1. Marketing Mix
4ps

2. Product What is the product Detail what does it do
How does it appeal to your target market
Jack in the Box

3. Price How much do you charge for the product or how much does it cost?
Coke a Cola

4. Place
Where are you going to sell is so it will be seen?
End caps

5. Promotion How are you going to promote it? AARP Life Alert
Above the influence commercials

6. Target Market
Group of people your sales are targeted toward.

7.
4ps

8. Market Segmentation

9. Mass-marketing
A strategy that presumes there is one undifferentiated market and that one product will appeal to all consumers in that market.
What is “mass marketing?”
Examples of mass-marketed products?
The Model-T Ford, which was offered “in any color they wanted, as long as it was black.”
Coca-Cola (before the classic coke fiasco, and now “cherry coke” etc.)

10. One advertising campaign is needed One marketing strategy is developed
Advantages
Lower cost
One advertising campaign is needed
One marketing strategy is developed
Usually only one standardized product is developed
What huge advantage does it have over other types of marketing?

11. Disadvantage
It only works if all consumers have the same needs, wants, desires, and the same background, education and experience
What’s the drawback of mass marketing?

12. Market segmentation
The process of dividing a market into distinct subsets (segments) of consumers with common needs or characteristics and selecting one or more to target with a distinct marketing mix
What is Market Segmentation?
What do we mean by “segment”?

13. Segmentation Variables
Geographic
Demographic
Psychographic
Behavioral
They are the many possible “variables” into which you can divide a market.
Your text identifies five:
We’ll look at each of these in a moment

14. Geographic Segmentation
Division of the market based on the location of the target market
People living in the same area have similar needs and wants that differ from those living in other areas
Climate
Population density
Taste
Micromarketing
What is it?
What is the theory behind it?
Examples?
Climate: snowblowers/Subaru Outbacks vs. sunscreen/convertibles
Population Density: lawn mowers/gas grills vs. small appliances/convertible sofas
Taste: mild salsa sells best in the northeast while hot salsa is preferred in the west
A concept related to this issue is Micromarketing:
Campbell Soup segments its domestic market into 20 different segments; each regional sales office has its own budget and authority to develop specific advertising and promotional campaigns geared to local market needs and conditions

15. Demographic Segmentation
Partitioning of the market based on factors such as
age
gender
marital status
income
occupation
education
ethnicity
What is it?
Let’s look at some of these demographic variables…

16. Age Product needs and interests often vary with consumers’ age
Why is age a logical segmentation variable?
Examples?
Children are going to be interested in toys and games
Teens are going to be interested in clothing
People in their 50’s are more likely to be concerned with issues like health care and retirement, etc., than those in their 20’s
Demographers have identified two different underlying forces related to chronological age…

17. Gender Gender is frequently a distinguishing variable
Changes in the family and growth of the dual-income household have blurred some of the lines
Another distinguishing variable is…
Examples?
Hair products, cosmetics, clothing
However…
Examples of how things are different now?
Women are buying more household repair tools
Men have become significant purchasers of skin care and hair products

18. Marital Status
Marketers have identified specific marital status groups, such as:
Singles
Divorced individuals
Single parents
Dual-income married couples
They then market products specifically designed for one or more groups
What kinds of products might appeal to the first three groups?
Single-serving prepared foods, two-cup coffee makers, etc. for singles and divorced individuals
How about the fourth?
More expensive convenience foods

19. Income, Education & Occupation
These three variables are often related and therefore often used together as a measure of one’s social class.
Income is commonly used because marketers feel it is a strong indicator of ability to pay for a particular product or service
Income is often combined with other variables to narrow target markets:
With age to identify the important affluent elderly
With age and occupation to produce the yuppie segment
Why do you suppose these three variables are combined?
Cuz they go together!
As we’ll see in a later chapter…

20. Psychographic Segmentation
market based on lifestyle and personality characteristics
What is it?

21. Examples of the use of psychographic segmentation reflected in marketing messages
Kellogg’s targets health-conscious consumers with brands such as Special K and Product 19
Old Spice is targeting the active sports lifestyle with High Endurance deodorant
Other examples?
Nissan Xterra clearly appeals to the same “active” consumer

22. Behavioral Segmentation
market based on attitudes toward or reactions to a product and to its promotional appeals
Another segmentation variable is…
What is it?

23. Behavioral segmentation can be done on the basis of: Usage rate
Benefits sought from a product
Loyalty to a brand or a store
What do these things mean?

24. 1. Usage Rate Differentiates between
heavy users
medium users
light users
nonusers
Targeting those heavy users is a common marketing strategy
Why is this important? Because… (heavy users)
For example, 25-35% of beer drinkers account for 70% of consumption

25. 2. Benefit Segmentation
Marketers constantly attempt to identify the single most important benefit of their product that will be the most meaningful to consumers
Changing lifestyles play a major role in determining the product benefits that are important to consumers and also provide marketers with opportunities for new products and services
For example, microwave ovens for the dual-income family (speed and convenience)
Financial Security (Met Life)
Comfort (Bausch & Lomb disposable contact lenses)
Good health (egg beaters egg substitute)
Backache relief (Advil, etc.)

26. 3. Brand and Store Loyalty
The tendency of some consumers to repeatedly select the same brand within a given product category
A parallel tendency of some consumers to repeatedly patronize a particular retail establishment
Marketers reward brand loyalty by offering special benefits to frequent customers
What is brand loyalty?
What is store loyalty?