4550:Communication Objectives

4550:Communication Objectives

Dr. CampbellTuesday 1/18/05

Plan for the DayPlan for the Day

• Introductions

• The Overall Planning Process– (where marcom plannning fits)

• Analyzing and Developing Objectives– Segmenting

– Targeting

– Positioning• Positioning Statement

Godiva Expected Distribution Channel

Dept23%

0%

0%

0%

0%

Grocery5%

0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%

Specialty73%

Dept

Grocery

Specialty

Hershey's Expected Distribution Channel

Grocery88%

0%

0%

Specialty12%

Grocery

Specialty

Unknown Expected Distribution

Dept15%

0%

Drug8%

0%

0%

0%

0%

0%

0%

0%

Grocery31%

0%0%0%0%0%0%0%0%0%0%0%

Specialty46%

Dept

Drug

Grocery

Specialty

The Overall Planning ProcessThe Overall Planning Process

Corporate Strategy

The Overall Planning ProcessThe Overall Planning Process

Corporate Strategy

Marketing Plan/Objectives

The Overall Planning ProcessThe Overall Planning Process

Corporate Strategy

Marketing Plan/Objectives

CommunicationObjectives

Setting Communication ObjectivesSetting Communication Objectives

• Analyzing for Objectives– Segmenting

– Targeting

– Positioning

• Determining Objectives (next session)– Characteristics of “good” objectives

SegmentationSegmentation

The process of identifying smaller, relatively homogenous groups of customers

SegmentationSegmentation

The process of identifying smaller, relatively homogenous groups of customers that 1) have common needs and 2) will respond similarly to marketing actions

Characteristics for Successful SegmentsCharacteristics for Successful Segments• Distinct

• Viable/Substantial

• Operational– Identifiable

– Accessible/Actionable

TargetingTargeting

The process of identifying the segment(s) towards which to direct marketing efforts.

Bases for Segmentation & TargetingBases for Segmentation & Targeting• Customer Characteristics

– Geographic– Demographic– Psychographic

• Buying Behavior– Benefits sought – Behavioristic

• Usage• Purchase behavior

– Awareness and intentions

More on Usage Behavior: User Type More on Usage Behavior: User Type • Non-users

• Tried, rejected• Never tried

• Users• Brand loyals• Brand switchers• Other brand loyals

Considering PotentialConsidering Potential

• Index number can be an indicator of the potential of a target market

• What does an index over 100 mean?

Index = % of users in a segment

% of population in the same segmentX 100

Considering Potential, continued…Considering Potential, continued…

• Brand Index

• Category Index

Index = % of brand users in a segment

% of segment in total populationX 100

Index = % of product category users in segment

% of segment in total populationX 100

Why Segment and Target?Why Segment and Target?

• Consumers are becoming increasingly diverse with different wants and preferences.

• Segmenting and targeting allows better satisfaction of customers.

• Segmenting and targeting allows more effective communication with specific targets.

• Less waste

Positioning: DefinitionPositioning: Definition

the process of understanding the market structure as perceived by the customer in order to create a marketing offering that is meaningfully different from competition

Positioning: Three StepsPositioning: Three Steps

• Define Frame of Reference– Target market

– Relevant competition

• Measure Current Brand Image– Own brand

– Competing brands

• Determine Desired Brand Image– Points-of-Parity associations

– Points-of-Difference associations

Positioning StatementPositioning Statement

Target SegmentTarget Segment

our product is the brand of __________,our product is the brand of __________,Product CategoryProduct Category

that provides_____________________.that provides_____________________.Most Important Benefits/Reasons to buyMost Important Benefits/Reasons to buy

Relative to_______________________,Relative to_______________________,

we offer_________________________.we offer_________________________.

Primary Competitor(s)Primary Competitor(s)

Key DifferentiatorsKey Differentiators

ForFor ____________________________,,

Positioning Statement: Honda ElementPositioning Statement: Honda Element

Target SegmentTarget Segment

our product is the brand of __________,our product is the brand of __________,Product CategoryProduct Category

that provides_____________________.that provides_____________________.Most Important Benefits/Reasons to buyMost Important Benefits/Reasons to buy

Relative to_______________________,Relative to_______________________,

we offer_________________________.we offer_________________________.

Primary Competitor(s)Primary Competitor(s)

Key DifferentiatorsKey Differentiators

ForFor ____________________________,,18-24 “Gen Y” males

vehicle

A “dorm room on wheels” foradventures and for hanging out

“

Pick-ups, SUVs, and sedans

A more comfortable drive, lots of room for your stuff and your friends,

and great adaptability and “cleanability”

Positioning Statement: Club DisneyPositioning Statement: Club Disney

Target SegmentTarget Segment

our product is the brand of __________,our product is the brand of __________,Product CategoryProduct Category

that provides_____________________.that provides_____________________.Most Important Benefits/Reasons to buyMost Important Benefits/Reasons to buy

Relative to_______________________,Relative to_______________________,

we offer_________________________.we offer_________________________.

Primary Competitor(s)Primary Competitor(s)

Key DifferentiatorsKey Differentiators

ForFor ____________________________,,

ConclusionConclusion

• Segmenting the market and choosing one or more specific targets is necessary in order to develop a product positioning that is really “right.”

• Positioning is the basis of the associations that customers have for the brand (relative to other brands).

• The positioning statement is a very useful tool that synthesizes the most important decisions: who is the target, what is the market, who is the competition, and what are the attributes and benefits that we need to deliver?

Questions?

Next Session…Next Session…

• Read Ch. 7, pp 192-211

• We’ll continue discussion of Positioning & Communication Strategy

Never, Never, Never Quit.

Winston Churchill

Positioning Statement: Blue Sky WestPositioning Statement: Blue Sky West

Target SegmentTarget Segment

our product is the brand of __________,our product is the brand of __________,Product CategoryProduct Category

that provides_____________________.that provides_____________________.Most Important Benefits/Reasons to buyMost Important Benefits/Reasons to buy

Relative to_______________________,Relative to_______________________,

we offer_________________________.we offer_________________________.

Primary Competitor(s)Primary Competitor(s)

Key DifferentiatorsKey Differentiators

ForFor ____________________________,,affluent skiers who seek new experiences

Guided outdoor service

A premium adventure travel experience that is exhilarating & refined

Small, unsophisticated travel servicesor ski resorts, e.g., Vail, Aspen

The most challenging and pristine terrain,the most professional guides, and

highest customer service and safety