By creating an image and meaning for a brand -- describing how a brand not only fulfills needs and desires, but is linked to the larger social or cultural environment By building and maintaining brand loyalty within the trade -- gaining support from those who distribute and sell the product to favor the brand over all others in their handling, delivery, and display of the product REF: p. 24-27 | 5. Define and briefly explain the concepts of market segmentation, differentiation, and positioning. ANS: Advertising can help a firm by providing each of these aspects. Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics. Its strategy is based on the supposition that consumers have many wants, differ among each other regarding their wants, and can change their wants based on various circumstances. It identifies various segments of the population that, for various reasons, want to buy certain goods or services. Differentiation is the process of creating in the mind of the consumer the perception of a clear difference -- whether concrete and tangible, or emotional and intangible -- between an organization’s brand and that of its competitors. Its strategy revolves around the emphasis on having the consumer perceive a difference between brands, of course referring to a positive difference for the organization’s brand. Positioning is the process of designing a brand so it can occupy a distinct and valued place in the consumer’s mind and communicating this distinction to the consumer. Its strategy revolves around the perceptual space created in the minds of consumers that encompasses all possible brands they might consider purchasing, and giving the brand a prominent position in that space when compared with others. REF: p. 28-29 | 6. Consider the various types of advertising and the ways that advertising messages can be categorized. Then explain in a few words how the following marketing concepts help to categorize advertising into various types: primary demand stimulation versus selective demand stimulation, direct response advertising versus delayed response advertising, and corporate advertising versus brand advertising. ANS: Advertising can be categorized by these three sets of criteria depicting fundamental approaches to communication: Primary demand stimulation is an attempt to create demand for an entire product category, a costly process that is used for launching totally new innovations or inventions on the market. Selective demand stimulation points out the brand’s unique benefits compared to those of competing products or services.
By creating an image and meaning for a brand -- describing how a brand not only fulfills needs and desires, but is linked to the larger social or cultural environment By building and maintaining brand loyalty within the trade -- gaining support from those who distribute and sell the product to favor the brand over all others in their handling, delivery, and display of the product REF: p. 24-27 | 5. Define and briefly explain the concepts of market segmentation, differentiation, and positioning. ANS: Advertising can help a firm by providing each of these aspects. Market segmentation is the process of breaking down a large and widely varied market (a heterogeneous market) into many smaller sub-markets or segments (homogeneous markets) based on certain consumer characteristics. Its strategy is based on the supposition that consumers have many wants, differ among each other regarding their wants, and can change their wants based on various circumstances. It identifies various segments of the population that, for various reasons, want to buy certain goods or services. Differentiation is the process of creating in the mind of the consumer the perception of a clear difference -- whether concrete and tangible, or emotional and intangible -- between an organization’s brand and that of its competitors. Its strategy revolves around the emphasis on having the consumer perceive a difference between brands, of course referring to a positive difference for the organization’s brand. Positioning is the process of designing a brand so it can occupy a distinct and valued place in the consumer’s mind and communicating this distinction to the consumer. Its strategy revolves around the perceptual space created in the minds of consumers that encompasses all possible brands they might consider purchasing, and giving the brand a prominent position in that space when compared with others. REF: p. 28-29 | 6. Consider the various types of advertising and the ways that advertising messages can be categorized. Then explain in a few words how the following marketing concepts help to categorize advertising into various types: primary demand stimulation versus selective demand stimulation, direct response advertising versus delayed response advertising, and corporate advertising versus brand advertising. ANS: Advertising can be categorized by these three sets of criteria depicting fundamental approaches to communication: Primary demand stimulation is an attempt to create demand for an entire product category, a costly process that is used for launching totally new innovations or inventions on the market. Selective demand stimulation points out the brand’s unique benefits compared to those of competing products or services.