Advertising Exam 2 Review

Advertising Exam 2 Review - Advertising Exam 2 Review I....

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Advertising Exam 2 Review I. Chapter 2 a. How Market Segmentation Works i. “Dividing up a market in to distinct groups that 1. Have common needs 2. And will respond similarly to marketing action b. Target Audience segmentation and bias for (47-49) i. Geographic segmentation – markets divided into geographic units 1. Ex. Nations, states, counties, neighborhoods ii. Demographic segmentation – dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class iii. Psychographic 1. Dividing the market on the basis of personality and/or lifestyles 2. VALS iv. Socioeconomic – dividing the market on the basis of income, education, and/or occupation c. Steps in the Market Segmentation Process i. Five distinct steps 1. Finding ways to group consumers according to their needs 2. Finding ways to group the marketing actions – usually the products offered – available to the organization 3. Developing a market-product grid to relate the market segments to the firm’s products or actions 4. Selecting the target segments toward which the firm directs its marketing actions 5. Taking marketing actions to reach target segments d. Positioning i. Developing strategies 1. What position, if any, do we already have in the prospect’s mind? 2. What position do we want to own? 3. What companies must we be outgunned if we are to establish that position? 4. Do we have enough marketing money to occupy and hold the position? 5. Do we have the guts to stick with one consistent positioning strategy? 6. Does our creative approach match our positioning strategy?
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Chapter 2 Review I. VALS Segmentation strategy development a. Values and Lifestyles Programs b. one of the more popular lifestyle segmentation methods c. developed by the Stanford Research Institute (SRI) d. VALS 2 divides Americans into eight lifestyle segments that exhibit distinctive attitudes, behaviors, and decision-making patterns e. SRI believes that when combines wit an estimate of the resources the consumer can draw on (education, income, health, energy level, self-confidence, and degree of consumerism) II. How Market Segmentation Works a. Market Segmentation is dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly o a marketing action. b. Steps in the Market Segmentation Process i. Finding ways to group consumers according to their needs ii. Finding ways to group the marketing actions—usually the products offered—available to the organization. iii. Developing a market-product grid to relate the market segments to the firm’s products or actions. iv. Selecting the target segments toward which the firm directs its marketing actions. v.
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This note was uploaded on 04/15/2008 for the course ADV 2374 taught by Professor Ford during the Fall '08 term at SMU.

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Advertising Exam 2 Review - Advertising Exam 2 Review I....

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