MRK317 Integrated Marketing Communications Week 2

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Marketing and Promotions Process Model Figure 2-1

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication The Target Market Process Segment the market Select a target market Determine the market positioning strategy

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication Marketing and Promotions Process Model Figure 2-1

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Push Versus Pull Information Flow Push Policy Producer Retailer Consumer Wholesaler Pull Policy Producer Wholesaler Retailer Consumer

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication Brand examples

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Benefits of branding

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication Positioning Well positioned brands:

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Well-Positioned Brands

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Positioning Definition Consumers ultimately position a brand based on their perceptions and experiences with the brand.

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication Positioning Statement For the Core User, Brand X is the Point of Difference

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication 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 Fall 2003 MRK317 Integrated Marketing Communication 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

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication Brand Positioning Strategy Options Attributes and benefits Price/quality Use or application Product user Competitor Repositioning Product class

Marianne Marando Fall 2003 MRK317 Integrated Marketing Communication 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.