Integrated marketing communications chapter 4Word

　　Chapter 4Market segmentation and Brand positioning

　　Content Market segmentation(target marketing) Brand positioning

　　Market Segmentation What is market segmentation? Why to segment market? How to segment market? The benchmark of efficient segmentation? How to select your target market from market segments?

　　What is market segmentation? A marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and consumption behavior and then designing and implementing strategies to target them. Generally used to identify and further define the target customers, and provide supporting data for marketing plan elements such as positioning to achieve certain marketing objectives.

　　Why to segment market?Segmentation and targeting customers allows marketers To execute “target marketing”, to effectively deliver their messages to defined target market segment avoid wasted coverage on those who are not target Better serve the target market Build competitive advantage in the target market

　　How to segment market? Consumer market / Business market Segmenting market based on Consumer’s characteristics Consumer’s responsiveness

　　Consumer’s characteristics Geographic segmentation Demographic segmentation Age, Gender, Income, Life cycle stage, Generation gap, Family composition, Social class, Ethnicity, etc.

　　Geo-demographic targeting A combination of demographic and lifestyle characteristics of consumers within geographic clusters

　　Psychographic segmentation Personalities, Value and Lifestyles

　　Consumer’s responsiveness(Behavioral segmentation) Benefits Timing (of demand, purchasing, using) User status Using frequency Loyalty Attitude,etc.

　　Geo-demographic targeting Values and lifestyle targeting Values and styles represent a combination of consumers’ activities, interests and opinions (AIO)-Table 4.5

　　Geo-demographic targetingRoy Morgan Values Basic needs A fairer deal Real conservatism Look at me Young Optimism Convention Family life Traditional Family life Visible Achievement Socially aware Something better

　　RMVSBasic need Refers to a pattern of responses offered by respondents who are focused on “getting by’ on a day-to-day basis. They are often retired, pensioners, and people on social security.

　　RMVSA Fairer Deal Refers to the pattern of responses from respondents who are the most likely to feel that they get a raw deal out of life. Pessimistic, cynical and often struggling financially They believe life has treated them unfairly

　　RMVSReal Conservatism Be cautious about new things and ideas. maintain a disciplined, predictable and safe society. Be particularly attracted by older, wellestablished brands

　　Look at me Look

　　for fun and freedom away from the family Fashion and trend conscious Often found among teenagers Take part in cool activities money, music and media

　　Conventional family life The core of middle Australia Seek greater financial security, struggling to improve their basic living standards and give their families better opportunities Prefer to good, solid and reliable products

　　Traditional Family life Associated with the older counterparts of the Conventional Family Life segment Generally empty-nesters or extended families Old and familiar environments are important.

　　Visible Achievement The are visible successful stories. Retain traditional values about home, work and society Family is important They make an art of understatement Look for quality and value for money

　　Socially aware community minded and socially active always searching for something new and different and new things to learn being involved in public servants, politicians and researchers have fashion sense

　　Something better competitive, individualistic and ambitious people inclined to demonstrate their success to others Concerned about image and social status and mixing with the right people

　　Young Optimism Seek to improve their prospects in life to gain a respected place in society young people Be conscious about image Busy career planner Want to try everything Being innovative and interested in technology

　　The benchmark of efficient segmentation?Efficient market should be Differentiated Measurable Accessible Actionable Profitable(big enough to make profit)

　　How to select your target market from market segments?Evaluate market segments Attractiveness of the market segment Company’s objective Company’s resources and capabilities Choose target market segment Intensive single market Selective specialization(multi-target market) Product specialization Market specialization Target on whole market

　　Positioning Positioning was first introduced by Jack Trout in 1969 (Industrial Marketing Magazine- June/1969) and then popularized by Al Ries and Jack Trout in their bestselling book Positioning - The Battle for Your Mind. (McGraw-Hill 1981)

　　Positioning What is positioning? Why is positioning important? How to position a brand ? What is an efficient positioning for brand? Pitfalls of positioning

　　What is positioning? Create specific meaning for the brand and clearly establish that meaning in the consumer’s mind (psychological positioning) Positioned against the competitor’s brand (differentiation) Develop an effective positioning statement It should reflect a brand’s competitive advantage It should motivate customers to action

　　Why is positioning important?help to determine who is the target market what the marketing communication should say about the brand,

　　and what media and message vehicles should be selected

　　How to position a brand ?Positioning process Identifying the business's direct competition Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest provider, etc.) Documenting the provider's own positioning as it exists today (may not exist if startup business) Comparing the company's positioning to its competitors' to identify viable areas for differentiation Developing a distinctive, differentiating and value-based positioning concept Creating a positioning statement with key messages and customer value propositions to be used for communications development across the organization

　　Positioning strategies On overall evaluation (attitude) On brand attributes Non-product related attributes, eg. Price, packaging, user and usage imagery,company size or history Product-related attributes, eg. Color, size, design features

　　On benefits Functional Symbolic- directed at desire for group membership, belongingness, self enhancement Experiential- provide sensory pleasure, eg. Looking elegant, feeling wonderful and sounding superb.

　　What is an efficient positioning for brand? Viable and efficient diffierentiation Important ( or meaningful to user) Unique Superior ( to competitor’s offering) Profitable Actionable

　　Pitfalls of positioning Ambiguous positioning Confusing positioning

　　Homework Describe the tourism positioning of Yangzhou City compared to Hangzhou. Your comments on the positioning strategy. How to improve the competitiveness of Yangzhou as a tourism destination in terms of positioning?