APR 423 Exam 2 Flashcards
SWOT analysis
Strengths- Internal
Weaknesses- Internal
Opportunities- External
Threats- External
Segmenting
Group customers or prospects according to common characteristics, needs, wants, and/or desires
Targeting
Analyze, prioritize, and select some of those market segments deemed most profitable to pursue
Steps in segmenting and targeting
- Identify most profitable customers
- Create profile of this segment
- Target these segments to increase retention and customer growth
- Use profitable customer profiles to locate prospect segments
- Evaluate prospect segments
- Target prospect segments that are most likely to respond
- Continue testing responsiveness of prospect segments with similar profiles.
How targeting is done
- Segmentation
- Use profile characteristics of segments to draw boundaries around a particular group or prospects that are projected to respond well to a brand
- Estimate group size
- Prioritize segments
- Develop message strategies and media plans for selected segments
Customer profile variables
- Demographics
- Psychographics
- Relationship level
- Benefits sought
Approaches for target market decision
- Undifferentiated= appeals to everyone
- Differentiated= Different messages for different segments
- Concentrated= one segment of Target Market
RFM
Recency
Frequency
Monetary
Brand equity
Brand name value
5 Categories of brand equity
- Brand loyalty
- Name awareness
- Perceived quality
- Brand associations
- Patents, trademarks, characters, channel realtionships
Competitive Positioning
When a company tries to influence what consumers think of a brand with respect to its competition
Positioning the message
- Action oriented
- What companies do to influence what people think or feel
- Position decisions are strategic in nature and provide the direction for a campaign to follow
7 ways to position a product
- Product characteristics or consumer benefits
- Price-quality relationship
- Use or application
- Product user
- Product class
- Cultural symbol
- Competitor
BIG IDEA
- Selling idea
- Purpose= to register brand’s strategic objective memorably over the competition
- Primary executional ingredient and main thread of executional continuity
Characteristics of a big idea
- Substance
- Credible and challenging
- Provocativeness
- Dramatized
Optional elements in creative strategy
- Physical continuity
2. Psychological continuity
Physical continuity
Slogans, taglines, trade characters
Psychological Continuity
Theme, image, tone, attitude, slogan
BDI
Brand Development Index
= % of brand sales/ % of TM
CDI
Category Development Index
= % of category sales/ % of TM
Brand
Perception resulting from experiences with and info about a company or line of products
Branding
The process of creating a brand image that engages the hearts and minds of consumers
3 Types of Brand Contact Point (BCP)
- Brand or company-created contacts
- Intrinsic (experience with brand)
- Customer-created
Situation Analysis
Company, consumer, market analysis, product, competitive analysis
3 Approaches of consumers’ brand decision making
- Habit/Repeat model
- Experiential model
- Cognitive model
Habit/repeat Model
Recognize problem or opportunity–> Make brand decision–> Review decision
Experiential Model
Recognize problem or opportunity–> Search and evaluate feelings about choices–> make buying decision –> Review decision
Cognitive Model
Recognize problem or opportunity–> Search for info–> Evaluate choices–> Make buying decision–> Review decision
SMAC
Specific
Measurable
Achievable
Challenging
Setting Objectives
- Unit-oriented
- Unit-Linked
- Output-oriented
- Time-bounded
- Singularity of purpose
- Cost-effective
