positioning and targeting for marcom efforts

Chapter Three

Positioning and Targeting for MarCom

Efforts

All marketing communications should be: (1) directed to a particular target market, (2) clearly positioned, (3) created to achieve a specific objective, and (4) undertaken to accomplish the objective within the budget constraint.

Brand PositioningBrand Positioning

A positioning statement for a brand represents how we want customers and prospects to think and feel about our brand.

Positioning ApproachesPositioning Approaches

• Positioning via Attributes» Product-related features» Usage and User imagery

• Positioning via Brand Benefits

Positioning via Brand BenefitsPositioning via Brand Benefits

Positioning with respect to brand benefits can be

accomplished by appealing to any of three categories of

needs.

Experiential NeedsSymbolic NeedsFunctional Needs

Targeting VariablesTargeting Variables

1. Demographics

2. Psychographics

3. Geodemographics

4. Behaviorgraphics

Demographic TargetingDemographic Targeting

Baby Boomers


Mature Consumers:


Children and teenagers


Children and Teenagers:

Generation YGeneration Y

• Approximately 50 million people

• Born between 1982 and 1994

• Teens to mid-20’s

The Changing Age StructureThe Changing Age Structure

• 50+ million people born 1965-1981

• Baby Busters

• Portrayed as cynical, unmotivated, hopeless


Yup & Comers: The highest levels of education and income, focus on intangible rewards and confident about themselves

Bystanders: Predominantly female of African-Americans and Hispanics, disposable income is low but love fashion and shopping

Playboys: “Pleasure before duty” lifestyle, self-absorbed, fun-loving and impulsive

Drifters: Frustrated with their lives, the least educated, and choosebrands that offer a sense of belonging and self-esteem

Bystanders(37%)

Playboys(19%)

Drifters(16%) Yup

&Comers(28%)


71

12 12

41

0

10

20

30

40

50

60

70

80

White Black Hispanic Asian NativeAmericans

% of population as of 2000

U.S. Demographics & TargetingU.S. Demographics & Targeting

How do buyers of these vehicles differ demographically?

A) Sport-Utility VehiclesB) Minivans

U.S. Demographics & TargetingU.S. Demographics & Targeting

Which of these represent a meaningful target market?

A) Baby boomers

B) African-Americans

C) Generation X

LifestylesLifestyles

More than a set of purchase decisions. Express who one is in society (and who one is not).

Identities derive, in part, from symbolism of products one tends to consume.


ProductsBuilding blocks of lifestyles

Advertised as props

Used as props in ad background


Meaning of Products


Meaning of Products

Kraft Macaroni & Cheese


Meaning of Products

Flannel Shirt

Consumption constellationsConsumption constellations

Sets of products whose symbolic meanings are complementary.

How do marketers characterize and describe different consumption constellations?

PsychographicsPsychographics

• Use of psychological, sociological, anthropological factors to determine how the market is segmented by the choices of groups within the market.

• Combines knowledge of lifestyle preferences with personality variables and other information.

• VALS (SRI); Yankelovich MindBase

Psychographics: An IllustrationPsychographics: An Illustration

Molson Export Beer:

• Target customer:

• Ads:

• Claim:

Psychographic TargetingPsychographic Targeting

• Psychographics represents a combination of consumers’ aactivities, iinterests and oopinions (AIO items)

• Useful but more difficult to identify and measure compared to demographic variables

VALSVALS

• Eight categories are identified based on a combination of demographic and lifestyle factors such as age, income, education, level of self-confidence, health, and interest in consumer issues

• Two-dimensional format

http://future.sri.com/vals/valsindex.html

VALSVALS

Three motivational orientations

1. Ideals-oriented:

2. Achievement-oriented:

3. Self-expression-oriented:

VALS Groupings:VALS Groupings:

What is this information used What is this information used for?for?

Consumer MotivationConsumer MotivationConsumer MotivationConsumer Motivation

VALSVALS

SegmentSegment


ExperiencersExperiencers

Main component of action-Main component of action-oriented segment oriented segment

Young, enthusiastic, Young, enthusiastic, impulsiveimpulsive

Active in both physical and Active in both physical and social activitiessocial activities

Want “cool” stuffWant “cool” stuff

ExperiencersExperiencers

Main component of action-Main component of action-oriented segment oriented segment

Young, enthusiastic, Young, enthusiastic, impulsiveimpulsive

Active in both physical and Active in both physical and social activitiessocial activities

Want “cool” stuffWant “cool” stuff

VALS SegmentationVALS Segmentation

Isuzu Rodeo

Target: Experiencers

Positioning: Car that lets driver break the rules (running with scissors,

coloring out of the lines).

What if…

Target: Achievement-oriented. What would be a good positioning for

them?

VALSVALS

SegmentSegment


BelieversBelievers

ConservativeConservative. . Family and Family and community oriented peoplecommunity oriented people

Modest meansModest means

Brand loyalBrand loyal

Favor American-made Favor American-made productsproducts

BelieversBelievers

ConservativeConservative. . Family and Family and community oriented peoplecommunity oriented people

Modest meansModest means

Brand loyalBrand loyal

Favor American-made Favor American-made productsproducts

VALS VALS

SegmentSegment


StriversStrivers

Lower-income peopleLower-income people

Values similar to achieversValues similar to achievers

Active consumers, impulsive Active consumers, impulsive but constrainedbut constrained

StriversStrivers

Lower-income peopleLower-income people

Values similar to achieversValues similar to achievers

Active consumers, impulsive Active consumers, impulsive but constrainedbut constrained

VALSVALS

SegmentSegment


MakersMakers

Traditional, action-oriented Traditional, action-oriented

Self-sufficient Self-sufficient

Suspicious of new ideasSuspicious of new ideas

Practical with little interest in Practical with little interest in most material possessionsmost material possessions

MakersMakers

Traditional, action-oriented Traditional, action-oriented

Self-sufficient Self-sufficient

Suspicious of new ideasSuspicious of new ideas

Practical with little interest in Practical with little interest in most material possessionsmost material possessions

Geodemographic TargetingGeodemographic Targeting

People who reside in similar areas,

such as neighborhoods or postal ZIP-

code zones, also share demographic

and lifestyle similarities


• Companies that have developed geodemographic services » Donnelly Marketing (Cluster Plus)» Claritas (PRIZM)» CACI (ACORN)» National Decision Systems (Vision)

http://www.claritas.com/

http://www.caci.com/

http://www.natdecsys.com/


Claritas’s PRIZM

• Potential rating index by zip markets• Delineated the 500,000 + U.S. neighborhoods

into 60+ (from 40) clusters with descriptive names that characterize these regions

• www.yawyl.claritas.com (try it!)

http://www.yawyl.claritas.com/

Behaviorgraphic TargetingBehaviorgraphic Targeting

Based on how people behave (toward a particular product category or class of related products) rather than in terms of their attitude and lifestyles, their age, income, or ethnicity, or where they live.

The best predictor of one’s future behavior is his or her past behavior.

Online Behavioral TargetingOnline Behavioral Targeting

• “Audience Management Systems” track Internet users’ surfing behavior in order to target them with specific advertisements.

positioning and targeting for marcom efforts

Documents

brand benefitspositioning

combination of demographic

meaningful target market

particular target market

lifestyle factors

positioning statement

duty lifestyle

target customer