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Lecture Advertising (2e): Chapter 4 - Arens, Schaefer, Weigold

Chapter 4 - Segmentation, targeting, and the marketing mix. After completing this chapter, students will be able to: Explain the role of advertising in facilitating satisfying exchanges, illustrate the various methods advertisers use to segment and aggregate consumer and business markets, discuss how defining a target market enhances a product’s marketing strategy,. | Chapter Four Segmentation, Targeting, and the Marketing Mix Arens|Schaefer|Weigold Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives Explain the role of advertising in facilitating satisfying exchanges Illustrate the various methods advertisers use to segment and aggregate consumer and business markets Learning Objectives Discuss how defining a target market enhances a product’s marketing strategy Describe the elements of the marketing mix and the role advertising plays in each element of the mix Exchange Trading of one thing for another thing of value Facilitated by marketing Satisfaction leads to: Higher repurchases Positive word of mouth Advertising reinforces satisfaction Marketing - Identifying and satisfying customers’ needs for profits Steps Involved in the Market Segmentation Process Identifying groups with shared needs and characteristics Aggregating the groups into larger segments through a marketing mix Target Market and Target Audience Target market: Market segment or group within the market segment toward which all marketing activities will be directed Target audience: Specific group of individuals to whom the advertising message is directed Categories of Market Segmentation Segmenting Business and Government Markets Business markets Employ professional buyers and use systematic purchasing procedures Concentrated geographically Small number of buyers Purchase decisions depend on: Price and quality Product demonstrations Delivery time Terms of sale and dependability Segmenting Business and Government Markets Business purchasing procedures Industrial classification system Market concentration - Markets can be focused in specific regions or areas Target Marketing Process Target market selection - Assessing which of the newly created segments: Offer the greatest profit potential Is the most successfully penetrated Matching products to | Chapter Four Segmentation, Targeting, and the Marketing Mix Arens|Schaefer|Weigold Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives Explain the role of advertising in facilitating satisfying exchanges Illustrate the various methods advertisers use to segment and aggregate consumer and business markets Learning Objectives Discuss how defining a target market enhances a product’s marketing strategy Describe the elements of the marketing mix and the role advertising plays in each element of the mix Exchange Trading of one thing for another thing of value Facilitated by marketing Satisfaction leads to: Higher repurchases Positive word of mouth Advertising reinforces satisfaction Marketing - Identifying and satisfying customers’ needs for profits Steps Involved in the Market Segmentation Process Identifying groups with shared needs and characteristics Aggregating the