Download IMC Strategy and Planning: Understanding Market Segmentation, Targeting, and Positioning and more Lecture notes Marketing in PDF only on Docsity!
L4 Part A
(^) Omni directional - heading in any direction, don't have an objective (^) Eliminate omni directional behavior (^) Justify our ideas What is strategy? (^) Long term indirect approach to solving complex competitive problems. o (^) Indirect approach - e.g. Pak n save - everything we do is reduce the price for you. Do something different which is indirect o (^) Something they cannot do - indirect (^) Consistently focused on an objective, but pursuing it in a way adapted to circumstances. o (^) If we are competing on price, I reduce my price and your reduce your price o (^) Objective will be to adjust your view o (^) Do something better than price, adjust your approach on the objective (^) Doing better than we have done before o (^) Do better next year than we have done previously The planning process (^) Planning is deciding now what we are going to do later, including when and how we are going to do it. o (^) What we are doing later and how we are doing it (^) IMC planning is a structured process that links the key organisational direction and business functions to IMC decisions and tactics. o (^) IMC strategy is supporting the organisation strategy Strategy Pathway
(^) Who we are - what makes us different (^) What could your organization do (^) What are their objectives The objectives - (^) who Am I (^) where am I and where do I want to be (^) how am I going to get there (^) Market penetration - selling more of the same stuff into a particular market, trying to grow my number of customers from the same group of people I am working now (^) Market development - taking the products I've got into a new market. Developing new products for same traditional market I've got or to diversification. The issue (^) Understand exactly what the issue/s are before you set about fixing anything! (^) Current communications - how much is it realistic to change? o (^) Current communications and how realistic is it to change (^) Message-related problems? Image, attitude, perception, knowledge, high price, limited distribution? Do we focus on attributes? Exclusivity? o (^) What's a problem o (^) What's a message o (^) What makes it high quality o (^) Think about attributes IMC Planning overview
(^) Plan is about going after 1 or 2 markets (^) Don't be too narrow Planning for IMC (^) Strategic marketing decisions (i.e. target market, segmentation and positioning) inform IMC planning. (^) Two planning models guide development of IMC strategy: o (^) Outside-in planning o (^) Zero-based planning Outside-in planning (^) Outside-in process (^) What's happening in the outside world and how we are responding to it (^) Start from the outside - start from the customer (^) Circular process Review of the marketing Zero-based planning
IMC strategy (^) Everything you say and do is in this diagram Steps in IMC planning (^) Understand purpose (^) Situational analysis and factor in constraints (^) Audience identification (^) Capture issues / opportunity in focus (^) Set objectives (^) Determine overall communications strategy (^) Mix selection (^) Create the "big idea" (^) Media, timing and implementation (^) Determine and obtain budget (if build-up approach) (^) Implement the plan (^) Evaluate / take corrective action (^) Budget may change Strategy (^) Determined by o (^) Corporate objectives - grow, maintain position, divest, harvest? o (^) Marketing goals - differentiation? o (^) Receiver response process? o (^) Push or pull? o (^) Source, message, channel factors?
Hierarchy of Effects to specify objectives (^) Response within stated objective (^) Usually fall into 5 categories o (^) creating awareness o (^) creating understanding o (^) creating changing in attitudes and perceptions o (^) creating changes in behaviour o (^) reinforcing previous decisions - attitudes Setting objectives Setting marketing communications objectives comms objectives (^) To create and maintain brand image (^) To increase customer awareness and curiosity of the brand (^) To change consumer attitudes and beliefs about the brand (^) To influence the purchase intention for the brand (^) To stimulate trial use of the brand Continued (^) To convert one-time product users into repeat purchasers
(^) To switch consumers from competing brand (^) To encourage brand loyalty (^) To stimulate more frequent use - ACTION! (^) To stimulate customer / consumer enquiry (^) To increase sales - ACTION! Moving consumers from one level to the next IMC situation analysis Analysis of a new firm? (^) Macro analysis (^) Competitive - customer analysis (^) Critical success factors? (^) What strengths MUST the retailer have? (^) What weaknesses MUST the retailer avoid? (^) What sustainable competitive advantage MUST it strive for? Data for planning
Brand positioning (^) A clear positioning statement is essential to developing marketing communications strategies. (^) Positioning strategies provide for: o (^) Who the target market is o (^) What marketing should say about the brand o (^) What media should be used to reach the target market Brand positioning (cont.) (^) Positioning should: o (^) Position the brand in the consumer's mind o (^) Position the brand against competing brands in the consumer's mind (^) A positioning statement for a brand represents how marketers want consumers to think and feel about the brand Positioning statements (^) Represent how the brand wants to eb seen; i.e. the thoughts and feelings of the consumer. (^) Effective positioning statements should: o (^) Reflect the brand's competitive advantage o (^) Motivate customers to action Brand loyalty (^) Highest tier of H of E and most desired (^) No guarantee will attain (^) Creates preference and reduces brand switching tendency (^) Generating consumer loyalty requires: o (^) Providing a brand that satisfies consumers' needs o (^) Continuous advertising to reinforce consumers' brand-related beliefs and attitudes Brand image strategy (cont.) (^) Brand image advertising - also known as transformational advertising
o (^) Links the brand to unique psychological characteristics (richer, warmer, more exciting or more enjoyable) that it would not be typically associated with o (^) Endows brand usage with a particular experience that differs from similar brands Brand attributes (^) Brand attributes can be: o (^) product-related features; e.g. size, weight or colour o (^) non-product related features; e.g. price, perceptions of the types of consumers who may purchase the product. (^) The product features (attributes) can be used to position the brand and be used to: o (^) represent a competitive advantage o (^) motivate consumers to purchase. Brand positioning based on usage and user imagery Positioning via brand benefits Resonance strategy (^) Reflects the audience's life experiences (^) NOT focused on a USP or brand image Emotional strategy (^) Products purchased on the basis of emotion (^) Both negative and positive emotions can be used to advertise
(^) And how? Key features of IMC (^) Profile the target market (^) Use appropriate media channels (^) Achieve synergy – same brand message (^) Positively influence target market actions (^) Build customer relationships and engagement Target audiences (^) Target market vs target audience (^) One or many (^) Maintaining consistent positioning and brand messages for all audiences (^) Profile customer audiences: demographics, psychographics, how they purchase (^) Remember other audiences – not just target markets Benefits of targeting to IMC Benefits of targeting to IMC include: (^) identifying consumers with similar lifestyles, needs and values (^) increasing knowledge and insight into target’s specific requirements (^) more effective in communication and fulfilment of target’s requirements. Segmentation (^) Value of segmenting customers and the ethical implications of doing so (^) Major demographic developments and changes (^) Nature of values and lifestyle targeting, and how they can be used to segment consumer groups (^) Role of online behavioural targeting (^) Concept of brand positioning and the role it plays in developing marketing communications strategies Segmenting consumers (^) Market segment: A group of customers who share a similar set of needs and wants. (^) Segmentation allows for effective delivery of the marketing message. (^) Segmentation is based on a group of consumers having similar needs and wants, and also sharing similar consumption behaviours.
Segmentation Dividing the total market into different segments on the basis of customer characteristics, selecting one or more segments, and then developing products to meet the needs of those specific segments. (^) Segments must be identifiable, recognisable and accessible…and (^) PROFITABLE Segmentation (^) NEEDS (^) DEMOGRAPHICS (^) GEOGRAPHICS (^) PSYCHOGRAPHIC (^) BEHAVIOUR AND VALUES Market segmentation Demographic segmentation (^) Age (^) Gender (^) Race (^) Income (^) Education (^) Occupation (^) Family size (^) Family cycle NZ population is ageing
(^) Demographic segmentation tells WHO makes consumer choices - AIO suggests WHY consumers make choices. (^) Greater influence on buying behaviour than demographics. (^) More difficult to measure than demographics. (^) Example: Gatorade energy drink is marketed to young males engaging in strenuous exercise (lifestyle factor). AOI components Ten segments of the ray Morgan framework The ten segments represent: o (^) price expectations o (^) attractiveness to innovation o (^) perceived progressiveness o (^) life satisfaction o (^) quality expectation o (^) individualism. Behavioral segmentation (^) Traditional - segments based on buying behaviour o (^) brand usage o (^) product category usage o (^) level of product usage (number of times the product was purchased. (^) Newer digital (online) methods include: o (^) tracking visitors’ onsite selection, such as: (^) pages visited (^) length of time spent on a page (^) searches performed. Target segment
(^) Homogenous needs (^) Measurable (^) Profitable (^) Accessible (^) Fit Ethical principles of segmenting markets (^) Ethical dilemmas include: o (^) targeting the vulnerable, such as the young, sick and cognitively impaired o (^) ‘condition branding’ – profiting from making consumers aware of benign medical conditions Selecting a target market How many and which segments? Why do people BUY / NOT BUY your brand?
Positioning by competitor Developing a positioning platform
