segmentation, targeting and the marketing mix

chapter04

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Introduces the people and groups

who work in advertising

Segmentation, Targeting and the

Marketing Mix

4-3

Chapter 4 Objectives

Describe the role ofmarketing in creating satisfying

exchanges

Explain the role of advertising in communicating a

product’s utility

Explain the purpose and importance of branding

Identify the various methods advertisers use to segment

and aggregate consumer and business markets

Describe the elements of the marketing mix and the role of

advertising in the mix

Discuss how target marketing affects the firm’s advertising

strategy

4-4

The Larger MarketingContext of Advertising

Marketing

Product Marketplace

4-5

Customer’s Utility

AwarenessAttitudeInterest

Seller’s

Context of Advertising:Marketing Key ConceptsUtility Exchanges

Perception Satisfaction

4-6

The Market Segmentation Process

1. Identify people with shared needs and characteristics

4-7

The Market Segmentation Process

2. Aggregate these groups into market segments according to their mutual interest in the product’s utility

1. Identify people with shared needs and characteristics

4-8

Types of Markets

Two Types

BusinessConsumer

4-9

Sole Users

Semi-Sole Users

Discount Users

Aware Nontriers

Trial/Rejectors

Repertoire Users

Volume Segmentation

Benefit Segmentation

Market Segmentation

User-Status VariablesBehavioristic

Purchase-Occasion Variables

Benefits-Sought Variables

Usage-Rate Variables

4-10

Market Segmentation

This Crate and Barrel ad targets sole users and repertoire users

4-11

Market Segmentation

Heavy users: Hardee’s ad marketing the Thickburger

4-12

User Status Variables

Purchase-Occasion Variables

Benefits-Sought Variables

User-Rate Variables

User Status, User Rate, Purchase Occasion, & Benefits-Sought Variables

Market Segmentation

Behavioristic

Geographic

Demographic

4-13

Market Segmentation

Demographic segmentation: Hispanic ad spending growth by medium

4-14

Market Segmentation

Demographic segmentation: Heavy usage patterns of various age groups

4-15

Market Segmentation

User Status, User Rate, Purchase Occasion, & Benefits-Sought VariablesBehavioristic

Geographic

Demographic Geodemographic Segmentation

Psychographic VALS

BehaviorGraphics

MindBase

4-16

MarketSegmentationPsychographic segmentation: VALS

4-17

Market Segmentation

Psychographic segmentation: Adidas placed ads along the Boston Marathon route to target young people who define themselvesby their athletic achievements

Insert left panel of Adidas ad(p. 180)

(ritual/shock/denial/isolation ad panel)

Position = 2.9” horizontal, 1.5” vertical

Size = 2.8”wide

Resolution = 300 dpi

Insert right panel of Adidas ad(p. 180)

(affirmation/despair/renewalad panel)


Size = 2.8” wide


4-18Market Segmentation:Business, Government, &

Industry

Complexity:Manufacturers, Resellers,

Brand Partnerships

Organizationalbuying

behavior

Fewer, more-concentrated

buyers

Differencesfrom Consumer

Markets

4-19

The NAICS hierarchy and codes can be used to search for prospective clients

Market Segmentation:Business, Government, &

Industry

4-20

The Target Marketing Process

2. Use the 4Ps of the marketing mix to shape a product concept for the market

1. Select a target market from the market segments identified

Product Price Place Promotion

4-21

Target Market Selection

Land Rover ad appeals to customers who want both safety and function

4-22

The Product Element

Life Cycle ClassificationPositioning & Differentiation

Branding Packaging

• Introduction• Growth• Maturity• Decline

• Tangible Goods• Equipment- based services• People- based services

• Perceptible• Hidden• Induced

• Individual• Family• National• Private Label• Licensed

• Identification• Containment• Protection• Convenience• Consumer appeal• Packaging can pay for itself

Insert ex. 6.11, p. 188

Product life cycle curve


Size = 5.84” WIDE


4-23

The Product Element


Branding Packaging


• By market• By rate of consumption• By tangibility• By buying habits• By physical description




4-24

The Product Element


Branding Packaging






4-25

Jeep positions itself as the “only one” to go anywhere on the planet

The Product Element

4-26

The Product Element


Branding Packaging






4-27

The Product Element

World’s most valuable brands

4-28

The Product Element


Branding Packaging






4-29

The Price Element

Demand

Production &Distribution

Competition

Corporate Goals & Strategies

Price Factors:

4-30

The Place (Distribution) Element

IntensiveSelective

Push/Pull

Exclusive

Direct

Indirect

Network Buyer Club

4-31

The Promotion Element

DirectMarketing

SalesPromotion

ProductAdvertising

PersonalSelling

PublicRelations

MarketingCommunication

Types

segmentation, targeting and the marketing mix

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