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MRK317Integrated Marketing
Communications
Week 1 – Chapter 2
Marianne MarandoWinter 2005
Review from last class …
What are the marketing communication elements available to us?
What is IMC? Why are companies shifting to an IMC
approach? What are the different classifications
of advertising?
Marianne MarandoWinter 2005
Marketing and Promotions Process Model
Marianne MarandoWinter 2005
Market Analysis Market opportunity analysis
Favourable demand trends Unsatisfied customer needs and opportunities Companies compete effectively
Competitive analysis Direct and indirect competition Competitive advantage
Marianne MarandoWinter 2005
The Target Market Process
Segment the marketSegment the market
Select a target marketSelect a target market
Determine the market positioning strategyDetermine the market positioning strategy
Marianne MarandoWinter 2005
Bases for Segmenting Consumer Markets
Usage, loyalty or buying responses
Behaviouristic
GeographicRegion or City
Size, Density, Climate
DemographicAge, Gender, Family size and Life cycle, Race, Occupation, or Income ...
Lifestyle, Personality traits, Values
Psychographic
BenefitsSpecific benefits offered by a product
Marianne MarandoWinter 2005
Select a Target Market
2 steps: Determine how many segments to enter Determine which segments offer the most potential
3 market coverage alternatives: Undifferentiated marketing Differentiated marketing Concentrated marketing
Marianne MarandoWinter 2005
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).
Marianne MarandoWinter 2005
Marketing and Promotions Process Model
Marianne MarandoWinter 2005
Push Versus Pull
Information Flow
Push PolicyPush Policy
ProducerProducer
RetailerRetailer
ConsumerConsumer
WholesalerWholesaler
Pull PolicyPull Policy
ProducerProducer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Marianne MarandoWinter 2005
Branding: Brand name communicates attributes and meaning Advertising creates and maintains brand equity
Packaging: Packaging has become increasingly important It is often the customer’s first exposure to product
Product Decisions
Marianne MarandoWinter 2005
What is a brand? According to some experts …
“A promise that is publicly conveyed to consumers by everything they can observe: the brand name and logo, advertising, the way they are treated by representatives of the brand, signage etc”
“A product with personality” “A name, logo and/or symbol that evokes,
in existing and potential customers a perception of ‘added value’ for which they will pay a premium price”
Marianne MarandoWinter 2005
Benefits of branding
A good brand name communicates the point of difference (USP) and highlights the distinctive value added.
Branding allows for the creation and development of an image.
Brand loyalty Brand equity
Marianne MarandoWinter 2005
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.
Marianne MarandoWinter 2005
Positioning
Brand positioning strategy. 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. The opinion a consumer has of a brand.
Marianne MarandoWinter 2005
Positioning
• Are distinctive and different from competition
• Have sharp focus and personalities
• Are not commodities
Well positioned brands:
Marianne MarandoWinter 2005
Well-Positioned Brands
• Communicate a distinctive benefit that differentiates them
• Focus and sacrifice. They don’t try to be all things to all people
• Develop expertise that serves as a magnet to attract others
Marianne MarandoWinter 2005
Positioning Definition
Consumers ultimately position a brand based on their perceptions and experiences with the brand.
Marianne MarandoWinter 2005
What is my positioning?
Volvo safety
Cover Girl clean, fresh, natural beauty
Federal Express reliable overnight delivery
Dove Beauty Bar gentle clean
Michelin Tires safety
State Farm Insurance reliable friend when in need
Carlsberg Beer beer for grown ups
Mojo radio talk radio for guys
Vector cereal great tasting fuel, for serious athletes
Pork the other white meat
Marianne MarandoWinter 2005
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
Marianne MarandoWinter 2005
Positioning Statement
For the Core User, Brand X is thePoint of Difference
Marianne MarandoWinter 2005
The “Target” Bullseye
There are many levels of detail in targeting:
CoreUser
Target Audience
Target Market
Target Market: Strategic opportunity
• User base, source of volume for brand
• Broadest definition of target
• May be same as competitors
Target Audience:
• 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
Marianne MarandoWinter 2005
The Core User
• 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... 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
Marianne MarandoWinter 2005
Exercise - Position Gatorade
Marianne MarandoWinter 2005
Exercise - Position Much Music
Marianne MarandoWinter 2005
Brand Positioning Strategy Options
Attributes and benefits
Price/quality
Use or application
Product user
Competitor
Repositioning
Product class
Marianne MarandoWinter 2005
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.
Marianne MarandoWinter 2005
Barons of Beer Video
Questions to think about –1. What is Agassiz’s market positioning
strategy2. Identify the marketing communication
issues or challenges facing Agassiz.3. What communication tools does
Agassiz expect to use? Are they appropriate?
Marianne MarandoWinter 2005
Before you leave today – Sign up for Hot Topic
For next week - Read Chapter 3 Assignment – for discussion next class