clow_imc7_inptt_04 (2).pptx

4 Chapter Four The IMC Planning Process Copyright ©2016 Pearson Education Limited 4-1  The IMC Planning Process 4 Chapter Objectives 1. What makes marketing research critical to the IMC planning process? 2. What categories are us...

4 Chapter Four The IMC Planning Process Copyright ©2016 Pearson Education Limited 4-1  The IMC Planning Process 4 Chapter Objectives 1. What makes marketing research critical to the IMC planning process? 2. What categories are used to identify consumer target markets or market segments? 3. What categories are used to identify business-to-business market segments? 4. How do the various approaches to positioning influence the selection of target markets? Copyright ©2016 Pearson Education Limited 4-2  The IMC Planning Process 4 Chapter Objectives 5. How do marketing communication objectives interact with the other elements of the IMC planning process? 6. How are communications budgets established? 7. What elements are considered in developing an IMC program? Copyright ©2016 Pearson Education Limited 4-3  Motel 6 4 Interview with Stan Richards Client of The Richards Group 24 years Focus Group Themes Save money Benefit of frugality Copyright ©2016 Pearson Education Limited 4-4  The IMC Planning Process 4 Chapter Overview IMC planning process Communications research Target markets Positioning strategies Communication objectives IMC components Copyright ©2016 Pearson Education Limited 4-5 FIGURE 4.1 The IMC Planning Process Communications Research Budget Target Product Objectives Market Positioning IMC Components Copyright ©2016 Pearson Education Limited 4-6  Communication Research Understand customers purchase benefits Product-specific research Key selling points Desirable features Consumer-oriented research Context of product use Anthropological approach Sociological analysis Psychological motives Target-market research Identifies feasible market segments Copyright ©2016 Pearson Education Limited 4-7  Tests to Determine if a Particular Market Segment Is Viable The individuals or businesses within the segment are homogeneous. The market segment is different from the population as a whole and distinct from other market segments. The market segment is large enough to be financially viable to target with a separate marketing campaign. The market segment must be reachable through some type of media or marketing communications method. Copyright ©2016 Pearson Education Limited 4-8 FIGURE 4.2 Methods of Segmenting Consumer Markets Demographics Psychographics Generations Geographic Geodemographics Benefits Usage Copyright ©2016 Pearson Education Limited 4-9  Gender Segments Based on Demographics Gender-based products Gender differences in communications Female consumers Control 66% of spending ($12 trillion) Involved in purchasing high-priced electronics (96%) Deal with financial advisors (90%) Buy and sell stocks (80%) Household’s primary accountant (70%) Copyright ©2016 Pearson Education Limited 4-10  Tips for Marketing to Women Focus on how brand can improve life Engage them with the brand Focus on practical, not trivial Tell a story that resonates Provide details Be positive Bonus Slide Copyright ©2016 Pearson Education Limited 4-11  Marketing to Mothers Buyers of iPhones Like media websites Share photos/news 20% of online users Largest web spenders Online Mobile devices Copyright ©2016 Pearson Education Limited 4-12  Marketing to Men Shopping more Focus on product performance Prefer looking for specific information Favor products that reflect status Like well-known brands Copyright ©2016 Pearson Education Limited 4-13  Age Segments Based on Demographics Target specific age group Combine with other demographic variables Children attractive group Copyright ©2016 Pearson Education Limited 4-14 FIGURE 4.3 Influence of Tweens Influence/Opinion Percent Want instant gratification 56% Want customized product 59% Want what others have 41% Sometimes visit online stores 31% Shop online 28% Influence on household purchases Movies 55% Food 29% Personal care products 26% Family vacation destination 27% Technology 23% Source: Based on Lucia Moses, “Tweens Have a Big Say in Household Spending,” Adweek, www.adweek.com/news/advertising-branding/tweens-have-big-say-household-spending-150570, June 26, 2013. Copyright ©2016 Pearson Education Limited 4-15  Income Closely related to education Lower income – necessities Higher income - luxuries Ad directed to “exhausted affluent” Copyright ©2016 Pearson Education Limited 4-16  Ethnicity Buying power - $2.5 trillion Significant part of identity Need to understand ethnic groups Translation insufficient Holistic approach Copyright ©2016 Pearson Education Limited 4-17 Psychographic Segmentation Describe consumers AIO measures Activities Interests Opinions Combine with demographic profiles Copyright ©2016 Pearson Education Limited 4-18  VALS Psychographic Segmentation Innovators – successful, sophisticated – upscale products Thinkers – educated, conservative, practical – durability, value Achievers – goal-oriented, conservative, career, and family Experiencers – young, enthusiastic, impulsive, fashion, social Believers – conservative, conventional, traditional Strivers – trendy, fun-loving, peers important Makers – self-sufficient, respect authority, not materialistic Survivors – safety, security, focus on needs, price Copyright ©2016 Pearson Education Limited 4-19 FIGURE 4. 4 Characteristics of Generation Segments Name of Segment Year of Birth Characteristics Millennials 1978-2002 Spend money on clothes, automobiles, college, televisions, and stereos. Ninety percent live at home or in a dorm or rent an apartment. Generation X 1965-1977 Focus on family and children. Spend on food, housing, transportation, and personal services. Younger 1954-1964 Focus on home and family. Spend on home mortgage, Boomers pets, toys, playground equipment, and large recreational items. Older Boomers 1952-1953 Spend on upgrading homes, ensuring education and independence of their children, and luxury items, such as boats. Seniors Up to 1951 Most have fixed incomes. Spend heavily on health care and related medical items. Source: Author-created from Dana-Nicoleta Lascu and Kenneth E. Clow, Marketing Principles (Cincinnati, OH: Textbook Media Press, 2012). Copyright ©2016 Pearson Education Limited 4-20 Ad targeted to seniors. Copyright ©2016 Pearson Education Limited 4-21 Geodemographic Segmentation Combines Demographic census data Geographic information Psychographic information PRIZM 66 market segments Southside City Towns and Gowns Copyright ©2016 Pearson Education Limited 4-22 Benefit Segmentation Fitness Industry Winners Dieters Self-improvers Copyright ©2016 Pearson Education Limited 4-23  Usage Segmentation Usage or purchase history Create clusters Target specific clusters Create marketing programs for each cluster Measure growth and migration Copyright ©2016 Pearson Education Limited 4-24 FIGURE 4.5 Methods of Segmenting B-to-B Markets Industry (NAICS/SIC codes) Size of business Geographic location Product usage Customer value Copyright ©2016 Pearson Education Limited 4-25  A business-to-business ad that can be targeted to a specific NAICS code. Copyright ©2016 Pearson Education Limited 4-26  Product Positioning Is the perception created in the consumer’s mind regarding the nature of the company and its products relative to the competition? Positioning is created by factors such as product quality, price, distribution, image, and marketing communications. Copyright ©2016 Pearson Education Limited 4-27 FIGURE 4.6 Product Positioning Approaches Product Attributes Competitors Use or application Price/quality Product user Product class Cultural symbol Copyright ©2016 Pearson Education Limited 4-28 Elements of Positioning Never completely fixed Applies to business-to-business also International positioning important Critical component of image and brand management Copyright ©2016 Pearson Education Limited 4-29  Marketing Communications Objectives Target Organization Markets Positioning Context Communications Objectives Budget IMC Components Copyright ©2016 Pearson Education Limited 4-30 FIGURE 4.7 Communication Objectives  Develop brand awareness  Increase category demand  Change customer beliefs and attitudes  Enhance purchase actions  Encourage repeat purchases  Build customer traffic  Enhance firm image  Increase market share  Increase sales  Reinforce purchase decisions Copyright ©2016 Pearson Education Limited 4-31 FIGURE 4. 10 Methods of Determining Marketing Communication Budgets Percentage of sales Meet-the-competition “What we can afford” Objective and task Payout planning Quantitative models Copyright ©2016 Pearson Education Limited 4-32 Types of Budgets Percentage of Sales Sales of current year, or next year Simple Tends to work in the opposite direction Does not meet special needs Meet the competition Seeks to prevent market share loss Highly competitive markets Dollars may not be spent efficiently Copyright ©2016 Pearson Education Limited 4-33 FIGURE 4.9 Ad Spending, Brand Recognition, and Market Share Auto Insurer Ad Spending Brand Market Share (millions) Recognition Geico $600 98% 8.2% Progressive $506 92% 7.5% State Farm $455 76% 18.6% Allstate $369 63% 10.5% Farmers $203 59% 6.4% Source: Adapted from Gregory Bresiger, “It’s Ad Infinitum,” New York Post, May 1, 2011, www.nypost.com/f/print/news/business/it_ad_infinitum_3ThF9rxodhlKnSkcIjdTPK. Copyright ©2016 Pearson Education Limited 4-34 Types of Budgets What we can afford Set after all other items budgeted Do not view marketing as important Objective and task Budgets determined by objectives Best method of budgeting Used by 50% of firms Copyright ©2016 Pearson Education Limited 4-35  Types of Budgets Payout planning Ratio—advertising to sales or market share Larger percent at product launch Lower percent when brand established Based on threshold effect Quantitative models Computer simulations Develop models based on historical data Copyright ©2016 Pearson Education Limited 4-36 Communication Schedule Pulsating schedule Flighting schedule Continuous schedule Copyright ©2016 Pearson Education Limited 4-37  IMC Components Traditional advertising Trade promotions Consumer promotions Media spending Alternative media spending Business-to-business media spending Copyright ©2016 Pearson Education Limited 4-38 FIGURE 4. 10 Breakdown of Marketing Expenditures Consumer Trade promotions, Other, 3.3% promotions, 27.9% 27.5% Advertising, 41.1% Copyright ©2016 Pearson Education Limited 4-39 FIGURE 4. 11 Global Ad Spending by Media Cinema Digital 0.3% 4.3% Magazines 10.0% Newspapers 18.9% Television 57.6% Radio Outdoor 5.4% 3.5% Source: Based on Ingrid Lunden, “Nielsen: Old School TV Reigns Supreme at 58% of Ad Spend, Internet Display up 27% in Q2,” http://techcrunch.com/2013/10/22/nielsen-internet-display-ad-spend-up-27-in-q2-but-old-school-tv-reigns-supreme-at-58-of-all-spend, October 22, 2013 Copyright ©2016 Pearson Education Limited 4-40 FIGURE 4.12 Successful Globally Integrated Marketing Communications Tactics Understand the international market A borderless marketing plan Thinking globally but acting locally Local partnerships Communication segmentation strategies Market communication analysis Solid communication objectives Copyright ©2016 Pearson Education Limited 4-41 Integrated Campaigns in Action Progressive Bank mymktlab.com Copyright ©2016 Pearson Education Limited 4-42  Blog Exercises Motel 6 Carnival Cruise Line Segmentation & Positioning Copyright ©2016 Pearson Education Limited 4-43