lt7058 events marketing week 3
TRANSCRIPT
Events MarketingWeek 3 – Marketing Mix, Segmentation, Targeting and Positioning
Today’s session
• Explore the basics of market research and its links to segmentation, targeting, positioning and overall marketing communication efforts
• Discuss the marketing mix for events
• Contextualise the concepts of segmentation, targeting and positioning within the events industry
• Discover how the Marketing Mix can be used in order to successfully target chosen audience(s)
Context for Marketing Communications
Research and Analysis
Marketing objectives
Segmentation, Targeting and Positioning
Implementation, Evaluation and Adjustments
Market Research & Analysis
Links the organisation with the environment in which it operatesIn-house vs. Outsourced market researchPurpose and process of market research?
Specify the
problem
Gather relevant
data
Analyse & interpret
data
Facilitate decision making
Market Research Process
Problem definition
Research objectives
Planning the researchBrief & Plan (Data Collection)
Adapted from: Brassington & Pettitt (2006) Principles of Marketing, 4th Edition
Data Collection
Types of market research– Exploratory / Descriptive / Causal (Predictive)– Primary vs Secondary research
• Types of data– Qualitative vs. Quantitative
Sources of information – Internal vs. External sources– Sampling
Market Research Process
Problem definition
Research objectives
Planning the researchBrief & Plan (Data Collection)
Conducting the research
Analyse & Interpretinformation
Prepare & present report
Adapted from: Brassington & Pettitt (2006) Principles of Marketing, 4th Edition
Situation Analysis
• Focuses on external and internal environment and stakeholders
• PEST/LE, SWOT (what you did last week)
• Feeds into aligning the organisational market offering (product/service/event) to the needs of the stakeholders and corporate objectives
Marketing Mix
What is the marketing mix?
‘Understanding the nature of customers and their needs and wants is only the first step… The organisation needs to act on that information in order to develop and implement marketing activities that actually deliver something of value to the customer. The means by which such ideas are turned into reality is the marketing mix.’
Brassington and Pettitt (2003:27)
Marketing Mix
• Originally developed in the 1960s (Borden, 1964; McCarthy, 1964)
• Marketer as a ‘mixer of ingredients’
• ‘set of strategies on the supply-side’ that meets ‘a set of needs on the demand-side’ (Rosenbloom and Dimitrova, 2011)
The ‘original’ Marketing MixPrice: • Costs• Profitability• Value for money• Competitiveness • Incentives
Product: • New product development• Product management• Product features/benefits• Branding• Packaging • After-sales service
Place: • Access to target market• Channel structure• Channel management• Retailer image• Logistics
Promotion • Developing promo mixes• Advertising mgmt• Sales promotion mgmt• Sales mgmt• Public relations mgmt• Direct marketing
Source: Brassington & Pettitt (20014:27)
Four Ps
• Static concept
• Marketing is a dynamic process, which needs an alternative conceptualisation of core elements
• 4Ps do not always adequately reflect the nature of a company’s market offering particularly in the service/events sector
Extensions of the Marketing Mix
4Ps (McCarthy, 1964)
5Ps (Judd, 1987)
6Ps (Kotler, 1984)
7Ps (Booms and Bitner, 1981)
15Ps (Baumgartner, 1991)
ProductPricePlacePromotion
ProductPricePlacePromotionPeople
ProductPricePlacePromotionPolitical powerPublic opinion formation
ProductPrice PlacePromotionPeopleProcessPhysical evidence
Product/servicePricePlacePromotionPeoplePoliticsPublic relationsProbePartitionPrioritizePositionProfitPlanPerformancePositive implementations
Source: Gummeson (1994)
Marketing Mix for Events/Experiences
4Ps (O’Sullivan and Spangler, 1998)
9Ps (Getz, 2005)
10Ps (Allen et al, 2005)
4Ps (Raj, Walters and Rashid, 2009)
8Ps (Bowdin et al, 2011)
Parameters of the event experiencePeoplePeripheralsPer-info-com
ProductPricePlacePromotionsPeopleProgrammingPackaging and distributionPartnershipsPositioning and branding
Product experiencePricePlacePromotionPeopleProgrammingPackagingPartnershipsPhysical settingProcesses
ProductPricePlacePromotion
Product experienceProgrammingPackagingPricePlacePromotionPeoplePartnerships
Product
Promotion
Price
Place
Core/tangible/augmented/potential
Costs – time/psychic/physical/sensory
Product experienceProgrammingPackagingPeople and Partnerships
Integrated Marketing Communications
Free entry, donation or ticket?
Physical settingProcesses
Market Segmentation in Events
• What is the purpose of market segmentation?
• How many customers can you identify with any particular event?
• What is the basis of segmentation?
• Twofold application: – Conceptualizing and launching a new event– Promoting an existing event
Market SegmentationWe are all different but have some needs in common:biological needs - food, shelter etc.acquired needs - shaped by culture, education and our experiences
These commonalities = market segments
Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics
Schiffman et al. (2012:6)
Schiffman L, Kanuk L & Hansen H. (2012) Consumer Behaviour: A European Outlook. Pearson, Harlow
• B2B vs B2C segmentation• Segmentation criteria:
– Geographic/Demographic/Geo-demographic
– Psychological/Psychographic– Sociocultural
Approaches to market segmentation 1
Approaches to market segmentation 2BenefitHybrid – Values Attitudes Lifestyles (VALS)http://www.strategicbusinessinsights.com/vals/Primary vs Secondary vs Tertiary segments
Use related/ Usage – situation
Segment name Segment characteristic Marketing action
LoLows Low current share, low consumption customers StarveHiLows High current share, low consumption customers TickleLowHighs Low current share, high consumption customers ChaseHiHighs High current share, high consumption customers Stroke
Segmenting consumer markets
• Why do people attend events? – Excitement & thrills, socialization, entertainment, event
novelty, family togetherness (Formica & Uysal, 1996)– Cultural exploration, novelty/regression, recover equilibrium,
known group socialization, external interaction/socialization, gregariousness (Crompton & McKay, 1997)
– Local culture/identity, excitement/novelty seeking, party, local attractions, socialization, known-group socialization, ancillary activities, desire to see artists perform (Faulkner, 1999)
– External interaction/socialization, novelty/uniqueness, variety, entertainment/excitement, escape, family (Nicholson and Pearce, 2001)
Segmenting business markets
Criteria: – Industry (sub)sector (e.g. pharmaceuticals, fashion, film,
etc.)
– Company size and scale of operations (multinationals, large national companies, SMEs) or annual turnover
– Geographical location (e.g. companies within London, South-East, Europe, EMEA, etc.)
– Attractiveness of products/services offered by the company (basic goods vs luxury goods, etc.)
– Reputation
Segmenting media markets
Criteria:
– B2B vs B2C
– Publication/channel profile (print, digital, outdoor,…)
– Circulation numbers (how many people can they reach)
– Profile of their target audiences
– Speed/frequency at which the message can reach audiences (e.g. daily, monthly, weekly, etc)
Some examples
What criteria would you use to segment the market for the following events:
– One-day conference on digital marketing– A local secondary schools sporting competition– Product launch of the new luxury car
What type of event would appeal to: – Professional, pregnant, single women in their early 30s– Middle-aged, divorced, professional men in their 50s with a very
strong interest in “all things male”– Young couples (late 20s–early 30s) with small children– Extreme sports enthusiasts – male and female – Elderly couples approaching retirement
5 W’s
• Five Ws of Marketing– The basis of the marketing message
• Why? – links to motivation, needs & satisfaction• Who? – links to segmentation• When? – links to seasonality• Where? – links to distribution• What? – links to product/Event Experience
Positioning 1
What is the basis of positioning?
1) Knowing the target audience’s needs, attitudes and preferences
2) Effective design of the Marketing Mix (4Ps, 7Ps, 8Ps, 9Ps, 12Ps...) to address these
3) Efficient use of resources in promotion
Positioning 2The way in which the event is defined by consumers, or the “place it occupies in consumers’ minds relative to competing products” - PERCEPTIONMarket share vs mind-share vs heart-sharePositioning can be done:
– Based on specific product/service attributes– Against an existing competitor
When positioning an event consider
LocationAttention spanCompetitor pricesProgramme (content)
Competitive advantage
Positioning 3 - focus
Market Focused
Fully focused
(Service and Market
focused)
Unfocussed (everything
for everyone)
Service focused
Numbers of Markets served
Many
NarrowWide
Few
Breadth of service offerings
Lovelock & Wirtz, 2011:84
https://www.c-h-w.com/future-old/event-2015-registration/
http://www.international-confex.com/page.cfm/link=1
Positioning 4
Criteria for positioning in the events industry:
– Existing reputation (e.g. Olympic Games)– Charisma of the event director (e.g. Duncan Reid)– Focus on event programming (e.g. Trafalgar Square
Festival)– Focus on performers and “theatre”– Emphasis on location or facilities (e.g. Wimbledon)– Price or quality (e.g. The Three Tenors)– The event category or product class– Multiple attributes (a combination of any of the above)
Positioning 5 - maps Serious runners
Less expensive
Expensive
Fun runners
Virgin Money London Marathon (£35)
BMW Berlin Marathon (98 Euros)
Lovelock & Wirtz, 2011:94-99
New York Marathon (£229)
Edinburgh (£54)
Targeting Strategies
• What does targeting mean?• What is the purpose of targeting?
Undifferentiated (mass) marketing
Differentiated (segmented) marketing
Concentrated (niche) marketing
Micromarketing (local/individual) marketing
Summary
1. Events face active competition2. To succeed marketers need to develop value
propositions that stake a defensible position against competitors
3. Events when considered as services offer a number of possibilities for competitive differentiation e.g. location, luxury/exclusiveness, scheduling, calibre of personnel/guests and options for customer involvement.
4. Most Events will pursue a focus strategy
Useful Resources
Market research, Segmentation, Targeting & PositioningMasterman and Wood (2006)
– Chapters 2 & 3Brassington and Pettitt (2004)
– Chapters 5, 6 & 20 (pp 840-865)O’Sullivan, E.L. and Spangler, K.J. 1999. Experience Marketing: Strategies for the New Millenium, Spon PressRosenbloom, B. and Dimitrova, B. (2011) The Marketing Mix Paradigm and the Dixonian Systems Perspective of Marketing, Journal of Historical Research in Marketing, 3 (1), pp. 53-66• Thompson, K. and Schofield, P. (2009) Segmenting and Profiling
Visitors to the Ulaanbaatar Naadam Festival by Motivation, Event Management, Vol.13, pp. 1-15