Marketing to Children

In the world today there are over 842 million children aged between 4 and 12, and they are being viewed as an increasingly important segment by marketers. In the USA alone, it is estimated that over US$5 billion is spent annually on promotions directly targeting children. Expenditure by children is also increasing rapidly, but their real importance is demonstrated by their ability to influence household purchasing decisions-that is, their pester power. In the USA, it has been estimated that children have an influence on some US$300 billion worth of household expenditure. Research suggests that at the age of 6 months, children are forming images of corporate logos. By the age of 3 years, most can request a product. By 7 or 8, they actually understand advertisements and, by 11, understand the persuasive intent in advertising.

There is now a plethora of advertising vehicles aimed at children, such as kids' channels, kids' magazines and even schools that are sponsored by corporations in return for opportunities to promote their products in the classroom and the playground. In targeting this segment, marketers place an emphasis on brand logos and images. The symbolic meanings of characters and their traits have a greater impact on this age group, possibly due to its limited experience, and children tend to pick up on and repeat catchy slogans and jingles. More recently, marketers have been using the Internet to target children. Very popular are 'sticky sites'-those that provide games, entertainment, information and interactive activities, which create a desire to return to the site. Income is generated through sponsorship and advertising, and many sites earn additional revenue by selling small items such as stickers and collectibles.

Not surprisingly, the targeting of children has been the subject of a great deal of debate and criticism, and is considered unethical by many commentators. Concerns were expressed, for example, when research showed that 9 to 11 year olds identified more with the Budweiser slogan ('Whassupp!') than with that of Tony the Tiger. Marketers tend to counter that kids today are more sophisticated, and that they are well able to perceive hype and resist manipulation. However, the targeting of children is an issue that is likely to continue to generate significant controversy in the years ahead.

How they buy

The decision-making process for consumers and organizations is shown in Figure 3.2. This diagram shows that buyers typically move through a series of stages, from recognition that a problem exists to an examination of potential alternatives to a purchase and the subsequent evaluation of the purchase. Organizational buying is typically more complex and may involve more stages. However, the exact nature of the process will depend on the buying situation. In certain situations some stages will be omitted; for example, in a routine rebuy situation, the purchasing officer is unlikely to pass through the third, fourth and fifth stages of organizational decision-making (search for suppliers and analysis, and evaluation of their proposals). These stages will be bypassed, as the buyer, recognizing a need-perhaps shortage of stationery-routinely re-orders from an existing supplier. In general, the more complex the decision and the more expensive the item, the more likely it is that each stage will be passed through and that the process will take more time.