1. Fundamental MARCOM Decisions Chapter 4 Shimp 7th Edition
Targeting, Positioning, Objective Setting

2. Major Components of the Marketing Plan
Situation Analysis
Problems and Opportunities
Marketing Objectives
Marketing Strategies
Implementation
Evaluation

3. The Situational Analysis
Internal Considerations
Product
PLC, BCG
Promotion
Mix, slogans
Distribution
strategy
Price
Skimming, penetration

4. Situational Analysis External Considerations Marketplace Competition
Consumers
Demand
Environment

5. Hierarchy of Marcom Effects
Sales Promotion
Advertising and PR
Advertising

6. Marketing Communications
All marketing communications should be directed towards a 1) target market, 2) clearly positioned, 3) created to achieve a specific objective, and 4) taken to accomplish the objectives within the budget constraints
Seems simple, huh?

7. Targeting and Segmentation
Segmentation enables the marketer to break the general marketplace into cohesive subsets (segments)
Targeting is the process by which the marketer determines which segments to pursue
Consumer characteristics such as behavioristics, psychographics, geodemographics and demographics help us understand what we will consume and how we will respond to marketing communications

8. 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

9. Segmentation Variables
Demographics*
age, income, sex, family size
Geodemographics
regions, climate, density
Psychographics
AIO
Behaviorgraphic
benefits sought, usage rates, purchase occasion
*increasingly hard to measure but more predictive

10. Behaviorgraphics and Psychographics
Targeting based on the way people behave
Best data to have, but not always available
Psychographics
Targeting based on lifestyle and attitudes
Values, motivations, and lifestyles as they relate to buying behavior

11. VALS
Innovator – successful, sophisticated, take charge people exhibit all three motivators; niche, upscale buyers
Ideals Motivated
Thinkers - 11% ; avg age 48, mature, satisfied, comfortable, responsible, educated, healthful products purchasers. Seek durability and functionality, yet financially able to consider many choices
Believers - 16%; avg age 58; conservative, predictable, conventional, buy American products, loyal consumers

12. VALS Achievement Motivated
Achievers - 13%; avg age 36, successful, work and goal oriented, satisfaction from families and jobs. Lifestyle structured around family and value consensus and stability over risk. Purchase prestige products and services, time saving goods
Strivers - 13%; avg age 34 fewer resources, trendy and fun loving consumers, that seek approval. Money defines their choices and not enough to fund! Impulsive within limits

13. VALS (cont’d)
Self Expression Oriented
Experiencers (12%); avg age 26, high energy levels, exercisers, socialites! Young, enthusiastic, impulsive shoppers. Buy clothes and food, want to look good and have fun!
Makers (13%); avg age 30; practical, self sufficient, focus on family, work, physical recreation, don’t seek new and different
Survivors
Strugglers (14%) avg age 61; lowest incomes, not consumer oriented, seek safety and security
Actualizers (8%) avg age 43, highest incomes, resources, and high self esteem

14. Demographics/Geodemos
Monitoring demo shifts can assist with
identifying segments
forecasting of sales
assisting with media planning
Minimizing wasted coverage
Geographic Dispersion
Population relocating to South and West from Northeast and Midwest
70% growth to come in these regions

15. Criteria For Usable Segments
Sufficient Size
Large enough to profit?
Measurability
Identify the group with characteristics such as demos
Accessibility
Responsiveness
Durability

16. Population Growth Relatively slow population growth in U.S.
World population to grow from 5 to 8 billion in 2025
China and India combined have 2.2 billion compared to the U.S. at 300 million
Role of China in World Economy - UPS

17. Changing Age Structures
Baby Boomers
birth of 77 million Americans
created a mini baby boom
increase in # kids <10
preteens, teenagers and young adults declined
epicenter of society - but are aging
not a true market segment - merely share age range
Middle Agers (35-54 years old)
Nearly 85 million as of 2005
Mature Consumers
55 and older
quality and service > price
Highest discretionary income and accumulated assets

18. Middle Agers 35-54 not psychologically old!
Exercise equipment, personal care items, skin care
Will spend money on grown up toys
Plastic surgeons?

19. Mature Consumer Segment Communication Techniques??
Olders
55-59
60-64
Elders
65-69
70-74
The Very Old
75-79
80-84
85 and older
Average Age

20. Mature Consumers 65 and over have the highest discretionary income
12.6% of the population or 36 million in 2005
Ads portray them as vital and active targeting products such as
Viagra
Internet and computers
Not a homogeneous group! Healthy hermits, ailing out goers, frail recluses, healthy indulgers

21. Changing Age Structures
Children 4-12
Preschoolers – 6.7% often play an Elementary aged – 6.6% influential role in decision making
Tweens (8-12 yrs old) – 7.2%
Teenagers
Generation Y ( )
substantial influence
conformist, narcissistic and fickle
Young Adults
Generation X ( ) Baby busters
Yup and Comers, Bystanders, Playboys, Drifters

22. Changing Households - Trends
Growth of nontraditional Households
40% + population unmarried
35 million nonfamily households
Singles have very different buying needs
example: Stouffers
New Women’s Roles
70% working – changing retailing options
traditional strategies for advertisers declining

23. New Roles for Women Stereotypes
wife, homemaker, sexy
# in workforce growing dramatically; 70% 25-54
staying single longer
Increasing diversity of roles – 1st woman President of Harvard

24. Ethnic Population Developments
African-Americans
12-13% population
not a single market
growing market, young market, geographically concentrated, prestige buyers
Hispanic-American
Spanish speaking
12-15% market
Geographically more mobile
Asian-Americans
higher incomes, growing, considerable differences, most prestigious jobs,
50% linguistically isolated
4% market

25. Product and Brand 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!

26. Brand Positioning
Create a specific meaning for the brand and have that “stick” in the mind of the consumer
Brand meaning is formed and retained “in comparison” to competing products (brands)

27. Positioning Positioning by Attribute Positioning by Price and Quality
Positioning by Usage Imagery
SUV and ruggedness
Jeep Grand Cherokee and agility
Positioning by User Imagery
Type of individual that uses the product
Can use celebrities or man on the street
Positioning by Brand Benefits
Functional, experiential (sensory) and symbolic (belongingness) needs

28. Repositioning
How to you change a negative perception, revitalize, target new consumer groups?
Camel, Oil of Olay, Arm and Hammer
Identify problems in consumers’ minds (perceptual maps), address communication, packaging, package issues

29. Consumer Processing Model/Hedonic, Experiential Model
Exposure
Attention
Avoid selectivity
Comprehension/Miscomprehension
Agreement with Comprehended information
Retention/Search/Retrieval
HEM - Feelers
Subjective symbols that precipitate feelings (fun, status, memories)