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![Segmentation at the disaggregated level leads to customized
marketing.
Example - Rolls Royce cars aim its vehicles at the premium
segment
Focused Marketing
A company may identify several segments but does not serve
them all.
Appropriate for companies with limited resources.
Example – Bang and Olufsen targets stylish music systems at
upmarket consumers.
What is Positioning?
Positioning
“Positioning is the act of designing the company’s offering and
image so that they occupy a meaningful and distinctive
competitive position [place] in the target customer’s mind.”
Kotler
This is achieved by the marketing mix
Positioning
A brand’s positioning represents the key feature, benefit, or](https://image.slidesharecdn.com/206mktappliedadvertisingweek3workshopbconsumerbehavi-221106112007-cbd4e9e5/75/206MKT-Applied-AdvertisingWeek-3-Workshop-BConsumer-Behavi-docx-16-2048.jpg)
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206MKT Applied AdvertisingWeek 3 Workshop BConsumer Behavi.docx
- 1. 206MKT Applied Advertising Week 3Workshop B Consumer Behaviour 1 Learning Objectives By the end of the session students should be able to: Explain ways in which consumer behaviour may affect advertising decisions Discuss how advertising can appeal to consumer involvement and motivation Explain the link between advertising and consumer perception What is Consumer Behaviour? Influencing Human Behaviour “Marketing is essentially a means of influencing human behaviour – typically consumer behaviour” (Jobber 2012) Understanding customers
- 2. How do theybuy? What are their choice criteria? Customers Who is important? Where do they buy? When do they buy? Understanding consumer behaviour when buying goods. 5 Consumer Buyer Behaviour Influences Cultural Factors - Culture, Sub-culture, Social Class Social Factors - Groups, Family, Roles Personal Factors - Age, life cycle stage, occupation, economic circumstances, lifestyle, personality Psychological Factors - Personality, mood, attitudes, beliefs Classification of Consumer Products
- 3. Convenience Staple (e.g. Contentsof the typical supermarket trolley) Impulse Emergency Shopping (e.g. durables) Speciality (exclusive e.g. designer clothing, long-haul holidays) Unsought (e.g. insurance) Compare and contrast how we buy things differently according to the type item and according to the context/situation we find ourselves in 7 Decision Making Unit (DMU) Influencer Financier/Decider Initiator Buyer User Initiator – begins the process of considering a purchase. Information may be gathered by person to support decision. Influencer – attempts to persuade others of the outcome, what to buy and who from! Impose their choice criteria on the end user.
- 4. Decider – powerand financial authority. Buyer – conducts the transaction, makes payment. User – the consumer of the product/service. 8 Decision Making Unit - example Which member(s) of the DMU is this advert trying to target? Trying to target families, particularly children. Pester power Influencer, decider, buyer – parents Initiator - child 9 Group Exercise Identify what DMU apply to your identified competitors in your coursework Trying to target families, particularly children. Pester power Influencer, decider, buyer – parents Initiator - child 10 Decision making process Level of involvement Extensive Problem Solving Limited Problem Solving Routine Response Impulse
- 5. See Dibb etal (2001) FCB Richard Vaughan of the Foote, Cone and Belding advertising agency has created a grid based on level of involvement and whether the decision making concerns mainly thinking (rational motives) or feeling (emotional motives) ThinkingFeeling High involvementInformative strategies for products that are technical in nature and purchased based on rational thinking and motives . For examples, cars, house, computers, etc.Affective strategies for products that provide psychological benefits For example, cosmetics, jewellery, fashion etc.Low involvementHabit formation strategies for products that are bought repeatedly after researching first purchase decision - routine purchases For example tomato sauce, soap, toothpaste, etc.Self- satisfaction strategies for products seen as "life's little pleasures” For example, sweets, biscuits, magazines, impulse items, etc. FCB Grid Communication process At which point must we consider consumer behaviour? Activity Get into groups and discuss the competitors you are looking at within your coursework;
- 6. Choose two segmentsthat your competitors may target Identify the influences on consumer behaviour Next session We will be looking at Media Consumption. 206MKT Applied Advertising Week 2 Workshop B Segmentation, Targeting and Positioning 1 Learning Outcomes Understand the importance of segmentation and its place in marketing Know the various methods of segmenting the market and understand how and when they might be used To be able to explain how advertising communicates with targeted segments Look at positioning in advertising
- 7. What is MarketSegmentation? Market Segmentation Rationale Rationale Organisations do not have infinite resources. Trying to sell a product to someone who is unlikely to buy it wastes these resources; focusing them on people who are likely to buy is far more efficient. Therefore there is a need to: - Classify (segmentation) - Concentrate (targeting) The STP Process Segment Start with the whole market Identify suitable method / segmentation criteria Target Identify nature and characteristics of each group – be more
- 8. specific of whoyou are targeting Positioning Marketing Mix Create a unique position in the mind of your target group and your competitors Develop appropriate mix Tailor some or all elements to the needs of the group Segmenting Consumer Markets Consumer segmentation Behavioural Benefits sought Purchase occasion
- 9. Purchase behaviour Usage Perceptions andbeliefs Lifestyle Personality Demographic Socio-economic Geographic Psychographic Profile Behavioural – Benefits – why people buy in the market and can highlight the opportunities. 6 Demographics
- 10. Age Using age tosegment the market e.g. Cereal . Gender How can a chocolate bar be made more attractive to one sex rather than the other? Can you identify another product category where men and women are treated as separate groups? Demographics Family What are the advantages of featuring a family in an ad? What kinds of products frequently involve families in their ads? Profile - Family Lifecycle Household composition: Child - power of persuasion - user, not buyer Bachelor - leisure & recreation expenditure Newly-weds, no kids – focus on consumer durables Dependent child(ren) - child dominated purchases Full nesters - School & education dominant Empty nest 1 - kids flown – leisure, financial service products
- 11. Empty nest 2- hobbies, medical expenditure Sole survivor in employment Sole survivor retired Geodemographics Combines demographic and household category variables Census data and continuous market research on consumption patterns Socio economic status Media consumption by category Residential postcode data Lifestyle & Psychographic Lifestyle is a unique pattern of living which influences and is reflected by one’s consumption behaviour Many products today are “lifestyle” products i.e. they portray a style of life sought by potential users Psychographics is the method of defining lifestyle in measurable terms How people spend their time - Activities What is of most importance to them - Interests Their views about themselves and the world around them - Opinions
- 12. Segmentation Variables –Lifestyle Activities Interests Opinions Work Hobbies Social events Holiday Entertainment Club membership Shopping Sport
- 13. Family Home Job Community Recreation Fashion Food Media Themselves Social issues Politics Business Education Products Future Culture Activity How doyou think Coca Cola segment its customers with its
- 14. product range? Who wouldyou consider to be their target markets? What is Targeting? Target Marketing “The choice of which market segment(s) to serve with a tailored marketing mix.” Jobber, 2009 Target Marketing Strategies Marketing Mix Marketing Mix 1 Marketing Mix 2 Marketing Mix 3 Marketing Mix 1 Marketing Mix 2 Marketing Mix 3 The Market Segment 1 Segment 2 Segment 3 Customer 1 Customer 2 Customer 3
- 15. Undifferentiated Differentiated Customized marketing Undifferentiated Marketing Developa single marketing mix for whole market. Market analysis may reveal no pronounced differences in customer characteristics that have implications for a marketing strategy. Cost of developing a separate market mix may outweigh potential gains of meeting customer needs. Convenient for single product companies. Example – Coca Cola’s original marketing strategy Differentiated Marketing Specific marketing mixes can be developed to appeal to all or some of the market segments. Example - airline companies offering first, business (segment 1) or economy class tickets (segment 2) , with separate marketing programmes to attract the different groups. Customised Marketing
- 16. Segmentation at thedisaggregated level leads to customized marketing. Example - Rolls Royce cars aim its vehicles at the premium segment Focused Marketing A company may identify several segments but does not serve them all. Appropriate for companies with limited resources. Example – Bang and Olufsen targets stylish music systems at upmarket consumers. What is Positioning? Positioning “Positioning is the act of designing the company’s offering and image so that they occupy a meaningful and distinctive competitive position [place] in the target customer’s mind.” Kotler This is achieved by the marketing mix Positioning A brand’s positioning represents the key feature, benefit, or
- 17. image that itstands for in the target audience’s collective mind. A company/brand should identify a positioning statement – a central idea that encapsulates a brand’s meaning Positioning and targeting decisions go hand in hand. Positioning decisions are made with respect to intended targets It involves two interrelated actions: positioning a brand in (the consumer’s mind) and against (competitive positioning strategies) A short statement – even a word – that represents the message you wish to imprint in customer’s minds Tells how your brand differs from competitive brands Developing a Positioning Strategy Step 1- Analyse competitors’ positions Step 2 – Offer a good or service with competitive advantage Step 3 – Match elements of the marketing mix to the selected segment Step 4 – Evaluate the target market’s responses and modify strategy if needed Group Activity In groups discuss what criteria can be used to compare and position: Supermarkets Cars Mobile phone networks
- 18. Airlines Positioning by ProductAttributes and Benefits Positioning - Price/quality Use/application Product user Product competitor
- 19. Heritage/ Cultural symbol Nextsession We will be looking at the external environment & competitor analysis 206MKT Applied Advertising Week 1 Workshop B USP’s and Slogans CW Briefing 1 Objectives Establish what constitutes a products/brands USP
- 20. Investigate different advertisingslogans Illustrate understanding of brand positioning between similar brands Coursework 1 brief Discussion With your neighbour discuss what is meant by the term “USP”. Highlight 3 key points about USP’s. Give examples if you wish. What is a USP? Every product has a Unique Selling Point/Proposition It says something positive about the product (inherent) It helps to differentiate one product from another (positioning) It identifies how/why a product is used (targeting) Questions about products Is it really unique? Is it a positive difference?
- 21. Does the marketunderstand/want the difference? Discuss these products... Discuss in small groups what the USP’s of each of these products are. There could be more than 1! Name the brand that goes with each slogan: “The ultimate driving machine." "Don't leave home without it." “Probably the best beer in the world." "They'rrrre GR-R-REAT!" "Where do you want to go today?" "The best a man can get." "Schhh...You-Know-Who." "Put a tiger in your tank." Slogans... “Reassuringly expensive." "Snap! Crackle! Pop!" "Finger lickin' good." "Have it your way." "Just do it."
- 22. “It's the realthing." "Obey Your Thirst." “I’m lovin’ it” Brand Positioning ‘Campaign for real beauty’ It shows the incredible amount of pressure young women face to emphasise personal beauty. Doves Social and Fashion Advertising Dove Campaign for “real beauty” Brand Positioning – All Encompassing Positioning the User Use of real people with real bodies to reinforce the message Dove adverts... L’Oreal
- 23. Brand positioning –EXCLUSIVE Use of celebrity endorsement to reinforce the message “Because I’m Worth It” 12 L’Oreal – Opted for EXCLUSIVE brand positioning Product range not unlike many others in the beauty industry People associate their brand with celebrity They play on people’s psychological needs off achieving a higher status. Well if so and so uses it then so should I! Because I’m Worth It!! L’Oreal adverts... L’Oreal v Dove Two beauty brands with a similar product offering
- 24. Chosen diverse brandpositioning Helps to fight the noise Consumers will relate more comfortably to one or the other helping to filter out the competitors 14 Lynx Launches a new global campaign this year “Find your Magic” encouraging men to celebrate their individuality Marketing Week Article 15 Activity You work as a Communications Manager for Nivea. You are launching a new skin care range aimed at 18-24 year olds. Who are you main competitors? How do they communicate to their customers? Consider your USP How could you encompass this in a new slogan?
- 25. Coursework 1 Brief Nextworkshop We will be looking at Branding I will also use 20 minutes at the end to answer any coursework brief questions New Market Entrants, eg: entry ease/barriers geographical factors incumbents resistance new entrant strategy routes to market
- 26. Buyer Power, eg: buyerchoice buyers size/number change cost/frequency product/service importance volumes, JIT scheduling Product and Technology Development, eg: alternatives price/quality market distribution changes fashion and trends
- 27. legislative effects Supplier Power,eg: brand reputation geographical coverage product/service level quality relationships with customers bidding processes/capabilities Competitive Rivalry, eg:
- 28. number and sizeof firms industry size and trends fixed v variable cost bases product/service ranges differentiation, strategy Porter’s Five Forces of Competitive Position © alan chapman 2005, based on �HYPERLINK "http://www.businessballs.com/portersfiveforcesofcompetition.h tm"��Michael Porter's Five Forces of Competitive Position Model�. Not to be sold or published. More free online training resources are at �HYPERLINK "http://www.businessballs.com/"��www.businessballs.com�. Alan Chapman accepts no liability.
- 29. Faculty of Businessand Law Assignment Brief Module Title: Applied Advertising Assignment Number CW1 Module Code: 206MKT Assignment Title “Market Place Analysis” Assignment Weighting 60% Release Date: 23rd January 2017
- 30. Module Leader Jayne Pyattand Ellie Hickman Submission Date/Time: 24/02/2017 23:55:00 Submission Time and Place: Submission through Turnitin ONLY Assessment Information This assignment is designed to assess learning outcomes: 1. Analyse a product and its target market. This assignment is an individual assignment This assignment requires you to: Produce a report that identifies two major competitors in the Online Fashion Clothing Market. Include the following: • Segmentation, targeting & positioning strategies of the two Online Fashion companies you have chosen. •Identify their USPs •Existing online and offline advertising •Media consumption characteristics of the target market • Consider what aspects of consumer behaviour may
- 31. influence the advertisingand media consumption. (Using a minimum of two theories.) N.B. This report is looking at your competitors not your own brand Criteria for Assessment Structure 10% Content is organised and appropriate; coherent; flow of information, arguments, and concepts Knowledge and Understanding 30% Identifies, explains, draws on appropriate theories, models, literature to demonstrate depth and breadth of reading to address the question Application 30% Application of theory or practical examples given appropriate to context Analysis and Recommendations 20% Evaluation and critical analysis of the topic, synthesis of ideas/concepts, appropriate conclusions, justified recommendations Presentation 10% Spelling, punctuation, grammar, layout, accurate CU Harvard Referencing style, writing style academic/professional Word Count The word count is 2000 There will be a penalty of a deduction of 10% of the mark (after internal moderation) for work exceeding the word limit by 10%
- 32. or more. The wordlimit includes quotations, but excludes the bibliography. How to submit your assessment The assessment must be submitted by 23.55:00 on 24/02/2017. No paper copies are required. You can access the submission link through the module web. · Your coursework will be given a zero mark if you do not submit a copy through Turnitin. Please take care to ensure that you have fully submitted your work. · All work submitted after the submission deadline without a valid and approved reason (see below) will be given a mark of zero. · Extensions of up to two calendar weeks can only be given for genuine "force majeure" and medical reasons, not for bad planning of your time. Please note that theft, loss, or failure to keep a back-up file, are not valid reasons. The extension must be applied for on or before the submission date. You can apply for an extension by submitting an Examination/ Coursework Deferral/Extension Application Form. Application Forms along with the supporting evidence should go to the relevant Student Support Office. For a longer delay in submission a student may apply for a deferral. · Students MUST keep a copy and/or an electronic file of their assignment. · Checks will be made on your work using anti-plagiarism software and approved plagiarism checking websites. Extensions and Deferrals The University wants you to do your best. However we know that sometimes events happen which mean that you can’t submit your coursework by the deadline – these events should be beyond your control and not easy to predict. If this happens,
- 33. you can applyfor an extension to your deadline for up to two weeks, or if you need longer, you can apply for a deferral, which takes you to the next assessment period (for example, to the resit period following the main Assessment Boards). You must apply before the deadline. You will find information about the process and what is or is not considered to be an event beyond your control at https://share.coventry.ac.uk/students/Registry/Pages/Deferrals- and-Extension.aspx GUIDELINES AND BACKGROUND TO THIS ASSIGNMENT Plagiarism As part of your study you will be involved in carrying out research and using this when writing up your coursework. It is important that you correctly acknowledge someone else’s writing, thoughts or ideas and that you do not attempt to pass this off as your own work. Doing so is known as plagiarism. It is not acceptable to copy from another source without acknowledging that it is someone else’s writing or thinking. This includes using paraphrasing as well as direct quotations. You are expected to correctly cite and reference the works of others. The Centre for Academic Writing provides documents to help you get this right. If you are unsure, please visit www.coventry.ac.uk/caw. You can also check your understanding of academic conduct by completing the Good Academic Practice quiz available on Moodle. Moodle includes a plagiarism detection system and assessors are experienced enough to recognise plagiarism when it occurs.
- 34. Copying another student’swork, using previous work of your own or copying large sections from a book or the internet are examples of plagiarism and carry serious consequences. Please familiarise yourself with the CU Harvard Reference Style (on Moodle) and use it correctly to avoid a case of plagiarism or cheating being brought. Again, if you are unsure, please contact the Centre for Academic Writing, your Academic Personal Tutor or a member of the course team. Return of Marked Work You can expect to have marked work returned to you in 15 working days. If for any reason there is a delay you will be kept informed. Marks and feedback will be provided online. As always, marks will have been internally moderated only, and will therefore be provisional; your mark will be formally agreed later in the year once the external examiner has completed his / her review. Assignment Brief Template Page 2 of 3 206MKT Coursework 1 Check List Element of Coursework Comments Identify 2 competitors Segmentation, Targeting and Positioning criteria of competitor 1
- 35. Segmentation, Targeting andPositioning criteria of competitor 2 Existing advertising of competitor 1 Existing advertising of competitor 2 USP of competitor 1 USP of competitor 2 Media consumption of target audience(s) Consumer behaviour theory External Factors (not essential but may form part of your decisions)