Segmentation Across Cultures

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Segmentation Across Cultures(?)

• PEPSI IN TAIWAN
• Come alive with Pepsi Generation
• means Pepsi will bring your ancestors back from
  dead
• KFC IN CHINA
• Finger lickin good means eat your fingers
  off
• GM IN SOUTH AMERICA
• Chevy Nova means it wont go
• SCHWEPPES IN ITALY
• Tonic water translated to Toilet water
• COLGATE IN FRANCE
• Cue brand toothpaste -- Cue is a notorious
  porno mag

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Chapter 5 Segmentation
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STP Marketing

• 1) Segment - identify variables, develop
  profiles
• 2) Target - evaluate attractiveness of each
  segment, select targets
• 3) Position - select how want consumers to
  perceive product

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Market Segmentation (S)

• Identifying groups of people with similar needs
  and characteristics
• Aggregating these groups into larger segments
  according to their mutual interests in the product

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Effective Segmentation

• 1) Measurability - can you measure segment?
• 2) Accessibility - can segment be reached?
• 3) Profitability - whats the segments
  potential?

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Types of Segmentation

• Geographic
• Regions
• Population size
• Climate
• Retail trading area

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Types of Segmentation

• Demographic
• Age
• Gender
• Family size/life cycle
• Income
• Occupation
• Education
• Race
• Geodemographics -- PRIZM
• http//www.claritasexpress.com

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Demographic Trends

• 1) Changing families
• later marriage
• fewer kids
• higher divorce
• working spouses
• aging parents
• 2) Nonfamily households
• 3) Geographic shifts
• 4) Higher education
• 5) Ethnic population

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Emerging Markets

• People of Color
• Buying power has doubled in last decade
• Nearly 1 in 3 claims ethnic identity
• Companies struggling to understand and develop
  multiethnic awareness and advertising know-how

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Types of Segmentation

• Psychographic
• VALS
• Personality
• GeoVALS
• http//www.sric-bi.com/VALS/geovals.shtml

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VALS 2 Typology

• Exhibit 5-4
• See Page 155

Slide 26
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Types of Segmentation

• Behavioristic
• Purchase occasion
• Benefits sought
• User status
• Usage rate

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Target Marketing (T)

• Decide which segments offer the most potential
  (profit!)
• Design products and marketing activities toward
  target.

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Product Positioning

• Its not what you do to the product, but what
  you do to the mind!

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http//www.adcritic.com/content/ikea-boredtodeath.
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Positioning

• 1) Find a difference -- USP
• a. Important
• b. Distinctive
• c. Superior
• d. Communicable
• e. Preemptive
• f. Affordable
• g. Profitable

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Positioning Contd

• 2) Pick a benefit
• One, two, or three?
• 3) Choose a positioning approach
• a. Product attribute
• b. Price/quality
• c. Use or application
• d. Product user
• e. Product class
• f. Competition
• g. Status
• h. Cultural symbols

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Ch. 6 Research and Information Gathering
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Advertising Research
Advertising Strategy Research
Creative Concept Research
Pretesting
Postesting
How much do we know?
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Advertising Research
Advertising Strategy Research

• Situation Analysis
• What are industry trends? Are they changing?
• What is the competitive environment?
• Who are the category leaders?
• Who is our competition?
• Who do we want to compete with?
• How are others positioned? How are we positioned?
• Identify others advertising strategies?

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Advertising Research
Advertising Strategy Research
Situation Analysis Target Audience Analysis

• General Consumer Trends
• What changes can be seen in consumer lifestyles?
• Product Specific Analyses
• What are the characteristics of the consumers?
• How do we examine these groups?
• What are the opportunities within each segment?

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Advertising Research
Advertising Strategy Research
Situation Analysis Target Audience Analysis Media
Research

• Competitive media
• Where can we get our message seen?
• What media should be used?

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Advertising Research
Advertising Strategy Research
Secondary Research
Collected for another purpose by someone else

• S
• W
• O
• T

trengths eaknesses pportunities hreats
Primary Research
Collected for a specific purpose by person with
problem
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Advertising Research
Advertising Strategy Research
Creative Concept Research
Pretesting
Postesting
Understanding how the consumer interacts with the
product Brand Positioning Communication Testing

• determine the strengths and weaknesses from the
  consumers perspective

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Advertising Research
Advertising Strategy Research
Creative Concept Research
Pretesting
Postesting

• Copy Testing
• Making sure the ad is received as intended

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Advertising Research
Advertising Strategy Research
Creative Concept Research
Pretesting
Posttesting

• Campaign Tracking
• Assesses the impact of the current strategy

• To what extent did we achieve our objectives?
• What was the extent of attitude change in the
  target audience?
• What extent did our message reach the desired
  levels of exposure?

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Primary Research

• Qualitative Research
• Quantitative Research

• understanding how consumers feel from their
  perspective.
• quantifying (putting into numbers) the variables
  under investigation.

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Qualitative
Quantitative
vs.
Focus Groups Interviews
Surveys Experiments
Explain
Describe
Why? How?
What?
Subjective
Objective
Flexible
Controlled
Few
Many
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Qualitative Research Methods

• Focus Groups
• Projective Techniques
• In-depth Interviews

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Quantitative Research Methods

• Observation
• Surveys

• Experiments

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Validity Versus Reliability

• Validity
• The degree to which we are measuring what we
  think we are measuring
• Reliability
• The degree to which a measurement can be repeated

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How to be a Consumer Detective

• 1) Watch first, ask questions later!
• Learn from the experts -- detective movies
• Put yourself in a situation where you never have
  to ask a question.
• Watch for the little things
• How do you know when two people are in love?
• How can you tell if someone likes/dislikes your
  food?

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Consumer Detective Training

• 2) Little clues reveal big insights!
• A major university observed student paths before
  putting in sidewalks
• National childrens museum found out which
  exhibits were most popular by looking at
  fingerprints
• Cellular phone company used list of people with
  vanity plates for direct marketing
• Market researchers hang out in malls, salons,
  record stores, concerts to watch how teens dress,
  what they do, how they buy.

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Detective Exercise

• 1) Get on public transportation or go to public
  place and deduce what the person next to you does
  for a living.
• 2) Go to a restaurant youve never been to
  before and discern who they are trying to
  attract.
• 3) Go to a mall and figure out what it is in a
  store that makes customers feel comfortable. Are
  there any stores that turn customers off?
• 4) Go to someones house and deduce what their
  interests are and their lifestyle. You can do
  this visiting your clients office, too.

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http//www.adcritic.com/content/bmw-bond-villain-t
raining.html
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Building Relationships Chapter 7

• Customers, not products, are the lifeblood of
  the business.

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Relationship Marketing

• Creating, maintaining, and enhancing long-term
  relationships with customers and other
  stakeholders that result in exchanges of
  information and other things of mutual value.
• STAKEHOLDERS
• Employees, stockholders, financial community,
  press, etc.

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Why?

• 1) Cost of lost customers
• 2) Cost of acquiring new customers
• 3) Value of loyal customers

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Relationships ? Communication

• Customers and organizations must communicate with
  each other to be successful.
• IMC!

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IMC DEFINED

• Process of building and reinforcing mutually
  profitable relationships with employees,
  customers and other stakeholders by developing
  and coordinating a strategic communications
  program that enables them to have a constructive
  encounter with the company/brand through a
  variety of media and other contacts. WHEW!

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In other words

• SYNERGY!
• The whole sum of all parts.
• Recognize the many ways customers come in to
  contact with brand.

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The Integration Triangle

• Exhibit 7-5

Say
Planned messages
Do
Confirm
Unplanned messages
Product, Service messages
Slide 43
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Its not just about ads

• Sponsorship
• brand name on a piece of entertainment
• With no involvement
• Product Placement
• plugging products into movie/TV show
• Eat a snickers on Survivor
• Gap store in Minority Report (25 mill!)

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Not just about ads (contd)

• Branded Content
• Creating an entertainment product to reflect a
  brands image
• Brand isnt center of production
• Company now involved in production
• Nikes Road to Paris documentary
• Musical, Ball, on broadway
• BMW movies on line.

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Start with Basics Plan the Ad Campaign

• Know what advertising can/cant do!
• Advertising is only a PART of marketing
• Marketing?sales
• Advertising ? communicates
• Marketing SELLS, advertising TELLS

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Ad objectives must be

• 1) communication oriented
• 2) time bounded
• 3) targeted

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Advertising Objectives
Specify where the advertiser wants to be with
respect to
Action Desire Conviction Comprehension Aware
ness
5 customers 25 50 80 100 people
Specific, quantitative, realistic goals to be
achieved in a specified period of time
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The Ad strategy blends elements of Creative mix

• 1) the target audience
• 2) the product concept ?Kim-Lord grid
• 3) the media
• 4) the message

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Kim-Lord Grid
Effective involvement (feel)
Low
High

Car
College
Shampoo
High
Video camera
Skin lotion
Motor oil
Cognitive involvement (Think)
Greeting card
Laundry detergent
Low
Pizza
Paper towels
Bread
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Whats it gonna cost?

• IRS, bean counters ? current expense
• Actually investment in FUTURE sales
• Advertisings power is cumulative, long-range,
  and reinforcing.

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Common methods for setting ad budgets

• 1) percent of sales
• 2) Market share/share of voice
• 3) Objective/task
• 4) Competitive parity