MRK317 Integrated Marketing Communications Week 1 – Chapter 2

Marianne Marando Winter 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 Marando Winter 2005 Marketing and Promotions Process Model

Marianne Marando Winter 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 Marando Winter 2005 The Target Market Process Segment the market Select a target market Determine the market positioning strategy

Marianne Marando Winter 2005 Bases for Segmenting Consumer Markets Usage, loyalty or buying responses Behaviouristic Geographic Region or City Size, Density, Climate Demographic Age, Gender, Family size and Life cycle, Race, Occupation, or Income... Lifestyle, Personality traits, Values Psychographic Benefits Specific benefits offered by a product

Marianne Marando Winter 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 Marando Winter 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 Marando Winter 2005 Marketing and Promotions Process Model

Marianne Marando Winter 2005 Push Versus Pull Information Flow Push Policy Producer Retailer Consumer Wholesaler Pull Policy Producer Wholesaler Retailer Consumer

Marianne Marando Winter 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 Marando Winter 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 Marando Winter 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 Marando Winter 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 Marando Winter 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 Marando Winter 2005 Positioning Are distinctive and different from competition Have sharp focus and personalities Are not commodities Well positioned brands:

Marianne Marando Winter 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 Marando Winter 2005 Positioning Definition Consumers ultimately position a brand based on their perceptions and experiences with the brand.

Marianne Marando Winter 2005 What is my positioning? Volvosafety Cover Girlclean, fresh, natural beauty Federal Expressreliable overnight delivery Dove Beauty Bargentle clean Michelin Tiressafety State Farm Insurancereliable friend when in need Carlsberg Beerbeer for grown ups Mojo radiotalk radio for guys Vector cerealgreat tasting fuel, for serious athletes Porkthe other white meat

Marianne Marando Winter 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 Marando Winter 2005 Positioning Statement For the Core User, Brand X is the Point of Difference

Marianne Marando Winter 2005 The “Target” Bullseye There are many levels of detail in targeting: Core User 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 Marando Winter 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 Marando Winter 2005 Exercise - Position Gatorade

Marianne Marando Winter 2005 Exercise - Position Much Music

Marianne Marando Winter 2005 Brand Positioning Strategy Options  Attributes and benefits  Price/quality  Use or application  Product user  Competitor  Repositioning  Product class

Marianne Marando Winter 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 Marando Winter 2005 Barons of Beer Video Questions to think about – 1.What is Agassiz’s market positioning strategy 2.Identify the marketing communication issues or challenges facing Agassiz. 3. What communication tools does Agassiz expect to use? Are they appropriate?

Marianne Marando Winter 2005  Before you leave today – Sign up for Hot Topic  For next week - Read Chapter 3  Assignment – for discussion next class