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Segmentation Across Cultures(?)

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 won’t go” SCHWEPPES IN ITALY

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Segmentation Across Cultures(?)

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  1. 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 won’t go” SCHWEPPES IN ITALY “Tonic water” translated to “Toilet water” COLGATE IN FRANCE “Cue” brand toothpaste -- “Cue” is a notorious porno mag

  2. Chapter 5: Segmentation

  3. 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

  4. 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

  5. Effective Segmentation: 1) Measurability - can you measure segment? 2) Accessibility - can segment be reached? 3) Profitability - what’s the segment’s potential?

  6. Types of Segmentation • Geographic • Regions • Population size • Climate • Retail trading area

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

  8. 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

  9. 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

  10. Types of Segmentation Psychographic: VALS Personality “GeoVALS” • http://www.sric-bi.com/VALS/geovals.shtml

  11. Abundant resources Actualizers Action oriented Principle oriented Status oriented Fulfilled Achievers Experiencers Makers Strivers Believers Strugglers Minimal resources VALS 2 Typology • Exhibit 5-4 • See Page 155 Slide 26

  12. Types of Segmentation • Behavioristic • Purchase occasion • Benefits sought • User status • Usage rate

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

  14. Product Positioning “It’s not what you do to the product, but what you do to the mind!”

  15. http://www.adcritic.com/content/ikea-boredtodeath.html

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

  17. Positioning Cont’d 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

  18. Ch. 6: Research and Information Gathering

  19. Informal Formal Advertising Research Creative Concept Research Advertising Strategy Research Pretesting Postesting How much do we know?

  20. 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?

  21. 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?

  22. 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?

  23. 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

  24. Advertising Research Creative Concept Research Advertising Strategy Research Pretesting Postesting Understanding how the consumer interacts with the product Brand Positioning Communication Testing • determine the strengths and weaknesses from the consumer’s perspective

  25. Advertising Research Creative Concept Research Advertising Strategy Research Pretesting Postesting • Copy Testing • Making sure the ad is received as intended

  26. Advertising Research Creative Concept Research Advertising Strategy 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?

  27. Primary Research • Qualitative Research • Quantitative Research • understanding how consumers feel from their perspective. • quantifying (putting into numbers) the variables under investigation.

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

  29. Qualitative Research Methods • Focus Groups • Projective Techniques • In-depth Interviews

  30. Quantitative Research Methods • Observation • Surveys • Experiments

  31. 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

  32. 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?

  33. Consumer Detective Training: • 2) Little clues reveal big insights! • A major university observed student paths before putting in sidewalks • National children’s 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.

  34. 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 you’ve 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 someone’s house and deduce what their interests are and their lifestyle. You can do this visiting your client’s office, too.

  35. http://www.adcritic.com/content/bmw-bond-villain-training.htmlhttp://www.adcritic.com/content/bmw-bond-villain-training.html

  36. Building Relationships – Chapter 7 • “Customers, not products, are the lifeblood of the business.”

  37. 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.

  38. Why? • 1) Cost of lost customers • 2) Cost of acquiring new customers • 3) Value of loyal customers

  39. Relationships  Communication • Customers and organizations must communicate with each other to be successful. • IMC!

  40. 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!

  41. In other words: • SYNERGY! • The whole > sum of all parts. • Recognize the many ways customers come in to contact with brand.

  42. The Integration Triangle Say • Exhibit 7-5 Planned messages Do Confirm Product, Service messages Unplanned messages Slide 43

  43. It’s 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!)

  44. Not just about ads (cont’d) • Branded Content • Creating an entertainment product to reflect a brand’s image • Brand isn’t center of production • Company now involved in production • Nike’s Road to Paris documentary • Musical, Ball, on broadway • BMW movies on line.

  45. Start with Basics: Plan the Ad Campaign • Know what advertising can/can’t do! • Advertising is only a PART of marketing • Marketingsales • Advertising  communicates • “Marketing SELLS, advertising TELLS”

  46. Ad objectives must be: • 1) communication oriented • 2) time bounded • 3) targeted

  47. Advertising Objectives Specify where the advertiser wants to be with respect to: Action Desire Conviction Comprehension Awareness 5 customers 25 50 80 100 people Specific, quantitative, realistic goals to be achieved in a specified period of time

  48. 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

  49. 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 Slide 50

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