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Kleppner's Advertising Procedure Ch. 4
Copyright © 2006 by Zack Smith,
All rights reserved.

This is my personal summary of Kleppner's Advertising Procedure.

Chapters
Chapters 1 & 2: Basics of Advertising
Chapter 3: History and Brands
Chapter 4: Target Marketing
Chapter 5: Agencies and Services
Chapter 7: Media Strategy
Chapter 13: Internet Marketing
Chapter 24: Economic, Social and Legal Aspects of Advertising
Addendum: Corporate terrorism

Chapters 4: Target Marketing

You 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

  • Who are they
  • Where are they
  • What gender/race/etc are they
  • How do they live
  • How many of them are there
  • Are they different due to culture or geographical difference
  • etc

Look at broad changes to make predictions about people

  • Fewer people marrying these days implies....
  • Median income is falling which implies...

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
I = interests in family, sports, media
O = opinions on social issues & politics

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 groups

Besides innovators, the book goes over a number of cliché groups.

  • Blacks
  • Hispanics
  • Asians
  • Women
They mention target influences.
  • Income
  • Spending
  • Marrieds
  • Birthrate
  • Aging
  • Women
  • Single people

Generational Marketing

A generation is a 30-year population.

A group of people who have a common statistics is a cohort.

  • Matures = Puritan work ethic
  • Boomers = self-assured, self-absorbed, arrogant
  • Gen X = victims of the media & divorcees, practical
  • Gen Y i.e. echo boomers or Boomer Spawn. Born ’79 to ’95, they are coddled, tech-savvy, optimistic?
  • Gen Z

Views of what constitutes convenience vary by generation:

  • The view of convenience changed with the
  • Mature: do it
  • Boomer: do it
  • Gen X: avoid doing it

Marketing Concept

This 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 Product

A 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 Loyalty

There are estimated to be 6 types of brand loyalty.
  1. National brand loyal = single national brand irregardless of price
  2. National brand deal = buys single national brand but at cheapest price
  3. Private-label loyal = buys single store brand at any price
  4. Private-label deal = prefers store brands but buys when cheap
  5. National brand switcher = prefers national brands at any price (not store brands) but switches
  6. Private label switcher = prefers store brands at any price but switches
  7. (all around sucker)

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.

Competition

Who are they?
  • Other brands
  • Store brands

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 segmentation

By geography
  • oldest kind of segmentation
  • today it is divided by national, regional, and local
  • "data explosion" on local markets, e.g. in the NE, sports cars are usually black color.

Garreau's Nine Nations of North America

  • New England
  • Quebec
  • Dixie
  • Islands
  • Empty Quarter
  • Breadbasket
  • MexAmerica
  • Ecotopia
By usage

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

  • education
  • race
  • marriage status
  • income
  • etc

Niche Marketing

Not 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:

  1. entry into larger market by domination of a niche
  2. satisfying unmet needs that another company has ignored to realize a profit.

Positioning

This 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 advertise a feature of a product that meets a segment's needs.

You can position a product for >1 segments.
Example: baking soda, which is a cleaner and deodorizer.

The goal is to devise a position that has "a certain difference".

Creating a new product for a segment

You 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 Reposition

New 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 Share

Poorly explained in book. Seems to consist of finding a new market while maintaining position in existing one.

How to Approach Repositioning

Not all products can be repositioned.

Repositioning can damage the product image.

It's also a matter of money, will, the competition, creativity.

Market Profile

Describe this as follows

1. Usage of a product type is described in

  • dollar sales
  • units sold
  • % of households using product of this type

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 / Demographics

Big 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.

Psychographics

The study of lifestyles?

A step beyond demographics to take into account

  • psychology
  • sociological factors
  • anthropology

Includes:

  • self-concept
  • desired benefits
  • lifestyle / serving style

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 Testing

You 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.

Hispanics

They 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.

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