When should I advertise?

ETM 58C
Special Topics in ETM:
Advertising and Social Media Strategy

Should I
Advertise?
Was It
Effective?

Who Do I
Target?

Boazii University

Segmentation & Targeting

How Do I Use
Creative?

How Do I Use
Insight?

Hseyin Sami Karaca

How Do I
Select Media?

How Do I
Position?
2

Diagnose if advertising is needed and its role

The 4A Framework

Who do I target with advertising?

Should I
Advertise?

Case 1

Case 2

Case 3

Case 4

Case 5

Aware

30%

80%

80%

80%

80%

Attitude

25%

25%

45%

45%

10%

Act

23%

23%

23%

38%

35%

Act Again

20%

20%

20%

30%

8%

Advertising
Media

Advertising
Message

Distribution
Price

Niche

Product
Target
Promotion

Was It
Effective?

Who Do I
Target?

How Do I Use
Creative?

How Do I Use
Insight?

How Do I
Select Media?

How Do I
Position?

Segmentation

Usage-based targeting

What is segmentation?

(initial target)

Grouping customers with similar characteristics

(secondary target)
Saturation

Current Users

Nonusers

Why do we need it?

Enables effective addressing of consumer
needs

Brand

What to do with it?

Brands select one or more segments to target
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Competitors

Point of Entry

Category Build

Secure

Steal

Active

Passive

Room for growth?

Inability to steal?

Superior message?
Larger media budget?

Low penetration?
High loyalty?

Category unsaturated?
Category leader?

Targeting current brand users

Memory rationale for targeting current users

Transference of
Information

Commonly used by established brands

80% of the consumption is done by 20% of the users

Amplification

What could be the rationale for why current users are

considered first?

Advertising
Information

The way people process information and make decisions

Short-Term Memory
(Limited)

Judgment
and Choice

Prompt greater use by current users

Attract more people with the same profile as current users

Long-Term Memory
(Organized Repository)

Positioning

Category

Active Memory

Much of the persuasion is self-persuasion

A current user is easiest to persuade

Brand

Brand

Accessibility depends on:

Recency
Degree of amplification

Targeting competitors users

Targeting category nonusers:

Point of entry

Advantage: Convinced about the virtue of the category

Not yet entered the category but about to do so

Disadvantage: High preference for their current brand

The idea is to
Identify who will be entering the category
Use advertising to direct them to the firms brand

Assess the size of opportunity

Competitors who attract heavy users of the category
Superior benefit in relation to competition

When is this strategy attractive?

Risks associated with targeting competitors users

May incite competitive battle
Competitors reaction (financial resources, motivation to defend the
brand)
What to do if strong retribution is expected?
What to do if decide to go head-to-head?

Low brand penetration

High loyalty: Advertising can funnel, but need other
mechanisms to ensure loyalty

Focus on users of the category who were not previously

decisional about the brand

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Targeting category nonusers:

Category build

Targeting multiple segments

simultaneously

Directed toward those who are passive: no intention

of using the category

When is this strategy appropriate?

Sufficient resources
Potential conflict can be managed

When is this strategy appropriate?

Lack of saturation of the category (e.g., new category,
seasonal skews)
Firm has a means of directing the generated demand to
its brand (e.g., market leader, strong sales force)

How to decide whether demand is saturated or not?

Factors responsible for peoples failure to use a category
Lack of awareness vs. negative disposition toward the
category
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Organize segments based on the importance to

the brand
Own: most critical to the health of the brand
Attract: helps sustain the brand over time
Accept: important not to alienate

Decide whether multiple segments are viable

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Targeting a new segment:

Saturation, Protection, and Alienation
1

Current users
Yes
saturated?

No

No

No

New Users
Worth Risk?

Users safe from

alienation? Yes
(i.e., target, ads)

(i.e., ad budget, loyalty)

(i.e., no growth)

Target
Current Users

Current users
protected? Yes

Yes

No

No

Target New
Segment

Yes

New Users
Worth Risk?

Segmentation based on the buying

center
Based on functions an individual performs in
the buying center

Influencer: engineers
Decider: VPs of marketing or finance
Purchaser: purchasing agents
User: operatives

Appropriate when different instruments are

needed to attract different segments
Engineers focus on product specs
Purchasing agents are interested in product price
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Bases for segmentation:

Demographics, Psychographics, Geography
How to find media to reach the target?
Need a demographic, psychographic or geographic
description

Should the target be described in terms of

demographics or psychographics?
Users and nonusers have the same demographics in
many product categories
Psychographics does a better job in discriminating
between users and nonusers

Geographic segmentation can be used if a firm has

distribution in multiple areas of the country
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