ADV 3008 Lecture 4 Outline of Last Lecture I Consumer Segmentations a Reasons for consumer segmentation b Factors leading to segmentation c Consumer Classification II Types of Agencies Outline of Current Lecture III Media and Message Strategies A Segmentation Strategies B Specific Strategies C Broad Strategies IV Front End Alignment Current Lecture Media and Message Strategies Message o The idea to be communicated Media o The delivery system for the message Segmentation Strategies o Major difference is the degrees of segmentation Undifferentiated One product All consumers Broad media and message strategy Partially differentiated Several products Distinct consumer market segments Specific media and messages Wholly differentiated Entire use population Multiple products Specific media and messages Concentrated One primary product One consumer segment Specific media and messages Specific strategies Rifle message Specific statements Specific media o Cable TV o Direct mail o Special interest magazine Rifle Media Deliver message to specific audiences Broad Strategies Shotgun message Broad statements Shotgun media Deliver message to broad audiences o TV o General interest magazines o Out of Home Front End Alignment Finishing the Situation Analysis Product life cycle The change a product goes through from its introduction in the marketplace until it is pulled of the market Impacts objectives and strategies Stages are not equal in time Length of cycle is not the same for every product Stages and strategic Implications Introduction Low sales Heavy losses Little competition Price o Relatively high especially if a new product category Advertising o Create awareness o Establish positioning Sales promotion o Retail incentives Growth Rapid increase in sales Rapid increase in competition o Price Drops due to competition Advertising Stimulates selective demand Sales promotion Samples Coupons Retail incentives Expand Distribution Maturity Sales stabilize Aggressive completion o Price Primary form of competition o Adverting Maintain current positioning Intangible benefits o Sales promotion Discounts Consumers may become loyal to price Profits decrease Too costly to turn around o Price Steep price reductions o Advertising Minimal o Sales promotion Low support Decline
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