Transcript Document 7226837

Characteristics
age
gender
geographic location
income
spending patterns
cultural background
demographics
marital status
education
language
mobility
Segmentation
Market Segmentation Definition
•“Grouping people according to their similarity
related to a particular product category”
4 Category Bases For segmentation
Descriptive
geographic location
demographic
Behavioural
psychographic
benefits
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, lifestyles
eg, 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 them
eg. 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 Segmentation
Variables 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 needs
achievement, status, responsibility,
reputation
Belongingness and Love needs
family, affection, relationships, work
group, etc.
Safety needs
protection, security, order, law, limits,
stability, etc.
Biological and Physiological needs
basic 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/Layout
Components of a print advertisement
1. Headline
2. Subheadline
3. Body Copy
4 Illustration
5. Signature
All 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 Copy
Informative 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 theme
2.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 essen
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
Storyboard
Renderings 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 Execution
Choosing the right format to dramatize the message is important.
Demonstrations
Narratives
Testimonials and Endorsements
Colour Schemes/Colour Wheel
Advertising Industry
1.Full service agencies
2.Creative boutiques
3.Direct response/retail
4.Media buying service
5.Freelancers
6.In-house agency
entify agency roles and responsibilities
he roles and responsibilities of each of the six different types of advertising agencies differ. Following is
ull service agencies—offers a wide variety of services including product and market research, creative
edia planning and placement, sales promotions and public relations.
reative boutiques—agencies specializing in the development of creative ideas and their execution for
rect response/retail—agencies that focus/specialize on a specific promotional area.
edia buying service—a media specialist agency responsible for planning and purchasing the most cos
eelancers—self-employed, independent creative specialists who offer their services to advertisers and
-house agency—some companies that advertise enough will establish their own advertising departme
n-house”.
Slogans
Creating a catchy theme song that sticks in the consumers head so that
they remember the company name or product.
Perceptual
Filter
Consumer Buying Behaviour
Attitude
Knowledge
Roles
Lifestyle
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.
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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.
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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
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Define the budgeting process
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.
Buying Cycle
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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.