CHAPTER 4 SEGMENTATION AND TARGETING I. Larger Marketing Context of Advertising A.

Customer Needs/Product Utility

Utility- products ability to satisfy functional needs and symbols and psychological wants B. Exchange (money) Market Segmentation Process- identification of groups of people and organizations within the market for Consumer and Business products and combining these groups into larger Market segments. A. Types of Markets 1. Consumer Markets- own personal usage 2. Business Markets- for resale, inputs of production and day to day operations B. Segmenting Consumer Markets 1. Behavioral segmentation a) User status Variable- how we use products 1. Sole users- only one using it (brand loyal, decrease Ad) 2. Semi sole users- not only one using it ( using another brand if its cheaper) 3. Discount users 4. Tr 5. Trial Rejecters ( Tried Brand A and didnt like it) 6. Repertoire users- perceive two or more Brand to be of superior quality and will buy at full price responding to advertising) b) User Rate Variable 1. Nonusers to heavy users c) Purchase Occasion Variables 1. When to buy the products 2. Frequency- How often you buy the product 2. Geographical Segmentation a) Where product is bought 3. Demographic a) Age, sex. Ethnicity, geo-demographic 4. Psychological Segmentation a) Lifestyle b) Attitude c) Personality C. Segmenting Business /Government Market Resellers 1. Procedures a) Evaluate their needs b) Analyze their purpose/ purchase c) C

II.

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IV.

d) e)S f) L Target Marketing Process -Group of segments that company wishes to appeal to, design product for and target its marketing actively towards A. Marketing Mix- matching the product to the Market Advertising and the Product Element understand product Life Cycle A. Product Life Cycle(longevity of products) 1) Introduction of New Product i. Increase of Ads Costs(TV, Radio, Word of Mouth) ii. Ad strategy- pull (demand created), iii. Push (supply created) Retailers to push products. 2) Growth i. Increased Market shared ii. Mass ads and first, second, third purchases 3) Maturity i. Fighting for Market share ( Samsung v. I-phone) ii. Increased competition iii. Selective Demand 4) Decline i. No Promotion ii. Change in Consumer taste iii. Fading out product B. Product Classification 1) By the Market i. Consumer good ii. Industrial good 2) Rated Consumption and Target ability i. Durability, durable goods(you dont replace them very often) ii. Nondurable goods (tangible: Ex- toothpaste) iii. Non-tangible (services: Ex- doctors, waiters) 3) Purchase Habit i. Convenience goods(what you buy all the time) ii. Shopping goods(you dont buy them very often but always searching for them because you need them) iii. Specialty goods ( we dont need them but we like to have them) ex: expensive watch iv. Unsought goods(things you dont like to buy but you need them) ex: Insurance, medicine 4) Physical Characteristics i. Packaged goods: ex- cookies, cereal ii. Soft goods: Ex- Clothes

V. VI.

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iii. Hard Goods: Ex- Furniture iv. Services C. Product Positioning ( how do you define the product, the value that you see and find in them, how perceived by others D. Product Differentiation ( what makes the product different from others 1) Perceptible differences- you perceive the difference immediately, very remarkable 2) Hidden differences-something you are not aware of 3) Induced differences E. Product Branding 1) Individual brands- Ex: Gap chain, Banana Republic, Old Navy 2) Family Name- Ex: Coca-Cola, Heinz 3) National- Everyone knows the Brand Ex: McDonald 4) Private Labels- a Brand that is sold in a particular place. F. Product Packaging: the label, how it looks like and how you identify it. 1) Identify it 2) Containment 3) Protection 4) Convenience 5) Consumer appeal Advertising and Price Advertising Distribution 1) Direct Distribution-it goes from manufacturer to consumers. Ex: Apple- no middle men 2) Indirect Distribution- Bodegas, Super Markets Advertising Promotion 1) Communication what we are trying to say about the product

CHAPTER 5 Communications and Consumer Behavior I. Communication A. Relationship with Advertising (process) 1) Source- Individuals, Institutions, Organizations 2) Messagea) Encoded-words and symbols, verbal and nonverbal b) Semiotics- study of how humans use words, gestures, signs and symbols to convey thoughts, ideas and ideologies. 3) Channels a) Source- Message- Receiver ( personal vs. non-personal) 4) Receiver- interpret the message 5) Feedback

II. Consumer Behavior- emotional mental process and physical activities of people who buy Goods and Services A. Process 1) Habitual vs. Limited vs. Extended 2) Process a) Problem Recognition b) Search c) Evaluation d) Purchase e) Post Purchase 3) Influences a) Personal Influences (personal Experiences) 1. Perception ( view of products in particular way) 2. Learning through experiences 3. Motivation- to fit in B. Interpersonal (Relationships) Influences 1) Family 2) Society 3) Culture C. Non personal Influences 1) Time 2) Place 3) Environment III. Personal Processes 1) Stimulus a) Physical Data- Ads, Promotions a. New improved ( short term Increase in sales) products, store, prices, conversation b) Physiological Stimuli a. Sight b. Hearing c. Touch d. Taste e. Smell c) Psychological a. Personality b. Self-concept- how we see ourselves c. Attitudes- how we feel about something d. Belief e. Habits B. Learning/Persuasion 1) Theories

a) Cognitive( mental process) b) Conditioning ( Experiences) 2) Attitudes/Interest a) Attitude- mental position how you feel about something 3) Learning- Acquired Behavior 4) Learning defines needs and wants C. Consumer Motivation Process 1) Hierarchy of Needs

Self actualization Self Esteem/Ego Social/Belonging Safety Psychological (food, water, sex)

IV.

Intepersonal Influences A. Family B. Societal Influences a. Social classes b. Reference Groups c. Opinion leaders (whose view you respect) C. Cultural Influences

CHAPTER 6 ACCOUNT PLANNING /RESEARCH I. II. Account Planning creating an advertisement to nurture a relationship between the consumer and the Brand, Research Marketing and Advertising A. Marketing Research- A research procedure for gathering, reading, and analyzing new information 1) Consumer needs 2) Market segments 3) New products 4) Strategies B. Advertising Research- Provides Information needed for Ad strategies Ad campaigns and individual Ads. 1) Ad Research- Decision Making

i. Ad Strategy Research- defines the product concept or assists in the collection of Target Markets, Ad messages or media used. ii. Creative concept Research- measures the target audience acceptance of different creative ideas a. Ex: younger ppl more likely to use tech than older ppl. iii. Pre testing of Ads- Diagnose possible communication problems before campaign begins. iv. Post testing of Ads- Evaluation of the campaign after it runs C. Advertising Strategy Research ( creative and media strategy) 1) Product concept- bundle of values that embody the utilitarian and symbolic benefits to the consumer 2) Target Audience Selection- who is your primary users and what markets are the most important. 3) Media Selection ( Internet, TV, Radio) 4) Message Element Selection (what you are trying to say) D. Happy Birthday My Darling sister. I wish you all the Health, Happiness, and Success in this world. May you get all your heart's desire. Enjoy your day Sis. I love You