Today's session of IMC deals with marketing to the mass and select few, segmentation ,USP , the Promotional aspect and few strategies on effective value communication.
At the outset, it is essential to understand that mass marketing treats every customer as the same and hence nature of communication is homogeneous. Niche marketing is more of a one to one or one to some customization . It treats different consumers as people with different needs. Each form has its advantage and disadvantage. Consider mass marketing; since the product is homogeneous, the sourcing will also be similar products purchased in bulk. This implies companies can achieve economies of scale which is a source of competitive price advantage. Similarly in the case of niche marketing, since every product is unique in its own way , the margin per product will be high and also, companies can have better control over pricing. With respect to drawbacks , mass marketing is a segment where competition is quite high and control over price is poor. Consumers are essentially price worriers. For niche marketing, volumes are unpredictable and hence consumer retention is very important and also, setup costs are generally high.
Let us proceed from the communication aspect to the concept of STP. Before any product is developed, it is imperative that companies understand who the target is and how to sell it across to them.
The first is segmentation. This is the stage where the market is to be divided into clusters, based on demographic, income, education etc. such that each cluster has similar members with in. This lays the first stage of choices presented to the company.
The second step is targeting. This is where companies have to choose one or more clusters from the ones available through segmentation. This is done through seeing how attractive that segment is in terms of competition,growth,size and profitability. It is to be noted that even if all segments are chosen , it is not mass marketing since each segment has a different marketing mix to be employed.
The final process is positioning. This is where communication is important is creating a unique image of the product in the minds of the consumers in that segment.
This unique image can be driven through highlighting the USP of the offering. USP stands for Unique Selling Proposition. This has two dimensions to it. One is, as the name says ,it must have unique features compared to competitor offerings. More importantly, consumers SHOULD be willing to pay for this unique offering else it wont sell although it is unique.
In the purview of IMC, there are two tools to it viz. promotional mix and marketing mix. Marketing mix constitutes the 4Ps Product , Price, Placement and Promotion. The promotional mix constitutes
advertising,sales promotion,publicity,personnel selling,public relation and direct marketing.The subjective benefit of a product is associated with the mind of the consumer and functional benefit rests with the performance of the product with respect to its utility. If a product is better, cheaper and is available quicker, its Total Perceived Value (TPV) increases.
The communication between marketers and the consumers is the promotion process. Few questions in the mind of consumers which are to be considered to better the promotion process are
a) What is the functional utility of the product ?
b)Will it enhance the buyers image?
c)Why our brand instead of competitor?
In this light, there are five strategies that can be undertaken for effectively reaching out to consumers
Strategy 1 -
For a lucid positioning, emphasize on product attribute and price.
Strategy 2
Emphasize on attribute and benefit. Attribute is product specific. Benefit is utility specific.
Strategy 3
Consider the position of the competitor and position your product in a differentiated spot.
Strategy 4
Establish a good price and quality point. Although price is low, by giving superior quality capture market share with smaller margins.
Strategy 5
Emotional connect is a proven communication method. Employ this method to grab the potentials' eyes.
This concludes the session 4 which touches upon few integral basics of Integrated Marketing Communication.
At the outset, it is essential to understand that mass marketing treats every customer as the same and hence nature of communication is homogeneous. Niche marketing is more of a one to one or one to some customization . It treats different consumers as people with different needs. Each form has its advantage and disadvantage. Consider mass marketing; since the product is homogeneous, the sourcing will also be similar products purchased in bulk. This implies companies can achieve economies of scale which is a source of competitive price advantage. Similarly in the case of niche marketing, since every product is unique in its own way , the margin per product will be high and also, companies can have better control over pricing. With respect to drawbacks , mass marketing is a segment where competition is quite high and control over price is poor. Consumers are essentially price worriers. For niche marketing, volumes are unpredictable and hence consumer retention is very important and also, setup costs are generally high.
Let us proceed from the communication aspect to the concept of STP. Before any product is developed, it is imperative that companies understand who the target is and how to sell it across to them.
The first is segmentation. This is the stage where the market is to be divided into clusters, based on demographic, income, education etc. such that each cluster has similar members with in. This lays the first stage of choices presented to the company.
The second step is targeting. This is where companies have to choose one or more clusters from the ones available through segmentation. This is done through seeing how attractive that segment is in terms of competition,growth,size and profitability. It is to be noted that even if all segments are chosen , it is not mass marketing since each segment has a different marketing mix to be employed.
The final process is positioning. This is where communication is important is creating a unique image of the product in the minds of the consumers in that segment.
This unique image can be driven through highlighting the USP of the offering. USP stands for Unique Selling Proposition. This has two dimensions to it. One is, as the name says ,it must have unique features compared to competitor offerings. More importantly, consumers SHOULD be willing to pay for this unique offering else it wont sell although it is unique.
In the purview of IMC, there are two tools to it viz. promotional mix and marketing mix. Marketing mix constitutes the 4Ps Product , Price, Placement and Promotion. The promotional mix constitutes
advertising,sales promotion,publicity,personnel selling,public relation and direct marketing.The subjective benefit of a product is associated with the mind of the consumer and functional benefit rests with the performance of the product with respect to its utility. If a product is better, cheaper and is available quicker, its Total Perceived Value (TPV) increases.
The communication between marketers and the consumers is the promotion process. Few questions in the mind of consumers which are to be considered to better the promotion process are
a) What is the functional utility of the product ?
b)Will it enhance the buyers image?
c)Why our brand instead of competitor?
In this light, there are five strategies that can be undertaken for effectively reaching out to consumers
Strategy 1 -
For a lucid positioning, emphasize on product attribute and price.
Strategy 2
Emphasize on attribute and benefit. Attribute is product specific. Benefit is utility specific.
Strategy 3
Consider the position of the competitor and position your product in a differentiated spot.
Strategy 4
Establish a good price and quality point. Although price is low, by giving superior quality capture market share with smaller margins.
Strategy 5
Emotional connect is a proven communication method. Employ this method to grab the potentials' eyes.
This concludes the session 4 which touches upon few integral basics of Integrated Marketing Communication.
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