Download History and Development of Advertising: Market Segmentation and Diversity in the 1990s - P and more Study notes Banking Law and Practice in PDF only on Docsity! 11/29/10 History and Development of Advertising Lecture Notes Today… Market segmentation -advertising -where it’s been and where it’s going -challenges Test Sivulka 7, 8, 9. Twitchell 10, 15, 17, 19 Friday Office hours on Friday from 10-1:30 PM (Formal Review) Grades posted by Dec. 7 Final Exam Friday Dec 10 at 9 AM 1990’s: Market Segmentation -Why? -Fragmentation of audience -internet, VCR, cable, satellite TV, niche publications (Runner’s World) -Increasingly skeptical audience -media and ad savvy -Target consumers: 1. boomers ex: McDonald’s arch deluxe, pitched as an adult burger -Ronald McDonald was a kid’s character -considered to be one of biggest fails of new product dev. 2. women -messages changed to empowerment -Advertising appeals -making an emotional connection -ex: Levi’s Mattisse-like ads -ex: Nike 3. gen X (1960-1976, children of baby boomers) -authenticity, being original -rejected parents’ generation and yuppie generation -anti-consumption -anti-fashion (Grunge) -Ironic distancing= a position of skepticism and mistrust -OK Soda: ex, appealed to gen X -microbranding (pretended to be microbrews but were really mainstream products) -wink advertising (acknowledges that consumers are being advertised to) 4. grey market -older market (55 and older) -generally a forgotten market, although they have spending power (have half of discretionary income in US) -in 2000, controlled 2/3 of nation’s discretionary income -Golden Girls: showed older people being active, the exception -5.9% of images in magazines showed a model 40 yrs + -7% of images in TV showed models 40+ -tend to be depicted as frail -why are they absent? -thought to buy less (not true) -brand preferences are fixed -Kinds of mature consumers: A. Master consumers: working, younger, educated B. Maintainers: retired, healthy, and financially well off C. Simplifiers: frail, old, very little spending power -master consumers/maintainers are good to market to -Ex: Sony 5. minorities (Attach table from lecture guide) African American, Hispanic/Latino, Asian American -marketers started to realize that they had to differentiate between different groups A. African American Opportunities: -skews younger than the U.S. population -teen market is desirable demographic, -strong influence on sports, entertainment, culture, spend 20% more than average teenager (all ethnic groups combined) -more influence on family purchases -more brand loyal -heavy media consumption -consume television and magazines more than other ethnic groups(advertisers can target messages more carefully) -concentrated urban population -40% of the African American population lives in the 10 largest cities in the U.S. Challenges: languages (can not be fluent depending on where have immigrated from), acculturation B .Hispanic/Latino
