Transcript Advertising and Promotion

MRK317
Integrated Marketing Communications
Week 2
Marketing and Promotions Process Model
Figure 2-1
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Market Analysis
Market opportunity analysis
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Favourable demand trends
Unsatisfied customer needs and opportunities
Companies compete effectively
Competitive analysis
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Direct and indirect competition
Competitive advantage
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
The Target Market Process
Segment the market
Select a target market
Determine the market positioning strategy
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Bases for Segmenting Consumer
Markets
Geographic
Region or City
Size, Density, Climate
Demographic
Age, Gender, Family size
and Life cycle, Race,
Occupation, or Income ...
Psychographic
Lifestyle, Personality
traits, Values
Behaviouristic
Benefits
Specific benefits offered
by a product
Usage, loyalty or
buying responses
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Select a Target Market
2 steps:
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Determine how many segments to enter
Determine which segments offer the most potential
3 market coverage alternatives:
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Undifferentiated marketing
Differentiated marketing
Concentrated marketing
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Determine the Market Positioning
Strategy
The final decision of the market(s) in which firms
wish to compete, combined with the specific
elements of the marketing mix designed to fulfill
the respective needs of the market(s).
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Marketing and Promotions Process Model
Figure 2-1
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Push Versus Pull
Push Policy
Pull Policy
Producer
Producer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Information Flow
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Product Decisions
A product is a bundle of benefits or values
Product symbolism refers to what a product or
brand means to customers
Product quality, branding, packaging, and company
name contribute to consumers’ perceptions
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Product Decisions
Branding:
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Brand name communicates attributes and meaning
Advertising creates and maintains brand equity
Packaging:
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Packaging has become increasingly important
It is often the customer’s first exposure to product
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Brand examples
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Benefits of branding
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning
The art and science of fitting the product or service
to one or more segments of the broad market in
such a way as to set it meaningfully apart from
competition.
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning
Brand positioning strategy.
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Relates to the image of the product or brand relative to a
competing brand for a given competitive space as
defined by certain product market or category
characteristics.
Brand position.
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The opinion a consumer has of a brand.
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning
Well positioned brands:
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Well-Positioned Brands
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning Definition
Consumers ultimately position a brand
based on their perceptions and
experiences with the brand.
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
What is Positioning?
Positioning is the art of creating a
meaningful and distinct difference and
personality for your product or service
and consistently communicating this
difference and personality to the
consumer via all elements
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning Statement
For the Core User, Brand X is the
Point of Difference
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
The “Target” Bullseye
There are many levels of detail in targeting:
Target Market: Strategic opportunity
• User base, source of volume for brand
• Broadest definition of target
• May be same as competitors
Target Audience:
Core
User
Target
Audience
Target
Market
• Who communication is attempting to persuade
or influence
Core User:
• Distinctive persona representing imagery of
brand, used in positioning statement
• The most avid, fervent users (convention goers)
• When consumers “see” the core user, they
understand the benefits of the brand
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
The Core User
The Core User Is...
• Distinctive persona
representing imagery of
brand
• The most avid, fervent
users (convention goers)
• When consumers “see”
the core user, they
understand the benefits of
the brand
The Core User Is NOT...
• A composite description
of all users of the brand
• Not the only type of
person using the brand
• The only people the
marketer is going after
• Automatically the heavy
user
• Not the media target
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Positioning Principles
1.
When possible, be first to become
memorable
2.
Sacrifice to own something
3.
Personify the brand to create a clear and
vivid picture
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Brand Positioning Strategy Options
Attributes and benefits
Price/quality
Use or application
Product user
Competitor
Repositioning
Product class
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003
Brand Positioning Strategy Process
1. Identify competitors.
2. Assess consumers’ perceptions of competitors.
3. Determine competitors’ positions.
4. Analyze the consumers’ preferences.
5. Make the brand positioning strategy decision.
6. Monitor the position.
MRK317
Integrated Marketing Communication
Marianne Marando
Fall 2003