Marketing and Promotions Process Model

Marketing Strategy and Analysis Target Marketing Process Identifying markets Competitive analysis Marketing Planning Program Development Promotional decisions advertising direct marketing internet/ interactive marketing sales promotion publicity and public relations personal selling Target Market Promotion to final buyer

Product decisions Pricing decisions Channel of distribution decisions

Market segmentation Selecting a target market Positioning through marketing strategies

Promotion to trade Resellers

Ultimate consumer Consumers Businesses

Target marketing

Purchase

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The Target Marketing Process

Identify markets with unfulfilled needs

Determining market segmentation

Selecting market to target

Positioning through marketing strategies

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Five-Step Segmentation Process

1. Finding ways to group consumers according to their needs. 2. Finding ways to group marketing actions usually the products offered - available to the organization. 3. Developing a market/product grid to relate the market segments to the firms products and actions. 4. Selecting the target segments toward which the firm directs its marketing actions. 5. Taking marketing actions to reach target segments.
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Bases for Segmentation

Geographic Segmentation

State - region - country - climate Age - sex - family status - education occupation - income - social class. Values - personality traits - lifestyles. Usage, loyalties, occasions. Types of specific needs or wants to be satisfied.
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Demographic Segmentation
Psychographic Segmentation Behavioristic Segmentation

Benefit Segmentation

Segmentation Decision Check List

Can the size of the market segment be measured? Is the market segment large and profitable enough to serve?

Is the segment identified accessible? Can it be reached effectively and efficiently? Can effective marketing programs be developed to attract and serve the segment identified?
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The Positioning Process

Positioning Concept
The desired perception or association management wants target customers to have for a firm and/or its products

Positioning Effectiveness
The extent to which managements positioning objectives are achieved in the market target

Positioning Strategy

Market Target

The combination of marketing actions used to portray the positioning concept to targeted buyers

Positioning of the brand

The positioning of the brand by the buyers in the market target

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Positioning Strategy Development Process

1. 2. 3. 4. 5. 6. Identify the competitors Assess perceptions of them Determine their positions Analyze consumer preferences Make the positioning decision Monitor the position
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Product/Service and Brand Positioning

BASIC QUESTIONS TO ASK

1. What position, if any do we currently hold in the mind of customers? 2. What position do we want to hold? 3. Whom do we have to compete against to establish this position? 4. Do we have the resources to occupy and hold the position?

5. Can we stay with one consistent positioning strategy?

6. Does our marketing and advertising match our positioning strategy?
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Approaches to Positioning A Product/Service or Brand

1.
2. By Product or Service Attributes or features By Price/Quality

3.
4. 5.

By Use or Application
By Product Class By Product or Service User

6.
7. 8. 9.

By competition
By price or value By brand image (emotional/psychological) By cultural symbols

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Classic Positioning Examples

Brand Avis Apparent Target Business travelers Non-loyal Coke drinkers Major Benefit Better service Taste/act young Reaches influential audience Support More effort by Avis owneremployees Visual/ situational Positioning Line Were #2. We try harder Pepsi Generation/ Generation Next

Pepsi

Rolling Stone Magazine

Advertisers

Readership studies Product quality, image Beauty, timelessness of product Microprocessor performance

Perception /Reality

Chevy Trucks

Blue-collar Truck owners

Quality trucks Durable, reliable

Emotional gratification

Like a rock

DeBeers

Men (purch.) Women (influencer) MIS mgrs./ end-users operation

A Diamond is Forever Intel Inside

Intel (co-branded)

Superior hardware

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Product Decisions

A product is a bundle of benefits or values Product symbolism refers to what a product or brand means to customers Product quality, branding, packaging, and company name contribute to product image BRANDING:

Brand name communicates attributes and meaning Advertising creates and maintains brand equity Packaging has become increasingly important It is often the customers first exposure to product
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PACKAGING:

The Value of Strong Corporate and/or Brand Identity

Strong corporate identity creates more options for competing against lowerpriced competitors Strong corporate identity builds customer loyalty and enhances employee morale and pride Strong corporate/brand identity makes it easier to withstand economic fluctuations and marketing crises

Strong brand identity facilitates attraction of top talent

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The Value of Strong Corporate and/or Brand Identity

Strong companies and brands can maintain sell products/ services at a premium price and maintain larger profit margins Strong corporate/brand identity makes customer response more inelastic to price increases and elastic to price decreases Strong corporate/brand identity facilitates expansion into new markets and the ability to attract acquisition candidates and joint venture partners

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Pricing Decisions

Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or value perceptions A product positioned as high quality while carrying a lower price than competitors will confuse customers Price, advertising and distribution must be unified to create the position for the product or service.
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Distribution Channel Decisions

Channel decisions involve:

Selecting Managing Motivating

Independent intermediaries:
Wholesalers Distributors Brokers Retailers
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Push Versus Pull

Push Policy
Producer Wholesaler Retailer Consumer

Pull Policy
Producer Wholesaler Retailer Consumer

Information Flow
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The Process of Positioning

MARKET ANALYSIS

SEGMENTATION

TARGET MARKET SELECTION

MARKETING STRATEGY

INTERNAL CORPORATE ANALYSIS

POSITION

PRODUCT/BRAND PRICE CHANNELS COMMUNICATIONS

COMPETITIVE ANALYSIS

DIFFERENTIATION

BENEFITS SELECTION

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Positioning Assumptions and Realities

Assumption
Company/brands are positioned by marketers in the marketplace Branding is something the marketing department does Positioning is a decision, followed by an action Company/brands are positioned against other brands in the category Once a company/brand positioning is set, it should not change

Reality
Company/brands are positioned in the mind of the prospect Branding must be reflected in every aspect of a product offering Positioning is a continuous rethinking process Company/brands are positioned against other alternatives within the prospects reality Positioning prompts must be continually added

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Creating a Position: What Do We Want the Company or Bra Mean To Customers?

Key Elements

Brand or Company Name Target Customer Brand Image and Personality Major End-Benefit Rational Support/s
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The Core of Brand Equity

Brand Name

Logo/Graphic System

Brand Positioning Strategic Personality

Marketing Communications

Selling Strategies

Promotion/ Merchandizing

Product/Service Performance

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"Push" Techniques

Point of sale displays, racks, stands Trade deals, special displays Dealer premiums, prizes, gifts Cooperative advertising deals Advertising materials, mats, inserts Push money or "spiffs"

Collaterals, catalogs, manuals

Company conventions, meetings
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"Pull" Techniques

Sampling, free trial Cents-off promotions Cents-off coupons Combination offers Premiums or gifts Contests, sweepstakes Point-of-purchase advertising Trading stamps
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