27 terms

Advertising Management (2)

chapters 1,2,5,7,8,18
strategic marketing plan
any organization that wants to exchange its product or services in the marketplace successfully should have a strategic marketing plan to guide the allocation of its resources
market segments
target markets the company wishes to pursue
market opportunities
areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively
competitive advantage
something special a firm foes or has that gives it an edge over competitors
target marketing
four basic steps:

1. identifying markets with unfulfilled needs
2.segmenting the market
3. targeting specific segments
4. positioning one's product or service through marketing strategies
market segmentation
"dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to marketing action
geographic segmentation
markets are divided into different geographic units, these units may include nations, states, counties, or even neighborhoods
demographic segmentation
dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class
psychographic segmentation
dividing the market on the basic of personality and/or lifestyles
behavioristic segmentation
dividing consumers into groups according to their usage, loyalties, or buying responses to a product
80-20 rule
20% of their buyers account for 80% of their sales volume
benefit segmentation
grouping of consumers on the basis of attributes sought in a product
undifferentiated marketing
involves ignoring segment differences and offering just one product or service to the entire market
differentiated marketing
involves marketing in a number of segments, developing separate marketing strategies for each
concentrated marketing
is used when the firm selects one segment and attempts to capture a large share of this market
has been defined as "the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition "
salient attributes
marketing attempts to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision)
involves altering or changing a product's or brand's position
product symbolism
refers to what a product or brand means to consumers and what they experience in purchasing and using it
brand identity
consists of the combination of the name, logo, symbols, design, packaging, and image of associations held by consumers
brand equity
an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark
marketing channels
the place elements of the marketing mix, are "sets of interdependent organizations involved in the process of making a product or service available for use or consumption" -- has to be available where the consumer wants it
direct channels
when a company chooses not to use any channel intermediaries and sells it directly to the consumer
indirect channels
most consumer product companies distribute through indirect channels, usually using a network of wholesalers (institutions that sell to other resellers) and/or retailers (which sell primarily to the final consumer)
promotional push strategy
programs designed to persuade the trade to stock, merchandise, and promote a manufacturer's products
trade advertising
the company may use trade advertising to interest wholesalers and retailers and motivate them to purchase its products for resale to their customers
promotional pull strategy
an alternative strategy is a promotional pull strategy, spending money on advertising and sales promotion efforts directed toward the ultimate consumer