Transcript Contemporary Advertising

McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 6
Market Segmentation and the
Marketing Mix: Determinants of
Advertising Strategy
Describes how marketers use
behavioral characteristics to cluster
prospective customers into market
segments
Objectives
Identify the various
methods advertisers use
to segment consumer
and business markets
Discuss how target
marketing affects the
firm’s advertising strategy
Explain the purpose and
importance of branding
Explain the importance of
aggregation to marketing
and advertising
Describe the elements of
the marketing mix and
the role of advertising in
the mix
The Market Segmentation Process
Market Segmentation
1. Identify people with shared
needs and characteristics
The Market Segmentation Process
Market Segmentation
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
Segmenting the Consumer Market
Behavioristic Segmentation
User Status Variables
Sole users
Aware nontriers
Semi-sole users
Trial/rejectors
Discount users
Repertoire users
Segmenting the Consumer Market
Behavioristic Segmentation
User Status Variables
User-rate Variables
Volume segmentation
Purchase-occasion
Variables
Benefits-sought
Variables
Benefit segmentation
Segmenting the Consumer Market
Behavioristic Segmentation
Geographic Segmentation
Demographic Segmentation
Geodemographic
segmentation
Psychographic Segmentation
VALS2
Segmenting Business Markets
Business Markets
Manufacturers
Retailers
Government
Banks
Wholesalers
Segmenting Business Markets
Understanding organizational
buying behavior
Business purchasing
procedures
Industrial classification
system
Market concentration
Segmenting Business Markets
Aggregating market segments
Selecting groups
interested in product
utility
Combining groups to
build target market
segments
perception,
Exchanges
The Target
Marketing Process
satisfaction
Target Market Selection
The Marketing Mix: Matching
products to markets
Product concept
Marketing mix
Product
Distribution
Communication
Price
perception,
Exchanges and the
Advertising
Product
satisfaction
Element
Product life cycles
Product classifications
perception,
Exchanges and the
Advertising
Product
satisfaction
Element
Product life cycles
Product classifications
Product positioning
Product differentiation
Perceptible
Hidden
Induced
perception,
Exchanges and the
Advertising
Product
satisfaction
Element
Product life cycles
Product classifications
Product positioning
Product differentiation
Product branding
Individual
brand
Family
brand
National
brands
Private
labels
perception,
Exchanges and the
Advertising
Product
satisfaction
Element
Product life cycles
Product classifications
Product positioning
Product differentiation
Product branding
The role of branding
Brand equity
perception,
Exchanges and the
Advertising
Product
satisfaction
Element
Product life cycles
Product classifications
Product positioning
Product packaging
Identification
Consumer Appeal
Containment,
protection,
convenience
Economy
Exchanges
Advertising andperception,
the Price
satisfaction
Element
Key factors influencing price
Market demand
Production and
distribution costs
Competition
Corporate objectives
and strategies
Variable Influences
perception,
Exchangesand the
Advertising
Distribution
satisfaction
(Place) Element
Direct distribution
Network marketing
Indirect distribution
Intensive distribution
Selective distribution
Exclusive distribution
Vertical marketing systems
Exchanges
Advertising
and the perception,
Communication
satisfaction
(Promotion) Element
Personal selling
Advertising
Direct marketing
Public relations
Collateral materials
Sales promotion