ADV 205 1st Edition Lecture 6 Outline of Last Lecture I Advertising Agencies II Building the client agency relationship III Suppliers IV Media Outline of Current Lecture I Marketing and Exchange II Segment the Market III Targeting Current Lecture Marketing and Exchange The purpose of marketing is to create exchanges that satisfy the perceived needs and wants of individuals and organizations Advertising in the Marketing plan o One of several marketing communication techniques under the umbrella term promotion o Promotion is one of the four elements of the marketing mix which also includes product price and distribution o Utility is the products ability to satisfy both functional needs and symbolic wants o Perception is everything o Two levels Product Needs wants Advertising gives perception of the product and its utility o Satisfaction the goal of the consumer Advertising reinforces the product and its strengths Markets o Where goods are sold and bought or o Particular type of buyer Key participants in the Marketing process o Current customers o Be able to identify new markets and prospective customers These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Centers of influence someone who may or may not be in the market for our product or people who influence others Market aggression strategy undifferentiated don t differentiate between people all big block o Ignore differences o One marketing strategy o Everybody is target market o Examples coke milk Targeting everyone is o Expensive o Wasteful o Nearly Impossible o Choose market segments teenagers elderly etc Segment the Market Identify people with shared needs and of shared groups Aggregate into market segments Sit down and select a target market Demographic segmentation o Sex age ethnic education occupation income and marital status o Geodemographic segmentation where you live Psychographics o Values attitudes personality and lifestyle Targeting The process used to identify which segments MC messages should be designed to reach and to determine how much MC spending should be used to reach each segment Consumers within a target should have similar product needs Important differences between targets must be identified Target must be large enough to be profitable Must be able to reach the target All of the considerations of consumer markets plus o More complex purchasing decisions o Longer decision making period o More rational decision making Industry classification system Product Concept o Shape the perceived bundle of values o Appropriate marketing mix Product Price Place Promotion