Transcript Lecture 4
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 6-2 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 6-3 The Market Segmentation Process 1. Identify people with shared needs and characteristics 6-4 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 6-5 Shared Characteristics Categories Behavioristic Geographic Demographic Psychographic 6-6 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 6-7 Behavioristic Segmentation Charles Schwab targets the benefits-sought market 6-8 Geographic Segmentation o Sales are analyzed by: o o o o o Region Country size City size Specific location Types of stores 6-9 Demographic Segmentation Defining population groups by statistical characteristics 6-10 Demographic Segmentation Hispanic Media Ad Spending Growth Rtes 6-11 Psychographic Segmentation Feelings Values Lifestyles Personality Attitudes 6-12 Psychographic Segmentation Consumers are charted by their basis for decision making 6-13 Psychographic Segmentation 10 values shared by people around the world 6-14 Psychographic Segmentation MindBase finds shared patterns of behavior 6-15 Market Segmentation Adidas captures attitude and lifestyle 6-16 Business, Government, & Industry Professional buyers Differences from Consumer Markets Systematic purchasing Concentrated geographically Small number of buyers Categorized by NAICS code 6-17 Business, Government, & Industry NAICS hierarchy and codes can be used to search for prospective clients 6-18 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 6-19 Target Market Selection Levi’s communicate s how slim their jeans are and the relative attractiveness of those who wear them 6-20 Target Market Segments Park Bench Seniors New Empty Nest Movers & Shakers New Beginnings Young Influentials Bohemian Mix Home Sweet Home 6-21 Product Life Cycles 6-22 The Product Element Classification by… Positioning & Differentiation Market Perceptible Consumption rate Hidden Tangibility Induced Buying habits Physical description 6-23 The Product Element Volvo positions itself as owning safety 6-24 Product Branding Product Name Words Design Symbols Individual Family National Private Licensed 6-25 The Most Valuable Brands 6-26 Product Packaging Identification Consumer appeal Containment, protection, convenience Economy These functions may become copy points 6-27 The Price Element Price Factors: Demand Production & distribution Competition Corporate goals & strategies 6-28 The Place (Distribution) Element Direct Indirect Vertical Network Intensive Franchises Buyer Club Selective Exclusive 6-29 The Promotion Element Personal Selling Direct Marketing Product Advertising Communication Mix Public Relations Sales Promotion Collateral Materials 6-30