chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights...

31

Transcript of chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights...

Page 1: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.
Page 2: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 3: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 4: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-4

The Larger MarketingContext of Advertising

Marketing

Product Marketplace

Page 5: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-5

Customer’s Utility

AwarenessAttitudeInterest

Seller’s

Context of Advertising:Marketing Key ConceptsUtility Exchanges

Perception Satisfaction

Page 6: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-6

The Market Segmentation Process

1. Identify people with shared needs and characteristics

Page 7: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 8: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-8

Types of Markets

Two Types

BusinessConsumer

Page 9: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 10: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-10

Market Segmentation

This Crate and Barrel ad targets sole users and repertoire users

Page 11: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-11

Market Segmentation

Heavy users: Hardee’s ad marketing the Thickburger

Page 12: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 13: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-13

Market Segmentation

Demographic segmentation: Hispanic ad spending growth by medium

Page 14: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-14

Market Segmentation

Demographic segmentation: Heavy usage patterns of various age groups

Page 15: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-15

Market Segmentation

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

Geographic

Demographic Geodemographic Segmentation

Psychographic VALS

BehaviorGraphics

MindBase

Page 16: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-16

MarketSegmentationPsychographic segmentation: VALS

Page 17: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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)

Position = 5.9” horizontal, 1.5” vertical

Size = 2.8” wide

Resolution = 300 dpi

Page 18: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-18Market Segmentation:Business, Government, &

Industry

Complexity:Manufacturers, Resellers,

Brand Partnerships

Organizationalbuying

behavior

Fewer, more-concentrated

buyers

Differencesfrom Consumer

Markets

Page 19: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-19

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

Market Segmentation:Business, Government, &

Industry

Page 20: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Page 21: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-21

Target Market Selection

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

Page 22: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

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

Position = 2.66” horizontal, 1.26” vertical

Size = 5.84” WIDE

Resolution = 300 dpi

Page 23: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-23

The Product Element

Life Cycle ClassificationPositioning & Differentiation

Branding Packaging

• Introduction• Growth• Maturity• Decline

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

• Perceptible• Hidden• Induced

• Individual• Family• National• Private Label• Licensed

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

Page 24: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-24

The Product Element

Life Cycle ClassificationPositioning & Differentiation

Branding Packaging

• Introduction• Growth• Maturity• Decline

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

• Perceptible• Hidden• Induced

• Individual• Family• National• Private Label• Licensed

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

Page 25: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-25

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

The Product Element

Page 26: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-26

The Product Element

Life Cycle ClassificationPositioning & Differentiation

Branding Packaging

• Introduction• Growth• Maturity• Decline

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

• Perceptible• Hidden• Induced

• Individual• Family• National• Private Label• Licensed

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

Page 27: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-27

The Product Element

World’s most valuable brands

Page 28: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-28

The Product Element

Life Cycle ClassificationPositioning & Differentiation

Branding Packaging

• Introduction• Growth• Maturity• Decline

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

• Perceptible• Hidden• Induced

• Individual• Family• National• Private Label• Licensed

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

Page 29: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-29

The Price Element

Demand

Production &Distribution

Competition

Corporate Goals & Strategies

Price Factors:

Page 30: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-30

The Place (Distribution) Element

IntensiveSelective

Push/Pull

Exclusive

Direct

Indirect

Network Buyer Club

Page 31: chapter 04 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Introduces the people and groups who work in advertising.

4-31

The Promotion Element

DirectMarketing

SalesPromotion

ProductAdvertising

PersonalSelling

PublicRelations

MarketingCommunication

Types


17-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

17-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ...

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ...

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin.

1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Seven McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc.,

1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Seven McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc.,

Chapter 10 · Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 $ Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., ...

Chapter 10 · Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2001 $ Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., ...

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies,

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies,

4 1 Irwin/McGraw Hill

4 1 Irwin/McGraw Hill

Local Marketing in Mature Markets Chapter Eight. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

Local Marketing in Mature Markets Chapter Eight. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, All Rights Reserved Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies ...

McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies ...

McGraw-Hill/Irwin ©2005 The McGraw-Hill Companies, All rights reserved ©2005 The McGraw-Hill Companies, All rights reserved McGraw-Hill/Irwin.

McGraw-Hill/Irwin ©2005 The McGraw-Hill Companies, All rights reserved ©2005 The McGraw-Hill Companies, All rights reserved McGraw-Hill/Irwin.

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill ...

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill ...

Chapter Ten LocalMarketing in Emerging Markets Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

Chapter Ten LocalMarketing in Emerging Markets Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

12-1 McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All.

12-1 McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, All Rights Reserved McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All.

Irwin/McGraw Hill The McGraw-Hill Companies, Inc., 2000 · Slides by Matthew Will Chapter 2 Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000. Irwin/McGraw Hill ... " Tools

Irwin/McGraw Hill The McGraw-Hill Companies, Inc., 2000 · Slides by Matthew Will Chapter 2 Irwin/McGraw Hill ©The McGraw-Hill Companies, Inc., 2000. Irwin/McGraw Hill ... " Tools

Irwin / McGraw-Hill

Irwin / McGraw-Hill

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc.

McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc.