Marketing Chapter 7
Brand anthropomorphism
Assigning human characteristics and qualities to a brand Pillsbury Doughboy is an example
Gender Seg by Demo
Many products, from fragrances, to fashion apparel and accessories specifically to men and women Gillete - Men; SHE Beer for female
80/20 rules
20% of purchases account for 80% of the products sales. This underscores the importance of targeting heavy users, as it implies that the majority of purchases are made by a minority of the consumers. Starbuck reward system
Phase 1: Evaluate targets
A viable market segment should: have members with similar wants and needs that are different from those in other segments. be measureable in size and purchasing power. be large enough to be profitable. be reachable by marketing communications. have needs the marketer can address.
Phase 2: Develop segment profiles
After segments are identified, marketers should develop profiles or descriptions of the typical customers within a segment. Segment profiles might include demographic, location, lifestyle and product-usage characteristics.
Positioning Statement
An expression of a product's positioning that is internally developed and maintained in order to support the development of marketing communication that articulates the specific value offered by a product
Steps in Positioning decision
Analyze competitor positions, define you competitive advantage, finalize the marketing mix, evaluate response and modify as needed
Ethical/Sustainable Decisions in the Real World
Candy companies have received scrutiny for advertising directly to children. A large number of candy companies have announced that they will no longer advertise directly to children.
Geodemography
Combines demographics with geography people who live near each other share similar characteristics.
Differentiated marketing
Common practice; firm develops one or more products (and marketing strategies) for each of several customer groups. A differentiated strategy might also involve marketing a single product differently to different segments, by changing marketing communications to appeal to each targeted group. Ex: GM different products lines
Step 2 define competitive your advantage
Competitive advantages are desired because they demonstrate the brand's superiority over the competition and give consumers a reason to buy the brand. the particular competitive advantage chosen must be important to consumers, and ideally relate to the primary benefits of the product. . A more prestigious image, better quality product, superior warranty, or better customer service are just some of the competitive advantages which may be valued by consumers for many types of products. DONT LOWER PRICES
Segments Consumer Markets
Demographics, Psychographics, Behavior
Income and social classes; Seg by Demo
Distribution of wealth is of great interest to marketers bc it determines which groups have the greatest buying powers. Income- strongly connected to buying power
Concentrated Marekting
Firms that focus their efforts on a single segment; smaller firms that do not have resources or desire to be all things; One or more product to a single segment. EX: Jitter bug
Mature consumers
Focus on lifestyle factors, such as mobility
Develop segment profile examples
General Mills- social media adjusted for millenails Hamburger helper- young man, urban , millennial guy make hang burger helper, in dorm room
Place of Residence; Seg by Demo
Geographic segmentation; an approach in which marketers tailor their offerings to specific demographics areas bc people's preferences often vary depending on where they live
Generation X
Has entrepreneurial reputation, views home as an expression of individuality 1965-1978
Segmentation- Target Market
Identify and describe marketing segments. The process of dividing larger market into smaller pieces based on one or more meaningful, shared characteristic. Way of life for Consumers and B2B mrkts. Mariot segments its market by offereing sperate brands that range from value oriented to deluxe.
Generalization Marketing Age; Seg by Demo
Marketing to a member of a generation, who tend to share the same outlook, value, and priorities. EX: kids are an attractive segment for many markets--toys, influence parents by arguing; Netflix 30 out of 70 originals are children which shows long term customer value
Content Marketing
Part of ethnicity segmentation of demographics; establishes thought leadership with specific groups in the form of bylines, bliss , commenting app, videos. Ex: Buzz feed asian-americas; ten signs you grew up asians
Age: Set by Demo
Popular in demo bc diff. age groups have diff. needs and wants. -Children -Tween and teens -Generation Z; Born after 1994 digital native -Generation Y; millenials or echo boomers between 1979-1994 first to grow up online -Gneration X- 1965-1978 slackers clynical attitude -Baby Boomers1946-1964 lot of money
brand personality
Positioning strategies often try to create a distinctive image that captures a brand's character and benefits
Target Market Process
Segmentation, targeting, positioning
Social Classes
Social Classes Upper, middle, lower -many consumers buy according to the image they'd like to portray Ex; luxury car makers dev. price that is half of traditional, seeking consumers who view brand as aspiration purchase-increases sales Easy credit may lead consumers to buy cars and homes they can truly afford
Customized marketing
Tailoring specific products to individual customers Common in personal and professional services, and in industrial marketing. Docs, lawyers, hairstylist
Step 3 finalize marketing Mix
The brand's positioning strategy should come through clearly in all marketing communications, and the product itself must provide the benefits promised at a price the consumer is willing to pay. Finally, the product must be made available in locations where consumers shop.
Step 1 Analyze competitor positions
This is important, because if a competitive brand is already strongly associated with a particular benefit or advantage, it will be difficult to convince consumers to perceive your brand as being superior with respect to the same benefit or advantage, unless you have compelling proof. Indirect competitors provide similar benefits but often compete in different product categories. Ex; Soda, all beverages
Buying Power
a concept in segmentation that can help marketers determine how to better match diff products and version of products to diff. consumers groups based on an understanding of what discretionary and non disc allocation of funds they are able to make
Micromarekting
ability to identify and target very small geographic segments that sometimes amount to individuals
Retro brands
are products which marketers devote resources towards, and the added boost to the marketing budget helps build popularity for the brand again. For example, a campaign for Kool-Aid might appeal to consumers' nostalgia with copy such as, "Remember when your mother served you Kool-Aid {blah, blah, blah}. Why not share that same great experience with your children?"
Baby Bomers
born between 1946 and 1964; Key segment due to their size and earnings, willing to invest money, time, and energy to maintain youthful image
Segmentation by Behavior
categorizes consumers based upon how they act toward, feel about, or use a product. User status, 80/20 rule, usage rate , long tail concept dive markets into users and non users, and attempt to reward current customers, while winning over new ones
Economies of Scale
cheaper to develop one product or one adv. campaign than choose several targets and create separate product or message for each
Geographic Information System (GIS)
combines a geographic map with digitally stored data about the consumers in a particular geographic way. Market information by geographic location isomer convient to use in market planning and decision making
Step 4: Evaluate responses and modify as needed
conduct or commission market research to ascertain whether or not consumers are actually perceiving the product in the same way that marketers intended. If not, the marketing mix needs to be adapted or the positioning strategy needs to be changed. Over time, even successfully positioned products may need to change their positioning strategy.
Ethnicity; Seg by Demo
consumers national origin is often a strong indicator of his or her preferences for specific magazines, tv shows, food, apparel, and leisure activities; African americans, asians, hispanics are the largest ethnic groups
Geotargeting
determining the geographic location of a website visitor and delivering diff. content to that visitor based on his or her location underscores much paid search advertising in google and other search engines. EX; campari america targeted customers 21-34 while they were in neighborhoods with many bars during times when customer drinks, use $5 promotion for lyft
Target Market Segment
divide the total market into different segments based on customer's characteristics, select one or more segments, and develop a product to meet the needs of those specific segments
Parallel Product
each appeal to a different sex. Pink and blue diapers, men and women's razors, and men and women's Nikes are just a few examples.
Repositioning
establishes a new position in response to market changes. Commonly used to change the brand image Repositioning can breathe life into "retro" brands.Ex; Arm and hammer
Phases of Targeting
evaluate market segments, develop segment profiles, choose a targeting strategy
Mass Customization
extreme case, which involves modifying a basic product to meet the needs and tastes of an individual consumer. Ex: 3D printer, levi curve id
Family Life Cycle; Seg by Demo
family needs and expenditure change over time. As families move through stages, different product categories ascend or descend in importance. Even if importance is constant, needs within category may change (Furniture). As family income rise purchase more expensive items. Bachelors, couples, family, empty nesters
Segments B2B Markets
helps b2b companies understand needs and characteristics of potential customers . Larger marketer into manageable pieces. Firms can be categorized based on: Organizational demographics, product technologies used, and user status.
Step 2-Targeting
in which marketers evaluate the attractiveness each potential segment and decide upon which groups of customers they will invest marketing resources to try to turn them into customers. Characterized by phases
Cultural Diversity
management practice that actively seeks to include people of all types in an org's employees, customer, suppliers, and distribution channel partner value chain. Cultural diversity increasing in work place sign of growth in minorities
downshopping
meaning that higher income consumers are more likely to shop at stores like K-Mart and Walmart
Usage Rate
measurement that reflects the quantity purchased or frequency of use among consumers of a particular product or service. EX; entire travel and hospitality industry; american airlines advantage program, mariott rewards. High-use segment incredibly profitable over the long run
Organizational Demographics
orgs-specific dimensions that marketers uses to describe, classify and organize diff. orgs for the purpose of segmenting B2B markets. Includes size of the firm (in sales or number of employees); number of facilities, whether they are a domestic or international firm, among others.
Market Fragmentation
people's diverse backgrounds and interest naturally divide them into numerous groups with distinct needs and wants, bc of diversity the same good may not appeal to everyone. Fueled by technological and cultural advances EX; higher education- public, private, online
VALS
psychographic segmentation system that divides IS by their economic resources. Product of SBI's strategic Bus. insights -- stagey planning EX: Harley-Davidson's customers include thrill-seekers as well as weekend warriors who have an affinity for counterculture. Even doctors and lawyers may be members of the Harley Owners groups (HOGS). Understanding psychographics is important; while the average age of Harley riders has risen to about 46, older than the industry average of 38, Harley-Davidson knows better than to emphasis safety features or conservatism in their advertising
Positioning- Step 3
s the process by which marketers develop a marketing strategy to influence how a particular market segment perceives a good or service in comparison to the competition.
Segment by demographics
statistics that measure observable aspects of a population, including size, age gender, ethic group, income, education, occupation and family structure
Metrosexual
straight urban male who is kneel interested in fashion, home design, gourmet cooking, and personal care.
Long tail
takes the opposite approach to segmentation. This approach is based on the idea that firms can make money by selling small amounts of items that only a few people want (e.g., targeting small volume segments), provided that they sell enough different items. Amazon and Netflix
PRIZM
targeting system, provides detailed segment profiles by zip code based on geodemography and lifestyle. "All birds flock together"
Undifferentiated Marketing
the marketer assumes that people have similar needs, and an attempt is made to appeal to a broad spectrum of people. An example of a firm that follows a somewhat undifferentiated targeting strategy is Wal-Mart. Efficiency occurs because of enhanced economies of scale
Phase 3- Choose marketing Strategy
undifferentiated, differentiated, concentrated, customize marketing
Segment by Psychographics
uses psychological, sociological and anthropological factors to categorize customers. Shared AIOs- activities interest and opinions
Usage Occasions
when the costumer uses the product the most. Associated with holidays, time of day, occasions , bus. functions, or casual get together. Ex. Ruths Steakhouse- special occasions, birthdays; Baltimore estate; increased attendance during annual Xmas celebration
