contemporary advertising 11e chapter 6
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chapter6
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinContemporary Advertising, 11e
Market Segmentation and the Marketing Mix:
Determinants of Advertising Strategy
How marketers use behavioral characteristics to cluster customers
into market segments
Chapter
6-3
Chapter 6 Objectives
Identify methods advertisers use to segment consumer
and business markets
Explain the importanceof aggregation
Discuss how target marketing affects advertising strategy
Describe the elementsof the marketing mix and
advertising’s role in the mix
Explain the purpose and importance of branding
6-4
The Market Segmentation Process
1. Identify people with shared needs and characteristics
6-5
The Market Segmentation Process
2. Aggregate these groups into market segments according to their mutual interest in the product’s utility
1. Identify people with shared needs and characteristics
6-6
Sole Users
Semi-Sole Users
Discount Users
Aware Nontriers
Trial/Rejectors
Repertoire Users
Volume Segmentation
Benefit Segmentation
Market Segmentation
User-Status VariablesBehavioristic
Purchase-Occasion Variables
Benefits-Sought Variables
Usage-Rate Variables
6-7
Market Segmentation
User status: Mammut ad targets its repertoire users who are concerned with quality
Insert photo 6.4, p. 171
Mammut ad
Position = 2.9“ horizontal, 1.5“ vertical
Size = 5.7” WIDE
Resolution = 300 dpi
6-8
Market Segmentation
Purchase occasion: Columbia seasonal gear ad
Insert photo 6.5, p. 172
Columbia sportswear ad
Position = 2.9“ horizontal, 1.5“ vertical
Size = 5.7” WIDE
Resolution = 300 dpi
6-9
Geodemographic Segmentation
User Status Variables
Purchase-Occasion Variables
Benefits-Sought Variables
User-Rate Variables
User Status, User Rate, Purchase Occasion, & Benefits-Sought Variables
Market Segmentation
Behavioristic
Geographic
Demographic
6-10
Insert ex. 6.3, p. 174
Hispanic Media Ad Spending Growth Rates (2002-2005) bar graph
Position = 2.9” horizontal, 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
Market Segmentation
Demographic segmentation: Hispanic ad spending growth by medium
6-11
Market Segmentation
Demographic segmentation: Heavy usage patterns of various age groups
Insert ex. 6.4, p. 175
Heavy usage patterns of various age groups
Position = 2.9” horizontal, 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
6-12
Market Segmentation
User Status, User Rate, Purchase Occasion, & Benefits-Sought VariablesBehavioristic
Geographic
Demographic Geodemographic Segmentation
Psychographic VALS
BehaviorGraphics
MindBase
6-13MarketSegmentationPsychographic segmentation: VALS
Insert ex. 6.5, p. 177
VALS classification system
Position = 0.35” horiz., 0.4” vertical
Size = 5.75” TALL
Resolution = 300 dpi
6-14
Market Segmentation
Psychographic segmentation: Adidas placed ads along the Boston Marathon route to target young people who define themselvesby their athletic achievements
Insert left panel of Adidas ad(p. 180)
(ritual/shock/denial/isolation ad panel)
Position = 2.9” horizontal, 1.5” vertical
Size = 2.8”wide
Resolution = 300 dpi
Insert right panel of Adidas ad(p. 180)
(affirmation/despair/renewalad panel)
Position = 5.9” horizontal, 1.5” vertical
Size = 2.8” wide
Resolution = 300 dpi
6-15
Insert ex. 6.7, p. 179
MindBase segments
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
Psychographic segmentation: MindBase
Market Segmentation
6-16Market Segmentation:Business, Government, & Industry
Complexity:Manufacturers, Resellers,
Brand Partnerships
Organizationalbuying
behavior
Fewer, more-concentrated
buyers
Differencesfrom Consumer
Markets
6-17
Insert ex. 6.8, p. 182
NAICS hierarchy and codes
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
The NAICS hierarchy and codes can be used to search for prospective clients
Market Segmentation:Business, Government, & Industry
6-18
The Target Marketing Process
2. Use the 4Ps of the marketing mix to shape a product concept for the market
1. Select a target market from the market segments identified
Product Price Place Promotion
6-19
Target Market Selection
Harley-Davidson ad appeals to likely customers who want to stand out in the ordinary
Insert photo 6.10, p. 186
Harley-Davidson ad
Position = 2.9” horizontal, 1.5” vertical
Size =5.7” WIDE
Resolution = 300 dpi
6-20
The Product Element
Life Cycle ClassificationPositioning & Differentiation
Branding Packaging
• Introduction• Growth• Maturity• Decline
• Tangible Goods• Equipment- based services• People- based services
• Perceptible• Hidden• Induced
• Individual• Family• National• Private Label• Licensed
• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself
Insert ex. 6.11, p. 188
Product life cycle curve
Position = 2.66” horizontal, 1.26” vertical
Size = 5.84” WIDE
Resolution = 300 dpi
6-21
The Product Element
Life Cycle ClassificationPositioning & Differentiation
Branding Packaging
• Introduction• Growth• Maturity• Decline
• By market• By rate of consumption• By tangibility• By buying habits• By physical description
• Perceptible• Hidden• Induced
• Individual• Family• National• Private Label• Licensed
• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself
6-22
The Product Element
Life Cycle ClassificationPositioning & Differentiation
Branding Packaging
• Introduction• Growth• Maturity• Decline
• By market• By rate of consumption• By tangibility• By buying habits• By physical description
• Perceptible• Hidden• Induced
• Individual• Family• National• Private Label• Licensed
• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself
6-23
Volvo positions itself as owning safety
The Product Element
Insert photo 6.13, p. 191
Volvo ad
Position = 2.93” horizontal, 1.5” vertical
Size = 5.75” WIDE
Resolution = 300 dpi
6-24
The Product Element
Life Cycle ClassificationPositioning & Differentiation
Branding Packaging
• Introduction• Growth• Maturity• Decline
• By market• By rate of consumption• By tangibility• By buying habits• By physical description
• Perceptible• Hidden• Induced
• Individual• Family• National• Private Label• Licensed
• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself
6-25
Insert ex. 6.14, p. 193
World’s most valuable brands
Position = 2.9” horizontal, 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
The Product Element
World’s most valuable brands
6-26
The Product Element
Life Cycle ClassificationPositioning & Differentiation
Branding Packaging
• Introduction• Growth• Maturity• Decline
• By market• By rate of consumption• By tangibility• By buying habits• By physical description
• Perceptible• Hidden• Induced
• Individual• Family• National• Private Label• Licensed
• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself
6-27
The Price Element
Demand
Production &Distribution
Competition
Corporate Goals & Strategies
Price Factors: Insert ex. 6.15, p. 196
Demand vs. price, supply vs. price graph
Position = 2.9” horizontal, 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
6-28
The Place (Distribution) Element
Intensive Selective
Exclusive
Direct
Indirect
Vertical
Network Buyer Club
Franchises
6-29
The Promotion Element
CollateralMaterials
SalesPromotion
ProductAdvertising
PersonalSelling
PublicRelations
MarketingCommunication
Types