mrk317 integrated marketing communications week 1 – chapter 2

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?


Marketing and Promotions Process Model


Market Analysis Market opportunity analysis

Favourable demand trends Unsatisfied customer needs and opportunities Companies compete effectively

Competitive analysis Direct and indirect competition Competitive advantage


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


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


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


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).


Marketing and Promotions Process Model


Push Versus Pull

Information Flow

Push PolicyPush Policy

ProducerProducer

RetailerRetailer

ConsumerConsumer

WholesalerWholesaler

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer


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


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”


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


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.


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.


Positioning

• Are distinctive and different from competition

• Have sharp focus and personalities

• Are not commodities

Well positioned brands:


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


Positioning Definition

Consumers ultimately position a brand based on their perceptions and experiences with the brand.


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


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


Positioning Statement

For the Core User, Brand X is thePoint of Difference


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


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


Exercise - Position Gatorade


Exercise - Position Much Music


Brand Positioning Strategy Options

Attributes and benefits

Price/quality

Use or application

Product user

Competitor

Repositioning

Product class


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.


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?


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mrk317 integrated marketing communications week 1 – chapter 2

Documents

competing brand

brand relative

brand equitypackaging

certain product market

broad market

target market processsegment

marketing mix

distinctive value