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Chapter 4 Target Marketing

Chapter 4 Target Marketing. Objectives_1. Understand Defining prime prospects The importance of target marketing information The marketing concept. Objectives_2. Understand Planning the advertising Niche marketing and positioning Beyond demographics: psychographics. Know Your Market.

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Chapter 4 Target Marketing

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  1. Chapter 4 Target Marketing

  2. Objectives_1 Understand • Defining prime prospects • The importance of target marketing information • The marketing concept

  3. Objectives_2 Understand • Planning the advertising • Niche marketing and positioning • Beyond demographics: psychographics

  4. Know Your Market • What information do you need to reach your prospects successfully? • Do you understand their problems? • Have you thought about what you want people to think and feel about your brand?

  5. Defining Prime Prospects • Target marketing means identifying and communicating with groups of prime prospects.

  6. Census Data: A Good Place to Start

  7. Geodemographic Information Services • Aciom • Claritas • ESRI • Experian • MapInfo

  8. Demographic Snapshots • The largest ancestral group in the U.S. is German • One in 8 residents is an immigrant (12.4% of the population) • The median age in the U.S. is 36.4 • 27% of U.S. adults have a bachelor’s degree; 10% have an advanced degree

  9. African American Population • 13.4% of U.S. population • 54% live in the South • Median age is 29.5 • 46% own their homes • Median income is $30,134 • 30% in the middle- and upper-income status

  10. Hispanic Population • 14.5% of U.S. population • Median age is 27.2 (34% under age 18) • 64% from Mexico • Hispanic is an ethnic designation; it does not reflect race

  11. Asian and Pacific Islander Population • 4.8% of U.S. population • 51% live in the West • 15 distinct ethnic groups • 26% under age 18 • 51% of men and 44% of women earn at least a bachelor’s degree

  12. Household income Spending Marrieds Birthrate Aging Women Men Single-Person Households Target Information

  13. Generational Marketing • Number of people in any age group, extending typically 30 years and past a single decade (though some, such as Gen X, are shorter in time frame) • Shared attitudes, common history, and formative experiences

  14. Target Generations Matures Boomers Gen X Gen Y Gen Z (Millennials)

  15. Marketing Concept The marketing concept is a management orientation that views the needs of consumers as primary to the success of a firm.

  16. Key Concepts in Marketing What is a product? What is a market? What is competition?

  17. Planning the Advertising • Market segmentation is the division of an entire market of consumers into groups whose similarity makes them a market for products serving their special needs. • A situation analysis is the part of the advertising plan that answers the questions: Where are we today and how did we get here?

  18. Steps in the Market Segmentation Process Segment your market Target a segment Position your product Communicate your positioning

  19. Segmentation Approaches • Demographic • Geographic • Product-User • Lifestyle • Benefits and Attitudes

  20. Values and Lifestyle System (VALS)

  21. Determining Lifestyle Characteristics Activities Interests Opinions

  22. Niche Marketing Niche marketing is a flanking strategy that focuses on narrow windows of opportunity within a broad market.

  23. Positioning Positioning means segmenting a market by creating a product to meet the needs of a select group or by using a distinctive advertising appeal to meet the needs of a specialized group.

  24. How to Approach a Positioning Problem • What position, if any, do we already own in the prospect’s mind? • What position do we want to own? • What companies must be outgunned if we are to establish that position? • Do we have enough marketing money to occupy and hold that position? • Do we have the guts to stick with one consistent positioning concept? • Does our creative approach match our positioning strategy?

  25. Exhibit 4.10 Positioning a Location

  26. Positioning Examples • Dove soap is the moisturizing beauty bar. • Allstate insurance is the good hands people. • Cheer is the detergent for all temperatures. • Intel is the computer inside. • Ace hardware is the helpful place.

  27. Profiling • Market profile • Buyer profile • Heavy users profile

  28. Profiles: Users of Brand X

  29. Beyond Demographics Psychographics are descriptions of a market based on factors such as attitudes, opinions, interests, perceptions, and lifestyles of consumers comprising that market.

  30. Albany-Schenectady-Troy, NY Rochester, NY Greensboro-Winston-Salem-High Point, NC Birmingham, AL Syracuse, NY Charlotte-Gastonia-Rock Hill, NC-SC Nashville, TN Eugene-Springfield, OR Wichita, KS Richmond-Petersburg, VA Top 10 Test Market Cities

  31. For Discussion • What is target marketing? • What is market segmentation? • What is positioning? • How does the 80/20 rule relate to target marketing?

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