Audience Segmenting, Targeting & Positioning Lecture PDF

Week 4 Lecture Tuesday, January 28, 2025 10:12 AM Audience Segmenting, Targeting and Positioning Segmentation Segmenting means dividing the market into groups of people with similar characteristic in key product-related areas. cs Segmenting mean...

Week 4 Lecture Tuesday, January 28, 2025 10:12 AM Audience Segmenting, Targeting and Positioning Segmentation Segmenting means dividing the market into groups of people with similar characteristic in key product-related areas. cs Segmenting means dividing the market into groups of people with similar characteristic in key product-related areas. Segmentation Strategies A market segmentation strategy enables a company to match customer needs and wa with its products. It is used because there are few homogeneous markets in contemporary marketing. Bases for Segmentation Customer Characteristics Geographics Demographics Age, gender, social class, etc Psychographics Lifestyles (Activities, Interests, Opinions), personality, values, culture cs ants  Psychographics Lifestyles (Activities, Interests, Opinions), personality, values, culture Virtually any easily measured individual difference Purchase based variables Benefits Behavior Targeting the Best Audiences Through targeting, the organization can design specific communication strategies to: match the audience’s needs and wants. position the product in the most relevant way to match their interests. Target Audience Decision Understanding the consumer is key to the success of any IMC plan. The ultimate goal of an IMC plan is to influence the behavior of a target audience. Target Audience Decision Understanding the consumer is key to the success of any IMC plan. The ultimate goal of an IMC plan is to influence the behavior of a target audience. Need to select appropriate target audience(s) Example: Five Alive: Feeling Alive Campaign Who is the target audience? Answer: young adults 25-34 years old, experiencers, with a male skew Situation analysis: targeted moms for years (female 25-54) however, lots of competition targeting moms moms have stable purchase habits noted that mom’s purchase but young adults consume decided on radical change to adults 25-34 years old no competitors targeting at the time future parents—head start on loyalty Other characteristics of target audience:  noted that mom’s purchase but young adults consume decided on radical change to adults 25-34 years old no competitors targeting at the time future parents—head start on loyalty Other characteristics of target audience: 72% had tried product 1/3 regular users starting adult life but holding onto youth (party, travel, extreme sports) see routine as highly aversive (boring) cynical towards traditional marketing like being entertained, surprised, taking risks often consume product before and after sports Result: Doubled market share and litres sold over 5 years (compared to category down 4%) Targeting the Best Audiences Targeting the Best Audiences First, use the segmentation characteristics that separate a group of prospective consumers from others. Then, add additional descriptive variables until an ideal consumer group is identified. Each time you add a variable, you narrow the market as you come closer to the ideal target audience. Narrowing the Target Targeting: Demographics Age The most important demographic characteristic used by marcom planners. Gender and sexual orientation Women account for about 85 percent of all consumer purchases in the United States. Education, occupation, and income States. Education, occupation, and income Education dictates the way promotional messages are written and a message’s level of difficulty. Occupation is key because most people identify themselves by what they do. Race, ethnicity and immigration status Geography Marketers use this strategy is used because retailers are often tied to locations where their products are sold. Religion Religion can be a key factor in identifying those who are or are not in the market for a good, service, or idea. market for a good, service, or idea. Targeting and Profiling using Psychographics Psychographics refers to lifestyle and psychological characteristics including: Activities Values Interests Attitudes Opinions Lifestyles Lifestyles can be analyzed in terms of: Patterns of consumption Personal relationships Interests Leisure activities  Leisure activities Targeting and Profiling using Behavioral Patterns Brand usage and experiences Two ways to classify usage: 1.Usage rate: light, medium, or heavy 2.Brand relationship Heavy users typically buy the most of a product category or a brand’s share of the market. Switchers have low levels of brand loyalty who may be willing to try a new brand. Innovation and adoption The diffusion of innovation curve identifies the adoption process for new ideas according to speed:  The diffusion of innovation curve identifies the adoption process for new ideas according to speed: Groups include innovators, early adopters, early majority, late majority, and laggards Perceived risk: what you have to gain or lose by trying something new. What is Consumer Behavior? Consumer behavior describes how individuals and groups select, purchase, use, or dispose of products, and the needs and wants that motivate behaviors. Influences on Consumer Decision Making How do Consumers Make Brand Decisions? The traditional view: 1.Need recognition 2.Information search| 3.Evaluation of alternatives 4.Choice  3.Evaluation of alternatives 4.Choice 5.Postpurchase evaluation Involvement means personal relevance. When purchase decisions entail social or financial risk, they are considered higher involvement. Purchases that involve little to no risk are considered lower involvement. What is culture? The distinctive customs, values, beliefs, knowledge, art, and language of a society or a community. These values and concepts are passed on from society or a community. These values and concepts are passed on from generation to generation, and they are the basis for everyday behaviors and practices. Cultural Influences Culture is made up of tangible items and intangible concepts that together define a group of people or a way of life. Norms and Values Norms: a culture’s boundaries for “proper” behavior. Values: the source of norms which represent underlying belief systems. Cross-Cultural Factors International or global marketing programs must consider multicultural differences that might derail communication. National culture impacts consumption patterns and must be factored into  International or global marketing programs must consider multicultural differences that might derail communication. National culture impacts consumption patterns and must be factored into marketing and advertising strategies. It may be necessary to localize a campaign to appeal to audiences in a. different culture Rokeach’s 18 terminal values 1.True friendship 2.Mature love 3.Self-respect 4.Happiness 5.Inner harmony 6.Equality 7.Freedom 8.Pleasure  7.Freedom 8.Pleasure 9.Social recognition 10.Wisdom 11.Salvation 12.Family security 13.National security 14.A sense of accomplishment 15.A world of beauty 16.A world at peace 17.A comfortable life 18.An exciting life Other Cultural Factors Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations. Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Measured as a combination of occupation, income, education, wealth, and other variables Social Influences Groups and Social Networks Reference groups Opinion leaders Word-of-mouth influence Influencer marketing Online social networks Brand communities Groups of people devoted to a particular brand. (eg Harley Davidson) Brand communities Groups of people devoted to a particular brand. (eg Harley Davidson) Reference Groups For consumers, reference groups: 1.provide information 2.serve as a means of personal comparison 3.offer guidance Family is the most important consumer-buying organization in society. Psychological Influences Needs and Wants Psychological Influences Needs and Wants Needs are motivated by basic survival instincts. Wants are what we desire. Creating Value for Consumers Motivations A motive is an internal force that stimulates you to behave in a particular manner. This driving force is produced by the tension caused by an unfulfilled want or need. People strive to reduce the tension. At any given point, you are probably affected by a number of different motives Motivation Role of motivation: Energy to engage in effortful behavior/thought Means of attaching value/importance to products  Energy to engage in effortful behavior/thought Means of attaching value/importance to products Types of motivation Functional motives utilitarian, tangible costs/benefits Symbolic motives Personality-based (self-esteem, image) Social needs (belonging, relationships) Hedonic/experiential (just plain fun) Satisfaction is the gap between our expectations of a product or experience and our actual experience with it. Dissonance: Cognitive dissonance refers to a conflict between thoughts. This creates a state of tension.  Dissonance: Cognitive dissonance refers to a conflict between thoughts. This creates a state of tension. Need Recognition Discrepancy between ideal and actual state Really two types: Need recognition Opportunity recognition What is Strategic Planning? For marketing communication, strategic planning is the process of: identifying a problem that can be solved with communication. determining objectives. deciding on strategies. implementing tactics. What do each of these terms mean?  implementing tactics. What do each of these terms mean? Objective: what you want to accomplish. Strategies: how to accomplish the objectives. Tactics: actions that make the plan come to life. Planning involves coordinating a set of cascading objectives and strategies. Business objectives and strategies are achieved through planning at the level of marketing (and other marketing mix areas), and marketing objectives and strategies give direction to brand communication/IMC programs. The Brand Communication/IMC Plan Outlines communication activities to deliver on the business and marketing objectives The marcom planner’s goals: Who? Who are you trying to reach, and what insight do you have about how they currently think, feel, and act? What? What will you say to them? What directions from the consumer research are useful to the creative team? Where? How/where will you reach them? What directions from consumer research are useful to the media team? A brand communication plan seeks to match the right audience to the right message and present the message in the right medium to reach that audience. The Target Audience Strategy is based on accurately targeting an audience that will respond to a The Target Audience Strategy is based on accurately targeting an audience that will respond to a particular message. Research-based knowledge identifies what makes specific groups of consumers different from people in other groups. Brand Identity Strategy - FINISHED CUE CARDS HERE A brand is an integrated perception that includes fragments of information, feelings, and personal experience, all of which come together to give the brand meaning. Brand identity must be distinctive and familiar in terms of name, logo, colors, typeface, design, and slogan. Brand personality and liking: Should have human characteristics like loving, trustworthy, sophisticated. Brand position and leadership: The soul or essence of the brand; it stands for something that matters to consumers. Brand image: The mental impression customers construct for a product based on symbols and associations. Brand promise and brand preference: Believing that a brand will meet your expectations leads to brand preference. Brand loyalty: A connection built over time that leads to repeat purchases. Brand loyalty: A connection built over time that leads to repeat purchases. Brand Positioning Strategy A position is how consumers define the product or brand relative to its competitors. A position must be based on a particular feature or attribute. That feature or attribute must be important to the consumer. Product features and attributes Marketers first identify the features of the brand and its competitors to determine its advantages. Next, they evaluate the product’s tangible features and other intangible attributes. This identifies the relevant dimensions of the product that make it different from its competitors. Differentiation and competitive advantage Product differentiation focuses on key product differences. For parity products, marketers often promote intangible, or psychological, differences, particularly through branding. Perceptual Map Positioning Statement For [Target Market], the [Brand] is the [Point of Differentiation] among all [Frame of Reference] because [Reason to Believe]. For upscale Canadian families, Volvo offers maximum safety among all family automobiles because of its superior engineering.