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
