Advertising: Principles and Practice Lecture Notes PDF

Advertising: Principles and Practice LECTURE 2 (Semester 1, 2023-24) 1 The Role of IMC in the Marketing Process Chapter Two, Advertising and Promotion: An Integrated Marketing Communications Perspective, 12th Edition (2021). by George E. Belch, and Michael A. Belch; Publisher: McGraw-Hill Requi...

Advertising: Principles and Practice LECTURE 2 (Semester 1, 2023-24) 1 The Role of IMC in the Marketing Process Chapter Two, Advertising and Promotion: An Integrated Marketing Communications Perspective, 12th Edition (2021). by George E. Belch, and Michael A. Belch; Publisher: McGraw-Hill Required readings: pp 45-62 (Marketing Strategy and Analysis; Market Segmentation; Selecting a Target Market; Market Positioning; Developing a Positioning Strategy) 2 Opportunity Analysis Market Opportunities are areas where: ❑ there are favorable demand trends; ❑ customer needs and/or wants are not being satisfied; and ❑ the company can compete effectively ➢ identified by examining the marketplace and demand trends 3 Competitive Analysis ❑ Identify the Competitors: ➢ Direct Competition ➢ Indirect Competition – Product Substitutes ❑ Search for a Competitive Advantage ➢ Competitive Advantage: something special a firm (or a brand) does or has that gives it an edge (優勢) over its competitors 4 Achieve Competitive Advantage through Advertising and Promotion ❑ IMC Case Study : Evian Babies – “Live Young” campaign (IMC & Competitive Advantage) Competitive advantage can be achieved through advertising that creates and maintains : 1) product differentiation – product is perceived as unique or better than its competitors 2) brand image (core associations consumers have about the brand) 5 Target Marketing Why “Target Marketing” ? ❑ A single product is unlikely to satisfy the needs of all consumers in a mass market ➢ Companies often need to develop different marketing strategies to satisfy different consumer needs Target Marketing - process of identifying the specific needs of groups of people (or segments), selecting one or more of these segments as a target, and developing marketing programs directed to each. Pic from iStockphoto 6 Market Segmentation ❑ Market Segmentation – the process of dividing up a market into distinct groups that • have common needs, AND • will respond similarly to a marketing action 7 Market Segmentation There are many possible ways to segment a market – marketers should determine which segmentation variables are more suitable for dividing up the market / grouping the potential customers Marketers may use one of the segmentation variables or a combination of approaches. Bases for Segmentation / Segmentation Variables Psychographic Demographic **Please refer to the attached sheet (from textbook) for details. Customer Characteristics Socioeconomic Geographic Behavior Usage Outlet Outlets Type Buying Situation Awareness © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Benefits Benefits Sought Two Important Bases for Segmentation Psychographic & Benefits Sought – Additional Explanation Psychographic Segmentation ❑ the market is divided on the basis of personality and/or lifestyle of consumers ❑ lifestyles – based on an analysis of the activities, interests and opinions (AIOs) of consumers Benefit Segmentation ❑ the grouping of consumers on the basis of the major benefits consumers seek in a product (For other Bases for Segmentation, please refer to the supplementary sheet and textbook for details) 10 ❑ ❑ Nowadays, it is always not specific enough to identify target audience simply based on Demographic or Socio-economic segmentation variables. (Consider the different characteristics and needs of people within the same age or gender group) It is recommended to consider using Psychographic (personalities, interest or lifestyle) or Benefit Sought as segmentation bases, or combining them with Demographic or Socio-economic segmentation bases. 11 Selecting a Target Market ❑ Having conducted the segmentation analysis, the next phase in the target marketing process involves two steps: 1) 2) Determine How Many Segments to Enter (One or more) Determine Which Segments Offer the Most Potential – the firm must examine the sales potential of the segment, the opportunities for growth, the competition, its own ability to compete, and whether it can market to this group ➢ to find a group of people who might be more likely to buy the firm’s products 12 Target Market ❑ The selected target market becomes the focus of the firm’s marketing effort ❑ The firm should: ➢ examine the common characteristics and needs of the potential customers in the target segment; ➢ determine how to attract them; and ➢ know where to send marketing communication messages for them 13 Exercise: ❑ ❑ Suggest various ways to segment the _______ market (by using different segmentation variables) Recommend a target market for a selected ________ product Throughout this course, we will just focus on the following bases for segmentation/segmentation variables only: - Demographic: Gender/Age - Socioeconomic: Income/Education/Occupation - Psychographic (refer to slide #10) - Benefits Sought (refer to the previous slide #10) 14 Positioning 定位 ❑ Positioning is the act of designing the company’s offering and image so they occupy a meaningful and distinct competitive position in the target consumers’ minds. (Kotler P. Marketing Management – An Asian Perspective. 1999) ❑ Not about the physical nature of the product but about how the product is perceived by the target consumers, relative to the position of major competitors ➢ set the brand meaningfully apart from the competitors in the mind of the target consumers 15 Position ❑ Position of the product/service: ❑ the image that comes to mind and the attributes consumers perceive as related to it (contrast with the position of competitors) ❑ should be clear, unique and simple Use one or more of the following seven options to develop the specific position of the product/service – “In the mind of the target consumers, product ABC is [_________________________________________________]” 16 Positioning Strategies How should we position? (What should we stress 強調?) Stressing [_______________] to set the brand meaningfully apart from the competitors, in the mind of the target consumers By Product Attributes and By Attributes and Benefits? Benefits? ByPrice Priceor / Quality? By Quality? By Use Use or By or Application? Application? ByProduct Product Class? By Class? ByProduct Product User? By User? By Competitor? Competitor? By By Cultural Symbols? Positioning Strategies – Additional Explanation ❑ Positioning by product attributes and benefits—to set the brand apart from competitors by stressing the specific characteristics or benefits offered ❑ Positioning by price/quality – (1) to emphasize the image of a high-quality brand where cost is considered secondary to quality (particularly for premium brands 高檔品牌 positioned at the high end of the market); or (2) to focus on the quality or value offered by the brand at a very competitive price 18 Positioning Strategies – Additional Explanation ❑ Positioning by use or application— to associate (聯繫) the brand with a specific use (具體用途)or application (stressing how the product is used) ❑ Positioning by product class—the brand is positioned against another product category (產品類別) – position itself as an alternative to products in another category 19 Positioning Strategies – Additional Explanation ❑ Positioning by product user— emphasizes the association (聯繫) with a particular group of users (i.e. make your target audience believe that a particular group of people are your product’s users) ❑ Positioning by competitor— the product is positioned against specific competitors within the same product category (i.e. emphasizes that your brand is better than some specific competitors) Positioning Strategies – Additional Explanation ❑ Positioning by cultural symbols – linking the brand with a meaningful symbol or icon to differentiate the brand from others 21 Reminder The above options are used to develop the “position”. Don’t stop at just choosing the options of “positioning strategies”. You need to state the specific “position” (“positioning statement”) “In the mind of the target consumers, product ABC is [__________________________________________]” ❑ A strong position should be single-minded – clear, simple and unique (able to set the brand meaningful apart from competitors in the mind of the target consumers) ❑ 22 Summary: Key Concepts Learnt ✓ ✓ ✓ ✓ ✓ ✓ ✓ Opportunity Analysis and Competitive Analysis Competitive Advantage and Product Differentiation Target Marketing – why it is important Segmentation and Selecting a Target Market; the major Segmentation Bases Positioning Seven major Positioning Strategies How to “position” a product 23