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BUS306: Advertising and Promotion

Unit 5: Segmenting, Targeting, and Positioning   *Advertisers pay for the reach and the frequency of their advertising messages – how many people see and/or hear a message and the number of times that message is seen and/or heard. Sending a single advertising message to every potential consumer is not only expensive, it is also inefficient.

To maximize the effectiveness of a firm’s advertising budget, advertisers aim to send customized messages to audiences with shared characteristics. This means that companies must break their market down into homogeneous groups, select the most desirable groups, and differentiate their offering from that of their competitors. This is called target marketing. Target marketing is composed of three steps: segmenting, targeting, and positioning, or STP marketing. In this unit, you will learn how businesses use STP marketing to understand the identity and preferences of their customers.*

Unit 5 Time Advisory
Completing this unit should take approximately 9 hours.
 
☐    Reading: 3 hours
 
☐    Subunit 5.1: 2 hours
 
☐    Subunit 5.2: 2 hours
 
☐    Subunit 5.3: 2 hours

Unit5 Learning Outcomes
Upon successful completion of this unit, you will be able to: - discuss the process of using STP marketing to accurately and effectively focus a firm’s advertising efforts; - explain the concept of target marketing; - identify the characteristics of a market segment; - use an appropriate segmentation strategy to define a target market segment; and - articulate a positioning strategy to differentiate an advertiser’s brand.

****   - Reading: Launch! Advertising and Promotion in Real Time: “Chapter 6: Segment, Target, and Position Your Audience: SS+K Identifies the Most Valuable News Consumer” Link: Launch! Advertising and Promotion in Real Time“Chapter 6: Segment, Target, and Position Your Audience: SS+K Identifies the Most Valuable News Consumer” (PDF)
 
Instructions: Read Chapter 6 on pages 174-203. This chapter covers the essential processes of target marketing.  This reading covers the material you will need to know for subunits 5.1–5.3.

 Reading this chapter should take approximately 3 hours to
complete.  
    
 Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-ShareAlike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution as requested by the work’s original creator or licensee.
  • Lecture: University of Southern California, Marshall School of Business: Dr. Lars Perner’s “STP – Segmentation, Targeting, and Positioning” Link: University of Southern California, Marshall School of Business: Dr. Lars Perner’s “STP – Segmentation, Targeting, and Positioning” (iTunes U)
     
    Instructions: In this podcast, Perner discusses the purpose and methodology behind STP marketing. This lecture covers the material you will need to know for subunits 5.1–5.3.
     
    Watching this lecture and taking notes should take you approximately 1 hour to complete.
     
    Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

5.1 Segmenting the Market   - Reading: John Burnett's Core Concepts of Marketing: Chapter 2, Understanding and Approaching the Market: “The Segmented Market” Link: John Burnett's Core Concepts of Marketing: Chapter 2, Understanding and Approaching the Market: “The Segmented Market” (PDF)
 
Instructions: Read this section on pages 34-41 about segmenting markets using demographic and psychographic segmentation criteria. Think about how these measures can be best utilized.
 
Reading this chapter should take approximately 2 hours.
 
Terms of Use: This resource is licensed under a Creative Commons Attribution 3.0 Unported License. It is attributed to John Burnett, and the original version can be found here.

5.2 Choosing a Target Segment   - Reading: NetMBA’s “Target Market Selection” and Entrepreneur: Elizabeth Wilson’s “Know your Target Market” Link: NetMBA’s “Target Market Selection” (HTML) and Entrepreneur: Elizabeth Wilson’s “Know your Target Market” (HTML)
 
Instructions: Read the NetMBA article for a description of five strategies for selecting a suitable target market. Then, read Wilson’s article about generational marketing.

 Reading these articles should take approximately 2 hours to
complete.  
    
 Terms of Use: Please respect the copyright and terms of use
displayed on the webpages above.

5.3 Positioning the Brand   - Reading: QuickMBA’s “Marketing: Positioning” Link: QuickMBA’s “Marketing: Positioning” (HTML)
 
Instructions: Read this article about how brands position themselves in the minds of consumers.

 Reading this article should take approximately 1 hour and 30
minutes to complete.  
    
 Terms of Use: Please respect the copyright and terms of use
displayed on the webpage above.
  • Lecture: James Connor’s “Chapter 3: Positioning the Brand Through the Sales Moment” Link: James Connor’s “Chapter 3: Positioning the Brand Through the Sales Moment” (iTunes U)
     
    Instructions: Listen to this podcast for a discussion of how firms can position their brand by focusing all brand characteristics on a single idea designed to influence consumer buying behavior in the company’s favor.
     
    Listening to this podcast and taking notes should take you approximately 30 minutes.
     
    Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.

Unit 5 Assessment   - Assessment: The Saylor Foundation's “Unit 5 Assessment” Link: The Saylor Foundation's “Unit 5 Assessment” (HTML)

 Instructions: Please complete the linked assessment. You must be
logged into your Saylor Foundation School account in order to access
this quiz.  If you do not yet have an account, you will be able to
create one, free of charge, after clicking the link.