Transcript Market Segmentation_Chapter006

[Cover image here]
Chapter
chapter
6
Market Segmentation and the
Marketing Mix: Determinants
of Advertising Strategy
How marketers use behavioral
characteristics to cluster customers
into market segments
McGraw-Hill/Irwin
Contemporary Advertising, 11e
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter 6 Objectives
6-3
Identify methods advertisers
use to segment consumer
and business markets
Describe the elements
of the marketing mix and
advertising’s role in the mix
Discuss how target marketing
affects advertising strategy
Explain the importance
of aggregation
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
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
Market Segmentation
Behavioristic
User-Status Variables
Usage-Rate Variables
Sole Users
Semi-Sole
Users
Purchase-Occasion
Variables
Volume
Segmentation
Discount
Users
Benefits-Sought Variables
Aware Nontriers
Trial/Rejectors
Repertoire Users
Benefit
Segmentation
6-6
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
6-7
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
6-8
Market Segmentation
Behavioristic
User Status,
User Rate,
Purchase
User Status
Variables
Occasion, & Benefits-Sought Variables
User-Rate Variables
Geographic
Demographic
6-9
Purchase-Occasion Variables
Geodemographic
Benefits-SoughtSegmentation
Variables
Market Segmentation
Demographic
segmentation:
Hispanic ad
spending growth
by medium
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:
Heavy usage
patterns of
various age
groups
6-11
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
Market Segmentation
Behavioristic
6-12
User Status, User Rate, Purchase
Occasion, & Benefits-Sought Variables
Geographic
Demographic
Geodemographic Segmentation
Psychographic
VALS
MindBase
BehaviorGraphics
VALS classification system
Market
Segmentation
Position = 0.35” horiz.,
0.4” vertical
Psychographic
segmentation:
VALS
Insert ex. 6.5, p. 177
Size = 5.75” TALL
Resolution = 300 dpi
6-13
Market Segmentation
Psychographic
segmentation:
Adidas placed
ads along the
Boston Marathon
route to target
young people
who define
themselves
by their athletic
achievements
Insert left panel of Adidas ad
(p. 180)
Insert right panel of Adidas ad
(p. 180)
(ritual/shock/denial/isolation ad panel)
(affirmation/despair/renewal
ad panel)
Position = 2.9” horizontal, 1.5”
vertical
Size = 2.8”wide
Resolution = 300 dpi
Position = 5.9” horizontal, 1.5”
vertical
Size = 2.8” wide
Resolution = 300 dpi
6-14
Market Segmentation
Psychographic
segmentation:
MindBase
Insert ex. 6.7, p. 179
MindBase segments
Position = 2.9” horiz., 1.5” vertical
Size = 5.7” WIDE
Resolution = 300 dpi
6-15
6-16
Market Segmentation:
Business, Government, & Industry
Fewer, moreconcentrated
buyers
Differences
from Consumer
Markets
Complexity:
Manufacturers, Resellers,
Brand Partnerships
Organizational
buying
behavior
6-17
Market Segmentation:
Business, Government, & Industry
The NAICS
hierarchy and
codes can be
used to search
for prospective
clients
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 Target Marketing Process
6-18
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
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
6-19
6-20
The Product Element
Life Cycle
Introduction
• Growth
• Maturity
• Decline
•
Positioning
&
Insert ex.
6.11, p. 188
Classification
Branding
Packaging
Differentiation
Product• Perceptible
life cycle curve
Tangible
• Individual
Goods
• Family
Position• Hidden
= 2.66” horizontal,
1.26”
• Equipment• Induced
• National
vertical
based
• Private
services
Size = 5.84” WIDE Label
• People• Licensed
basedResolution = 300 dpi
services
•
Identification
• Containment
• Protection
• Convenience
• Consumer
appeal
• Packaging
can pay for
itself
•
6-21
The Product Element
Life Cycle
Introduction
• Growth
• Maturity
• Decline
•
Classification
By market
• By rate of
consumption
• By tangibility
• By buying
habits
• By physical
description
•
Positioning &
Branding
Differentiation
Perceptible
• Hidden
• Induced
•
Individual
• Family
• National
• Private
Label
• Licensed
•
Packaging
Identification
• Containment
• Protection
• Convenience
• Consumer
appeal
• Packaging
can pay for
itself
•
6-22
The Product Element
Life Cycle
Introduction
• Growth
• Maturity
• Decline
•
Classification
By market
• By rate of
consumption
• By tangibility
• By buying
habits
• By physical
description
•
Positioning &
Branding
Differentiation
Perceptible
• Hidden
• Induced
•
Individual
• Family
• National
• Private
Label
• Licensed
•
Packaging
Identification
• Containment
• Protection
• Convenience
• Consumer
appeal
• Packaging
can pay for
itself
•
The Product Element
Volvo positions
itself as owning
safety
Insert photo 6.13, p. 191
Volvo ad
Position = 2.93” horizontal, 1.5” vertical
Size = 5.75” WIDE
Resolution = 300 dpi
6-23
6-24
The Product Element
Life Cycle
Introduction
• Growth
• Maturity
• Decline
•
Classification
By market
• By rate of
consumption
• By tangibility
• By buying
habits
• By physical
description
•
Positioning &
Branding
Differentiation
Perceptible
• Hidden
• Induced
•
Individual
• Family
• National
• Private
Label
• Licensed
•
Packaging
Identification
• Containment
• Protection
• Convenience
• Consumer
appeal
• Packaging
can pay for
itself
•
The Product Element
World’s most
valuable brands
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
6-25
6-26
The Product Element
Life Cycle
Introduction
• Growth
• Maturity
• Decline
•
Classification
By market
• By rate of
consumption
• By tangibility
• By buying
habits
• By physical
description
•
Positioning &
Branding
Differentiation
Perceptible
• Hidden
• Induced
•
Individual
• Family
• National
• Private
Label
• Licensed
•
Packaging
Identification
• Containment
• Protection
• Convenience
• Consumer
appeal
• Packaging
can pay for
itself
•
The Price Element
Price Factors:
Demand
Corporate Goals
& Strategies
Production &
Distribution
Competition
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
6-27
The Place (Distribution) Element
6-28
Direct
Network
Buyer Club
Indirect
Intensive
Selective
Exclusive
Vertical
Franchises
The Promotion Element
Collateral
Materials
Marketing
Communication
Types
Personal
Selling
Product
Advertising
Sales
Promotion
Public
Relations
6-29