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Advertising 150-Chapter 6

Terms in this set (25)

Market Segmentation
involves two steps: identifying groups of people with certain shared needs and aggregating these groups into larger market segments according to their interest in the brand's utility
Behaviorist segmentation
grouping consumers by buying behavior. determined by many variables including user status, purchase rate, and benefits sought (purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, marketing factor sensitivity)
User status variables
sole user- choose one brand exclusively. require the least amount of promotion

semi-sole users- use Brand A but have an alternative selection if it is not available or if the alternative is promoted with a discount

discount users- the semi-sole users of competing Brand B. Do not buy Brand A at full price but will consider Brand A with a discount

aware nontriers- use competitive products in the category but haven't taken a liking to Brand A

trial/rejectors- responded to Brand A's IMC messages but didn't like the product

repertoire users- perceives two or more brands to have superior attributes and will buy at full price
volume segmentation
marketer's measure people's usage rates to define consumers as light, medium, or heavy users of products
Purchase occasion
buyers can be distinguished by when they buy or use a product or service
benefits
high quality, low price, status, sex appeal, good taste, health consciousness
symbolism
what the brand means to a customer, to associates, or to some reference group
psychographics
marketers group people by their values, attitudes, personalities, and lifestyle (Ex. VALS) (societal divisions, lifestyle, personality)
VALS
Values, Attitudes, and Lifestyles. Assigns consumers to eight groups based on two dimensions: primary motivation and resources. Individuals are primarily motivated by three things: ideals, achievement, or self-expression
Benefit segmentation
the prime objective if many consumer attitude studies and the basis for many successful ad campaigns
Geographic segmentation
a way to define people in different regions of a country or the world's needs, wants, and purchasing habits that differ from those of another region.
Demographic segmentation
a way to define population groups by their statistical characteristics such as sex, age, ethnicity, education, occupation, income, and other quantifiable factors. (when put together with geographic segmentation, it is called geodemographic segmentation)
primary motivation and resources
individuals are primarily motivated by three things: ideals, achievement (tangible markers of success or accomplishment), or self-expression (a desire for experiences or to take risks)
Product Life Cycle
Products pass through a product life cycle. A product's position in the life cycle influences the target market selected and the kind of advertising used. four major stages are introduction, growth, maturity, and decline
Introductory phase
the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand.
Growth phase
Sales volume begins to rise rapidly. This period is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases.
Maturity stage
marketplace becomes saturated with competing products and the number of new customers dwindles, so industry sales reach a plateau. Competition intensifies and profits diminish
Selective demand
companies increase their promotional efforts but emphasize selective demand to impress customers with the subtle advantages of their particular brand. Companies increase sales only at the subtle advantages of their particular brand
brand
the combination of name, words, symbols, or design that identifies the product and its source and distinguishes it from competing products
individual brand
a manufacturer may establish an individual brand for each product it produces. Ex. Unilever markets toothpastes under the individual brand names AIM, Pepsodent, and Close-Up
family brand
marketing different products under the same umbrella name
national brand
(manufacturer's brand)
private labels
typically sold at low prices in large retail chain stores include familiar names such as Kenmore, Crafts,am, Cragmont, Kroger, and Party Pride
licensed brands
some companies pay a substantial fee for the right to use another company's brand name. Thus, we have licensed brands such as Sunkist vitamins, Coca-Cola clothing, Porsche sunglasses, and Mickey Mouse watches
collateral material
the many accessory items companies produce to integrate and supplement their advertising or PR activities. These include booklets, catalogs, brochures, films, sales kits, promotional products, and annual reports
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