Arens Contemporary Advertising 10e

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Cover image here
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Market Segmentation and the Marketing Mix
Determinants of Advertising Strategy
Chapter

• How marketers use behavioral characteristics to
  cluster customersinto market segments

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Chapter 6 Objectives
Describe the elementsof the marketing mix and
advertisings role in the mix
Identify methods advertisers use to segment
consumerand business markets
Explain the importanceof aggregation
Discuss how target marketing affects advertising
strategy
Explain the purpose and importance of branding
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The Market Segmentation Process
1. Identify people with shared needs and
characteristics
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The Market Segmentation Process
1. Identify people with shared needs and
characteristics
2. Aggregate these groups into market
segments according to their mutual
interest in the products utility
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Market Segmentation
User-Status Variables
Behavioristic
Usage-Rate Variables
Purchase-Occasion Variables
Benefits-Sought Variables
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Market Segmentation
User status Mammut ad targets its repertoire
users who are concerned with quality
Insert photo 6.4, p. 171 Mammut ad Position
2.9 horizontal, 1.5 vertical Size 5.7
WIDE Resolution 300 dpi
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Market Segmentation
Purchase occasion Columbia seasonal gear ad
Insert photo 6.5, p. 172 Columbia sportswear
ad Position 2.9 horizontal, 1.5 vertical Size
5.7 WIDE Resolution 300 dpi
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Market Segmentation
User Status, User Rate, Purchase Occasion,
Benefits-Sought Variables
Behavioristic
Geographic
Geodemographic Segmentation
Demographic
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Market Segmentation
Insert ex. 6.3, p. 174 Hispanic Media Ad Spending
Growth Rates (2002-2005) bar graph Position
2.9 horizontal, 1.5 vertical Size 5.7
WIDE Resolution 300 dpi
Demographic segmentation Hispanic ad spending
growth by medium
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Market Segmentation
Demographic segmentation Heavy usage patterns of
various age groups
Insert ex. 6.4, p. 175 Heavy usage patterns of
various age groups Position 2.9 horizontal,
1.5 vertical Size 5.7 WIDE Resolution 300
dpi
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Market Segmentation
Psychographic
VALS
MindBase
BehaviorGraphics
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MarketSegmentation
Insert ex. 6.5, p. 177 VALS classification
system Position 0.35 horiz., 0.4
vertical Size 5.75 TALL Resolution 300 dpi
Psychographic segmentation VALS
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Market Segmentation
Psychographic segmentation Adidas placed ads
along the Boston Marathon route to target young
people who define themselves by 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 2.8wide 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
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Market Segmentation
Insert ex. 6.7, p. 179 MindBase segments Position
2.9 horiz., 1.5 vertical Size 5.7
WIDE Resolution 300 dpi
Psychographic segmentation MindBase
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Market SegmentationBusiness, Government,
Industry
Differencesfrom ConsumerMarkets
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Market SegmentationBusiness, Government,
Industry
Insert ex. 6.8, p. 182 NAICS hierarchy and
codes Position 2.9 horiz., 1.5 vertical Size
5.7 WIDE Resolution 300 dpi
The NAICS hierarchy and codes can be used to
search for prospective clients
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The Target Marketing Process
1. Select a target market from the market
segments identified
2. Use the 4Ps of the marketing mix to shape a
product concept for the market
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Target Market Selection
Harley-Davidson ad appeals to likely customers
who want to stand out in the ordinary
Insert photo 6.10, p. 186 Harley-Davidson
ad Position 2.9 horizontal, 1.5 vertical Size
5.7 WIDE Resolution 300 dpi
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The Product Element
Insert ex. 6.11, p. 188 Product life cycle
curve Position 2.66 horizontal, 1.26
vertical Size 5.84 WIDE Resolution 300 dpi
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The Product Element
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The Product Element
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The Product Element
Volvo positions itself as owning safety
Insert photo 6.13, p. 191 Volvo ad Position
2.93 horizontal, 1.5 vertical Size 5.75
WIDE Resolution 300 dpi
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The Product Element
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The Product Element
Insert ex. 6.14, p. 193 Worlds most valuable
brands Position 2.9 horizontal, 1.5
vertical Size 5.7 WIDE Resolution 300 dpi
Worlds most valuable brands
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The Product Element
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The Price Element
Insert ex. 6.15, p. 196 Demand vs. price, supply
vs. price graph Position 2.9 horizontal, 1.5
vertical Size 5.7 WIDE Resolution 300 dpi
Price Factors
Demand
Corporate Goals Strategies
Production Distribution
Competition
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The Place (Distribution) Element
Franchises
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The Promotion Element
Marketing Communication Types