Understanding the target audience 1

individual brand

type of brand//A manufacturer may establish a brand name for each product it makes (e.g., P&G's laundry detergent brands - Tide, Gain, Cheer, and Era)

licensed brand

type of brand//Brand names that other companies can buy the right to use (e.g., Disney characters)

private brand

type of brand//Personalized brands applied by distributors or dealers to products supplied by manufacturers (e.g., Walmart, Target)

national brand

type of brand//Product brands that are marketed in several regions of the country

family brand

type of brand//The marketing of various products under the same umbrella (e.g., various Tabasco sauce products)

vertical marketing systems

type of distribution//A system in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a cooperative group to meet consumer needs (e.g., Apple stores)

exclusive distribution

type of distribution//The strategy of limiting the number of wholesalers or retailers who can sell a product in order to gain a prestige image, maintain premium prices, or protect either dealers in one geographic region

repertoire users

type of user status//Perceive two or more brands to have superior attributes and will buy at full price. These are brand switchers; therefore, they are the primary target for brand advertising

sole users

type of user status//The most brand loyal and require the least amount of advertising and promotion

discount users

type of user status//The semisole users of competing brand B. They won't buy brand A at full price but perceive it well enough to buy it at a discount

trial/rejectors

type of user status//Tried brand A because of its advertising message, but didn't like the product

semisole users

type of user status//Typically use Brand A but have an alternate selection if it is not available or if the alternate is promoted with a discount

aware nontriers

type of user status//Use competitive products in the category but haven't taken a liking to Brand A

light/medium/heavy users

usage rate segmentation (volume)

VALS

psychographic segmentation uses what kind of measurement?

Pareto Principle

20% of the population consumes 80% of the product

To achieve marketing goals//To determine the best positioning strategy //To choose media to target the audience//To craft message/creatives to fit the audience

4 purposes of target market identification

demographic, geographic, psychographic, behavioralistic

4 types of market segmentation

individual//family//national//private//licensed

5 types of brands

direct//indirect//intensive//selective//exclusive//vertical marketing

6 types of distribution

sole users//semisole users//discount users//aware nontriers//trial/rejectors/ repertoire users

6 types of user status

indirect distribution

A distribution strategy that markets products through a distribution channel that includes a network of resellers, middlemen that operate between the producer and the user

direct distribution

A method of distribution/marketing in which the manufacturer sells directly to the consumers without the use of retailers (e.g., Avon, networking marketing, word-of-mouth)

induced differences

Created by advertising for many product classes where only the brand name, slogan, or package design become the essential difference (e.g., aspirin, salt, gasoline)

hidden differences

Differences are not so readily apparent but ads can make the hidden difference perceptible (e.g., chicory coffee, margarine and butter)

perceptible differences

Differences between products that are readily apparent to the consumer (e.g., Luxury vs. cost-effective cars)

branding

Distinguishes it from competing products//Combination of name, words, symbols, or design that identifies the product and its source

intensive distribution

Distribution strategy based on making the product available to consumers at every possible location

Potential rating index for zip markets (PRIZM)

Each ZIP code is assigned one or several of 66 clusters, based on the shared socioeconomic characteristics of the area//Once established, the character of a neighborhood tends to persist over time //People tend to seek out neighborhoods compatible with their lifestyles

demographic segmentation

Group consumers by their statistical characteristics such as sex, age, ethnicity, education, occupation, income, and other quantifiable factors

Behavioristic segmentation

Grouping of consumers by their purchase behavior//user status

integrated marketing communication

Marketing promotion, or communication, element includes all marketing-related communications between the seller and the buyer

secondary audience

Other important audiences (e.g., those with the 2nd highest consumption)// Those who influence primary audience

geographic segmentation

People in one region of the country (or the world) have needs, wants, and purchasing habits that differ from those in other regions //Sales by region, country size, specific locations, and types of stores

consumers

People who buy the product for their own or someone else's personal use

product life cycle

Product sales pass through distinct stages, each posing different challenges//Profits rise and fall at different stages//:Four stages Introduction Growth Maturity Decline

target market/target audience

Specific group of individuals to whom all marketing activities (including ad messages) will be directed

brand equity (value of brand)

The totality of what consumers, distributors, dealers, and competitors feel and think about a brand over an extended period of time

positioning

The way it is ranked in the consumer's mind by the benefits it offers//The way it is classified or differentiated from the competition, or by its relationship to certain target markets

psychographic segmentation

To differentiate among prospects within the same demographic and geographic characteristics//enables marketers to view people as individuals with feelings and inclinations //Lifestyles, general interests/needs, beliefs/attitudes/opinions, personality traits/states, culture/sub-cultures/norms/customs

heavy / light

advertising is more effective at getting a ____ user to increase usage than a ___ user

primary target

audience//Highest priority for achieving your goals

recognition and identification

branding offers _____ and ____ of the product

product differentiation

calls consumers' attention to product differences that appeal to the preferences of a distinct market segment

selective distribution

distribution strategy of limiting the distribution of a product to select outlets to reduce distribution and promotion costs

Census//Simmons Market Research Bureau (SMRB) - Simmons OneView//Mediamark Research Inc. (MRI)

for demographic segmentation, it uses what kind secondary and market research data?

PRIZM

geodemographic segmentation uses what kind of measurement?

Values and Lifestyle Programs (VALS)

places U.S. adult consumers into one of the eight segments based on the personality traits that drive consumer behavior//Identify whom to target//Uncover what your target group buys and does //Identify how to communicate with your target group//Gain insight into why the target group acts the way it does

what it stands for

position helps consumers remember the brand and ______

perceptible differences, hidden differences, induced differences

product differentiation breaks down into...

geodemographic segmentation

segmentation that combines geographic and demographic//uses PRIZM

maturity phase

stage of PLC//Market saturation //Profits diminish //Focusing on selective demand//Consumer demand for the particular advantages of one brand over another//Market segmentation, product positioning, and price promotion become more important

Introduction phase

stage of PLC//Product category is new //Marketing costs are focused on encouraging demand for the category and building distribution

Growth phase

stage of PLC//Rapid market expansion//Competitors jump into the market//Advertising expenditures decrease as a percentage of total sales

Decline phase

stage of PLC//Sales begin to decline due to obsolescence, new technology, or changing consumer tastes//Promotional spending minimizes, declines//Phase out the product