Chapter Three Positioning and Targeting for MarCom Efforts

All marketing communications should be: (1) directed to a particular target market, (2) clearly positioned, (3) created to achieve a specific objective, and (4) undertaken to accomplish the objective within the budget constraint.

Brand Positioning A positioning statement for a brand represents how we want customers and prospects to think and feel about our brand.

Positioning Approaches Positioning via Attributes »Product-related features »Usage and User imagery Positioning via Brand Benefits

Positioning with respect to brand benefits can be accomplished by appealing to any of three categories of needs. Experiential NeedsSymbolic NeedsFunctional Needs

Targeting Variables 1. Demographics 2. Psychographics 3. Geodemographics 4. Behaviorgraphics

Demographic Targeting Baby Boomers

Demographic Targeting Mature Consumers:

Demographic Targeting Mature Consumers:

Demographic Targeting Children and teenagers

Demographic Targeting Children and Teenagers:

Generation Y Approximately 50 million people Born between 1982 and 1994 Teens to mid-20’s

The Changing Age Structure 50+ million people born Baby Busters Portrayed as cynical, unmotivated, hopeless

Demographic Targeting Yup & Comers: The highest levels of education and income, focus on intangible rewards and confident about themselves Bystanders: Predominantly female of African-Americans and Hispanics, disposable income is low but love fashion and shopping Playboys: “Pleasure before duty” lifestyle, self-absorbed, fun-loving and impulsive Drifters: Frustrated with their lives, the least educated, and choose brands that offer a sense of belonging and self-esteem Bystanders (37%) Playboys (19%) Drifters (16%) Yup & Comers (28%)

Demographic Targeting % of population as of 2000

U.S. Demographics & Targeting How do buyers of these vehicles differ demographically? A) Sport-Utility Vehicles B) Minivans

U.S. Demographics & Targeting Which of these represent a meaningful target market? A) Baby boomers B) African-Americans C) Generation X

Lifestyles More than a set of purchase decisions. Express who one is in society (and who one is not). Identities derive, in part, from symbolism of products one tends to consume.

Lifestyles Products Building blocks of lifestyles Advertised as props Used as props in ad background

Lifestyles Meaning of Products

Lifestyles Kraft Macaroni & Cheese

Lifestyles Meaning of Products Flannel Shirt

Consumption constellations Sets of products whose symbolic meanings are complementary. How do marketers characterize and describe different consumption constellations?

Psychographics Use of psychological, sociological, anthropological factors to determine how the market is segmented by the choices of groups within the market. Combines knowledge of lifestyle preferences with personality variables and other information. VALS (SRI); Yankelovich MindBase

Psychographics: An Illustration Molson Export Beer: Target customer: Ads: Claim:

Psychographic Targeting aioPsychographics represents a combination of consumers’ activities, interests and opinions (AIO items) Useful but more difficult to identify and measure compared to demographic variables

VALS Eight categories are identified based on a combination of demographic and lifestyle factors such as age, income, education, level of self- confidence, health, and interest in consumer issues Two-dimensional format

VALS Three motivational orientations 1. Ideals-oriented: 2. Achievement-oriented: 3. Self-expression-oriented:

VALS Groupings: What is this information used for? Consumer Motivation

VALSSegment Experiencers n Main component of action- oriented segment n Young, enthusiastic, impulsive n Active in both physical and social activities n Want “cool” stuff

VALS Segmentation Isuzu Rodeo Target: Experiencers Positioning: Car that lets driver break the rules (running with scissors, coloring out of the lines). What if… Target: Achievement-oriented. What would be a good positioning for them?

VALSSegment Consumer Motivation Believers n Conservative. Family and community oriented people n Modest means n Brand loyal n Favor American-made products

VALSSegment Consumer Motivation Strivers n Lower-income people n Values similar to achievers n Active consumers, impulsive but constrained

VALSSegment Consumer Motivation Makers n Traditional, action-oriented n Self-sufficient n Suspicious of new ideas n Practical with little interest in most material possessions

Geodemographic Targeting People who reside in similar areas, such as neighborhoods or postal ZIP- code zones, also share demographic and lifestyle similarities

Geodemographic Targeting Companies that have developed geodemographic services »Donnelly Marketing (Cluster Plus) »Claritas (PRIZM) »CACI (ACORN) »National Decision Systems (Vision)

Geodemographic Targeting Claritas’s PRIZM Potential rating index by zip markets Delineated the 500,000 + U.S. neighborhoods into 60+ (from 40) clusters with descriptive names that characterize these regions (try it!)

Behaviorgraphic Targeting Based on how people behave (toward a particular product category or class of related products) rather than in terms of their attitude and lifestyles, their age, income, or ethnicity, or where they live. The best predictor of one’s future behavior is his or her past behavior.

Online Behavioral Targeting “Audience Management Systems” track Internet users’ surfing behavior in order to target them with specific advertisements.