MKTG 477 1st Edition Lecture 6 Outline of Last Lecture I. Integrated Marketing CommunicationsOutline of Current Lecture II. Marketing principles applied to promotionIII. Approaches to segmentingIV. Criteria for establishing segmentsV. Definition of “meaningfully defined”VI. Purpose of a “profile”Current LectureIn class assignment given (due Wednesday)Marketing principles applied to promotion (in this order)1. Segmenting – discovering unique groups of consumers that exist in the marketplace 2. Target marketing – deciding which of these segments you wish to target (focus on)3. Positioning – developing and executing a creative strategy that creates or reinforces a brand image So, what’s the difference between a “market segment” and a “target market”?- Market segments are all the groups considered and target markets are the ones you decide to go after Two approaches to segmenting- “A Priori” – Before any data are gathered and examinedo Assumes that differences must exist among consumers; segment accordinglyThese 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.- “Empirical” – Begins with research of the marketplaceo Data analysis reveals segmentsWhat must be established to say that, indeed, you have defined “segments”? (Criteria for establishing segments)1. Homogeneous within – members in each individual group share relevant traits and needs2. Heterogeneous between – traits and needs of one group are different than those of another group 3. Substantial – large enough to be potentially profitable 4. Meaningfully defined – descriptions of the groups are appropriate for the product/service being segmentedHow are groups (segments) “meaningfully defined”? – Segment bases- Demographico Age, income, marital status, gender, education, family size, race, occupation, etc.- Geographico Country, region, state, city, neighborhood, etc.- Psychographico Lifestyles, AIO’s (activities, interests, opinions)- Behavioristic – specifically relate to the producto Usage rate (80/20 rule, heavy vs. light users), brand loyalty, store type (where do you buy specific product?), benefits sought (why do you buy this product? – questions 10 and 11 from Panasonic survey)Assignment – give at least two descriptions for each segment base- The expected outcome is to develop a “profile” of consumers for each of the three segments- United States is fine for each segment So, what’s the purpose of the “profile”?- Directs/guides advertisers in their attempt to “reach” consumer segments“Reaching” consumers- “Creativity” – an advertising campaign that consumers can identify with (speaks to them)- “Literally” – via
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