Major Components
Situation AnalysisProblems and OpportunitiesMarketing ObjectivesMarketing Strategies Implementation Evaluation
The Situational Analysis
Factual Statement 2 sections
– Internal Considerations
Product
Promotion Distribution Price
Problems and Opportunities
Identification Possible After SAProblems May be Opportunities in
DisguisePromotion only Solves
Communication Problems
Setting Objectives
Must be Specific and MeasurablePrimary Marketing Objectives
– Sales, Market Share, VolumeSecondary Objectives
– 4 P’s
Marketing Strategies
Investigate Segmentation Opportunities Determine Target Market Develop the Marketing Mix
– Product Strategies Branding Packaging
– Distribution Intensity of Distribution
– Promotion Consumer or trade oriented Promotions mix
– Price Competitive, skimming, penetration
Marketing Segmentation
Identifying groups of people with shared characteristics within the broad markets for consumer or business products
aggregating these groups into larger segments according to their mutual interest in the product’s utility
Steps to Segment
Identify the needs structure of the consumer population
Group the customers into homogeneous segments
Id factors that are correlated with the segments (segmentation variables)
Select your target market Develop your positioning strategy
Segmentation Variables
Demographics– age, income, sex, family
size
Geographics– regions, climate, density
Behavioristic – benefits sought, usage
rates, purchase occasion, psychographics
Target Markets
these are the aggregate segments that you will direct your marketing efforts towards
You’re prospects!
The Target Market Decision
Undifferentiated MarketingDifferentiated MarketingFocused (Concentrated
Marketing)
How Can the PLC be of Use in Target Marketing?
Influences the type of advertising that may be most appropriate
Primary vs. Selective Demand Stimulation
Introduction - education the focus
PLC (cont’d)
Growth Stage - turn the focus to the individual brand and maximize market share before competition becomes more aggressive
Maturity Stage - begin full focus on selective demand stimulation as competition increases and weaker competitors begin to exit the market
5 Categories of Adopters/Diffusion Process
Innovators - 3% Early Adopters -
13% Early Majority - 34% Late Majority - 34% Laggards - 16%
0
5
10
15
20
25
30
35
Innov L. Major
Percentage
Positioning
Positioning by AttributePositioning by Price and QualityPositioning by Use or ApplicationPositioning by Product UserBest Strategic Tool
– Perceptual Maps!
Product Differentiation
Perceptible Differences - unique taste, features, quality
Hidden Differences - ingredients (i.e., natural vs. artificial chemicals, use of recyclables, etc.)
Induced Differences - branding the #1 tool!
Branding
the combination of names words, symbols or design that identifies the product and its source and distinguishes it from the competition
physical and perceptual dimension
Benefits of Branding
Distinguish the product and firm Brand Loyalty
– % of consumers remaining loyal to one brand is declining
Brand Concept Management (BCM)– Introduction– Fortification – Elaboration (Family Branding)
Product PackagingFive Considerations in Package Design
Identification - visibility and legibilityProduct Protection and ConvenienceConsumer Appeal - color, size,
materialEconomy - increases costs but offset
with consumer demand changes
Advertising and Distribution
Direct Distribution - Network Marketing Indirect Distribution - resellers and channel
members to consider Three Primary Distribution Strategies
– Intensive– Selective– Exclusive
Advertising Plan
natural outgrowth of the marketing plan outline of the actions, approaches and
tactics that will be used to meet advertising objectives
often bounded by budgetary considerations
Advertising Objectives
should support marketing objectives
deal with awareness, recall, likeability, recognition, and sometimes - action!
Advertising Strategy
our plan of action!utilizes the creative mix to mobilize
the forces!target audience product conceptcommunications mediaadvertising message
Product Concept How will the ad present the
product? In terms of:
– Positioning– Differentiation– Life Cycle– Branding, packaging,
classification– Thinking or feeling?
Creative Mix
target audience - the people you want to speak to and address the message to
– Primary and Secondary
product concept - the bundle of values or benefits
– may be psychological or utilitarian
communications message – TV, radio, magazines, newspaper
advertising message - combo of art and copy and production to form message
Media Planning
Define Media Objectives– Reach, frequency, GRP, scheduling
Profile audiences/readershipMatch the audiences to the TMEvaluate economics of TM vs. TANegotiate purchases
Advertising Message
Copy Elements– Advertising appeals
Humor, fear, slice of life
– Copy Platform– Key Consumer Benefits to be identified
Art Elements– Visuals for packaging, ads, POP– Layout and Design
Advertising Budget
Judgmental vs. Data Oriented Approach
Consideration of PLC, Profit Objectives, Demand
Sales to Advertising Relationship