Chapter 4

Target Marketing
Know Your Market

• What information do you need to reach your

prospects successfully?
• Do you understand their problems?
• Have you thought about what you want people
to think and feel about your brand?

4-2
Defining Prime Prospects

• Target marketing
means identifying
and communicating
with groups of prime
prospects.

4-3
Census Data:
A Good Place to Start

Services based on
census data
•Acxiom
•Claritas
•ESRI
•Experian
•MapInfo

4-4
Demographic Snapshots

• The largest ancestral group in the U.S. is

German
• One in 8 residents is an immigrant (12.4% of
the population)
• The median age in the U.S. is 36.4
• 27% of U.S. adults have a bachelor’s degree;
10% have an advanced degree

4-5
African American Population

• 13.4% of U.S.
population
• 55% live in the South
• Median age is 29.5
• 46% own their homes
• Median income is
$30,134
• 30% in the middle- and
upper-income status

4-6
Hispanic Population

• 16% of U.S.
population
• Median age is 27.2
(34% under age 18)
• 64% from Mexico
• Hispanic is an ethnic
designation; it does
not reflect race

4-7
Asian and Pacific Islander Population

• 5% of U.S. population
• 51% live in the West
• 15 distinct ethnic groups
• 26% under age 18
• 51% of men and 44% of
women earn at least a
bachelor’s degree

4-8
Target Information

• Household income • Men

• Spending • Single-Person
• Marrieds Households
• Birthrate
• Aging
• Women

4-9
Generational Marketing

• A generation
– refers to the number of people in any age
group, extending typically 30 years and past
a single decade (though some, such as Gen
X, are shorter in time frame)
– Encompasses shared attitudes, common
history, and formative experiences
• Experiences bind people born in continuous
years into a cohort

4-10
Target Generations

Good warriors (1909-1928)

Matures (1929-1945)
Baby boomers (1946-1964)
Gen Xers (1965-1982)
Gen Yers (1983-2001)
Generation Zers (2002+)

4-11
Marketing Concept

• The marketing concept is a management

orientation that views the needs of
consumers as primary to the success of a
firm.

4-12
Key Concepts in Marketing

What is a product?

What is a market?

What is competition?

4-13
Planning the Advertising

• Market segmentation is the division of an

entire market of consumers into groups
whose similarity makes them a market for
products serving their special needs.
• A situation analysis is the part of the
advertising plan that answers the questions:
Where are we today and how did we get
here?

4-14
Steps in the
Market Segmentation Process

Segment your market

Target a segment

Position your product

Communicate your positioning

4-15
Segmentation Approaches

• Demographic
• Geographic
• Product-User
• Brand Loyalty
• Lifestyle
• Benefits and
Attitudes

4-16
Product-User Segmentation

• This segmentation strategy is based on the

amount of usage and/or consumption patterns
of a brand or category
Weekly Consumption of Fast Foods
Frequency Adults Men Women
Heavy 11.4% 14.8% 8.3%
(4+ visits/week)
Medium 44.9% 46.5% 43.4%
(1-3 visits/week)
Light 22.8% 20.6% 24.8%
(<1 visit/week)

4-17
Brand Loyalty Segments

• National-brand loyal
• National-brand deal
• Private-label loyal
• Private-label deal
• National-brand switcher
• Private-label switcher

4-18
Determining Lifestyle Characteristics

Activities

Interests

Opinions

4-19
Niche Marketing

• Niche marketing is a
flanking strategy that
focuses on narrow
windows of
opportunity within a
broad market.

4-20
Positioning

• Positioning means segmenting a market by

creating a product to meet the needs of a
select group or by using a distinctive
advertising appeal to meet the needs of a
specialized group.

4-21
How to Approach a
Positioning Problem_1
• What position, if any, do we already own in the
prospect’s mind?
• What position do we want to own?
• What companies must be outgunned if we are
to establish that position?

4-22
How to Approach a
Positioning Problem_2
• Do we have enough marketing money to
occupy and hold that position?
• Do we have the guts to stick with one
consistent positioning concept?
• Does our creative approach match our
positioning strategy?

4-23
Positioning Examples

• Dove soap is the moisturizing beauty bar.

• Allstate insurance is the good hands people.
• Cheer is the detergent for all temperatures.
• Intel is the computer inside.
• Ace Hardware is the helpful place.

4-24
Profiling

• Market profile
• Buyer profile

4-25
Profiles: Users of Brand X

4-26
Beyond Demographics

• Psychographics are descriptions of a

market based on factors such as attitudes,
opinions, interests, perceptions, and
lifestyles of consumers comprising that
market.

4-27
Characteristics of Top Test Markets

• Demographics within 20% of national average

• Somewhat isolated
• Media relatively inexpensive
• Lack of brand loyalty among residents
• Supermarkets willing to give new products
shelf space

4-28
For Discussion

• What is target marketing?

• What is market segmentation?
• What is positioning?
• What information is needed when advertisers
profile a market?

4-29
THANK YOU

4-30