Class Objectives<br />Identify the various methods advertisers use to segment and aggregate consumer and business markets<br />Discuss how target marketing affects an advertising strategy<br />
First things first<br />A product must have utility for consumers.<br />The product must meet a need… or a perceived need (want).<br /> Groceries Botox<br /> Home Lamborghini<br />Photo: stjoesfoodprogram.org<br />Photo: turbocharger-turbochargers.com<br />
Market Segmentation<br />1. Identify people with shared needs and characteristics<br />
Market Segmentation<br />1. Identify people with shared needs and characteristics<br />2. Aggregate these groups into market segments according to their mutual interest in the product’s utility<br />
Result: Targets<br />Marketing for a product is aimed at a segment of the population, called the target market.<br />Advertising is aimed at a group reached by the medium, called the target audience.<br />Photo: en.wikipedia.org<br />Photo: turbocharger-turbochargers.com<br />
Types of Markets<br />Two Types<br />Business<br />Consumer<br />
BehavioristicSegmentation<br />Segmenting according to purchase behavior.<br />User-Status Variables<br />Usage-Rate Variables<br />Purchase Occasion Variables<br />Benefits-Sought Variables<br />
User Status Variables<br />Researchers: <br />Stefan & Tannenholz<br />Tide photo: coupondad.net All photo: thedealdetector.com<br />
User Status Variables<br />This Crate and Barrel ad targets sole users and repertoire users<br />
Usage-Rate Variables<br />Marketers use volume segmentation, measuring consumers’ usage rates of products similar to theirs.<br /><ul><li>Light users
Seasonality</li></li></ul><li>Purchase-Occasion Variables<br />Consumers travel for business and vacations.<br />
Benefits-Sought Variables<br />What are the benefits of the product to the consumer? What is the symbolism of the brand to the consumer?<br />Comfort<br />Fashion,<br />Status<br />Photo: footedpajama.com<br />
Psychographic Segmentation<br />VALS Framework, from Strategic Business Insights, is a well-known psychographic classification system<br /><ul><li>Primary Motivations
Resources</li></li></ul><li>Psychographic Segmentation<br />Adidas placed ads along the Boston Marathon route to target young people who define themselves<br />by their athletic achievements<br />Insert left panel of Adidas ad(p. 180)<br />(ritual/shock/denial/isolation ad panel)<br />Position = 2.9” horizontal, 1.5” vertical<br />Size = 2.8”wide <br />Resolution = 300 dpi<br />
Psychographic Segmentation<br />iPad: <br />http://www.youtube.com/watch?v=JP8wKtFA4Io<br />Budweiser commercial: <br />http://www.youtube.com/watch?v=7IY9xjIHugo<br />Think about: <br /><ul><li> How do these ads convey emotion?
What do you notice about the background music?
What does the target consumer appear to value?
How does each ad motivate its target market?</li></li></ul><li>Finalizing the Target<br />Top Prizm Clusters<br />http://geography.about.com/gi/o.htm?zi=1/XJ&zTi=1&sdn=geography&cdn=education&tm=7&gps=551_120_1017_563&f=20&su=p284.9.336.ip_&tt=2&bt=1&bts=0&zu=http%3A//www.claritas.com/MyBestSegments/Default.jsp%3FID%3D20<br />Rock Hill 29730<br />
Target Product Concept<br />Product<br />Price<br />Place<br />Promotion<br />1. Select a target market (markets) from the market segments identified<br />2. Use the 4Ps of the marketing mix to shape a product concept for the market<br />
The North American Industry Classification System (NAICS) hierarchy and codes are used throughout North America. Census data about industries helps companies target their markets. <br />B2B Market Segmentation<br />
Impact of Targeting on Advertising<br />Message<br />Media Mix<br />Kia Optima:<br />http://www.youtube.com/watch?v=T7-q0eK8HL0<br />Kia Soul: http://www.youtube.com/watch?v=kfJnqbudMzs<br />