marketing assignment 1000 words

MKT201 Integrated

Marketing Communications

Markets Segmentation and Brand

Positioning

Lecture 5

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This Topic’s Big Idea

“Market segmentation helps to

determine the answer to a key

marketing question:

Which customers will we serve and

why”

Learning Objectives

• Discuss how demographic, and geo- demographic, value and lifestyles targeting are used in segmentation

• Explore the major demographic changes in Australia

• Understand segmentation processing steps • Explain how the Roy Morgan Value

Segments can be used to segment consumer groups

• Discuss the concept of brand positioning, perceptual mapping and brand reposition.

Variables Used to Segment

Consumers

Processing of segmenting

customers

Segments share

demographics, values/lifestyles

behavioural characteristics

Measurable

Accessible

Profitable

Actionable

Separate consumers into similar product-related

needs

Identify consumers with similar needs and wants

Groups consumers according the

segmentation variables

Select groups large enough to support

customised marketing strategies

Processing developments in

demographic segmentation

Population growth and

geographical dispersion

Changing age structure

Growth of the singles market

Ethnic population groupings

Australian Population 2016

Adopted from: ABS 2016, POPULATION BY AGE AND SEX, AUSTRALIA, STATES AND TERRITORIES, viewed on 27th of

February 2017 http://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument

Australian Population 2016

Adopted from: ABS 2016, POPULATION BY AGE AND SEX, AUSTRALIA, STATES AND TERRITORIES, viewed on 27th of

February 2017 http://www.abs.gov.au/ausstats/[email protected]/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument

Changing composition of

Australian households

Household income

Family composition

Income distribution

Average weekly

earnings

Life-cycle stages of

income units

Ethnic groupings

Geo-demographic targeting

• This type of segmentation based on the

conjunction of geography and

demography.

• Its underlying premise is that people who

live in the same areas (e.g. rural areas)

tend to share demographic and lifestyle

similarities.

Values and lifestyle

segmentation

Based upon – Activities, Interests and Opinions.

• Demographic segmentation tells us who makes consumer choices, but AIO suggests why consumers make choices.

• Has a greater influence on buying behaviour than demographics.

• More difficult to measure than demographics.

Example: Gatorade energy drink is marketed to young males engaging in strenuous exercise (lifestyle factor).

Roy Morgan

Values Segments A model to gauge a persons values and attitudes

The ten segments represent:

– price expectations

– attractiveness to innovation

– perceived progressiveness

– life satisfaction

– quality expectation

– individualism.

Represented on a two-dimensional map

Roy Morgan Values Segments

(cont.)

1. Basic Needs

• focused on ‘getting by’ on

a day-to-day basis

• generally contented

• not looking for more

• community-minded

• generally older.

2. A Fairer Deal

• perceiving life as having treated them unfairly

• pessimistic, cynical and often struggling financially

• heavy consumers of radio and TV; light readers of magazines and newspapers

• attracted to youth-oriented and reality TV programs

• seeks escape to deal with anger and frustration.

Roy Morgan Values Segments

(cont.)

3. Real Conservatism

• cautious towards accepting

new things and ideas

• possessing conservative

social, moral and ethical

values; i.e. do the right thing,

belong to the right crowd

• attracted to established brands

• will pay more for a guarantee

of quality

• inclined to accumulate assets.

4. Look At Me

• associated with youthful

behaviour, possibly rebellious

in nature

• looking for fun and freedom

away from their family

• fashion- and trend-conscious

• heavy consumers of music-

related media

(e.g. Rolling Stone, Rage)

• possessing viewing habits that

reflect peer-group interests.

Roy Morgan Values Segments

(cont.)

5. Conventional Family Life

• seeking greater financial

security and better

standard of living; i.e. the

great Australian dream

• motivations include:

paying mortgage, don’t

risk losing job, playing it

safe

• good, reliable products

are important.

6. Traditional Family Life

• values centred around significant events in their lives

• older counterparts of Conventional Family Life segment; i.e. empty-nesters or extended families

• often associated with the core of ‘middle Australia’

• motivations include: security, reliability and providing for family

• resistant to change.

Roy Morgan Values Segments

(cont.)

7. Visible Achievement

• visible success stories

• confident in abilities and position in society

• possessing traditional values

• working for financial reward and job stimulation

• looking for quality and value for money.

8. Socially Aware

• community-minded and socially active

• searching for information

• focused on innovation and learning

• tend to seek detailed information about their options

• opinion leaders

• often involved in word-of- mouth communications.

Roy Morgan Values Segments

(cont.)

9. Something Better

• wanting more out of life

• competitive,

individualistic, ambitious

and concerned with social

status

• placing importance on

image

• seeing everything as

comparative.

10. Young Optimism

• a pattern of behavioural responses

• optimists seeking to improve their prospects in life (long-term)

• valuing image and style rather than fads and fashion

• wanting to experience all life has to offer; ‘work hard and play hard’ attitude, e.g. bungee jumping, skydiving, skiing, travelling

• innovative and interested in technology.

Behavioural Targeting

Traditionally used after a product launch, segments are based on buying behaviour.

• Brand usage

• Product category usage

• Level of product usage (number of times the product was purchased

Newer digital (online) methods include:

• tracking visitors’ onsite selection, such as: – pages visited

– length of time spent on a page

– searches performed.

Brand Positioning

A clear positioning statement is essential to

developing marketing communications

strategies.

Positioning strategies provide for:

– who the target market is

– what marketing should say about the brand

– what media should be used to reach the

target market.

Brand Positioning (Cont.)

Positioning should:

– position the brand in the consumer’s mind

– position the brand against competing brands

in the consumer’s mind.

A positioning statement for a brand

represents how marketers want consumers

to think and feel about

that brand.

Effective positioning

statements

Represent how the brand wants to be seen;

i.e. the thoughts and feelings of the

consumer.

Effective positioning statements should:

• reflect the brand’s competitive advantage

• motivate customers to action.

A framework for

brand positioning

Brand attributes

Brand attributes can be:

– product-related features; e.g. size, weight or colour

– non-product related features; e.g. price, perceptions of the types of consumers who may purchase the product.

The products features (attributes) can be used to position the brand and be used to:

– represent a competitive advantage

– motivate consumers to purchase.

Brand positioning based on usage

and user imagery

Usage symbolism

• Depicts brand in context of unique usage situation

User imagery

• The brand and the people who use it are portrayed as being virtually synonymous

Positioning via

brand benefits

Functional needs

Symbolic needs

Experiential needs

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

Products that attempt to fulfill the consumer’s consumption-related problems

Products that potentially fulfil a consumer’s desire for self- enhancement, group membership, affiliation and belongingness

Products that provide sensory pleasure, variety and cognitive stimulation

Positioning Map

Perceptual Mapping

A means of displaying or

graphing, in two or more

dimensions, the location of

products, brands or groups

of products in customers’

minds

Repositioning

Changing the appeal of a

product or brand so that it

can compete better in

relation to rival brands or in

a new market segment

Positioning Map

Adopted from: Dowling, N Mellor, J 2016, Some advertising agencies have work to do.., Go Auto News, Edition 2 pp14, viewed on

28th of December 2016 http://goautomedia.cdn.on.net/gan_premium/GoAutoNews_Premium_Newsletter_002.pdf

How easily could a company move from one quadrant to another? What would

some of the consequences be? What are the advantages?

Next Week

Study Week

Individual Report is due in Week 6