Chapter 4
Target Marketing
Objectives_1
Understand
• Defining prime prospects
• The importance of target marketing
information
• The marketing concept
4-2
Objectives_2
Understand
• Planning the advertising
• Niche marketing and positioning
• Beyond demographics: psychographics
4-3
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?
4-4
Defining Prime Prospects
• Target marketing
means identifying
and communicating
with groups of prime
prospects.
4-5
Census Data:
A Good Place to Start
4-6
Geodemographic
Information Services
• Aciom
• Claritas
• ESRI
• Experian
• MapInfo
4-7
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
4-8
African American Population
• 13.4% of U.S.
population
• 54% 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
4-9
Hispanic Population
• 14.5% 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
4-10
Asian and Pacific Islander
Population
• 4.8% 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
4-11
Target Information
• Household income • Men
• Spending • Single-Person
• Marrieds Households
• Birthrate
• Aging
• Women
4-12
Generational Marketing
• 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)
• Shared attitudes, common history, and
formative experiences
4-13
Target Generations
Matures
Boomers
Gen X
Gen Y
Gen Z (Millennials)
4-14
Marketing Concept
The marketing concept is a
management orientation that views the
needs of consumers as primary to the
success of a firm.
4-15
Key Concepts in Marketing
What is a product?
What is a market?
What is competition?
4-16
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?
4-17
Steps in the
Market Segmentation Process
Segment your market
Target a segment
Position your product
Communicate your positioning
4-18
Segmentation Approaches
• Demographic
• Geographic
• Product-User
• Lifestyle
• Benefits and
Attitudes
4-19
Values and Lifestyle System
(VALS)
4-20
Determining
Lifestyle Characteristics
Activities
Interests
Opinions
4-21
Niche Marketing
Niche marketing is
a flanking strategy
that focuses on
narrow windows of
opportunity within a
broad market.
4-22
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.
4-23
How to Approach
a Positioning Problem
• 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?
• 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?
4-24
Exhibit 4.10 Positioning
a Location
4-25
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.
4-26
Profiling
• Market profile
• Buyer profile
• Heavy users profile
4-27
Profiles: Users of Brand X
4-28
Beyond Demographics
Psychographics are descriptions of a
market based on factors such as
attitudes, opinions, interests,
perceptions, and lifestyles of consumers
comprising that market.
4-29
Top 10 Test Market Cities
• Albany- • Charlotte-Gastonia-
Schenectady-Troy, Rock Hill, NC-SC
NY • Nashville, TN
• Rochester, NY • Eugene-Springfield,
• Greensboro- OR
Winston-Salem-High • Wichita, KS
Point, NC • Richmond-
• Birmingham, AL Petersburg, VA
• Syracuse, NY
4-30
For Discussion
• What is target marketing?
• What is market segmentation?
• What is positioning?
• How does the 80/20 rule relate to target
marketing?
4-31