Exam 3 Class Notes Questions and
Graded Answers.
The Segmentation
Process Today - Step 1: Define the promotion uses for
segmentation
Step 2: Use geographic, demographic, and
psychographic variables to create segments
Step 3: Predict response of market segments to products/ media through behavioral
segmentation.
Step 4: Rank segments and addressing adv/pr only to the segments with the greatest profit
potential
Purpose of segmentation? - Want to segment, so adv dollars go to use->will make more
money per year
Segmentation Variables - • Geographic variables
• Demographic variables
• Psychographic variables
Selecting market audiences - •Selecting market audiences
•Segmentation for adv/pr
Market segmentation - Dig into large groups of consumers Segments become
pr/advertisers core audience
Segmentation for adv/pr - Audience segmentation: The process of a marketers "best
perspective" on the basis of
1. identifiable needs, problems or values,
, 2. accessibility through media, and
3. profit potential
Identifiable needs, problems, values - Find the underlying problem or value system
EX: Fed Ex-Needed overnight service, had Problem w/late deliveries -Value reliability
Accessiblity through media - Accessible through media at reasonable cost.
Super Bowl :30 ad cost $3.5-4.0 million
Viewers: 111.3 million
Cost per thousand (cpm): $27.00
Internet ad: cpm average = $1.90-10.40
Mobile ad: cpm average = $3.00
Profit potential for segment - Most important test of a segment
Least often applied in practice
Is the segment responsive to
communications?
Is it growing?
Market Segments that are growing - • Single Women Home buyers
• Spanish speaking segment on web
• Under-15s technology, mobile gaming, e-learning
•Green products
•Car sharing (car2go)
•Long-term healthcare
•Tablets
Graded Answers.
The Segmentation
Process Today - Step 1: Define the promotion uses for
segmentation
Step 2: Use geographic, demographic, and
psychographic variables to create segments
Step 3: Predict response of market segments to products/ media through behavioral
segmentation.
Step 4: Rank segments and addressing adv/pr only to the segments with the greatest profit
potential
Purpose of segmentation? - Want to segment, so adv dollars go to use->will make more
money per year
Segmentation Variables - • Geographic variables
• Demographic variables
• Psychographic variables
Selecting market audiences - •Selecting market audiences
•Segmentation for adv/pr
Market segmentation - Dig into large groups of consumers Segments become
pr/advertisers core audience
Segmentation for adv/pr - Audience segmentation: The process of a marketers "best
perspective" on the basis of
1. identifiable needs, problems or values,
, 2. accessibility through media, and
3. profit potential
Identifiable needs, problems, values - Find the underlying problem or value system
EX: Fed Ex-Needed overnight service, had Problem w/late deliveries -Value reliability
Accessiblity through media - Accessible through media at reasonable cost.
Super Bowl :30 ad cost $3.5-4.0 million
Viewers: 111.3 million
Cost per thousand (cpm): $27.00
Internet ad: cpm average = $1.90-10.40
Mobile ad: cpm average = $3.00
Profit potential for segment - Most important test of a segment
Least often applied in practice
Is the segment responsive to
communications?
Is it growing?
Market Segments that are growing - • Single Women Home buyers
• Spanish speaking segment on web
• Under-15s technology, mobile gaming, e-learning
•Green products
•Car sharing (car2go)
•Long-term healthcare
•Tablets
