SegmentationCharacteristicsagegendergeographic locationincomespending patternscultural backgrounddemographicsmarital statuseducationlanguagemobility

Market Segmentation Definition

•“Grouping people according to their similarity related to a particular product category”

4 Category Bases For segmentationDescriptivegeographic location demographic

Behaviouralpsychographicbenefits

geographic location - based upon where people live (historically a popular way of dividing markets)

demographic - based upon age, gender and income level (very often used)

Psychographic / lifestyles - based on people’s opinions, interests, lifestyleseg, people who like hard rock music probably prefer beer to wine

benefits - based on the different expectation that customers have about what a product/service can do for themeg. People who want to but “lite” food cause ti will help them lose weight

Geographic Segmentation

The reason why we study geographic segmentation is because WHERE people live has a big effect on their consumption patterns.

Additionally, WHERE people live in a city is also a reflection of their income level and we can make certain assumptions about their ABILITY TO SPEND based upon their address.

This helps people plan store locations and the location of other services.

Demographic Segmentation is the most common approach to Market SegmentationVariables are: age gender (male/female) income occupation education household (family - style) size

Product life cycle

Introduction build product awareness and develop a market for the product Growth build brand preference and increase market share Maturity sales are not strong, defend marked share while increasing profit Decline maintain the product or discontinue the product

Maslow’s Hierarchy of needs

Self-actualization personal growth and fulfilment

Esteem needsachievement, status, responsibility, reputation

Belongingness and Love needsfamily, affection, relationships, work group, etc.

Safety needs protection, security, order, law, limits, stability, etc.

Biological and Physiological needsbasic life needs - air, food, drink, shelter, warmth, sex, sleep, etc.

• AIDA

• A = ATTENTION or ATTRACT the customer to the product

• I = create INTEREST in the product

• D = create DESIRE for the customer to buy the product

• A = lead the customer to take ACTION to buy the product

Design Principles/LayoutComponents of a print advertisement1. Headline2. Subheadline3. Body Copy4 Illustration5. SignatureAll elements must blend together so that the elements of balance, unity, and flow are established.

Headlines have five times the readership of body copy. They must grab your attention.

Promise Curiosity Question News Command

The subheadline is a transitional statement that explains the promise, and moves the reader to the body copy

Body CopyInformative prose that elaborates on the central theme.

Body copy provides proof of promise or product claims. How much body copy is needed is always an issue

Signature

Often referred to as a tagline, the signature usually includes a slogan and logo. The purpose of the signature is to:

1.Summarize central theme2.Position product in customer’s mind

Design Considerations for Transit

Interior: Passengers are trapped; communications can be detailed. Contrast, and clear, easy-to-read copy is essential.

Exterior: Often viewed from angles; bold type, punchy copy lines, and simplicity are essential.

Point-of-Purchase

P-O-P encourages impulse buying and last minute choices among brands.

Display materials must provide: Impact Identification Information Imagery

Design Considerations for Direct-Response

Grab reader’s attention Personalize mailing Include complete presentation Include multiple pieces in mailing

Designing Television Commercials

StoryboardRenderings of a finished commercial in a television-frame format with appropriate copy to show what a commercial will look like.Clients approve campaign proposals on the basis of a storyboard

Creative Considerations for Television

Unity Integration of Audio and Video Special Effects Pace Live Action vs. Animation

Television ExecutionChoosing the right format to dramatize the message is important.

Demonstrations Narratives Testimonials and Endorsements

Colour Schemes/Colour Wheel

Advertising Industry1.Full service agencies2.Creative boutiques3.Direct response/retail4.Media buying service5.Freelancers6.In-house agency

Identify agency roles and responsibilitiesThe roles and responsibilities of each of the six different types of advertising agencies differ. Following is information regarding their roles and responsibilities.Full service agencies—offers a wide variety of services including product and market research, creative planning, creative development and execution,

media planning and placement, sales promotions and public relations.Creative boutiques—agencies specializing in the development of creative ideas and their execution for clients’ advertising campaigns.Direct response/retail—agencies that focus/specialize on a specific promotional area.Media buying service—a media specialist agency responsible for planning and purchasing the most cost-efficient media for a client.Freelancers—self-employed, independent creative specialists who offer their services to advertisers and advertising agencies.In-house agency—some companies that advertise enough will establish their own advertising departments. Also, in a small business one individual may be responsible for advertising which is prepared “in-house”.

Slogans

Creating a catchy theme song that sticks in the consumers head so that they remember the company name or product.

Consumer Buying Behaviour

Personali

ty

Knowledge

PerceptualFilter

Attitude

LifestyleRoles

Motivation

Integrated Marketing Communications

• Integrated Marketing Communications• Integrated marketing communications helps businesses build

brand identity, and brand relationship and create brand equity through brand synergy. IMC is a common-sense idea. Instead of dividing communications into several overlapping departments, organizations use one strategy for everything, making every communication consistent with one message and one strategy.

• The definition of integrated marketing communications: it is a management idea that is designed to make all aspects of marketing communication such as advertising, sales promotions, public relations, and direct marketing work together as a unified force, rather than permitting each to work alone.

Public Relations

• Describe publicity and public relations• Publicity – is only one function of public relations. It is media

coverage, i.e., new stories, feature articles, talk show interviews, editorials and reviews. It is information given out to attract public attention to a business or even to a person. Publicity can be ‘good’ or ‘bad’.

• Public Relations (PR) - is a promotional method designed to build good relationships with the general public and create a good “corporate image” by strengthening a business’s credibility and enhancing their image through speeches, special events, newsletters, annual reports and news releases. PR (public relations) is about communication who you are, what you do, and how you benefit your consumers and the community.

• Difference between publicity and public relations• The terms publicity and public relations are not interchangeable. Publicity is

only one function of public relations. How does the media find out about a major news event? Usually it is the business person themselves who calls the media to let them know about an upcoming event or what is happening in their business. (The media gives the publicity but the person who tells the media information is doing public relations).

• Advantages of publicity in building public relations• Publicity is usually free, and if it isn’t totally free, it’s very cost effective e.g.

Power 97 stickers, 7-11 Slurpee capital of the world stickers.• Customer perception – people will remember stories about a business long

after they have forgotten the business’s print, radio or TV ads. E.g Eaton’s downtown

• Credibility – people perceive that the business is credible because the media is covering the story.

• 12 Effective Public Relations Tactics• Media Relations – develop positive media relations by providing

the media with press releases, VNRs (video news releases), press conferences, and exclusives to stories.

• Letters to the Editor – write a letter to the editor in response to items in the news.

• Advocacy Advertising – address social, business and environmental issues. This will show that your business is concerned about environment, education, health etc. Eg In May, M&M Meat Shops holds a BBQ with all proceeds going to Crohn’s and Colitis Foundation.

• Charitable Contributions – Make a commitment to give back to your community by supporting local chartities; this will do much to enhance your image.

• Sponsorship – sponsor a special event or local sports team, and ensure that your sponsorship is acknowledged on advertising, programs, uniforms, posters, or other promotional materials. E.g. The MTS Centre has sponsors on the rink boards and in their programs.

•• Community Involvement – Enhance your public image through involvement in the local

community i.e memberships in local organizations, contributions to community events and participations in community events.

• Special Events – Identify special events such as open houses, fundraisers, trade shows, awards ceremonies, contests, stunts, receptions, speeches by VIPs.

• Speakers – Arrange to have staff from your business speak at meetings of professional and trade associations, service clubs, civic organizations and community groups.

• Annual Reports – create annual reports that communicate your business’ accomplishments and provide financial information.

• Newsletters – create newsletters to keep your customers up-to-date on what your business is doing as well as tips or advice that may be of interest.

• Tip or Fact Sheets – Create one or two-sided sheets that contain information, advice, or instructions that may be of particular benefit to your customers. Show off your expertise.

• Customer Appreciation, Preferred Customers, Birthday Wishes, Thank You Notes, and Letters – thank customers for their business, and donors for their contribution, and this will encourage repeat business.

Publicity

• Doing things like for example having a bbq for a store just doing things for the public for them to get to know your company

Promotional Budgets

• In order for a promotional campaign to be delivered, budgets are very important. Budgets attempt to estimate the costs (how much will be spent on advertising) and revenues (how much will be received from advertising). A budget is a sum of money which can be developed for a business, a person, an organization, etc. – anything that makes and spends money. A budget is an estimation of the revenue and expenses over a specified future period of time.

• Following is a scenario: • You are in the business of selling guitars. • The average guitar that you buy is at a wholesale price of $300.00. You

retail (sell) these guitars for $600.00. You plan on buying 10 guitars per month and you project that you will sell 6 guitars per month. You have $15,000.00 to start the business, and your rent is $600.00 per month.

• To start out, you have to purchase computer equipment and supplies. You project that this will cost $2,500.00, but it actually costs $5,000. You project that promotions (advertising, etc.) will be $800, but it actually costs $1,000. You project your phone bill / internet to be $80.00, but it actually costs $125.00. At the end of the month, you only sell 2 guitars. This is based on a one-month period.

Define the budgeting process

Buying Cycle

• Stage 1 - Problem Recognition

• Stage 2 - Information Search

• Stage 3 - Evaluation of Alternatives

• Stage 4 - Purchase Decision

• Stage 5 - Post-Purchase Evaluation

Typography

• . The way that letters are presented on an ad certain colours make them stand out or certain fonts are easier to read than others.