Advertising and marekting best practices for busienss owners and prodfessionals

1. AdvertisingAdvertising
MKTMKT00350035

2. Chapter 4:Chapter 4:
Segmentation,Segmentation,
Targeting &Targeting &
Marketing MixMarketing Mix

3. Determine your
Target SegmentsTarget Segments:
Who are you gonna sell
your stuff to?

4. What’s A Target MarketWhat’s A Target Market

5. “A market segment
consists of a group of
consumers who share a
similar set of needs and
wants.”
Kotler & LaneKotler & Lane

6. 308mm

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. • Segmentation bases for B2C & B2B
markets (Page 95):
– Behavioral
– Demographic
– Psychographic
– Geographic
– Occasion
– Benefits
Target Markets

9. Behavioral Segmentation

10. Psychographic Segmentation

11. • Activities of the target segment
• Interests…
• Opinions…
• Attitudes…
• Values…
Psychographic Segmentation

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

14. • 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

15. • 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

16. For behavioral or product-
oriented target segments
think “INSURANCEINSURANCE”

17. Think InsuranceThink Insurance

18. • 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

19. Think CarsThink Cars

20. A Class Concept
< $30k

21. Chrysler 300
> $40k

22. The MaleThe Male 18-2518-25
Segment…Segment…

26. …and the Male 18-25
Demographic?

29. • 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

30. Satisfying NeedsSatisfying Needs

31. 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.

32. 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.

33. Exchange =Exchange =
Satisfaction?Satisfaction?

35. It’s JUST Tap Water…It’s JUST Tap Water…

36. • 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

37. • 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

39. Sample Ad CampaignSample Ad Campaign

40. You’re Not YOUYou’re Not YOU
When You’re HungryWhen You’re Hungry

45. Resources