consists mostly
working women who use L’Oreal hair care products to wash their hair. The second customer
segment of L’Oreal consists of customers who have educated and have knowledge about hair
care products. L’Oreal is the world’s largest cosmetic company and shows stylish women
mostly models and actresses. The third customer segment using L’Oreal consists of female
customers who enjoy experimenting with cosmetics and use the product occasionally. This
is because L’Oreal keeps on introducing new products into the market, which attracts female
customers who enjoy using new skincare products(Heinemann 2016).

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Telstra:
The second advertisement is that of Tesltra published in an Australian magazine
(Appendix). One can think on seeing the advertisement that the customers using Telstra can
be categorised into three divisions based on demography. The first category consists of
customers of various age groups. This is because the products of Telstra like data packs and
mobile connections are used by people of all ages other than babies
(newsmediaworks.com.au 2017). The next demographic segmentation consists of customers
of both female and male gender. The third segmentation of Telstra customers consists of both
rich and middle class customers. Telstra provides goods and services both high price variants
and low price variants (Heinemann 2016). Thus, it can be justified that the customer
segments of Telstra consist of both middle class and upper class customers.
The customer base of Telstra can be divided into three groups based on psychographic
segmentation. The first segmentation consists of regular users who require internet services
on daily basis. The second category consists of customers who have to make frequent calls
and use the talk time products of Telstra. The third category consists of customers who use
the TV data packs of Telstra to avail television broadcast. These three types of customer
segments use Telstra because the company provides data packs, talk times and television data
packets at affordable prices. Thus, it can be justified Telstra is used by regular internet users,
heavy mobile callers and customers who watch television (Heinemann 2016).
Pepsi:
The third advertisement is that of Pepsi published on an Australian daily, which
targets the market consisting of mostly young customers who enjoy refreshing carbonated
beverages (Appendix). One can think that the three demographic characteristics of the target
market of Pepsi are, the product is enjoyed all over the world, the customer segment enjoying
Pepsi consist of both the gender groups and it is enjoyed by both the rich and the poor. The

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Pepsi products are available all over the world and are not expensive (news.com.au, 2017).
Moreover, the promotions of Pepsi feature both male and female models. This justifies the
popularity of Pepsi globally among both male and female customers irrespective of their
social status.
The three psychographic characteristics of the target market of Pepsi are, most of the
customers are young, the customer segments enjoys refreshing cola drinks and most of the
Pepsi drinkers are sports loving. This is because Pepsi hosts sports events all round the world
and young customers who love sports can relate to the product (Dolnicar et al. 2014).
Toyota Camry Range:
The fourth advertisement is that Toyota Camry Range available on the official
website of Toyota Australia (Appendix). One can think and point out that the target market of
Toyota consists of the rich upper class customers in Australia (toyota.com.au, 2017). The
three demographic characteristics of the customer segment of Toyota are that they mostly
rich, educated and the customer segment of Toyota span over the world. Toyota is one of the
largest automobile manufacturers globally. The Camry range of cars is very expensive and is
high involvement luxury cars. This justifies the global acceptance of Toyota cars by the rich
and educated customers.
The three psychographic attributes of the customer segments of Toyota are, the
customers are luxury loving, enjoy premium cars and use cars on regular basis. This is
because the target market of Camry is the wealthy upper class people who can afford luxury
cars to show their status.

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Answer 2:
Market segmentation refers to dividing the total consumer base into sub-groups of
customers called segments. The commercial organisations recognise these segments and form
their product and marketing mix according to the attributes of the customers belonging to
particular segments like their age, lifestyle and income (Heinemann 2016). For example, the
carbonated beverage companies normally segment the market to target the customers who are
young and enjoy soft drinks. Similarly, the automobile companies manufacture low priced
cars targeting the middle class customer segments and premium cars targeting the rich
customers. The concept of segmentation is crucial for the companies because it helps them to
choose the appropriate group of customers whom they can offer their products and earn high
revenue.
Answer 3:
The three benefits of market segmentation to the business organisations are as
follows:
High profitability:
The companies segment their customer segments on the various grounds like income
and lifestyle. This helps them to design appropriate products and marketing mixes to attract
these customer segments. This helps them generate huge revenue by offering appropriate
products to the customers (Hollensen 2015).
Customer satisfaction:
Offering appropriate products to the customers benefits them and creates customer
satisfaction. For example, offering premium cars to rich people creates customer satisfaction
among them. Thus, appropriate segmentation enables the companies to sell products, which

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
benefit the customers thus enhancing the value of their purchases (Venter, Alex and Sally
2015).
High market position:
As discussed above, market segmentation enables companies to offer right products to
right customers and maximise customer satisfaction. This enables them to create loyal
customer base to which they can sell their products to earn huge revenue. This acquisition of
loyal customer base and continuous revenue generation help companies to acquire high
market position. Thus, market segmentation enable companies to acquire and hold high
market positions (Dolnicar et al. 2014).

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
References:
"Pepsi Pulls ‘Tone-Deaf’ Ad Amid Backlash". 2017. Newscomau.
http://www.news.com.au/finance/business/pepsi-pulls-tonedeaf-protest-commercial-
featuring-kendall-jenner-amid-outrage/news-story/7c590dbed0e1aa9821afa84dba0d2da8.
Dolnicar, Sara, Bettina Grün, Friedrich Leisch, and Kathrin Schmidt. "Required sample sizes
for data-driven market segmentation analyses in tourism." Journal of Travel Research53, no.
3 (2014): 296-306.
Elvive Colour Protect Hair Care - For Vibrant Hair Colour Wash After Wash". 2017. L'oréal
Paris. https://www.lorealparis.com.au/haircare/elvive/colour-protect-haircare.aspx.
Exterior Colour Options | Camry | Toyota Australia". 2017. Toyota.
http://www.toyota.com.au/camry/colours.
Heinemann, Matt. "Leveraging Data Mining and Market Segmentation to Gain Conservation
Opportunity Intelligence." PhD diss., 2016.
Hollensen, Svend. Marketing management: A relationship approach. Pearson Education,
2015.
How Less Can Be More". 2017. Newsmediaworks. http://newsmediaworks.com.au/effective-
newspaper-ads-telstra-leverage-the-family-entertainment-experience/.
Venter, Peet, Alex Wright, and Sally Dibb. "Performing market segmentation: a performative
perspective." Journal of Marketing Management 31, no. 1-2 (2015): 62-83.

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Appendix:
Figure 1. Advertisement showing L'Oreal advertisement
(Source: lorealparis.com.au 2017)
Figure 2. Advertisement showing Telstra

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
(Source: newsmediaworks.com.au 2017)

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ADVERTISEMENTS AND THEIR CONSUMER IMPACTS
Figure
3. Advertisement showing Pepsi
(Source: news.com.au 2017)
Figure 4. Toyota Camry
(Source: toyota.com.au 2017)