4550: Communication Objectives Dr. Campbell Tuesday 1/18/05

Plan for the Day Introductions The Overall Planning Process –(where marcom plannning fits) Analyzing and Developing Objectives –Segmenting –Targeting –Positioning Positioning Statement

The Overall Planning Process Corporate Strategy

The Overall Planning Process Corporate Strategy Marketing Plan/Objectives

The Overall Planning Process Corporate Strategy Marketing Plan/Objectives Communication Objectives

Setting Communication Objectives Analyzing for Objectives –Segmenting –Targeting –Positioning Determining Objectives (next session) –Characteristics of “good” objectives

Segmentation The process of identifying smaller, relatively homogenous groups of customers

Segmentation The process of identifying smaller, relatively homogenous groups of customers that 1) have common needs and 2) will respond similarly to marketing actions

Characteristics for Successful Segments Distinct Viable/Substantial Operational –Identifiable –Accessible/Actionable

Targeting The process of identifying the segment(s) towards which to direct marketing efforts.

Bases for Segmentation & Targeting Customer Characteristics –Geographic –Demographic –Psychographic Buying Behavior –Benefits sought –Behavioristic Usage Purchase behavior –Awareness and intentions

More on Usage Behavior: User Type Non-users Tried, rejected Never tried Users Brand loyals Brand switchers Other brand loyals

Considering Potential Index number can be an indicator of the potential of a target market What does an index over 100 mean? Index = % of users in a segment % of population in the same segment X 100

Considering Potential, continued… Brand Index Category Index Index = % of brand users in a segment % of segment in total population X 100 Index = % of product category users in segment % of segment in total population X 100

Why Segment and Target? Consumers are becoming increasingly diverse with different wants and preferences. Segmenting and targeting allows better satisfaction of customers. Segmenting and targeting allows more effective communication with specific targets. Less waste

Positioning: Definition  the process of understanding the market structure as perceived by the customer in order to create a marketing offering that is meaningfully different from competition

Positioning: Three Steps Define Frame of Reference –Target market –Relevant competition Measure Current Brand Image –Own brand –Competing brands Determine Desired Brand Image –Points-of-Parity associations –Points-of-Difference associations

Positioning Statement Target Segment our product is the brand of __________, Product Category that provides_____________________. Most Important Benefits/Reasons to buy Relative to_______________________, we offer_________________________. Primary Competitor(s) Key Differentiators For ______________,

Positioning Statement: Honda Element Target Segment our product is the brand of __________, Product Category that provides_____________________. Most Important Benefits/Reasons to buy Relative to_______________________, we offer_________________________. Primary Competitor(s) Key Differentiators For ______________, “Gen Y” males vehicle A “dorm room on wheels” for adventures and for hanging out “ Pick-ups, SUVs, and sedans A more comfortable drive, lots of room for your stuff and your friends, and great adaptability and “cleanability”

Positioning Statement: Club Disney Target Segment our product is the brand of __________, Product Category that provides_____________________. Most Important Benefits/Reasons to buy Relative to_______________________, we offer_________________________. Primary Competitor(s) Key Differentiators For ______________,

Conclusion Segmenting the market and choosing one or more specific targets is necessary in order to develop a product positioning that is really “right.” Positioning is the basis of the associations that customers have for the brand (relative to other brands). The positioning statement is a very useful tool that synthesizes the most important decisions: who is the target, what is the market, who is the competition, and what are the attributes and benefits that we need to deliver?

Questions?

Next Session… Read Ch. 7, pp We’ll continue discussion of Positioning & Communication Strategy

Never, Never, Never Quit. Winston Churchill

Positioning Statement: Blue Sky West Target Segment our product is the brand of __________, Product Category that provides_____________________. Most Important Benefits/Reasons to buy Relative to_______________________, we offer_________________________. Primary Competitor(s) Key Differentiators For ______________, affluent skiers who seek new experiences Guided outdoor service A premium adventure travel experience that is exhilarating & refined Small, unsophisticated travel services or ski resorts, e.g., Vail, Aspen The most challenging and pristine terrain, the most professional guides, and highest customer service and safety