SEGMENTATION, TARGETING, AND POSITIONING Answers to Discussion Questions In what sense is behavioral segmentation information about customers more diagnostic of their future purchase behavior than is, say, demographic information? Answer: Behavioral segmentation provides the best basis for targeting marcom messages to customers insofar as the best predictor of one’s future behavior is his or her past behavior. In your own words, explain how online behavioral targeting works. Answer: Known as “audience management systems,” companies such as Revenue Science and Tacoda Systems track Internet users’ surfing behaviors and provide this information to advertisers that wish to target prospective customers based on their online search behavior. For example, a golf equipment manufacturer might want to identify prospective customers who spend a lot of time visiting golf-related websites. “Cookies” are inserted on users’ computers that identify website-selection behavior. The essence of online behavioral targeting is thus a matter of directing online advertisements to just those individuals who most likely are interested—as indicated by their online site-selection behavior—in making a purchase decision for a particular product category. In what sense is online behavioral targeting a potential invasion of privacy? Answer: Companies such as Facebook and Google have access to our Internet search behavior without our approval or knowledge, and some fear that this is the same as “big brother” overlooking what we do. If you were to design a psychographic study for a new chain of lower-priced coffee stores that are planned to compete against Starbucks, what lifestyle characteristics (i.e., people’s interest, values, and activities they participate in) might you consider as indicative of whether they might be interested in your new stores? Answer: In general, psychographics refers to information about consumers’ attitudes, values, motivations, and lifestyles as they relate to buying behavior in a particular product category. You need to understand what motivates consumers that patronize Starbucks to understand if a lower-priced option is even attractive to them. While it is important to understand the psychographic profile of the customers of Starbucks, with whom you want to compete, it is also important to understand consumers that do NOT patronize Starbucks. Perhaps price is a determinant, but these consumers share similar lifestyle activities (i.e., events, causes) as the Starbucks consumer. To which of the VALS segments do you belong? (Go to www.strategicbusinessinsights.com/vals/presurvey.shtml) Answer: The eight VALSTM segments are: Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, and Survivors. To determine your VALS segment, you can visit the Strategic Business Insights website and take their survey. After completing the survey, they will provide you with your VALS segment classification, which could be one of several types such as Innovators, Thinkers, Believers, Achievers, Strivers, Experiencers, Makers, or Survivors. If you're curious about the characteristics of each segment or how they might apply to you, feel free to ask, and I can provide more information! Having read the section on the size of the world and U.S. populations, update the figures presented in the test, which were current as of July 2011, by going to www.census.gov/main/www/popclock.html. Answer: The U.S. population will vary every time. However, as of my last update in January 2022, the estimated world population was around 7.8 billion, and the estimated population of the United States was around 331 million. For the most current and accurate population figures, you can visit the U.S. Census Bureau website or other reliable sources that provide real-time data on population statistics. Demographers tell us that U.S. households are growing in number and shrinking in size. What specific implications do these changes hold for companies that manufacture and market products such as appliances, consumer electronics, and automobiles? Answer: The general trend is away from the traditional family (i.e., mother, father, and two or three children). A growing number of housing units are headed by single parents or involve unmarried partners or single individuals. These developments have, in many respects, complicated the marketing communicator’s job. Reaching singles requires special media-selection efforts because singles tend not to be big prime-time television viewers but are skewed instead toward the late fringe hours (after 11 p.m.), are disproportionately more likely than the rest of the population to view cable television, and are disproportionately heavy magazine readers. Most readers of this text fall either in the Gen X or Gen Y age categories. Just because you share this one commonality with all other Gen Xers or Gen Yers, does this one piece of information about you and your cohorts represent a sufficient basis on which a marcom practitioner might aim its advertising efforts? Answer: Labeling an age cohort does not necessarily mean that they are a unified group in terms of demographics or lifestyle preferences and should not be construed as a single group for targeting marcom messages. African-American, Hispanic-American, and Asian-American consumers do not signify three homogeneous markets; rather, they represent many markets composed of people who merely share a common ethnicity and/or language. Explain. Answer: Hispanic-Americans, for example, arrive in the United States from many different countries (e.g., Mexico, Cuba, and Puerto Rico), differ greatly in their educational backgrounds and spending ability, and vary greatly among themselves in what they want in products and services. There are many market subsegments among Hispanics, but Hispanics as a group do not represent a meaningful overall market segment. The same could be said about African-Americans and Asian-Americans. Explain the reasons for the relentless aging of the U.S. population and discuss some implications this will have on marketing and marketing communications in the foreseeable future. Answer: The relentless aging of the U.S. population is the result of the population explosion after World War II through the early 1960s followed by a period where fewer children were born. The change in birthrates, along with healthier lifestyles and improved medical care, has led to an inexorably aging population. Marketing changes are manifold, including greater attention to product design for middle-aged and mature consumers (e.g., fuller-cut clothing) and advertising practices that appeal increasingly more often to older consumers. Further, since the 1980s much television programming and advertising have been directed to middle-aged and older consumers. Assume you are a brand manager of a food product that is consumed by all Americans—African-Americans, Caucasians, Hispanics, Asians, and others. You are considering running an extended advertising campaign on prime-time television that uses Latino actors and appeals to Latino consumers. Aside from cost considerations, what reservations might you have about this type of campaign? Answer: In attempting to appeal to Hispanics, the impression may result among non-Hispanics that the advertised brand is an exclusive Hispanic brand. This image may be appropriate for some historically ethnic products but would be too narrow for the majority of nonethnic product offerings. Students should recognize the danger of such a campaign and realize that more targeted media (e.g., Spanish-speaking TV and radio broadcasts, and specialized magazines) would be far superior to a prime-time effort. When we discussed the mature market, it was noted that advertising aimed at this group should portray them as vital, busy, forward looking, and attractive or romantic. Interview several mature consumers and coalesce their views on how they perceive advertising directed at them and their peers. Your interview results along with those of fellow students should lead to an interesting class discussion. Answer: This exercise should be assigned at least one week ahead of the class discussion. I can certainly provide some potential insights into how mature consumers perceive advertising aimed at their demographic based on common trends and observations: 1. Vitality and Activity: Mature consumers often appreciate advertisements that portray them as active and engaged individuals. They want to see themselves represented as vital members of society who continue to pursue their passions and interests, whether it's traveling, pursuing hobbies, or spending time with family and friends. 2. Forward-Looking and Progressive: Mature consumers are not stagnant; they are open to new experiences and opportunities. Advertisements that depict them as forward-looking and adaptable to change resonate well with this demographic. They want to feel that brands understand their evolving needs and aspirations as they enter different stages of life. 3. Inclusivity and Diversity: Mature consumers value advertisements that reflect the diversity of their demographic. They want to see representations of people from different backgrounds, cultures, and lifestyles. Inclusivity in advertising helps them feel seen and represented, fostering a stronger connection with the brand. 4. Authenticity and Relatability: Mature consumers appreciate advertisements that feel genuine and authentic. They are skeptical of overly exaggerated or stereotypical portrayals of aging. Ads that feature real people and authentic storytelling resonate more with this demographic, as they can see themselves in the experiences depicted. 5. Emotional Resonance: Advertisements that evoke emotions such as nostalgia, humor, or empathy tend to resonate strongly with mature consumers. They appreciate ads that tug at their heartstrings or make them laugh, as these emotions create a memorable and impactful connection with the brand. 6. Empowerment and Independence: Mature consumers want to feel empowered and independent. They respond well to advertisements that celebrate their autonomy and decision-making ability. Ads that emphasize self-care, personal growth, and empowerment are likely to resonate with this demographic. By interviewing mature consumers and coalescing their views along with those of fellow students, it could lead to an interesting class discussion on the effectiveness of advertising strategies targeting this demographic. It would also provide valuable insights into how brands can better connect with and cater to the needs and preferences of mature consumers in their marketing efforts. What are your views on the targeting of products to kids (i.e., children between the ages of 4 and 12)? Aside from your personal views, discuss the issue of targeting to children from two additional perspectives: first, that of a brand manager who is responsible for the profitability of a child-oriented product, and, second, from the viewpoint of a regulatory agency or non-profit group in charge of protecting children. Imagine what each of these parties might say about the practice of targeting products to children. Answer: This is very open-ended question. Relevant answers should display some business knowledge sophistication about profitability issues. This may center on store, territory, competitive market share, product line, product category, seasonal and other financial and/or accounting issues. The practice of targeting children from this perspective could be analytical and strategic. The ethicist’s perspective can be presented from several different angles: what the product teaches children by its usage (e.g., toy guns or knives and violence), what the product teaches them about problem solving (violent video games), or user-related issues such as how they want to be perceived by others (toys as symbols of wealth or status). Based on your personal background and using the VALS system, how would you categorize most of the adults with whom you and your family associate? Answer: The answer is individually determined. Look for justification of categorization based on VALSTM dimensions—primary motivations and resources—and the profiles of category members. Identify magazine advertisements that reflect appeals to at least three of the eight VALS groups. Describe in as much detail as possible the neighborhood in which you were raised. Come up with a label (similar to the PRIZMNE cluster names) that captures the essence of your neighborhood. Answer: First, the assignment of identifying magazine advertisements that reflect different VALSTM groups can lead to a lively class discussion based on show and tell. Second, to address the latter half of this question, students should realize that the key to PRIZMNE and related geodemographic clustering is the household type rather than just what characterizes them and their friends. This also is an opportunity for students to realize differences in neighborhoods--many will speak of themselves in broad terms such as middle-class or working-class without understanding how different those terms can be based on urban, suburban or rural areas. Also, the degree to which the neighborhoods are new (as in developments) or established (inter-generational) is also key to geodemographic clustering. Finally, students from single parent households may live in very different geodemographic housing than if they were from an intact family. In Chapter 2 you read about “leveraging” (refer to Figure 2.5) as one of the ways by which brand associations are created. Relate that discussion to the concept of imbuing a brand with meaning by pulling existing meaning from the “culturally constituted world.” Answer: Marketing communicators when in the process of positioning their brands draw meaning from the culturally constituted world and transfer that meaning to their brands. Recall that, in the leveraging approach, brand associations can be shaped and equity enhanced by leveraging positive associations already contained in the world of people, places, and “things” that are available to consumers. The people, places and “things” derive their meaning from the culturally constituted world. How does your college or university position itself? If you were responsible for coming up with a new positioning, or repositioning, for your college/university, what would that be? Justify your choice. Answer: School to school, students should be aware that positioning can be based on benefit positioning (i.e., functional, symbolic, or experiential needs) or product-related and non-product-related (i.e., usage and user imagery) attributes. I can certainly provide some hypothetical suggestions for positioning a college or university and justify the choices. 1. Positioning: Innovation Hub • Justification: Emphasize the institution's commitment to innovation, cutting-edge research, and technology integration across all disciplines. Highlight partnerships with industry leaders, startup incubators, and research centers to foster a culture of innovation and entrepreneurship. Showcase success stories of students and faculty making significant contributions to their fields through innovative projects and initiatives. 2. Positioning: Global Learning Community • Justification: Focus on promoting diversity, global perspectives, and cross-cultural understanding within the campus community. Highlight international exchange programs, study abroad opportunities, and partnerships with institutions worldwide. Emphasize the institution's efforts to prepare students for success in an increasingly interconnected and multicultural world through immersive global experiences and interdisciplinary collaboration. 3. Positioning: Sustainable Campus Leader • Justification: Showcase the institution's commitment to environmental sustainability, green initiatives, and social responsibility. Highlight LEED-certified buildings, renewable energy projects, waste reduction programs, and community outreach efforts aimed at promoting sustainability. Position the campus as a living laboratory for sustainability education and innovation, inspiring students to become environmental stewards and change agents in their communities. 4. Positioning: Student-Centered Excellence • Justification: Prioritize student success, well-being, and personalized learning experiences. Highlight small class sizes, dedicated faculty mentors, academic support services, and a vibrant campus life. Emphasize the institution's commitment to fostering a supportive and inclusive learning environment where every student can thrive academically, socially, and personally. Showcase alumni achievements and career outcomes as evidence of the institution's dedication to student success. Ultimately, the choice of positioning depends on the unique strengths, values, and goals of the college or university, as well as the target audience's preferences and needs. It's essential to conduct thorough market research, engage stakeholders, and carefully evaluate the competitive landscape to develop a compelling and differentiated positioning strategy. How is your favorite brand of athletic footwear (Adidas, Nike, Reebok, etc.) positioned? Answer: Students should be aware that positioning can be based on benefit positioning (i.e., functional, symbolic, or experiential needs) or product-related and non-product-related (i.e., usage and user imagery) attributes. However, I can provide information on how some popular athletic footwear brands are positioned in the market: 1. Nike: Nike is positioned as a leader in performance and innovation, focusing on athletes and sports enthusiasts who strive for excellence. The brand emphasizes cutting-edge technology, superior quality, and iconic design in its footwear, apparel, and equipment. Nike's marketing often features high-profile athletes and celebrities, promoting a message of empowerment, inspiration, and achievement. 2. Adidas: Adidas positions itself as a brand that blurs the lines between sports and fashion, catering to athletes and style-conscious consumers alike. The brand emphasizes innovation, sustainability, and inclusivity in its product offerings. Adidas collaborates with designers, artists, and celebrities to create limited-edition collections and lifestyle-oriented footwear lines. Adidas also focuses on grassroots initiatives and community engagement to connect with consumers on a deeper level. 3. Reebok: Reebok is positioned as a fitness-focused brand, targeting individuals who prioritize health, wellness, and active lifestyles. The brand emphasizes versatility, functionality, and performance in its footwear and apparel offerings. Reebok's marketing often features real people, fitness enthusiasts, and social media influencers, promoting a message of authenticity, empowerment, and self-improvement. Reebok also partners with fitness organizations, gyms, and events to promote its brand and engage with consumers. Each brand has its unique positioning strategy tailored to its target audience, brand identity, and market objectives. Solution Manual for Advertising Promotion and Other Aspects of Integrated Marketing Communications Craig J. Andrews, Terence A. Shimp 9781111580216, 9788131528242, 9781133191421, 9781337282659
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