Week 3

Question 1

What are some common types of marketing objectives?

Answer 1

Marketing Objectives:
1. Sales volume objectives are quantitative targets related to the amount of a product or service the company aims to sell within a specific time frame, often a year.

Measurement: Sales volume objectives are measurable in terms of the number of units sold, revenue generated, or market share captured.

2. Brand equity objectives focus on building and enhancing the long-term value and perception of the brand in the eyes of consumers.

Measurement: Brand equity objectives are often measured through surveys, brand tracking studies, and assessments of customer loyalty and brand recognition.

Communication Objectives:
1. Increase Brand Awareness (Short-Term): aim to increase the visibility and recognition of the brand among the target audience.

Measurement: Metrics may include increases in aided and unaided brand awareness, recall rates, and reach.

2. Enhance Perceived Value through Advertising (Medium-Term): focus on communicating specific brand attributes or benefits to shape consumers’ perceptions.

Measurement: Metrics may include changes in consumer perceptions, attitudes, and associations with the brand as measured through surveys and studies.

Question 2

What is the S-T-P process?

Answer 2

Market Segmentation:
1. Identify Segmentation Variables and Segment
the Market
- Choose variables that help distinguish different groups of customers.
- Once identified, group customers who share similar characteristics into segments.
- For a fitness product, segmentation variables might include age, fitness goals, and preferred workout activities.

Develop Profiles of Resulting Segments
- Create detailed profiles for each identified segment.
- A segment profile might describe the “Fitness Enthusiast” as a young adult interested in high-intensity workouts, active on social media, and seeking the latest fitness trends.

2. Select the Target Segment(s).
   - Choose one or more segments to target based on their attractiveness and alignment with the company’s goals and resources.

Evaluate the Attractiveness of each Segment
- Assess the potential of each segment in terms of size, growth potential, profitability, and compatibility with the organization’s capabilities. Consider factors like competition and external influences.
-Evaluate whether the “Fitness Enthusiast” segment is large enough, has growth potential, and aligns with the company’s fitness product offerings.

3. Identify Possible Positioning Concepts for each Target
   Segment
   - Identify different positioning concepts or strategies that resonate with the needs and preferences of the selected target segment(s).
   - Positioning concepts for the “Fitness Enthusiast” segment might include “Cutting-edge Technology for High-Performance Workouts” or “Fitness Innovation for Trendsetters.”

Select, Develop and signal the Chosen Positioning Concept
- Choose the most compelling positioning concept and develop marketing messages, branding elements, and communication strategies that align with the chosen concept.
- If the selected positioning concept is “Cutting-edge Technology for High-Performance Workouts,” the company would focus on highlighting product features, technological advancements, and conveying a modern and innovative brand image.

Question 3

How to Calculate BDI?

Answer 3

BDI:

Percentage brand total country sales in the market
_____________________________________________________________ Percentage of total country population in the market

X 100

= BDI

e.g., the entire car brand sales

Question 4

How to Calculate CDI?

Answer 4

CDI:
Percentage category total country sales in the market _____________________________________________________________
Percentage of total country population in the market

X 100

= CDI

e.g., entire car category sales

Question 5

Solve this CDI and BDI question

Answer 5

Total car category sales: 10 mil in Canada; 1.5 mil in GTA
Honda car brand sales: 2 mil in Canada; 1 mil. In GTA
Population: Canada = 35 mil; GTA = 7 mil

CDI = (1.5mil/10mil) / (7mil/35mil)
= 0.15 / 0.2
= 0.75 or 75%

BDI = (1mil/2mil) / (7mil/35mil)
= 0.5 / 0.2
=2.5 or 250%

Question 6

What is Brand Positioning?

Answer 6

The act of framing the brand’s image in the target consumers’ minds, so it occupies a distinct and valued place in relation to competitors.

Question 7

What is the difference between Category Penetration, Brand Penetration, Brand Usage

Answer 7

1. Category Penetration rate:
   The percentage of households or individuals in a specific market segment that have purchased at least one product within a particular product category.
2. Brand Penetration rate:
   The percentage of households or individuals in a specific market segment that have purchased a particular brand within a product category.
3. Brand Usage:
   The frequency or intensity with which consumers use a particular brand. It provides insights into how often and in what ways consumers engage with a specific brand.

Question 8

What is Market Segmentation?

Answer 8

• Market segmentation is the process of dividing the market (consumers) into identifiable groups based on similarities and differences as they relate to our product/product class.

Segments should be:
1. Distinct
- Homogeneous within groups: members of a segment share common characteristics, needs, or behaviors that distinguish them from other segments.
- Different across groups:
2. Actionable
- Useful for identifying customers and deciding marketing mix variables: which includes elements like product features, pricing, promotion, and distribution strategies.
3. Substantial
- Big enough to be profitable: segment size should be significant enough to justify the effort and investment required to target and serve that particular group.

Question 9

What is Psychographics?

Answer 9

Psychographics: measure consumer’s values, attitudes, lifestyle and personality.

“Why?”:
-Needs
-Self Concept
-Attitudes
-Values
-Lifestyles