Copyright © 2002 Prentice-Hall, Inc. Class 2 Marketing 340 Professor Bill White Marketing Planning, Segmentation, Targeting, and the Advertising Industry.

Copyright © 2002 Prentice-Hall, Inc.

Class Class 22

Class Class 22

Marketing 340Professor Bill White

Marketing Planning,Segmentation,

Targeting, and the Advertising Industry

Parts adapted from Kotler and from Pressley


Step OneThe Target Market -- Needs, Wants, Expectations

Step TwoThe Positioning -- The Story

Brand Image & Competitive Advantage

Step Three“The 4 P’s”

Product ---- Price ---- Place ---- Promotion

The Marketing MixThe Marketing Mix


Do

llars

TimeLoss0

Profit

Sales Volume

INTRODUCTION GROWTH MATURITY DECLINE

The Product Life CycleA Strategy Development Tool


Part a - Extendedintroduction stage

Part b - Fad

Part c - Indefinitematurity stage

Time in years Time in years

Time in years

Ag

gre

gat

es

ale

s

Ag

gre

gat

es

ale

s

Product Life Cycle Variations

Time in years Time in years


Life Cycle ManagementLife Cycle ManagementHow to stay in the maturity stage a long time.

• Two basic strategies– Find new customers– Increase the frequency and variety of product

usage by current customers• Two basic tactics

– Promote new uses for the product– Introduce new forms of the product


Product-FirstProduct-First Business Model Business Model““Make It, and They Will Come.”Make It, and They Will Come.”

Select/MakeProduct

Select/MakeProduct

DecideMessage

DecideMessage

SelectMedia

SelectMedia

GetConsumers

GetConsumers

Customers needwhat I think they need.

“Here’s the product.It’s what you need.It’s the best.”

Spray and pray. Repeat process.


Customer-FirstCustomer-First Business Model Business Model

DecideCustomers

DecideCustomers

SelectMedia

SelectMedia

DecideMessage

DecideMessage

Make/SellProduct

Make/SellProduct

BuildDatabase

BuildDatabase

You PrivateTarget Market

TestTest


Steps in Segmentation, Targeting, and PositioningSteps in Segmentation, Targeting, and Positioning

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation


Step 1. Market SegmentationStep 1. Market SegmentationLevels of Market SegmentationLevels of Market SegmentationStep 1. Market SegmentationStep 1. Market SegmentationLevels of Market SegmentationLevels of Market Segmentation

Mass MarketingSame product to all consumers

(no segmentation)

Mass MarketingSame product to all consumers

(no segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

Segment MarketingDifferent products to one or more segments

(some segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

MicromarketingProducts to suit the tastes of individuals or locations

(complete segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)

Niche MarketingDifferent products to subgroups within segments

( more segmentation)


Market Segmentation: Bases for

Segmenting Consumer Markets

Market Segmentation: Bases for

Segmenting Consumer MarketsGeographic

DemographicAge, gender, family size and life cycle, or income

PsychographicLifestyle, benefit sought, personality, values, etc.

BehavioralOccasions, usage, or responses

Nations, states, regions,cities

neighborhoods


Bases for Segmenting Business MarketsBases for Segmenting Business Markets

Basesfor Segmenting

BusinessMarkets

Basesfor Segmenting

BusinessMarkets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches


Market Targeting:Evaluating Market Segments

Market Targeting:Evaluating Market Segments

• Segment Size and Growth– Analyze sales, growth rates and expected profitability.

• Segment Structural Attractiveness– Consider effects of Competitors, Availability of

Substitute Products, and the Power of Customers, Middlemen, and Suppliers.

• Company Objectives and Resources– Company goals, people talent, intellectual capital, and

money.– Look for Competitive Advantages.


Profiling the Target MarketProfiling the Target Market• Profiling means to describe the target market in

terms of their geographic, demographic, pyschographic and/or behavioral characteristics.


The Advertising IndustryThe Advertising Industry

Adapted fromMilton M. Pressley

University of New Orleans Assisted by D. Carter


MediaDept.

VPAcct. Svs.

VPMarketing

Presidentand CEO

AccountServices

CreativeDept.

ResearchDept.

Sales PromoDept.

The MediaPrintBroadcastInternet

ProductionPrintBroadcastInternet

ResearchSurveysFocus grpsSyndicated

Sales ProSamplingP,O,PPremiums

Advertise

r

Ad Agency

Supp

liers

Client/AccountV.P. Marketing Ad DirectorBrand Manager


Exhibit 6.5: The communication manager approves or coordinates Exhibit 6.5: The communication manager approves or coordinates all communications programs for the entire organizationall communications programs for the entire organization

Organization of A Large Advertiser/Client


• Advertising Agency: an independent business, composed of creative and business people, who develop, prepare, and place advertising in advertising media for clients seeking customers for their products.

The AgencyThe Agency


The Full-Service AgencyThe Full-Service Agency• Acts as Marketing Partner.• Diagnoses the Marketing and Brand Problem• Sets Objectives and Develops Overall Strategic Plan• Provides All Support Services

– Advertising– Public relations/publicity– Sales promotions

• Premiums, contests, sampling, etc.• Event marketing• In-store/collateral

– Direct response marketing– Research– Internet and new media– Barter


Exhibit 5.4: Organization of a Typical Full-Service AgencyExhibit 5.4: Organization of a Typical Full-Service Agency


Other Types of Advertising Agencies/Services

• Talent and Production Agencies Creating Creative

• Creative Boutiques• A La Carte Agency• In-House Agency• Rolodex Agency• Media-Buying Services• In-House Services


Forms of Agency Forms of Agency CompensationCompensation

• Media Commissions (15%)

• Production Commissions or Markups (17.65%)

• Fee/Retainer Arrangements

• Performance Fee

Copyright © 2002 Prentice-Hall, Inc. Class 2 Marketing 340 Professor Bill White Marketing Planning, Segmentation, Targeting, and the Advertising Industry.

Documents

product slide

ps product

marketing mix slide

variety of product usage

target segments

pressley slide

consumers customers

new customers