Transcript Chapter 4
chapter four Segmentation, Targeting, and the Marketing Mix McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Objectives_1 Describe the role of marketing in creating satisfying exchanges Explain the role of advertising in communicating a product’s utility Identify the various methods advertisers use to segment and aggregate consumer and business markets 4-2 Objectives_2 Discuss how target marketing affects the firm’s advertising strategy Describe the elements of the marketing mix and the role of advertising in the mix Explain the purpose and importance of branding 4-3 Marketing and Exchange The purpose of marketing is to create exchanges that satisfy the perceived needs and wants of individuals and organizations 4-4 Consumer Needs & Product Utility Utility is the product’s ability to satisfy both functional needs and symbolic wants 4-5 Types of Utility Form Task Possession Time Place Psychic 4-6 Market Segmentation Identifying groups of people with similarities One or more groups become target market – Hardee’s Thickburger campaign targets young men 4-7 Segmentation Variables Geographic Demographic Behavioristic Psychographic 4-8 Geographic Segmentation Variables Region County size Climate City or SMSA size Density 4-9 Geographic Segmentation 4-10 Behavioristic Segmentation Variables Purchase Occasion Benefits Sought User Status Usage Rate Loyalty Status Readiness Stage Marketing-Factor Sensitivity 4-11 Exhibit 4-2 Usage Rates Vary For Different Products 4-12 Demographic Segmentation Variables Age Gender Family life cycle Family size Education Religion Race/Nationality Income Occupation 4-13 Exhibit 4-3 Ad Spending Growth in U.S. Hispanic Media 4-14 Psychographics Lifestyles Personality Values Attitudes 4-15 Exhibit 4-5 The VALS classification system segments according to resources and decision-making motivation 4-16 Segmenting Business Markets Manufacturers Government agencies Other institutions Retailers Wholesalers Banks 4-17 Exhibit 4-7 Clarita’s PRIZM NE This shows how PRIZM NE classifies prospects in the Chicago area by census tract. Each area is labeled by shared characteristics. 4-18 The Marketing Mix Product Place Price Promotion 4-19 Exhibit 4-8 Product Life Cycle Objectives change as the product proceeds From one state to the next 4-20 Extending the Product Life Cycle 4-21 Exhibit 4-9 Product Classifications By market By consumption rate By purchasing habits By physical description Consumer goods Durable goods Convenience Packaged goods goods Industrial goods Nondurable goods Shopping goods Hard goods Services Specialty goods Soft goods Unsought goods Services 4-22 Product Differentiation Perceptible differences Hidden differences Induced differences 4-23 Product Branding Individual brand Family brand National brands Private labels Licensed brands 4-24 Brand Equity Brand Coca-Cola Microsoft IBM GE Intel Disney McDonald’s Nokia Toyota 2004 Value (in billions) $67.39 61.37 53.79 44.11 33.50 27.11 25.00 24.04 22.67 4-25 Distribution Intensive Selective Exclusive 4-26 Marketing Communications Factors important for advertising success – Strong primary demand – Chance for product differentiation – Hidden qualities of high importance to consumers – Opportunity to use strong emotional appeals – Substantial sums available to support advertising 4-27 Key Terms_1 Behavioristic segmentation Benefits Benefit segmentation Brand Brand equity Branding Business markets Communication element Cooperative advertising Copy points Decline stage Demographic segmentation Direct distribution Distribution channel Distribution element Early adopter Exchange 4-28 Key Terms_2 Exclusive distribution Family brand Four Ps Geodemographic segmentation Geographic segmentation Growth stage Hidden differences Individual brand Induced differences Intensive distribution Introductory phase Licensed brand Market segmentation Marketing communications Marketing mix Maturity stage 4-29 Key Terms_3 National brand Network marketing North American Industry Classification System (NAICS) codes Perceptible differences Position Price element Primary demand Primary motivation Private label Product concept 4-30