Contemporary Advertising

Contemporary Advertising - T The Market Segmentation...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
The Market Segmentation Process T A two-step strategy of: Identifying groups of people (or organizations) with certain shared characteristics within the broad markets for consumer or business products. Aggregating (combining) these groups into larger market segments according to their mutual interest in the product's utility. The concept of shared characteristics  is critical to market segmentation. Marketing and advertising people try to find a particular "niche"- or space in the market - where the advertiser's product or service will fit. Marketers group variable characteristics into a several categories to identify and segment consumer markets. The purpose is to identify those likely to respond and to create rich descriptions of them so as to be able to design effective messages. The four categories are: Behavioristic Segmentation - consumer grouping by their purchase behavior. Behavioral segments are determined by many variables, but the most important are: - User-status variables - Stephan and Tannenholz identified six categories of consumers based on user status: Sole users are the most brand loyal and require the least amount of advertising and promotion. Semisole users typically use brand A, but have an alternate selection if it is not available or if the alternate is promoted with a discount. Discount users are the semisole users of competing brand B. They don't buy brand A at full price, but perceive it well enough to buy it at a discount. Aware non-triers are category users, but haven't bought into brand A's message. Trial/rejecters bought brand A's advertising message, but didn't like the product. Repertoire users perceive two or more brands to have superior attributes and will buy at full price. These are the primary brand switchers; therefore, the primary target for brand advertising. - Usage-Rate variables (volume segmentation) - In volume segmentation, marketers measure usage rates to define consumers as light, medium, or heavy users of products. Remember 20% of the population consumes 80% of the product. By finding common characteristics among heavy users, advertisers can focus messages - Purchase occasion variables  - when the product or service is bought or used - Benefits sought variable - consumers seek benefits in the products
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
they buy - high quality, low price, status, sex appeal, etc. Geographic Segmentation - needs, wants, and purchasing habits vary by region of the country and from country to country. Demographic Segmentation - demographics are characteristics such as age, sex, ethnicity, education, occupation, income and other quantifiable factors. Demographics are often combined with geographic segmentation to select target markets for advertising - geodemographic  segmentation . Psychographic Segmentation
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/28/2009 for the course ADV 205 taught by Professor Bukovac during the Fall '08 term at Michigan State University.

Page1 / 29

Contemporary Advertising - T The Market Segmentation...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online