MKTG 330 Study Guide
Chapter 5: Segmentation, Targeting, and Positioning
Segmentation Defined: The process of dividing the market into groups with similar characteristics.
Importance and Purpose of Segmentation:
Goal of Segmentation:
Deliver the brand’s message precisely.
Prevent wasted coverage by ensuring messages reach the intended audience.
Four Main Bases of Segmentation:
Key characteristics that influence what people consume and how they respond to advertising include:
Demographics: Factors such as age, gender, income, education, etc.
Geodemographics: Combination of geographic data with demographic data.
Psychographics: Involves consumer lifestyles, values, and personality traits.
Behavioral: Based on consumer knowledge, attitudes, uses, or responses to a product.
Criteria for Effective Segmentation:
Substantial Size: The segment must be large enough to be profitable.
Identifiable (Differentiable) and Measurable: It must be possible to identify and measure the segmentation variables.
Reachable: The segment must be reachable through marketing efforts and tactics.
Responsive: Members of the segment must show differences in preferences and respond to marketing appeals.
Positioning Statement:
A clear positioning statement helps direct consistent messaging. Elements include:
Key Feature, Benefit, or Image that a brand or product stands for.
How it stands out from the competition (reason to buy).
How the product/service/brand should be perceived relative to competitors.
Essential components to understand:
Target Marketing: Understanding who the target market is.
Frame of Reference: Context in which the brand exists in the market.
Point of Difference: Unique attribute that distinguishes the brand from competitors.
Chapter 6: Communication Process Model
Typical Communication Objectives for Advertising:
Create awareness of the brand or product.
Enhance attitudes toward the product or brand.
Build interest among potential consumers.
Influence consumer behavior and purchase decisions.
Communication Process Model:
Includes main participants, tools, and what the brand can control:
Major Participants:
Source/Sender: The entity that creates the message.
Receiver: The target audience for the message.
Major Communication Tools:
Message: The content that is delivered.
Channel: The medium through which the message is communicated.
Major Communication Functions and Processes:
Developing an ad message that resonates with the audience.
Understanding how the message is interpreted.
Responding to the ad, including feelings and actions.
Providing feedback to the brand regarding the ad’s effectiveness.
Noise: Any interference that inhibits effective communication, including distractions or misunderstandings that work against the communication process.
Chapter 7: The Role of Persuasion
Understanding Consumer Attitudes:
What is an Attitude?:
A feeling or judgment about something or someone; learned predispositions toward an object.
How brands use persuasion:
By forming or changing attitudes towards their products or brands.
Components of Attitudes:
Cognitive: Knowledge, thoughts, beliefs related to the brand/product.
Affective: Feelings and evaluations regarding the brand.
Conative: Behavioral intentions towards the brand.
Learning Hierarchies:
Standard Learning Hierarchy: Learn → Feel → Do
Highly Involved Purchase: Example - Purchasing a car requires knowledge of details and features/benefits.
Low Involvement Purchase: Example - Purchasing toilet paper involves music, characters, slogans, jingles.
Tools Used by Brands to Influence Consumer Attitudes:
Reciprocation: Offering samples or gifts; sincerity is crucial.
Commitment and Consistency: Encourage commitment to the brand (e.g., car purchases).
Social Proof: Consumers may rely on what others do when unsure.
Liking: Consumers are more likely to buy from someone they like.
Authority: Using authoritative figures to endorse the brand.
Scarcity: Highlighting limited availability to foster a sense of urgency (FOMO).
Five Fundamental Factors of Persuasion from the Consumer’s Perspective:
Brand Controls:
Message Argument Strength: Ensure the message is compelling.
Peripheral Cues: Use of music, visuals to enhance appeal.
Mode of Communication: Choose among video, audio, and written formats.
Consumer Controls:
Involvement: The engagement level with the message.
Interest: The level of interest regarding the product or brand.
Elaboration Likelihood Model (ELM):
Explains how people process messages and change attitudes.
Two Main Routes:
Central Route: Engaging in careful and logical processing.
Peripheral Route: Using shortcuts and cues for processing.
The route taken depends on individual motivation and ability.
Factors necessary for consumer engagement with advertisements: Motivation, Ability, Opportunity.
Attitude Change Strategies:
Change the rating of a brand on an important attribute.
Change perception of the importance of an attribute.
Add a new attribute for consideration.
Chapter 10: Effective and Creative Ad Messages
Elements of Great Advertising:
Must be Novel, Connected, Appropriate, and Memorable.
Great advertising should be both creative and strategic, which includes:
Creativity: Not merely novelty; it must connect with consumers by creating empathy.
Brand Appropriateness: Aligns with the brand’s identity and strategy.
Memorability: Should be “sticky” and memorable without overwhelming the brand.
SUCCESs Model for Memorable Ads:
Memorable and “Sticky” ads adhere to the SUCCESs criteria:
Simple: Clear and focused.
Unexpected: Surprising elements to grab attention.
Credible: Believable and trustworthy information.
Concrete: Tangible and specific details.
Emotional: Appeals to feelings to make a connection.
Storytelling: Incorporating narratives that enhance engagement.
Importance: Ensures viewers:
Comprehend the intended message, remember it, and potentially change their opinions or behavior, leading to lasting impact.
Three Pillars of Creative Impact:
Breakthrough: Stand out in a novel and unexpected manner.
Resonance: Relevant and emotional storytelling is crucial.
Clarity: Ensure messages are simple, concrete, credible, and aligned with brand strategy.
MECCAS Framework (Means-End):
Distinct from other frameworks for creativity:
Components:
Attributes: Key product features.
Consequences: Benefits received from the product.
Values: Enduring beliefs guiding motivations.
Goal: Identify value orientations — consumer’s focus driving the ad execution.
Frameworks for Creativity in Advertising Using MECCAS:
Values attached to specific attributes can enhance the effectiveness of an ad by aligning to consumer motivations.
Self-Direction: Freedom and independence.
Stimulation: Desire for variety and excitement.
Hedonism: Pursuit of enjoyment in life.
Achievement: Valuing personal success and intelligence.
Power: Desire for social status and prestige.
Security: Focus on safety and harmony.
Creative Execution Style Options
Creative Execution Styles: Strategies based on audience, brand, and competition include:
Generic Strategy: A straightforward product claim.
Preemptive Strategy: A claim based on authority; establishing the brand’s credibility.
Unique Selling Proposition (USP): Focusing on a meaningful and distinct product advantage.
Brand Image Strategy: Tying psychological advantages to the brand.
Resonance Strategy: Reaching audiences at a visceral level.
Affective (Emotional) Strategy: Using symbolic elements (e.g., peace, relaxation).
Considerations for Choosing Creative Style/Strategy:
Target audience’s needs and motivations.
Brand’s strengths and weaknesses.
Competitor activities and market dynamics.
Chapter 11: Endorsers and Message Appeals
Influencer and Celebrity Endorsers:
Analysis of when and why using such figures can be advantageous or problematic for brands.
Attributes Contributing to the Effectiveness of a Source:
Consideration of various elements (such as credibility, relatability, and relevance) when selecting an endorser to ensure alignment with brand messaging and audience expectations.