MARKETING COMMUNICATIONS

The Icfai University Press

Marketing Mastermind  October '09

Targeting Kids: Reasons, Concerns and Solutions

Kids today represent an important and major demographic segment as far as the marketing industry is concerned. They stand as three different markets for the marketer - through the direct money which children spend, through influence on their parents' spending, and the last and perhaps the most significant is by way of the life-long future market potential that they offer.

The global spending on adver- tising in the year 2007 was es-timated at $385 bn, of which the US accounted for over $150 bn. Worldwide advertising spend is estimated to exceed $450 bn by 2010. According to the Advertising Ratios & Budgets 30th Annual Edition, in 2007, Nestlé was the top ad spender with an estimated budget of $17.2 bn.

Advertisers have lately recognized that brand loyalties and consumer habits are formed when children are young and vulnerable, and the same will be carried through to adulthood. The implication of this observation has currently risen to prominence with advertisers realizing that children can be influenced in a much more easier and effortless manner, as they do not have enough understanding to seek out the differences between television programming and commercials, and are unaware of the selling intent of commercials.

Current Scenario

Recent reports that children either spend directly or influence purchases worth $500 bn per annum has prompted a substantial shift in the focus of communication and selling efforts on the part of marketers. If we look into the past, we will know that the most effective way of selling children's products was through marketing to their parents. But now, the opposite is true. Children are the target customers for intense advertising. Advertisers have observed that children not only influence the purchase of kids' products, but of everything in the household, may it be a toilet soap or motor car. Noticing this transformation, these "adult" products are now being paired with kid-oriented logos and images, so as to convince the influencer.

Also, due to busy schedule of the parents and the power puffed kids' increased access to latest communication technologies, parents are finding themselves less able to figure out the messages being sent to their kids. Today, children are asked to carry out more purchasing decisions themselves than ever before. "Mom I want this. Dad, get me that." are the demands, being fuelled by the marketing tactics that gradually erode the wallets of the parents.

The power demonstrated by children through repeated nagging of their parents to buy the advertised items is referred to as pester power. Latest and trendiest watches, frequent visits to Pizza Hut, school bags with the images of Pokémon and Power Puff Girls printed on them, an independent mobile, PC and that too a branded one, have become the essentials for most children. And the Barbie dolls or GI Joe toys collection should have the entire range. The children's wishlist does not end with food, fun, collectibles and gadgets; but extends to a host of other products and services. A survey conducted by www.raisingkids.co.uk revealed that more than 95% of kids pester their parents to buy them a product that is advertised on the idiot box (television).

A Glance at Pester Power in India

McDonald's Happy Meals advertisement, which speaks of distributing free toys, has a great nagging effect and the little customers almost force the parents to visit McDonald's. One can say that the company has successfully reached its goal through this commercial. It is estimated that advertisers in India spend around Rs.3000 mn per year on advertisements related to products targeted at kids' consumption and also purchased by them, such as chocolates, wafers, cold-drinks, etc.

The arrival of niche channels like Cartoon Network, Pogo, Disney, Hungama and others has given a big push to kid power in India. It is estimated that there are around 120 million tweens (children between 8-12 years of age) in India. Among them, about 45 million live in urban areas and have the power of determining or influencing the whopping Rs. 20,000 cr worth of purchasing decisions on food, mobile phones, apparel, cars, fast moving consumer goods and a variety of other household purchases. This power of tweens, who are considered more matured and also independent, has made marketers divert their focus and attention from moms and dads to them. No doubt, using this strategy, the marketers have been successful in making parents almost helpless in their purchase decisions.

How Advertisers Reach Out to Kids

In today's highly competitive world, it would not be enough if advertising is limited to television. In order to maximize sales, one has to reach out to kids wherever they may be, at school or when they are shopping, etc. Magazines, television ads, hoardings, point of purchase displays, pamphlets, free gifts, offers, discounts, etc., are some ways that marketers choose to advertise their products, so as to reach out to children in various situations and contexts.

Magazines and television channels/programs that target children are on the rise. Cartoon and toy characters are being used in all types of products, so as to grab the attention of children. To meet the needs of the kids segment effectively, advertisers are gathering information about these little purchasers from various sources such as Internet, surveys, etc. Children's toys have begun to carry product placements, for e.g., Barbie dolls with Coca-Cola accessories promotes the latter in a subtle manner.

The average person is exposed to hundreds of advertisements each day. Obviously when kids watch TV for long hours, there is bound to be an increase in demand for products.

Why Kids?

• The tagline "Mummy, o' mummy, Kya achcha bana rahi ho?" of the Maggi ad indirectly shows that today kids are playing the central role in making decisions related to cooking.
• By the age of eight, kids start making most decisions by themselves, as stated in the Direct Marketing magazine.
• The new generation kids start recognizing brands once they are three or four years old, even before they can actually read and write. According to a study, 73% of four-year olds and 52% of three year olds often or almost always ask their parents for specific brands.
• The recently emerging trend of DISK (Double Income Single Kid), shrinking family size and planning family at a later stage of life, etc., are some reasons for parents to spend on the kids without giving a second thought.
• The guilt of not being able to give more time to kids is also a factor that is forcing parents to spend more on them. To an extent, material goods are a substitute for the time they cannot spend with their kids.
• The data presented in the Exhibit clearly shows why one should rush to target the kids.

Concerns Relating to Advertising Targeted at Children

If grown ups go to the market and do not find the advertised product there, they normally forget about it. But this is not the case with kids. This is because they are not matured enough to understand the reality.

Some advertising agencies have confirmed through research that persistent exposure to television advertising can even change the kids' personal preferences. No doubt, family dynamics are badly affected by advertisements that provoke kids, by making them more argumentative. They even begin demanding reasons for not providing them with what they ask for. Parents are faced with a serious dilemma when they encounter such situations.

According to Karpatkin and Holmes from the Consumers Union, "Young children have difficulty in differentiating and distinguishing between advertising and the reality in ads, and ads can take them off the real world, distorting their view completely."

On the same issue, Richard Mizerski, an Australian professor of marketing, observed that the cognitive structures are at a very raw stage in children, and they are more sensitive to influences from external factors. The influence becomes much stronger when advertisements appear on school walls, book covers, stickers and posters. Such advertisements also acquire legitimacy from the supposed endorsement of the school and this leads to children making out that they must be true.

Specifically, television advertising may lead a child to select things over more socially-oriented alternatives, gradually and potentially leading to an increase in parent-child conflict. Furthermore, it might make a child more disappointed and unhappier. This is because they are incapable of evaluating advertising claims.

Basically in the early teens, children start building their own identities and are highly vulnerable to the pressure of being in accordance with group standards and acceptable mores. At this age, they tend to be attention seekers. They want to be an active member of their peer group. And the smart advertisers, keeping this point in mind, try to cash in by manipulating the kids. Advertisements nurture confidence and encourage kids to seek happiness through consumption.

Advertising junk foods to children is another important area of concern. Increased consumption of chips, wafers and such other processed foods, not only harms children in the long run by their negative effects, but also reduces their intake of more nutritious food that should form part of a balanced diet.

Many children these days demand and get themselves a separate mobile phone. Research suggests that tissues of the users' brain can be seriously damaged by electromagnetic waves emitted from mobiles. This may also cause headaches and short-term memory loss.

Some Dos and Don'ts for Parents

Parents must remember that kids grasp all the messages that advertisements send out. But they are not mature enough to make the right judgment till they reach a certain age. They think that what they see is real, while some of it is not.

Television is an effective medium that can send powerful messages to children. One of the best ways through which negative effects of these messages can be minimized is by enabling kids to think critically about what they see on television and its usefulness. Manufacturers of carbonated beverages target mainly children and teenagers. In fact, they put most of their money and promotional efforts into it; and they are followed by fast-food restaurants and the producers of breakfast cereals. And advertisements for such products enjoy a wide reach, thanks to television. Parents should make kids understand that all that is shown on television is not necessarily correct.

Kids believe that the children in the advertisements are real like themselves, rather than paid actors. They do not get the commercial intent of their most liked advertisements. Kids should be told how everything on television is created for entertainment before they start developing a wrong notion. As many of the advertisements targeted at kids contain animations, it is easy to prove one's point. Children should be informed that commercial television is a business - and its job is to sell advertisers' products to viewers.

Explain that when a product is advertised in between a television show, it is not accidental but rather planned. This is called "product placement" and is a fast-growing popular revenue-generator for television producers. For instance, animated boomer advertisements do not come on their own between the Tom and Jerry show but are planned to be there at that point of time. Quote similar examples to make the idea more clear.

It is always advisable for the children to watch programs telecast on television with their parents. Also, parents must keep an eye on their children's Internet usage. They should not be allowed to be part of the market research on Internet chat rooms.

Government Regulations

According to the latest guidelines by the Telecom Ministry, advertisements should not feature either children or pregnant women as talking over mobile phones. This step may prove fruitful as this would avoid conveying the wrong notion that they are meant for them.

Frosties by Kellogg's faced severe criticism from the Advertising Standards Authority as the company was trying to convince kids that its products were healthy. The Campbell Soup Company has stopped featuring Chicken Noodle Soup on its websites targeted at children. They can only show all that meets Campbell's nutritional standards for children as Chicken and Stars, Healthy Request Chicken Noodle and reduced-sodium Chicken Noodle.

Responsible advertising (using and targeting children constructively) should be emphasized, encouraging children to relate their food habits to their favorite characters like Harry Potter, who tucks into a whole variety of foods including plenty of vegetables. Then, there are cartoon characters like Popeye who eats spinach to give him strength.

Conclusion

Today, kids are no more considered immature. They are seen as potential consumers with the ability to make their own choice, regardless of the type of the product. They are more influenced by their peer group and mass media. Certainly, these are deeply affecting their brand choice, consumption pattern and behavior.

Though they are inexperienced, naive and easily gullible, they are a very important set of consumers. It would be an act of irresponsible marketing to catch them young for the products which are not actually meant for them. In no case they should be made a target of heedless consumption. Also, those products made for them should pass through the ASCI standards.

Kids, as we see them today, are future citizens. What the kids learn today would strongly determine what they would do tomorrow. In this regard, advertisers too have a very major responsibility in ensuring that they send out the right messages to children.