chapter 4 Flashcards
SITUATION ANALYSIS:
what are we and why do we need to communicate?
STP MODEL
- SEGMENTING, TARGETING AND POSITIONING
TARGETING
selecting a number of target groups to focus on, based on their attractiveness and for which the company has relevant strengths
POSITIONING
the way a product is perceived by the target group on important attributes, “the place in the mind” a product occupies relative to its competitors
EFFECTIVE SEGMENTATION:
Attainable (identify the segment members and target the marketing action programme at them separately)
Measurable (gather information about segmentation criteria, size, composition and purchasing power)
Large enough
Different
SECOND STEP: TARGET GROUPS
SEGMENTING
divide consumers into homogenous groups: in that way that members of one group should react in the same way to marketing stimuli and differer in their reactions to these stimuli from the members of other segments
GENERAL
OBJECTIVE-
geographic (continents, climate, nations, regions)
demographic (income, gender, age, education, profession, life cycle)
INFERRED (PSYCHOLOGICAL)
Social class
Personality
Lifestyle
SPECIFIC
Occasion
Loyalty status
User status (non user- potential user- first time user- regular user- ex-user)
Usage status (heavy user: largest part of salesor light users (waiting for special offers)
INFERRED
Benefit
Buyer readiness
THIRD STEP: OBJECTIVES
Reach: to reach target groups in an effective and efficient way (focusing on the extent to which customers should have processed a specific communication stimulus)
Process: Conditions which should be established before any communications can be effective
Effectiveness: different effects of communications (tied to hierarchy of effects model) (focusing on the effect of the whole campaign on the brand or the organisation)
EFFECTIVE OBJECTIVES
EFFECTIVE OBJECTIVES:
- Category wants: it should fit within category needs and wants
-Brand awareness- recognition and recall
Brand awareness- association of some characteristics such as a brand name, logo, package, style with a category need
For example- coca cola first thing that comes to mind when think about soft drink
-Brand knowledge- target groups are aware of the most essential brand characteristics, features and benefits (knowing strengths as compared with competitive brands) knowing why to buy brand X instead of Z or Y
-Brand attitude- evaluation of different brands (basing brand choice on evaluation of the different brands)
Improvement is always a key if no then rebranding needs to be taken into consideration
If there is a negative prior-brand attitude changing the attitude is necessary
-Purchase intention- creating advertisement and sales promotion
-Purchase facilitation- assuring buyers that there are no barriers hindering product or brand purchase
-Satisfaction- expectations for the product exist (satisfied customers will buy the product again and dissatisfied will buy a different brand)
-Brand loyalty- commitment to the brand- buy the same brand again and again
-Online marketing objectives-
Awareness- getting people’s attention
Consideration- capitalise on the first one by sending those people who landed on your web page offers that will transform them from strangers into leads
Conversion- attracting people to the advertising message, encouraging to interact with brand, encouraging to share, developing fan group, making people to buy the product and become loyal
FOURTH STEP: BUDGET
Budgeting process should be well considered and based on concrete marketing and communications objectives defined in earlier steps
METHODS
Marginal analysis (investing resources as long as extra expenses are compensated by higher extra returns (investing in communications efforts as long as their marginal revenue exceeds the marginal communication costs)
Inertia (keeping budgets constant, while ignoring the market, competitive actions, consumer opportunities)
Arbitrary allocation (what manager will decide that will be implemented)
Affordability (leftover resources after all input costs are invested in communications
Percentage of sales (budgets are defined as percentages)
Competitive parity (companies look at the budgets competitors spend on communications and then copy their budgets)
Objective and task method (it starts from communications objectives and teh resources that are needed to reach these planned goals. All needs investments are then added and this will lead to the overall communications budget)
FIFTH STEP: MESSAGE AND CREATIVE STRATEGIES
POSITIONING STRATEGIES
Positioning strategies (the place a brand has in the minds of consumers and how it is distinguished from competitors)
