AdvertisingAdvertising
MKTMKT00350035
Chapter 4:Chapter 4:
Segmentation,Segmentation,
Targeting &Targeting &
Marketing MixMarketing Mix
Determine your
Target SegmentsTarget Segments:
Who are you gonna sell
your stuff to?
What’s A Target MarketWhat’s A Target Market
“A market segment
consists of a group of
consumers who share a
similar set of needs and
wants.”
Kotler & LaneKotler & Lane
308mm
• A marketmarket is the set of all actual and
potential buyers who have sufficient
interest in, income for, and access to
...
• Segmentation bases for B2C & B2B
markets (Page 95):
– Behavioral
– Demographic
– Psychographic
– Geographic
– Occasion
–...
Behavioral Segmentation
Psychographic Segmentation
• Activities of the target segment
• Interests…
• Opinions…
• Attitudes…
• Values…
Psychographic Segmentation
• Segmentation bases for B2C & B2B markets:
– Nature of good or service
– Buying condition of the consumer
– Demographic d...
• Blanket targetingBlanket targeting: occurs when the firm’s
advertising reaches the entire segment.
• Beachhead targeting...
• New opportunity targetingNew opportunity targeting: the firm targets
an entirely new segment online. Online targets
have...
For behavioral or product-
oriented target segments
think “INSURANCEINSURANCE”
Think InsuranceThink Insurance
• Identify who you want to sell your products to
and offer your services to.
• ActionableActionable segmentation:
– The se...
Think CarsThink Cars
A Class Concept
< $30k
Chrysler 300
> $40k
The MaleThe Male 18-2518-25
Segment…Segment…
…and the Male 18-25
Demographic?
• STEP 1STEP 1 - Identify groups of people
with similar shared needs and
characteristics.
• STEP 2STEP 2 - Aggregate the t...
Satisfying NeedsSatisfying Needs
The ultimate purpose ofThe ultimate purpose of
marketing (thus advertising)marketing (thus advertising)
is tois to create ...
Satisfying Needs
 The ability to satisfy customer needs
is called UTILITY.
 There are five types of customer
utility:
• ...
Exchange =Exchange =
Satisfaction?Satisfaction?
It’s JUST Tap Water…It’s JUST Tap Water…
• Stated needs (inexpensive car)
• Real needs (car with LOW operating cost)
• Unstated needs (good service)
• Delight need...
• Specify the benefits you will deliver to specific
target segments:
– Volvo (safety)
– Nordstrom’s (customer care)
– Sout...
Sample Ad CampaignSample Ad Campaign
You’re Not YOUYou’re Not YOU
When You’re HungryWhen You’re Hungry
Resources
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
Advertising Class Baruch College Week 4 presentation
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Advertising Class Baruch College Week 4 presentation

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Advertising and marekting best practices for busienss owners and prodfessionals

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Advertising Class Baruch College Week 4 presentation

  1. 1. AdvertisingAdvertising MKTMKT00350035
  2. 2. Chapter 4:Chapter 4: Segmentation,Segmentation, Targeting &Targeting & Marketing MixMarketing Mix
  3. 3. Determine your Target SegmentsTarget Segments: Who are you gonna sell your stuff to?
  4. 4. What’s A Target MarketWhat’s A Target Market
  5. 5. “A market segment consists of a group of consumers who share a similar set of needs and wants.” Kotler & LaneKotler & Lane
  6. 6. 308mm
  7. 7. • A marketmarket is the set of all actual and potential buyers who have sufficient interest in, income for, and access to your products/services. • Market segmentationMarket segmentation divides your market into distinct groups of homogenous consumers who all have similar needs and consumer behavior, and thus require similar marketing mixes. Target Markets
  8. 8. • Segmentation bases for B2C & B2B markets (Page 95): – Behavioral – Demographic – Psychographic – Geographic – Occasion – Benefits Target Markets
  9. 9. Behavioral Segmentation
  10. 10. Psychographic Segmentation
  11. 11. • Activities of the target segment • Interests… • Opinions… • Attitudes… • Values… Psychographic Segmentation
  12. 12. • Segmentation bases for B2C & B2B markets: – Nature of good or service – Buying condition of the consumer – Demographic details • DescriptiveDescriptive or consumer-basedconsumer-based are related to what kind of person or organization the customer is. • BehavioralBehavioral or product-orientedproduct-oriented are related to how the customer thinks of or uses the brand, product, or service. Behavioral segmentation bases are often most valuable in understanding branding issues, because they have clearer strategic implications. Target Markets
  13. 13. • Blanket targetingBlanket targeting: occurs when the firm’s advertising reaches the entire segment. • Beachhead targetingBeachhead targeting: The initial segment you go after is smaller than the larger segment you go after later. • Bleed-over targetingBleed-over targeting: The desired target includes others you don’t really wish to target. Types of TargetingTypes of Targeting
  14. 14. • New opportunity targetingNew opportunity targeting: the firm targets an entirely new segment online. Online targets have different needs and preferences from the firms’ offline segment(s). Typically it involves a new brand name and position. • Companies that changed their marketing strategy when they went online: – Hush Puppies – Ethan Allen – Midas – Avon Types of TargetingTypes of Targeting
  15. 15. For behavioral or product- oriented target segments think “INSURANCEINSURANCE”
  16. 16. Think InsuranceThink Insurance
  17. 17. • Identify who you want to sell your products to and offer your services to. • ActionableActionable segmentation: – The segments are easy to identify. – Segments can be easily reached. – Segments can be defined in terms of their growth, size, profile and attractiveness. • MeaningfulMeaningful segmentation explains why customers act the way they do: – Customers in a segment behave in similar ways. – Sheds light into customer motivations. – Correlates to differences in profitability or cost to serve Find Your Target MarketsFind Your Target Markets
  18. 18. Think CarsThink Cars
  19. 19. A Class Concept < $30k
  20. 20. Chrysler 300 > $40k
  21. 21. The MaleThe Male 18-2518-25 Segment…Segment…
  22. 22. …and the Male 18-25 Demographic?
  23. 23. • STEP 1STEP 1 - Identify groups of people with similar shared needs and characteristics. • STEP 2STEP 2 - Aggregate the these groups into larger market segments according to their interest in your product’s utility. 2 Steps to Segmentation
  24. 24. Satisfying NeedsSatisfying Needs
  25. 25. The ultimate purpose ofThe ultimate purpose of marketing (thus advertising)marketing (thus advertising) is tois to create exchangescreate exchanges thatthat satisfy the perceivedsatisfy the perceived needsneeds and wantsand wants of individuals andof individuals and organizations.organizations.
  26. 26. Satisfying Needs  The ability to satisfy customer needs is called UTILITY.  There are five types of customer utility: • Form: Produce the physical product. • Task: Do something for the customer. • Possession: How do they get it? • Time: Provide it when they want it. • Place: Have it where they can get it.
  27. 27. Exchange =Exchange = Satisfaction?Satisfaction?
  28. 28. It’s JUST Tap Water…It’s JUST Tap Water…
  29. 29. • Stated needs (inexpensive car) • Real needs (car with LOW operating cost) • Unstated needs (good service) • Delight needs (include a cool nav system) • Secret needs (your friends see you as a cool & savy consumer) FIVE Kinds of Needs
  30. 30. • Specify the benefits you will deliver to specific target segments: – Volvo (safety) – Nordstrom’s (customer care) – Southwest Airlines (convenience) Focus on Customer BenefitsFocus on Customer Benefits
  31. 31. Sample Ad CampaignSample Ad Campaign
  32. 32. You’re Not YOUYou’re Not YOU When You’re HungryWhen You’re Hungry
  33. 33. Resources

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