Transcript Chartered Institute of Marketing

BA (Hons) Business, Management
& Communications
Managing Marketing
Activities
Week 5
Objectives for today
By the end of this session we will have …
• Analysed the different ways in which an organisation
could segment its market (depending on whether it was
B2C or B2B)
• Evaluated the methods that a fortified wine company
might use to target its messages to its core markets
• Discussed how brands have positioned themselves so
that brand identity is appropriate for the segments of the
market it has targeted
But first…
You are asked to undertake a marketing project that seeks to
rebrand and reposition port and sherry in the market place.
You will need to produce an individual marketing plan, which
outlines the possible actions that could be taken. Various
areas could be considered, but the following MUST be
discussed:
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Assessment of market opportunities
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Selection of appropriate options
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Target market options
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Brand positioning
The word count is 2,500 and is worth 70% of the module.
Your goal = 70%+
To attain this standard the student will have produced an
answer that is both persuasive and original in its
argument/position. Such answers will clearly demonstrate a
higher level of analytical thought and students will be able to
critically evaluate the main ideas/concepts in a clear and
succinct manner. The student will present their ideas in a
logical order, linking key points together in a fluent and
effective way. Support for the main issues will draw on
evidence from both theoretical and practical perspectives, and
the student will consider counter arguments, which are
relevant for the analysis.
What goes into the plan?
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Contents
Introduction
Current situation - Why is the plan needed?
Objectives – what are you trying to achieve through the plan?
Target market options – why have you chosen a particular market? What evidence
backs up the targeting of this particular market? Assessment of market opportunities
would be sensible to include here.
Brand positioning – why have you positioned the brand in this range? Will your pricing
strategy support the brand position?
Distribution Plan – how will your customers buy from you? Why?
Promotions strategy – where and how will you promote the brand? Any joint
ventures? Why?
Marketing Materials – what materials do you need to create? Web page? Brochures?
Retention Strategy – how will you keep the customers? How will you extend the
product life cycle?
Evaluation – how will you measure the success of the plan?
Conclusion
Live marketing project assessment requirements (p5)
1. Assess market opportunities
2. Select appropriate options to pursue
3. Create a target market strategy
4. Create a “brand position”
5. Develop a marketing plan
All within the overall task:
Undertake a marketing project that seeks to rebrand
and reposition port and sherry in the market place
Do you ever watch an advert and think...
“what the hell was that about?”
https://www.youtube.com/watch?v=20UhjXpFX_c
Why?
Why do we segment
markets?
Industrial Markets
Consumer Markets
In order to “…find ways of breaking (the market) down into
manageable parts, or groups of customers with similar
characteristics, and then to concentrate effort on serving the needs
of one or two groups really well …” [B&P: p193]
Which “one or two groups” do fortified wine companies seem to
have decided to concentrate their efforts on?
Why have these particular market segments been chosen?
How much annual income is derived from each segment?
Clustering customers
Segmenting consumer markets [B&P: p197]
• geographic (where they live)
• demographic (how they live - their lifestyle)
• geodemographic (neighbourhood types)
• psychographics (what makes them tick)
• buyer behaviour (what makes them buy)
Some UK Demographic Statistics
2011 census
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? million people living in UK
63.7 million people living in UK
Proportion under 16 is ?
Proportion under 16 is 19% (25% in 1971)
Proportion 65+ yrs is ?
Proportion 65+ yrs is 17% (13% in 1971)
Ownership of wealth?
25% of adult population owns 75% wealth
? £bn-aires in UK in 2007
68 £bn-aires in UK in 2007 (23 in 2003)
http://www.statistics.gov.uk/
Older, Richer, Wiser
• The over 50’s make half the UK’s
population
• They will be richer, more active and
healthier than any preceding generation
• Over 70% of marketing and advertising
spend still focuses on younger age
groups
[Ben McIlroy, Haymarket Conferences]
Social Class and Status
[Source : Peter M. Chisnall, Marketing; A Behavioural Analysis, 3rd
Ed, 1995]
Occupational
Group
Social Grade
Definition
% all UK
Families
Head of House
White Collar
A
Upper (Middle)
Class
3%
B
Middle Class
10%
C1
Lower Middle
Class
24%
C2
Skilled Working
Class
30%
D/E
Working Class/
State Widows
33%
Head of House
Blue Collar
Family Life Cycle
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Batchelor stage (young singles no kids)
Newly married couples (DINKies)
Full nest 1 (youngest child under 6)
Full nest 2 (youngest child 6 or over)
Full nest 3 (older married couple, dependent children)
Empty nest 1 (no children at home, family head working)
Empty nest 2 (family head retired)
Solitary survivor (working)
Solitary survivor (retired)
[ Source : Wells & Gubar http://www.bbmms.org/2010/01/wellsand-gubar-lifecycle-stages/]
Geo-demographic
segmentation
• Segment by where you live and social status
• ACORN – A Classification Of Residential Neighbourhoods
– mapping clusters of people http://acorn.caci.co.uk/
• MOSAIC – classifications of housing type
• http://www.experian.co.uk/marketingservices/products/mosaic-uk.html
• Classification designed to predict customer's age on the
basis of their first name and thus their likely buyer
behaviour
• http://fivethirtyeight.com/features/how-to-tell-someonesage-when-all-you-know-is-her-name/
Psychographics and Lifestyle
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Uses qualitative data in a quantified way
How people spend their time and why
Interest, motivation and desire
Opinions and perceptions
Lifestyle links consumption to social group
People who have similar tastes have similar
lifestyles – people who have similar lifestyles will
consume similar goods and services
• https://www.youtube.com/watch?v=eVLe0xhalT8
Target Markets Exercise
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A new radio station plans to offer something for everyone. With their approach, every
hour they plan to:
Play one modern song
Then play a country song
Then play a classical piece
The interview a politician
Then play an oldie
Then play an operatic piece
Then interview an expert (like a scientist)
Then play a children’s song
How successful (or unsuccessful) do you think that this new radio station format will
be? Why?
Do you think that the radio station would be more successful if it adopted a target
market focus?
How do firms benefit from defining its target market?
Segmenting Industrial Markets
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By Location
By Size
Usage of materials
Trade/industrial classification
By Product use
20/07/2015
17
Market segmentation in business
markets
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Standard Industrial Classification (SIC)
Size of business (turn-over or employees)
Location (geographic segmentation)
Purchasing situation (eg 1st time)
Differentiated or concentrated marketing
Product positioning and differentiation by
features, performance, durability, reliability
Targeting your market
[B&P: p212]
• Concentrated approach – specialise in one segment
• Differentiated marketing – concentrate on two or more segments
and create a different marketing mix for each segment – eg:
Butlins
• Undifferentiated marketing – sometimes called a “scattergun”
approach – eg: market for petrol. Every segment receives the
same communication message
• Niche marketing – aim to be the very best within your chosen
market segment – eg: Burberry or Alpha Romeo
What targeting strategies do you think the fortified wine market
could use?
Positioning your product
• Positioning refers to the place the product occupies in
the consumer’s mind
• Consumers build up a “position” for a product based
on what they expect and believe to be the most
pertinent features of the service/product
Positioning your product
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On a hot summer’s day
During your lunch break
In a business meeting
When you are in a bad mood
At the beach
On a cold winters night
As a birthday gift
At dinner, in a restaurant
At dinner, at home
When you want to celebrate
On a night out – pubs and clubs
At your Nan’s house
During holidays; Christmas, Easter, Bank Holidays
Positioning your product
• What would a Perception
Map of port or sherry look
like within the overall market
for that product?
• What do you want to change
the perception map to look
like within your assignment?
[B&P: p359] [Blythe, pp8587]
Recap
• Different people buy different products and services.
• By segmenting our markets - whether B2C or B2B – we make sure the
correct messages are sent to the right people
• Assignment #1 requires us to “create a target market strategy and brand
position”– an understanding of the market segments that the fortified wine
industry sits in currently and the use it makes of promotion to target those
segments will help paint the backdrop for this task.
• You might think that there currently a lack of a clearly defined STP
approach to the fortified wine industry marketing strategies or that those
that exist are outdated?