Retail Promotions: Chapter 4 & 5

Next, the competitive analysis includes gathering secondary data about those companies The first items to look at are statements competitors make about themselves. These can be found in:

-Advertisements -Promotional materials -Annual Reports -Web Sites By collecting as much information as possible about competitors, including messages to customers, the marketing team can respond more effectively

Tips for marketing to women

-Be helpful. Focus messages on how the brand can improve a woman's life -Engage them. Women are excellent brand ambassadors, so involve them with the brand -Focus on practical, not trivial -Tell a story that will resonate with females -Provide details -Be positive. Don't focus on female insecurities, focus on how the brand will help women

Methods of Segmenting Consumer Markets

-Demographics -Psychographics -Generations -Geographic -Geodemographics -Benefits -Usage

-For a market segment to be considered viable: It should pass the following Tests:

1. The individuals or business within the market segment should be similar in nature, having the same needs, attitudes, interests, and opinions -This means that person's or businesses within the segment are HOMOGENOUS 2. The market segment differs from the population as a whole. Segments are distinct from other segments and from the general population 3. The Market Segment must be large enough to be financially viable to target with a separate marketing campaign 4. The market segment must be reachable through some type of media or marketing communications method

SUMMARY FOR CHAP 4

A marketing communication planning program begins with the analysis of the organization's context, including : customers, competitors, and communications -When the analysis is complete, target markets may be selected in conjunction with product positioning tactics

Infants to 3 Year olds

A study by the Campaign for Commercial Free Childhood revealed that by 6 months of age, babies are forming mental images of brand logos and mascots Other studies indicate that by the time children reach 3 years of age, they recognize as many as 100 brand images -Reaching babies is easier now than ever before, primarily because of technology and parent use of technology

Every domestic and foreign competitor should be identified

After listing the competing firms, an analysis can be conducted using primary research -In retailing: this includes visiting competing stores to study merchandise displays and observing the stores employees as they interact with customers Members of the marketing department talk to vendors and suppliers that have relationships with the competition, as well as wholesalers, distributers, and agents For business other than retail, marketers can contact salespeople in the field to obtain additional information about the competition

If Ralph Lauren's marketing team is trying to determine if the brand will appeal to a group that is rich, elite, and distinct, they are likely to use ____________.

a sociological approach assessing social class

SUMMARY FOR CHAP 5

Effective Advertising requires matching the mess age with the appropriate media -Effective advertising occurs when the firm has a well-defined mission statement and targets its energies in the direction of creating goods or services to meet the needs of a target market

Paige Premium

Encourages women to love their bodies and places a card in each pair of jeans that says "I want you to love your body. Feel comfortable in your skin. Feel comfortable in your jeans. Thanks for believing in our product"

Customers

Every product or service meets the needs of a set of customers -When conducting an analysis of customers for the purposes of IMC planning, the marketing department examines current customers, former customers, potential new customers, and competitor's customers

Advertising is separate from the traditional promotions mix because it focuses on the end user. True False

False

Firms should always hire a full-service external advertising agency because the highly specialized agencies never can perform well to match the firms' marketing objectives. True False

False

It should be assumed that there is a direct relationship between expenditures on advertising and subsequent sales revenues. True False

False

Providing information in an advertisement is most useful in the business-to-business sector for low-involvement purchase decisions. True False

False

An analysis of current customers helps to:

Identify the type of message that will effectively reach this group. -Discovering how current customers think, constitutes the first step -This includes an assessment of what they buy, when, why, and where, and how they evaluate products, both while making purchases and upon completion of those purchases In essence, the marketing team finds out what works for this group -The consumer and business buying behavior process presented in the previous chapter may serve as a guide

Advertising management constitutes an important ingredient

In the success of an integrated marketing communications program A quality ad that garners the attention of people in the target audience, makes a key memorable point, and moves buyers to action is difficult to prepare At the same time, company officials and market account executives know that designing effective ads with tangible results is a challenging yet necessary activity -Every step of the process should be examined carefully to help the company achieve its short and long term marketing goals

A car company made an advertisement that appeals sufficient inner space, reasonable price, and fuel efficiency. This type of advertising is called:

Left Brain Advertising

The following are types of demographic segmentation variables, EXCEPT: a. age b. gender c. lifestyles Correct d. income

Lifestyles

Market Segmentation

Market researchers spend considerable resources and time working to discover viable market segments -Consists of identifying specific consumer and business groups on their needs, attitudes, and interests

The 3rd task involves studying what OTHER PEOPLE say about the competition

Marketers often read trade journals The library might yield additional news articles, and press releases about competitor activities -The marketing team also tries to discern how competing companies view the organizations This provides a sense of how others view a company in comparison with its competition An analysis of the competition assists the marketing manager in understanding the company and product's situation relative to the competition -When the situation appears to be viable, the company can build on this strength -When the company is incorrectly perceived, or encounters a disadvantage, marketing efforts are made to reposition the product or brand

Former Customers

Marketers seek out customers who no longer purchase the company's products -Understanding why they defected may reveal valuable information, including whether a competitors product enticed them away or if it was a marketing tactics such as advertising, consumer promotions, or personal selling that made the difference Then, the marketing team can identify the methods to reconnect with former customers

The creative, account executive, and company should agree about which media type to use in a campaign

Media are selected based on costs, types of messages, target market characteristics, and other criteria -The creatives then complete the final elements of the ad, and the campaign is prepared

Demographics: Gender

Men and women purchase different products, -buy similar products with different features (deodorants) -desire products for dissimilar reasons (stereos, tvs), -and buy the same products after being influenced by different kinds of appeals through different media

If a company wanted to make sure an integrated approach is used in marketing communications, then the best approach would be to:

hire a full-service agency

market Segmentation:

identifies sets of businesses or consumer groups with distinct characteristics -Segments must be clearly different, large enough to support a marketing campaign, and reachable through some type of media

A flighting schedule of advertising:

involves advertising during certain times of the year with no advertising at other times

Communications An analysis of the company's context by examining communications constitutes the third step

it includes the firm's current communications at all levels and in all channels -Marketers study messages to current and potential customers, employees, and channel members to find out what works and what does not work A further examination focuses on the communications used in the industry and competing firms - This provides an important backdrop when making decisions about the IMC components

Celestial Seasonings focuses on the healthy aspect of its green tea. This is an example of product positioning by:

product attribute

Males who buy items because they reflect "masculinity" may be targeted using which segmentation approach?

psychographic

A Joan Ganz Cooney Center indicates

that 80% of children age 5 and under us the internet and weekly, and 60% of children 3 and younger watch online videos -In 2010 the average age children could have their own cell phone was 13 years old -Today, 1 in 4 parents allow children to interact on a mobile phone or ipad by the age of 2 -Infants now have their own TV show, called BabyFirstTV.com Some content is free, other content charges a fee Despite criticisms from parental and other watchdog groups, advertising to children, (even babies) generates big business -If brand loyalty can be obtained at a young age, a company might have a customer for an entire lifetime

Marketing managers specify:

the company's consumer and business market segments -All other promotions opportunity analysis process are tied to the identification of key customers

Marketing objectives lead to the development:

Of communications objectives that are matched to the product, target market, and product positioning -These objectives form the basis for developing communications budgets and selecting IMC components for actual marketing campaigns

The furniture industry uses income segmentation to create products and advertisements

One demographic group that has received attention recently has been the "exhausted affluent" -Individuals in this group tend to generate household incomes from $100,000 to $150,000 -They are affluent, but identify with the working class -They bridge the gap between "the haves and the have nots" In furniture they desire: style and quality rather than something overly fancy -Members of this segment want furniture to be right for them, that lets them stand out, but not so much that it says "I've been too extravagant and spend money foolishly" -In contrast, many furniture sellers focus on price, appealing to lower income consumers, while another group offers high end furniture to the wealthy

Segments based on Demographics

One primary method of segmentation employs DEMOGRAPHICS: or population characteristics -Typically demographic variables include: -Gender -Age -Education -Income -Ethnicity Companies create goods and services to meet the needs of individual demographic segments

Potential New Customers

When seeking out potential new customers, the marketing team determines which customers the firm should seek to win -They may form a new Target Market or Target Markets Example: The advertisement for Philadelphia Dark Chocolate Cream Cheese shown in this section was based on the observation that chocolate lovers could be persuaded to enjoy cream cheese -The advertising department creates messages and utilizes media that matches this group's interests and preferences

Target Markets

When the analysis of the company's context has been completed, the marketing group moves on to delineate the target markets to be served as wells as the company's approach to product positioning

A recent study shows that women control 66% or $12 trillion of the world's annual consumer spending

Women now influence or make purchases in product categories that were traditionally controlled by men In the US: - 96% of women are involved in purchasing high priced electronics -90% of women deal with financial advisors -80% of women buy and sell stocks to make money -70% of women are their household's primary "accountant"

Within the advertising agency, the account manager performs the functions of soliciting accounts, finalizing contracts, and selecting creatives to prepare advertising campaigns

Account executives are go-betweens who mediate between the agency and the client company -Account executives also help client organizations refine IMC messages and programs

Office Max

Has created a fashion brand of office products targeted specially at women

Companies that have done well marketing to women

Olay Paige Premium Office Max

When the Edgewater Hotel & Resort develops a marketing campaign aimed to attract business customers, institutions, and organizations that need a location to hold 2 to 4 day conferences, the type of segmentation approach being used was:

Product Usage

Product positioning

Represents the perceptions in consumer minds of the nature of a company and its products relative to the competition Positioning may be based on product attributes, competitors, product uses, or applications, the price-quality relationship, product class, or through the association with a cultural symbol

The IMC Planning Context Developing an integrated marketing communications plan requires:

Requires the analysis of the three C's -Customers -Competitors -Communications Understand the firm's current situation and context within the industry makes it possible to specify target markets and positioning strategies

Other marketing programs target men

Researchers have discovered that men are shopping more, whether for their own clothes, or for groceries -To reach male shoppers, marketers seek to understand how males differ from females -Males tend to focus on PRODUCT PERFORMANCE- Dyson has done well reaching males with this approach by focusing on the powerful suction and the design that creates it

Globally integrated marketing communications

are guided by the IMC planning process National Differences: Cultural concerns, language issues, and other challenges must be viewed in light of the target markets an individual company intends to serve

The starting point that is studied in relation to the degree of change following a promotional campaign is called a:

benchmark measure

When the advertising campaign objective is to increase brand awareness, the advertisement is likely to:

display the name of the brand prominently in the center of the ad

Consumer groups:

that can be segmented include those identified by: -Demographics: including gender, age, income and ethnicity Markets can also be identified using psychographic, generational, and geographic information together Other ways to categorize consumers are by the benefits they receive from goods or services and by the ways they use products

Competitors Customers

An analysis of the process that lead the competitor's customers to choose the competitions offering assists the marketing team in modifying the company's approach and/or its products to better meet their needs -Alternatively, company marketers may include that members of this group cannot be persuaded to switch or are not attractive because of purchase patterns or other factors -Convincing them to switch may be too costly, especially when they are brand loyal

Creatives prepare advertisements:

And are guided by the creative brief The document spells out: the objective of the promotional campaign, the target audience, the message theme, the support, and the constraints The message theme: Presents an outline of the key ideas that the program seeks to convey -The constraints include logos, warranties, disclaimers, or legal statements that are part of various advertisements

Olay advertises skin care products for all women

And tells women that the company wants to help them enjoy beautiful skin

A communications analysis provides information that:

Assists marketing personnel and advertising creatives in developing marketing messages and selecting the best IMC components -Marketing communications materials: including ads, blogs, sponsorships, and others are designed to integrate what is known about the firm's customers, target markets, competitors, and the product's position with a consistent message

Business to Business Segmentation can be accomplished by targeting:

Business customers by industry, business type, the size of the company, geographic location, usage, and customer-value calculations

Gender presents the opportunity to match a product with a large category of individuals

Careful thought should be given as to whether it should be aimed at only one sex, because gender roles have shifted over the past half century

Income

Closely related to educational attainment is an individuals or families income Lower income homes: Focus primarily on necesstities, such as food, clothing, and housing needs, however, members of these households also purchase cell phones, automobiles, and other more costly products As income increases: Household members can purchase from a greater selection of expensive items -The products, or SUNDRY items: include vacations, more expensive cars, more fashionable clothes, and meals at higher end restaurants -They are purchased occasionally by those who can afford them, but not on a routine basis Luxury items: Yachts and private plains target the wealthy

Market Segment

Consists of a set of businesses or group of individual consumers with distinct characteristics

Target Markets Exist in TWO areas:

Consumer Markets and Business to Business -Which may be termed market segments

Market Segmentation by Consumer Groups

Consumers: Or end users, are often the primary target market for a firm's offerings -Effective IMC programs identify sets of consumers who are potential buyers

Advertising Management Begins with

Deciding whether an in-house department should develop ads or whether an external advertising agency should be retained

Age marketing programs often concentrate on:

Persons of a certain age, such as children, young-adults, middle-adults, and senior citizens, -Age can be combined with other demographic, such as gender -Consequently older women may be primary targets for specific types of vitamins and medical products, such as those that combat osteoporosis -Young working women with children are more likely to notice advertisements for conveniences - including ready made foods and snacks and even quick oil and lube facilities -Sexual dysfunction products and other medicines target middle-aged and older men

Demographics

Population characteristics

Competitors

THE SECOND PHASE: Of an analysis of the company's context involves examining competitors -The company's marketing professionals study the methods and strategies competitors employ to interact with consumers -Consumers integrate information from many sources -It helps to know what potential customers see, hear, and read about the competition

In terms of ad spending by media in the United States, the largest category is:

TV

Ethnic Groups

The US is becoming increasingly diverse. Ethnic minorities now represent $2.5 trillion in buying power -This increase represents both an opportunity and a threat: an opportunity: for companies able to adapt their messages to other cultures and heritages -It threatens: those that do not -70% of ethnic minorities state that ethnicity constitutes a significant part of their personal identities

When choosing an external agency:

The company's leaders establish clear steps to lead the selection of optimal agency The steps include: spelling out and prioritizing organizational goals, establishing quality selection criteria, screening firms based on those criteria, requesting references from firms that are finalists, performing background checks, requesting creative pitches, making on site visits to get to know those in the agencies, and offering and finalizing a contract

Current Customers

The easiest group to study will be the current customers. However, the other 3 groups are of equal, if not greater importance members of the other groups may think in other ways or make decisions differently from a firm's current customers -They might also apply other standards to evaluate products and advertisements

Common selection criteria used in selecting agencies includes:

The size of the agency matching the size of he company, relevant experience, no conflicts of interest, production capabilities, quality creative capabilities, suitable media purchasing skills, other services that can be rendered as needed, client retention rates, and a good chemistry between those in the company and those in the agency Carefully utilizing these criteria increases the odds of a successful match between the company, and the agency will exist, which increases the chance of success

Men like doing things that they can do well, and dislike things they cannot

They do not enjoy browsing, and instead prefer looking for specific information -Amazon.com meets both of these needs by helping men purchase books and music online -Consumer lists, reviews, and suggestions provide concise information that males desire in order to feel confident about their purchases -Men prefer products that reflect their status in the world and demonstrate "I have a good taste" - as result, they tend to purchase well-known brand names and look for other indicators of quality

Mothers represent a group of women that have been increasingly attractive to marketers

This target segment is the fastest growing buyers of iphones -They tune in more often and for longer periods of time to media websites such as Pandora -They are more likely to share photos and news on facebook via a smartphone as well as a computer -Moms represent 20% of online users and an even higher percentage of mobile device users -They are the biggest Web spenders either directly through a mobile app or researching a product online then purchasing it later in a retail store -Many moms now use smart phones to access product and brand information rather than calling a relative or friend

In the past, the focus of orthodontists was on adolescents

Today, a large number of adults are getting braces, or other teeth straightening treatments -Since 2010, the number of adults seeking these types of procedures increased by 58% -The increase can partially be attributed to a national advertising campaign utilizing print, radio, and online ads focused on adults One advertisement features a woman saying that straightening her teeth gave her confidence -Another says that her pearly white teeth has allowed her to dat again -And a man in his 30s states "It's never too late" According to Micheal B Rodgers, the President of the American Association of Orthodontics, "we're trying to emphasize the adult market and show how good they're going to look and how much self-confidence it is going to create"

A communications analysis involves looking at communications by the company itself, by competitors, and industry communications. True False

True

A recent trend in advertising is to involve media companies (media agencies) at an earlier stage in the campaign design process. True False

True

Communication objectives are derived from marketing objectives. True False

True

Developing an integrated marketing communications plan requires the analysis of the three C's: customers, competitors, and communications. True False

True