The Marketing PlanTarget Marketing

Segmentation

Chapters 4 and 7

Major Components

Situation AnalysisProblems and OpportunitiesMarketing ObjectivesMarketing Strategies Implementation Evaluation

The Situational Analysis

Factual Statement 2 sections

– Internal Considerations

Product

Promotion Distribution Price

Situational Analysis

– External ConsiderationsMarketplaceCompetitionConsumersDemandEnvironment

Problems and Opportunities

Identification Possible After SAProblems May be Opportunities in

DisguisePromotion only Solves

Communication Problems

Setting Objectives

Must be Specific and MeasurablePrimary Marketing Objectives

– Sales, Market Share, VolumeSecondary Objectives

– 4 P’s

Marketing Strategies

Investigate Segmentation Opportunities Determine Target Market Develop the Marketing Mix

– Product Strategies Branding Packaging

– Distribution Intensity of Distribution

– Promotion Consumer or trade oriented Promotions mix

– Price Competitive, skimming, penetration

Marketing Segmentation

Identifying groups of people with shared characteristics within the broad markets for consumer or business products

aggregating these groups into larger segments according to their mutual interest in the product’s utility

Steps to Segment

Identify the needs structure of the consumer population

Group the customers into homogeneous segments

Id factors that are correlated with the segments (segmentation variables)

Select your target market Develop your positioning strategy

Segmentation Variables

Demographics– age, income, sex, family

size

Geographics– regions, climate, density

Behavioristic – benefits sought, usage

rates, purchase occasion, psychographics

Target Markets

these are the aggregate segments that you will direct your marketing efforts towards

You’re prospects!

The Target Market Decision

Undifferentiated MarketingDifferentiated MarketingFocused (Concentrated

Marketing)

How Can the PLC be of Use in Target Marketing?

Influences the type of advertising that may be most appropriate

Primary vs. Selective Demand Stimulation

Introduction - education the focus

PLC (cont’d)

Growth Stage - turn the focus to the individual brand and maximize market share before competition becomes more aggressive

Maturity Stage - begin full focus on selective demand stimulation as competition increases and weaker competitors begin to exit the market

Adoption Process

Awareness InterestEvaluationTrialAdoption/Rejection

5 Categories of Adopters/Diffusion Process

Innovators - 3% Early Adopters -

13% Early Majority - 34% Late Majority - 34% Laggards - 16%

0

5

10

15

20

25

30

35

Innov L. Major

Percentage

Positioning

Positioning by AttributePositioning by Price and QualityPositioning by Use or ApplicationPositioning by Product UserBest Strategic Tool

– Perceptual Maps!

Product Differentiation

Perceptible Differences - unique taste, features, quality

Hidden Differences - ingredients (i.e., natural vs. artificial chemicals, use of recyclables, etc.)

Induced Differences - branding the #1 tool!

Branding

the combination of names words, symbols or design that identifies the product and its source and distinguishes it from the competition

physical and perceptual dimension

Benefits of Branding

Distinguish the product and firm Brand Loyalty

– % of consumers remaining loyal to one brand is declining

Brand Concept Management (BCM)– Introduction– Fortification – Elaboration (Family Branding)

Product PackagingFive Considerations in Package Design

Identification - visibility and legibilityProduct Protection and ConvenienceConsumer Appeal - color, size,

materialEconomy - increases costs but offset

with consumer demand changes

Advertising and Distribution

Direct Distribution - Network Marketing Indirect Distribution - resellers and channel

members to consider Three Primary Distribution Strategies

– Intensive– Selective– Exclusive

Marketing Strategies

Promotions– Promotions Mix– Co-op Strategies

IMC– seek synergy

Implementation

SchedulingBudgeting

Evaluation

Compare Against Quantifiable Objectives

Advertising Plan

natural outgrowth of the marketing plan outline of the actions, approaches and

tactics that will be used to meet advertising objectives

often bounded by budgetary considerations

Advertising Pyramid

Action Desire Conviction Comprehension Awareness

Advertising Objectives

should support marketing objectives

deal with awareness, recall, likeability, recognition, and sometimes - action!

Advertising Strategy

our plan of action!utilizes the creative mix to mobilize

the forces!target audience product conceptcommunications mediaadvertising message

Product Concept How will the ad present the

product? In terms of:

– Positioning– Differentiation– Life Cycle– Branding, packaging,

classification– Thinking or feeling?

Creative Mix

target audience - the people you want to speak to and address the message to

– Primary and Secondary

product concept - the bundle of values or benefits

– may be psychological or utilitarian

communications message – TV, radio, magazines, newspaper

advertising message - combo of art and copy and production to form message

Media Planning

Define Media Objectives– Reach, frequency, GRP, scheduling

Profile audiences/readershipMatch the audiences to the TMEvaluate economics of TM vs. TANegotiate purchases

Advertising Message

Copy Elements– Advertising appeals

Humor, fear, slice of life

– Copy Platform– Key Consumer Benefits to be identified

Art Elements– Visuals for packaging, ads, POP– Layout and Design

Advertising Budget

Judgmental vs. Data Oriented Approach

Consideration of PLC, Profit Objectives, Demand

Sales to Advertising Relationship

Evaluation and Testing

Advertising Research

Pretest ads

Test Concept

Posttesting