Understanding the customer and consumer Introduction to Advertising Topic 3 Understanding the customer and consumer

STP Process

Segmentation & Targeting No company markets its product offering to the whole of the general public. Every product has to be have its own segment and target “Segmentation is the dividing the market into groups of people with similar needs” ~ Jim Blythe~ “Targeting is deciding which groups of customers are the best ones to aim for”

Segmentation

Means of Segmentation

Demographic Segmentation Means of Segmentation Demographic Segmentation

Psychographic Segmentation Means of Segmentation Psychographic Segmentation

Behavioral Segmentation Means of Segmentation Behavioral Segmentation

Geographic Segmentation Means of Segmentation Country City Area Geographic segmentation Geographic Segmentation

Targeting

Customer and Consumer “Consumer is ultimate user of a product or service” “Customer is buyer of a product or service”

Target Market Target market is a group of consumer / customer (people or organization) for whom a seller designs a particular marketing mix In other words, target market is “the people who are most potential to buy/consume the company’s product/ services.”

Target Audience Target audience is a specified audience or demographic group for which an advertising/promotion message is designed In other words, target audience is “potential people which would be exposed by promotion campaign”

Market Research To determine the different segments and target group, the process—that is called Market Research—is conducted Marketing research is conducted to provide information that will assist the process of marketing (and promotion), for example: identifying which media is effective in reaching the target audience, which advertising message is credible, etc

Using the Result of Research After analyzing the data, the result of the survey is used to determine: Market trends Market size and potentials Target market characteristics

Positioning

Positioning “Placing the brand in the consumers mind so that it is perceived differently and more superior than competing brands” “… it is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.” ~ Al Ries & Jack Trout ~

Positioning In establishing positioning, the marketer or the advertising agency should focus on one benefit of the brand that is related to the product, If too many benefits are conveyed, then the message is not “single minded” or focus For example, Volvo has always stay with the same positioning: the safety aspect of the brand.

Brand & Branding “Brand: A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller” “Branding in marketing terms today means creating an image for a product. It is a combination of character, identity and the reputation that is developed by the product an its associations”

Brand Image Brand image is about perception. Perception is not reality but what is believed. Brand image is the consumers total perception of the brand, what they believes the brand is about. Therefore, brand image indicates how the advertising message is understood and interpreted by the consumer.