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Chapter 6 Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy

Chapter 6 Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy. Chapter Overview. How marketers use behavioral characteristics to cluster customers into market segments. Chapter Objectives. Identify methods advertisers use to segment consumer and business markets.

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Chapter 6 Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy

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  1. Chapter 6Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy

  2. Chapter Overview How marketers use behavioral characteristics to cluster customersinto market segments

  3. Chapter Objectives Identify methods advertisers use to segment consumerand business markets Describe the elementsof the marketing mix Explain the importanceof aggregation Explain advertising’s role in the mix Discuss how target marketing affects advertising strategy Explain the purpose and importance of branding

  4. The Market Segmentation Process 1. Identify people with shared needs and characteristics

  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

  6. Shared Characteristics Categories Behavioristic Geographic Demographic Psychographic

  7. Behavioristic Segmentation User-Status Sole Users Semi-Sole Users Discount Users Aware Non-triers Trial/Rejectors Repertoire Users Usage-Rate Volume Segmentation Benefits-Sought BenefitSegmentation Purchase-Occasion

  8. Behavioristic Segmentation Charles Schwab targets the benefits-sought market

  9. Geographic Segmentation • Sales are analyzed by: • Region • Country size • City size • Specific location • Types of stores

  10. Demographic Segmentation Defining population groups by statistical characteristics

  11. Demographic Segmentation Hispanic Media Ad Spending Growth Rtes

  12. Psychographic Segmentation Feelings Values Lifestyles Attitudes Personality

  13. Psychographic Segmentation Consumers are charted by their basis for decision making

  14. Psychographic Segmentation 10 values shared by people around the world

  15. Psychographic Segmentation MindBase finds shared patterns of behavior

  16. Market Segmentation Adidas captures attitude and lifestyle

  17. Business, Government, & Industry Professional buyers Concentratedgeographically Systematicpurchasing Small number of buyers Categorized byNAICS code Differencesfrom ConsumerMarkets

  18. Business, Government, & Industry NAICS hierarchy and codes can be used to search for prospective clients

  19. The Target Marketing Process Product Price Place Promotion 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

  20. Target Market Selection Levi’s communicates how slim their jeans are and the relative attractiveness of those who wear them

  21. Target Market Segments Park BenchSeniors New EmptyNest Movers &Shakers NewBeginnings YoungInfluentials BohemianMix Home SweetHome

  22. Product Life Cycles

  23. The Product Element Positioning & Differentiation Classification by… Perceptible Market Hidden Consumption rate Induced Tangibility Buying habits Physical description

  24. The Product Element Volvo positions itself as owning safety

  25. Product Branding Product Name Individual • Family • National • Private • Licensed Words Design Symbols

  26. The Most Valuable Brands

  27. Product Packaging Identification Consumerappeal Containment,protection,convenience Economy These functions may become copy points

  28. The Price Element Price Factors: Demand Production &distribution Competition Corporate goals & strategies

  29. The Place (Distribution) Element Direct Indirect Vertical Network Intensive Franchises Selective Buyer Club Exclusive

  30. The Promotion Element Personal Selling Product Advertising CommunicationMix DirectMarketing Sales Promotion Public Relations Collateral Materials

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