| 4500+ Great Links | Kleppners Advertising Procedure Ch. 4 |
My Related Pages | All rights reserved. This is my personal summary of Kleppner's Advertising Procedure.
Chapters 4: Target MarketingYou don't want to waste time and money trying to sell to those who wont buy your product.Pursue prospects that are likely to buy the product. Questions to be answered
Look at broad changes to make predictions about people
You want to "segment" consumers into groups. Demographic information is useful but does not provide a complete explanation of consumer behavior. You need to learn consumers' AIO = activities, interests, and opinions.
A= activities: recreation, community, social
Consumer "innovators" are customers who buy new products. The book profiles them at 35-54. married with kids, which sounds like nonsense to me. Example target groupsBesides innovators, the book goes over a number of cliché groups.
Generational MarketingA generation is a 30-year population.A group of people who have a common statistics is a cohort.
Views of what constitutes convenience vary by generation:
Marketing ConceptThis is the idea that products should be created to solve or satisfy consumer needs.The fixation of manufacturing efficiency is insufficient once consumer demand is satisfied. Finding & researching an unmet niche market need can be expensive, but can pay off. Market conditions are always changing.
Defining a ProductA product satisfies. (Or in the case of Apple computers, it never quite satisfies completely.)It offers 1 or more satisfying experiences. Different individual consumers find different satisfactions important. Each group many find some set of satisfactions important while another finds another set important. Each group is expected to prefer certain satisfactions out of life and products in general. Ridiculous example: the ultra-rich require everything to be gold-plated and that everything seem luxurious. Advertising takes self-conscious materialism into account. You are what you own. "Target marketing" involves targeting specific groups of people. Advertisers target "market segments". They will estimate the likelihood of each of n market segments to be amenable to buying a product. Brand LoyaltyThere are estimated to be 6 types of brand loyalty.
What are Markets?Markets are group of people who share some characteristic, problem or interest.Majority fallacy = belief that every product should be targeted at the majority of consumers in a market. Late entrants in a market should target "minorities" e.g. those who prefer dark chocolate instead of the majority who prefer medium chocolate. CompetitionWho are they?
How many are there? Are they strong or weak, new or old? Target marketing is about positioning a brand within a category. Need to show how product meets consumers' needs.
Market segmentationBy geography:
Garreau's Nine Nations of North America
Look at quantity and/or pattern of existing consumption. Levels of usage: heavy, medium, light By lifestyle: Lifestyle identification = generalizations about others who live near you. E.g. students in a dorm. SRI's VALs 2 categorizes people by values and psychology that causes behaviors. A cluster's variables include
Niche MarketingNot what you think.Brag about your strength in an area that you know is the competitor's weakness. ~ Segmenting is risky in that once you saturate a segment, you have to be able to move beyond it. Segments afford 2 benefits:
PositioningThis is putting the product into the target consumer's lifestyle.It's vital.
You can create a product for a specific segment, or
You can position a product for >1 segments.
The goal is to devise a position that has "a certain difference". Creating a new product for a segmentYou can modify an existing one for that segment.You can devise an entirely new product for the segment, e.g. the wine cooler. Using Appeal to RepositionNew wording to create more sales by appealing to self-consciousness or creating guilt.Example: fewer diamond sales, so ads suggest men re-prove their commitment with another diamond gift. Expanding Brand SharePoorly explained in book. Seems to consist of finding a new market while maintaining position in existing one.How to Approach RepositioningNot all products can be repositioned.Repositioning can damage the product image. It's also a matter of money, will, the competition, creativity. Market ProfileDescribe this as follows:1. Usage of a product type is described in
2. What are recent trends in these numbers. 3. What is the advantage of each product in the category. 4. What are these same data for each type of media.
Buyer Profile / DemographicsBig companies cannot know their customers personally, usually.They use demographics instead. Demographers uses vital statistics as well as focus groups. Advertising necessarily involves defining profiles of the people you are selling to. Media also provide profiles to potential advertisers of their readers or viewers. Heavy users are defined by the 80/20 rule
= 80 percent of business comes from 20 percent of the consumers.
Obviously the "20" value varies by product and market.
PsychographicsThe study of lifestyles?A step beyond demographics to take into account
Includes:
Psychographics attempts to determine market segmentation and reasons for purchasing decisions. A number of psychographic reports are available to purchase, e.g. Upper Deck Report on the Affluent Market.
Market TestingYou know what it is, but note that it is now automated via rapid roll-out and recording of purchases at checkout scanners.Testing usually occurs in cities where demographics mimic the larger desired market. HispanicsThey breed a lot, and they immigrate a lot. Businesses think they spend a lot.Many groups of Hispanics: Puertoricans, Mexicans, Cubans, etc. Translation problems have cropped up. Some agencies have hispanic subsidiaries. Links
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