ADVERTISING AND SALES

MANAGEMENT
1- AN INTRODUCTION TO
ADVERTISING
2- ADVERTISING AS A
COMMUNICATION PROCESS
3- ADVERTISING CAMPAINGN
What is Advertising?
Advertising is a form of
communication intended to
persuade an audience
(viewers, readers or
listeners) to purchase or
take some action upon
products, ideals, or
services. It includes the
name of a product or
service and how that
product or service could
benefit the consumer, to
persuade a target market
to purchase or to consume
that particular brand.
Definition of Advertising
Advertising is any paid form of non personal
presentation and promotion of ideas, goods,
and services by an identified sponsor
By john s Wright
Advertising objective
Advertising objectives are the
communication tasks to be accomplished
with specific customers that a company is
trying to reach during a particular time frame.
A company that advertises usually strives to
achieve one of four advertising objectives:
trial, continuity, brand switching, and
switchback. Which of the four advertising
objectives is selected usually depends on
where the product is in its life cycle.
Cont
Trial :
The purpose of the trial objective is to
encourage customers to make an initial
purchase of a new product. Companies will
typically employ creative advertising
strategies in order to cut through other
competing advertisements. The reason is
simple: Without that first trial of a product by
customers, there will not be any repeat
purchases.
Cont
Continuity
Continuity advertising is a strategy to keep current
customers using a particular product. Existing
customers are targeted and are usually provided
new and different information about a product that
is designed to build consumer loyalty.
Brand Switching
Companies adopt brand switching as an objective
when they want customers to switch from
competitors brands to their brands. A common
strategy is for a company to compare product price
or quality in order to convince customers to switch
to its product brand.
Cont
Switchback
Companies subscribe to this advertising
objective when they want to get back former
users of their product brand. A company
might highlight new product features, price
reductions, or other important product
information in order to get former customers
of its product to switchback.
Scope of Advertising
Corporate Communications Incentive Programs
Multi-State Marketing Campaigns
Multifunction/Department Management
Regional Markets
Prominent Client List
Strategic Advertising
The scope of advertising has a lot of future to go because in
present life the technology has been increased that much.
The scope of advertising management mainly depends on
the change in technology, for example now-a-days
advertising can make a blender by increase the sale of one
thing to many people by publicity such publicity can create
along sale and services towards the product used by them.
Social & Economic Impacts of
Advertising
In recent times, the word 'Advertising' has
become a fiercely mooted topic. Advertising
has positive as well as negative, social and
economic impacts on our society.
Considering advertising as a public welfare
is a positive social impact whereas exposing
women as a sex tool comes at the negative
side. As far as economic factors are
concerned, funding for the media and
stimulating an active and competitive
economy, are the major examples.
Cont
Assorted techniques are enforced for persuading
consumers that they want the product which is
being advertised. These techniques usually give
attention to the benefits that would be brought to
the consumers rather than focusing on the actual
products. For instance, an automobile
advertisement adverting the mechanical attributes
of a vehicle, most likely concentrates the
exhilaration, reputation and social progression it
may bring to the buyer. This swarming
advancement is habitually sexual, or involving the
opposite gender to attract the consumers with the
glamorous women/men's fancy car.
Cont
There are various blames that advertising is
causing a negative social impact on the
lives. The chief unfavorable judgment for
advertising is that it hales the public to buy
things that they are not their real want. It is
arrogated that advertising plays with
emotions and encourages people to think
that buying and depleting are the activities of
life.
Cont
According to advertisers, they state that people are
capable enough to set their mind and no one can
force them to buy anything which they dislike or
which they think is not a necessity. Advertisers
also think that there are positive impacts of
advertising on our society and culture.
For example, it can be used to generate
awareness among the public that which product is
OK or to which they should say NO. In other
words, advertising also acts as an educator in the
sense that it educates people what is good and
what is bad for them and puts a ceiling on the
harmful products like smoking and drinking etc
Cont
There are not only social benefits of advertising,
but it also has some economic advantages.
Without advertising, the media, including
newspapers, television and radio would never be
much strong. Advertising provides revenue for
commercial mediums which would otherwise need
to be funded by the actual consumer of these
mediums. So, we can see a major economic
infrastructure based around advertising, in which
the big companies fund and subsidize the
commercial media by the way of advertisements.
Cont
The major economic negative aspect of advertising
is that it boosts the price of goods and services.
The source of this contention is that, when
organizations subsidize the mass media with
advertising, we, the purchaser, subsidize
advertising by compensating a grossly increased
price for heavily advertised goods and services. An
easy example of this is that a box of Omo washing
powder generally costs around two to three dollars
while the market price of the product would be
seven to eight dollars. The fact behind this is that
the remaining proportion goes in heavy advertising
in television and print media.
Conclusion
So, the impact of advertising on our society
is in a jumble form, depending on the
functions and implementations of numerous
campaigns. Our society and the marketing of
products depend very badly upon
advertising. The companies have become
much dependent of advertising that even its
negative impacts can never outweigh the
many positive social and economic effects
Integrated marketing
communication
Concept of IMC
Integrated Marketing
Communications is a
term used to describe
a holistic approach to
marketing
communication. It aims
to ensure consistency
of message and the
complementary use of
media.
The concept includes online and offline marketing
channels. Online marketing channels include any
e-marketing campaigns or programs, from search
engine optimization (SEO), pay-per-click, affiliate,
email, banner to latest web related channels for
webinar, blog, micro-blogging, RSS, podcast, and
Internet TV. Offline marketing channels are
traditional print (newspaper, magazine), mail order,
public relations, industry relations, billboard, radio,
and television. A company develops its integrated
marketing communication programme using all the
elements of the marketing mix (product, price,
place, and promotion).
Cont
Integrated marketing communication is integration of
all marketing tools, approaches, and resources within
a company which maximizes impact on consumer
mind and which results into maximum profit at
minimum cost. Generally marketing starts from
"Marketing Mix". Promotion is one element of
Marketing Mix. Promotional activities include
Advertising (by using different media), sales promotion
(sales and trades promotion), and personal selling
activities. It also includes internet marketing,
sponsorship marketing, direct marketing, database
marketing and public relations. And integration of all
these promotional tools along with other components
of marketing mix to gain edge over competitor is called
Integrated Marketing Communication.
Using outside-in thinking, Integrated Marketing
Communications is a data-driven approach that
focuses on identifying consumer insights and
developing a strategy with the right (online and
offline combination) channels to forge a stronger
brand-consumer relationship. This involves
knowing the right touch points to use to reach
consumers and understanding how and where they
consume different types of media. Regression
analysis and customer lifetime value are key data
elements in this approach.
Reasons for the Growing Importance
of IMC
Several shifts in the advertising and media industry
have caused IMC to develop into a primary
strategy for marketers:
1. From media advertising to multiple forms of
communication.
2. From mass media to more specialized (niche)
media, which are centered around specific target
audiences.
3. From a manufacturer-dominated market to a
retailer-dominated, consumer-controlled market.
4. From general-focus advertising and marketing to
data-based marketing.
Cont
5. From low agency accountability to greater
agency accountability, particularly in
advertising.
6. From traditional compensation to
performance-based compensation
(increased sales or benefits to the
company).
7. From limited Internet access to 24/7 Internet
availability and access to goods and
services.
Advertising as a communication
process
Advertising as a communication
process
In the present day marketing, advertising
has become a communication tool for all
type of business enterprises including large
and small. Even non-business enterprises
have recognized the importance of
advertising. Advertising is a non-personal
tool of stimulating the goals and services. It
has acquired the distinction of being the
most pervasive channels of marketing
communications.
Cont..
In our daily life, we perceive, listen and
experience numerous products at home, in a
shop, while traveling in the bus or train etc,
and many talk about their individuality. It is,
therefore, anything which turns persons
attention towards it is termed as 'advertising'
and the way through which the advertiser
makes people aware, is communication. In
this wat advertising and communication are
related to each other.
Cont..
The first requirement is that the advertisement
captures the attention of its audience after
communicating the message to them. In other
words, the advertisement has to go through the
attention filter of the target audience. Advertising
communication gives new information, or it may
attempt to alter existing views or beliefs of the
entire audiences. It is vital that the advertisement
communication should appeal to them and
influence their attitude, thought process and
purchase behavior in favor of the advertised brand.
The major objective of advertising
communication is to boost up sale figures as
to maximize the profits. It is one of the most
important tools of modern marketing. The
main objects of advertising communication
are given below:
- To eliminate or conquer competition.
- To inform people about the use of
products.
- To produce demand for new product.
- To amplify sales.
AIDA MODEL
Advertising - Advertising is any paid form of
non personal presentation and promotion of
ideas, goods, or services by an identified
sponsor.
There are three goals of advertising. These
goals are to: Inform, Persuade, and
Remind.
Cont..
The major media types for advertising are:
Newspapers, Television, Direct mail,
Radio, Magazines, Internet, Outdoor
(billboards, blimps, etc.), Yellow pages,
Newsletters, Brochures, and Telephone
The traditional conceptual model for creating
any advertising or marketing
communications message is the AIDA
Model: get Attention, hold Interest, arouse
Desire, and then obtain Action.
AIDA MODEL
AIDA is an acronym
used in marketing that
describes a common
list of events that are
very often undergone
when a person is
selling a product or
service:
Cont
A - Attention (Awareness):
attract the attention of the
customer.
I - Interest: raise customer
interest by focusing on and
demonstrating advantages
and benefits (instead of
focusing on features, as in
traditional advertising)
D - Desire: convince
customers that they want
and desire the product or
service and that it will
satisfy their needs.
A - Action: lead customers
towards taking action
and/or purchasing
Cont
Nowadays some have added
another letter to form AIDA(S):
Marketing today allows a diversity
of products. Using a system like
this, allows a general understanding
of how to target a market
effectively. A.I.D.A however is an
acronym that is necessary to learn
in marketing.
Moving from step to step you lose
some percent of prospects. This
process is shown as "AIDA Inverted
Triangle" figure. To improve AIDA
Inverted Triangle sometimes it's
recommend to split AIDA formula
into two pair of promotional steps:
1) Attention + Interest 2) Desire +
Action
LAVIDGE-STEINRE MODEL
Lavidge and Steiner's
second theory
proposed AKLPCP(
Awareness ,knowledge
,liking ,preference,
conviction and
purchase ) . They give
higher importance to
the cognitive
evaluations before the
purchase .
Cont
With an increase in competition and enhancement
in discerning abilities of potential buyers and users
, information is likely to play a great role . The
persuasive power of advertising in itself is a
function of the information content. This model also
takes in to account the prevailing degree of
competition . The competition can arise between
two brands or between substitute products in two
dissimilar categories . The stage of liking refer to
the ability of advertising in creating a choice
through its creativity and theme. Preference for the
brand is the combined effect of product
characteristics and their relevance in satisfying the
need of the target audience through creative
advertising .
Cont..
This model helps in setting advertising
objectives and provide a basis for measuring
results. It also suggests that advertising
produces its effects by moving the customer
through a series of steps in a sequence
from initial awareness to ultimate purchase
of product and services.
ROGERS INNOVATION ADOPTION
MODEL
Technology adoption lifecycle
Cont
The technology adoption lifecycle is a
sociological model developed by Joe M.
Bohlen, George M. Beal and Everett M.
Rogers at Iowa State University
Their original purpose was to track the
purchase patterns of hybrid seed corn by
farmers.
Cont
The technology adoption lifecycle model describes
the adoption or acceptance of a new product or
innovation, according to the demographic and
psychological characteristics of defined adopter
groups. The process of adoption over time is
typically illustrated as a classical normal
distribution or "bell curve." The model indicates
that the first group of people to use a new product
is called "innovators," followed by "early adopters."
Next come the early and late majority, and the last
group to eventually adopt a product are called
"laggards."
Cont
The demographic and psychological (or
"psychographic") profiles of each adoption
group were originally specified by the North
Central Rural Sociology Committee,
Subcommittee for the Study of the Diffusion
of Farm Practices
Cont..
The report summarized the categories as:
innovators - had larger farms, were more
educated, more prosperous and more risk-
oriented
Cont..
early adopters - younger, more educated,
tended to be community leaders
Cont
early majority - more conservative but open
to new ideas, active in community and
influence to neighbours
Cont
late majority - older, less educated, fairly
conservative and less socially active
Cont
laggards - very conservative, had small
farms and capital, oldest and least educated
Examples
One way to model product adoption is to understand that
people's behaviors are influenced by their peers and how
widespread they think a particular action is. For many
format-dependent technologies, people have a non-zero
payoff for adopting the same technology as their closest
friends or colleagues. If two users both adopt product A,
they might get a payoff a > 0; if they adopt product B, they
get b > 0. But if one adopts A and the other adopts B, they
both get a payoff of 0.
We can set a threshold for each user to adopt a product.
Say that a node v in a graph has d neighbors: then v will
adopt product A if a fraction p of its neighbors is greater
than or equal to some threshold. For example, if v's
threshold is 2/3, and only one of its two neighbors adopts
product A, then v will not adopt A. Using this model, we can
deterministically model product adoption on sample
networks.
Rogers adopters characteristics are
important because:
A person's innovation adoption characteristic
affects the rate of uptake of an innovation over
time
Different adopter groups buy into innovation for
different reasons and have different expectations
People who are innovators and early adopters are
easier to convince to innovate
Mainstream adopters (early and late majority) who
make up 64 % of any population and these
adopters determine whether an innovative practice
is embedded
Cont
Mainstream adopters need different support structure from
early adopters in terms of support, different
emphasis on technology and teaching practice.
Innovators may require looser and less tightly controlled
conditions, while mainstream adopters may require more
stability and support.

Innovators and early adopters make up only a small

proportion of any population (2.5% are innovators and early
adopters about 13%) and there are not enough of them
to have an impact on embedding innovation in an
organisation.
S-shaped Adoption Curve
Another important concept described
by Rogers (1995) is the S-shaped
adoption curve i.e. successful
innovation goes through a period of
slow adoption before experiencing a
sudden period of rapid adoption and
then a gradual leveling off (forms an
S-shaped curve).
Rapid expansion of most successful
innovations will occur when social
and technical factors combine to
permit the innovation to experience
dramatic growth. "For example, one
can think of the many factors that
combined to lead to the widespread
acceptance of the World Wide Web
between the years 1993 and 1995" in
Adoption, Diffusion, Implementation,
and Institutionalization of Educational
Technology by Daniel W. Surry and
Donald P. Ely
ROGERS INNOVATION ADOPTION
MODEL FIGURE
AWARENESS
INTEREST
EVALUATION
TRIAL
ADOPTION
INFORMATION PROCESSING MODEL
PRESENTATION
ATTENTION
COMPREHENSION
YIELDING
RETENTION
BEHAVIOUR
ROLE OF ADVERTISING IN
MARKETING MIX
Where Does Advertising Fit Into the
Marketing Mix?
Many people get confused about the role of
advertising in the marketing mix so here's a
simple view of where it fits in.
In the traditional marketing model, we talk
about the 4 P's
1. Product
2. Pricing
3. Place
4. Promotion
Cont
The last section - Promotion is what we mean
when we say you are "doing your marketing". It's
your communications or your actual marketing
activities.
But first, let's get clear about the PURPOSE of
marketing and why you want to get good at it.
"The PURPOSE of marketing or it's biggest task is
to persuade prospects to visit you online or offline
so you can present your offer. Done well they
come waving their credit card and ready to buy so
there's no need for hard sell."
Cont..
Whenever and wherever you get in front of your
potential market is your marketing opportunity -
you are communicating or getting your message
across.
You could say this started as far back as Babylon
when the Town Crier was the only delivery method!
They went around town shouting out to people to
go to the marketplace and you went to the
marketplace with your goods to "present your
offer".
With the invention of print and other technologies
you now have a smorgasbord of delivery methods
or media to reach people such as:
Cont
Print - newspapers, magazines, catalogues,
newsletters
o Phone, mail, fax
o Radio & TV,
o Internet - through websites, blogs, social
networking sites, email, video & Audio podcasts
o Teleseminars & webinars
o Mobile media - Blackberrys and mobile or cell
phones
o And lets not forget in person public speaking and
networking
Cont..
Now that range adds a level of complexity. But
choice is good and you don't have to use all of
these but they are available to you.
In any event you'll either be speaking or writing.
Simply narrow down what makes sense for you
and your business and use your strengths to work
out a plan.
JUST remember the marketing principles remain
the same no matter the medium - so the
PURPOSE of your marketing is still the same. To
persuade prospects to visit you online or offline so
you can present your offer.
So where does advertising fit into
this?
Advertising is simply a subset of your marketing activities
it's the SALES function when you make the sales pitch or
"present your offer". This could be verbal or written in all the
same media you use for your marketing communications.
What adds to the confusion is sometimes big companies
use image based ads for awareness so the "sales pitch"
isn't obvious.
But the primary purpose of advertising is to SELL.
So you create ads in one form or another and get them in
front of your audience.
Small businesses can't afford to waste money on image
advertising that is designed for the masses to promote a
well known brand. It simply isn't designed to sell, NOW.
What I do and recommend is Direct Marketing which is
based on one-on-one relationships and uses proven direct
response advertising techniques instead of mass
advertising.
Cont
The purpose of a direct response advertisement is
to get a response, NOW! Which means these ads
actually ask the prospect to DO something.
Whether you're building a list, selling a product or
service, an appointment or even something you
are giving away - you still need to "sell" it to your
prospect. And ask them to take the action you want
them to take to move them through the sales
process.
In a nutshell, advertising is a subset of marketing
and direct response marketing and advertising is
the champion for small business
ADVERTISING COMPAIGN
ADVERTISING COMPAIGN
An advertising campaign is a series of advertisement
messages that share a single idea and theme which make
up an integrated marketing communication (IMC).
Advertising campaigns appear in different media across a
specific time frame.
The critical part of making an advertising campaign is
determining a champion theme as it sets the tone for the
individual advertisements and other forms of marketing
communications that will be used. The campaign theme is
the central message that will be communicated in the
promotional activities. The campaign themes are usually
developed with the intention of being used for a substantial
period but many of them are short lived due to factors such
as being ineffective or market conditions and/or competition
in the marketplace and marketing mix.
PLANNING AND MANAGING
ADVERTISING
Appraisal of advertising opportunity
Market analysis
Setting advertising objective
Setting budget and necessary control
system
Determining media and creative strategy
Create ads , pre test and release
Evaluate final result (post testing)
Advertising budget
Money set aside by the advertiser to pay for
advertising.
The advertising budget of a business typically
grows out of the marketing goals and objectives of
the company, although fiscal realities can play a
large part as well, especially for new and/or small
business enterprises. As William Cohen stated in
The Entrepreneur and Small Business Problem
Solver, "In some cases your budget will be
established before goals and objectives due to
your limited resources. It will be a given, and you
may have to modify your goals and objectives.
Cont
If money is available, you can work the other
way around and see how much money it will
take to reach the goals and objectives you
have established." Along with marketing
objectives and financial resources, the small
business owner also needs to consider the
nature of the market, the size and
demographics of the target audience, and
the position of the advertiser's product or
service within it when putting together an
advertising budget.
In order to keep the advertising budget in line with promotional
and marketing goals, an advertiser should answer several
important budget questions:
Who is the target consumer? Who is interested in
purchasing the advertiser's product or service, and
what are the specific demographics of this
consumer (age, employment, sex, attitudes, etc.)?
Often it is useful to compose a consumer profile to
give the abstract idea of a "target consumer" a face
and a personality that can then be used to shape
the advertising message.
Is the media the advertiser is considering able to
reach the target consumer?
Cont
What is required to get the target consumer
to purchase the product? Does the product
lend itself to rational or emotional appeals?
Which appeals are most likely to persuade
the target consumer?
What is the relationship between advertising
expenditures and the impact of advertising
campaigns on product or service purchases?
In other words, how much profit is earned for
each dollar spent on advertising?
Budgeting Methods
There are several allocation methods used in
developing a budget. The most common are listed
below:
Percentage of Sales method
Objective and Task method
Competitive Parity method
Market Share method
Unit Sales method
All Available Funds method
Affordable method
Percentage of Sales method
Due to its simplicity, the percentage of sales method is the
most commonly used by small businesses. When using this
method an advertiser takes a percentage of either past or
anticipated sales and allocates that percentage of the
overall budget to advertising. Critics of this method, though,
charge that using past sales for figuring the advertising
budget is too conservative and that it can stunt growth.
However, it might be safer for a small business to use this
method if the ownership feels that future returns cannot be
safely anticipated. On the other hand, an established
business, with well-established profit trends, will tend to use
anticipated sales when figuring advertising expenditures.
This method can be especially effective if the business
compares its sales with those of the competition (if
available) when figuring its budget.
Objective and Task method
Because of the importance of objectives in
business, the task and objective method is
considered by many to make the most
sense, and is therefore used by most large
businesses. The benefit of this method is
that it allows the advertiser to correlate
advertising expenditures to overall marketing
objectives. This correlation is important
because it keeps spending focused on
primary business goals.
Cont
With this method, a business needs to first establish
concrete marketing objectives, which are often articulated
in the "selling proposal," and then develop complimentary
advertising objectives, which are articulated in the
"positioning statement." After these objectives have been
established, the advertiser determines how much it will cost
to meet them. Of course, fiscal realities need to be figured
into this methodology as well. Some objectives (expansion
of area market share by 15 percent within a year, for
instance) may only be reachable through advertising
expenditures that are beyond the capacity of a small
business. In such cases, small business owners must scale
down their objectives so that they reflect the financial
situation under which they are operating.
COMPETITIVE PARITY METHOD
While keeping one's own objectives in mind, it is often
useful for a business to compare its advertising spending
with that of its competitors. The theory here is that if a
business is aware of how much its competitors are
spending to inform, persuade, and remind (the three
general aims of advertising) the consumer of their products
and services, then that business can, in order to remain
competitive, either spend more, the same, or less on its
own advertising. However, as Alexander Hiam and Charles
D. Schewe suggested in The Portable MBA in Marketing, a
business should not assume that its competitors have
similar or even comparable objectives. While it is important
for small businesses to maintain an awareness of the
competition's health and guiding philosophies, it is not
always advisable to follow a competitor's course.
MARKET SHARE METHOD.
Similar to competitive parity, the market
share method bases its budgeting strategy
on external market trends. With this method
a business equates its market share with its
advertising expenditures. Critics of this
method contend that companies that use
market share numbers to arrive at an
advertising budget are ultimately predicating
their advertising on an arbitrary guideline
that does not adequately reflect future goals.
UNIT SALES METHOD
This method takes the cost of advertising an
individual item and multiplies it by the
number of units the advertiser wishes to sell.
ALL AVAILABLE FUNDS
METHOD.
This aggressive method involves the allocation of
all available profits to advertising purposes. This
can be risky for a business of any size, for it means
that no money is being used to help the business
grow in other ways (purchasing new technologies,
expanding the work force, etc.). Yet this aggressive
approach is sometimes useful when a start-up
business is trying to increase consumer awareness
of its products or services. However, a business
using this approach needs to make sure that its
advertising strategy is an effective one, and that
funds which could help the business expand are
not being wasted.
AFFORDABLE METHOD
With this method, advertisers base their
budgets on what they can afford. Of course,
arriving at a conclusion about what a small
business can afford in the realm of
advertising is often a difficult task, one that
needs to incorporate overall objectives and
goals, competition, presence in the market,
unit sales, sales trends, operating costs, and
other factors.
factors affecting allocation of
advertising budget
Marketing strategies
Marketing strategy is a process that can
allow an organization to concentrate its
limited resources on the greatest
opportunities to increase sales and achieve
a sustainable competitive advantage. A
marketing strategy should be centered
around the key concept that customer
satisfaction is the main goal.
Market Segmentation
Market segmentation is a concept in economics and
marketing. A market segment is a sub-set of a market
made up of people or organizations sharing with one or
more characteristics that cause them to demand similar
product and/or services based on qualities of those
products such as price or function. A true market segment
meets all of the following criteria: it is distinct from other
segments (different segments have different needs), it is
homogeneous within the segment (exhibits common
needs); it responds similarly to a market stimulus, and it can
be reached by a market intervention. The term is also used
when consumers with identical product and/or service
needs are divided up into groups so they can be charged
different amounts. These can broadly be viewed as
'positive' and 'negative' applications of the same idea,
splitting up the market into smaller groups.
Cont
Examples:
Age
Gender
Price
Interests
While there may be theoretically 'ideal' market
segments, in reality every organization engaged in
a market will develop different ways of imagining
market segments, and create Product
differentiation strategies to exploit these segments.
The market segmentation and corresponding
product differentiation strategy can give a firm a
temporary commercial advantage.
Bases for market Segmentation
It is widely thought in marketing that than
segmentation is an art, not a science.
The key task is to find the variable, or variables
that split the market into actionable segments
There are two types of segmentation variables:
(1) Needs
(2) Profilers
The basic criteria for segmenting a market are
customer needs. To find the needs of customers
in a market, it is necessary to undertake market
research.
Cont
Profilers are the descriptive, measurable customer
characteristics (such as location, age, nationality,
gender, income) that can be used to inform a
segmentation exercise.
The most common profilers used in customer
segmentation include the following:
Profiler Examples
Geographic
Region of the country
Urban or rural
Cont..
Demographic
Age, sex, family size
Income, occupation, education
Religion, race, nationality
Psychographic
Social class
Lifestyle type
Personality type
Behavioural
Product usage - e.g. light, medium ,heavy users
Brand loyalty: none, medium, high
Type of user (e.g. with meals, special occasions)
Brand positioning
it is the added value or augmented elements that
determine a brands positioning in the market place.
Positioning can be defined as follows:
Positioning is how a product appears in relation to
other products in the market
Brands can be positioned against competing brands
on a perceptual map.
A perceptual map defines the market in terms of the
way buyers perceive key characteristics of
competing products.
The basic perceptual map that buyers use maps
products in terms of their price and quality, as
illustrated below:
Cont
Positioning process
Generally, the product positioning process involves:
Defining the market in which the product or brand will compete (who the
relevant buyers are)
Identifying the attributes (also called dimensions) that define the product 'space'
Collecting information from a sample of customers about their perceptions of
each product on the relevant attributes
Determine each product's share of mind
Determine each product's current location in the product space
Determine the target market's preferred combination of attributes (referred to as
an ideal vector)
Examine the fit between:
The position of your product
The position of the ideal vector
Position.
Developing a positioning strategy