Exam 6: Market Segmentation, Positioning, and the Value Proposition

The text mentions Avon Products as one of many corporations that has successfully added emotional benefits to its positioning, creating intense feelings regarding its products, by linking its brand to

Describe the principle known as niche marketing.What are the competitive advantages of marketing to a niche?

Psychographic segmentation focuses on the inner mindset of consumers rather than outer aspects of their lives such as activities, interests, and lifestyles.

When a brand team defines the target market of consumers for their product, they may also identify many smaller subsets of consumers within their broad market.

To simplify a somewhat complex concept, a value proposition is of great importance to a company's advertising success because it puts all its emphasis on one simple premise-

What is a market niche?

Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business.For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving.But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds.As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters.According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 6-3) Instead of "mothers and daughters," why didn't Keds define its target segment simply as "women"?

"Micro-sponsorships" have become popular ways for firms with restricted budgets to attract socially conscious consumers because they connect their products to

Demographic segmentation is used in selecting target segments by focusing on consumers' descriptors such as their values, beliefs, philosophies, and opinions.

If an advertiser sees a large potential segment being served by a competitor with a big budget, it might consider identifying and targeting smaller groups within that large segment.

The Folgers brand team looked at the diverse market of all coffee drinkers, then broke it down by age.When the team chose to focus on just-graduated-20-somethings, it was

Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team.Seating in the campus bowling alley only allows for 400 fans to attend their matches.Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket.As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) • "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) • "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) -(Scenario 6-5) With the new plan, the bowling team is attempting to encourage local bowlers and other bowling aficionados to come watch the team in action.This is an example of ____ segmentation.

Scenario 6-5 Madison State University has a reputation for having a powerful intercollegiate coed bowling team.Seating in the campus bowling alley only allows for 400 fans to attend their matches.Long lines for seats have formed in the past, with many fans leaving disappointed because they could not get a ticket.As a result, the school's administrators decided to institute a "priority seating" plan in which fans would be given access to advance tickets based on the following schedule: • "Lanemaster Club" - $10,000 annual donation to the bowling program - guaranteed free box seats to any match (100 seats total) • "Strike Club" - $1,000 annual donation to the bowling program - guaranteed free bleacher seats to any match (100 seats total) • "Kingpin Club" - participants in local recreation bowling leagues - guaranteed bleacher seats for $10.00 to any match (100 seats total) • "Alleycat Club" - students who have maintained a 3.9 GPA or better - guaranteed bleacher seats for $1.00 to any match (100 seats total) -(Scenario 6-5) A group of about 30 students who are roommates and friends of the team members -- many are casual bowlers themselves -- have attended every match for nearly three years.These students would best be described as

Benefit positioning is demonstrated in product campaigns that

Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business.For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving.But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds.As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters.According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements?

Scenario 6-3 Keds has been trying to turn around a long-term slide in its shoe business.For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving.But over time, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds.As part of its effort to revitalize the brand several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters.According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces." -(Scenario 6-3) The information provided says that Keds was trying to "turn around a long-term slide" in its shoe business, and that "for years, it had depended on its image as the women's no-frills summer shoe." Obviously, things had changed.And what Keds needed was a change in its once-successful strategy and identity to meet new market conditions, called

A firm finds that it has gained tremendous leverage by using STP marketing, largely because it combines

Scenario 6-4 Jay and Carrie Garrett operate a small retail store in a college town that sells only house plants and accessories, which they named The Plantatarium.Their initial feeling when they went into business was that virtually everyone was a potential customer for house plants.Subsequent market research conducted for them painted a different picture.This research identified three particularly strong market segments.The first was college students ages 18-24.The next segment was retired seniors ages 65-80.The third segment was professional offices for doctors, accountants, and lawyers.The college students liked houseplants because they dressed up their living spaces.The senior liked them because they became the focus of a hobby.The professionals did not buy them for any reason other than décor. -(Scenario 6-4) The Plantatarium sends out direct mail offers to consumers in a nearby zip code area who have household incomes of greater than $40,000 a year.This is an illustration of a _____ strategy.

Which firm did the text highlight as one with a long-term, successful campaign that epitomizes "simplicity" in defining its distinctiveness, a critical ingredient in a good positioning strategy?

What types of brands are commonly repositioned?