Transcript Chapter 6

Chapter 6
Market Segmentation and
the Marketing Mix:
Determinants of Advertising
Strategy
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Overview
How marketers use behavioral
characteristics to cluster customers
into market segments
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Chapter Objectives
Identify methods
advertisers use to
segment consumer
and business markets
Explain the importance
of aggregation
Discuss how target
marketing affects
advertising strategy
Describe the elements
of the marketing mix
Explain advertising’s role
in the mix
Explain the purpose and
importance of branding
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http://www.youtube.com/watch?v=S1ucN
P74HV0
http://www.youtube.com/watch?v=pkZ9B
45PZMs
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The Market Segmentation Process
1. Identify people with
shared needs and
characteristics
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The Market Segmentation Process
1. Identify people with
shared needs and
characteristics
2. Aggregate these
groups into market
segments according
to their mutual interest
in the product’s utility
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Market Segmentation
Adidas captures attitude and lifestyle
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Target Market Selection
HarleyDavidson ad
appeals to likely
customers who
want to stand
out in the
ordinary
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Insert photo 6.10, p. 186
Harley-Davidson ad
Position = 2.9” horizontal, 1.5” vertical
Size =5.7” WIDE
Resolution = 300 dpi
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Shared Characteristics Categories
Behavioristic
Geographic
Demographic
Psychographic
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Behavioristic Segmentation
User-Status
Purchase-Occasion
Sole Users
Semi-Sole Users
Discount Users
Aware Non-triers
Trial/Rejectors
Repertoire Users
Usage-Rate
Volume
Segmentation
Benefits-Sought
Benefit
Segmentation
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Market Segmentation
User status:
Mammut ad
targets its
repertoire users
who are
concerned with
quality
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Insert photo 6.4, p. 171
Mammut ad
Position = 2.9“ horizontal, 1.5“ vertical
Size = 5.7” WIDE
Resolution = 300 dpi
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Market Segmentation
Purchase
occasion:
Columbia
seasonal gear
ad
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Insert photo 6.5, p. 172
Columbia sportswear ad
Position = 2.9“ horizontal, 1.5“ vertical
Size = 5.7” WIDE
Resolution = 300 dpi
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Behavioristic Segmentation
Charles Schwab targets the benefits-sought market
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Geographic Segmentation
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Sales are analyzed by:
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Region
Country size
City size
Specific location
Types of stores
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Demographic Segmentation
Defining population groups by statistical characteristics
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Demographic Segmentation
Hispanic Media Ad Spending Growth Rtes
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Psychographic Segmentation
Feelings
Values
Lifestyles
Personality
Attitudes
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Psychographic Segmentation
Consumers
are charted by
their basis for
decision
making
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Psychographic Segmentation
10 values
shared by
people around
the world
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Psychographic Segmentation
MindBase finds shared patterns of behavior
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Segmentation Profile
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Our customer is:
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Male who lives in the East
In an urban city of 1 million people
Young, married (ages 35-49) with a child
Annual income between $50,000 - $100,000
Is a college graduate who is a professional
Is white, upper lower class, ambitious
Sports minded and brand conscious
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Business, Government, & Industry
Professional
buyers
Differences
from Consumer
Markets
Systematic
purchasing
Concentrated
geographically
Small number
of buyers
Categorized by
NAICS code
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Business, Government, & Industry
NAICS hierarchy and codes can be used to
search for prospective clients
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The Target Marketing Process
1. Select a target market from the market
segments identified
2. Use the 4Ps of the marketing mix to shape a
product concept for the market
Product
Price
Place
Promotion
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Target Market Selection
Levi’s
communicate
s how slim
their jeans are
and the
relative
attractiveness
of those who
wear them
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Target Market Segments
Park Bench
Seniors
New Empty
Nest
Movers &
Shakers
New
Beginnings
Young
Influentials
Bohemian
Mix
Home Sweet
Home
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Product Life Cycles
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http://www.youtube.com/watch?v=SX1hFWxku-g
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The Product Element
Classification by…
Positioning &
Differentiation
Market
Perceptible
Consumption rate
Hidden
Tangibility
Induced
Buying habits
Physical description
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The Product Element
Volvo positions itself as owning safety
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Product Branding
Product
Name
Words
Design
Symbols
Individual
Family
National
Private
Licensed
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The Most Valuable Brands
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The Product Element
World’s most
valuable brands
http://www.
businesswe
ek.com/ma
gazine/toc/
06_32/B39
9606global
brands.htm
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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
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Product Packaging
Identification
Consumer
appeal
Containment,
protection,
convenience
Economy
These functions may become copy points
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The Price Element
Price Factors:
Demand
Production &
distribution
Competition
Corporate goals
& strategies
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The Place (Distribution) Element
Direct
Indirect
Vertical
Network
Intensive
Franchises
Buyer Club
Selective
Exclusive
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The Promotion Element
Personal
Selling
Direct
Marketing
Product
Advertising
Communication
Mix
Public
Relations
Sales
Promotion
Collateral
Materials
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