Brand Size:
Growth Equation: Total Market * How Many Consume/Use * How Often They Consume * How Much They Consume * Price
Penetration:
Penetration is the measure of a particular brand's or category's popularity. It is defined as the number of people who buy a specific product/brand or category of products at least once in a while, divided by the size of the relevant market.
Brand decides whether to seek sales growth by acquiring existing category users from the competitors or by expanding the total category size, attracting new customers.
Segmentation, Targeting & Positioning:
STP Marketing is a consumer centric approach to marketing communications. It helps deliver more relevant, personalized messages to target audiences. It helps brands to better target the marketing messages and better the serve the customer base. It allows brands to delight a set of consumers.
Consumers are generally delighted, when their experience with the brand is: superior to competition & consistent across touchpoints over a period of time.
1. Segmentation:
Segmentation is the process of dividing the audience into smaller groups based on certain characteristics, so you can better communicate your products, features, and benefits that may be most relevant to them.
Brands can segment the audience based on one or more of the following criteria:
Demographics: Age, gender, education, race, religion, location, profession etc.
Psychographics: Attitude, behavior, priorities, personality traits, beliefs & values etc.
Usage: Light, medium, heavy etc.
Lifestyle Traits: Hobbies, entertainment preferences & non-work activities etc.
2. Targeting:
After segmenting the audience, the targeting is done. Brands should decide which segments are worth targeting with the marketing. The brands should ask the following questions to decide a segment to target:
1. Does this segment have enough potential customers to justify targeting?
2. Is the segment measurably different from the other segments?
3. Is the segment accessible by all the members of marketing and sales?
4. Is the brand equipped and able to serve the segment? Are there any barriers like physical, legal. social, or technological that could prevent that?
Targeting one segment at a time can help a brand better position the marketing for each specific segment.
Probability To Win: Competitive edge, how strong it fits with the brand, how the existing infrastructure support it etc.
Segment Attractiveness: Size of audience, growth. probability etc.
Choosing which platforms to use to run ads: Attractiveness (size of audience), Ability to win (available budget, presence of competition, targeting capabilities etc.)
Choosing which product to display on homepage: Attractiveness (volume of searches), Ability to win (competition, difficulty to rank, bids etc.)
Choosing which keywords to run ads on: Attractiveness (volume of searches), Ability to win (difficulty to rank, competition, bids etc.)
Get detailed understandings of the target customer: Who are they, what do they do, why do they do what they do, triggers, barriers etc.
3. Positioning:
Positioning allows brands to set the products or services apart from the competition in the minds of the target audience.
Communication Objective: What is the one thing that you want to convince the customer of, every ad, banner, creative has to be looked at from this lens.
Communication Challenge:
Insight:
Communication Objective: What's the one thing that you want to convince the consumer of.
Insight: What's the tool for that convincing.
Insight = 1-2 human truths + tension. Should be as deep as possible: Ask why why why why.
Big Idea:
Creative idea that resolves the insight, differentiates the brand from competition, usually arrived at by the creative agency, as simple as possible, may or may not be the same as tagline & stays with the brand for a few years.
e.g., Stay started by Nescafe, Apni dukaan by Amazon.
Brand Benefits:
Marketing Mix:
It is a set of marketing tools used to promote products/services in the market and sell it. It's about positioning the product and deciding it to sell in the right place, at the right price and at the right time. The products then will be sold according to marketing and promotional strategies.
The components of the marketing mix consist of 4Ps: Product, Price, Place and Promotion.
1. Product:
A product is a commodity built or produced to satisfy the needs of customers. The product can be tangible or intangible, as it can be in the form of goods or services. Extensive research should be done before developing a product as it has a fluctuation life cycle, from the growth phase to the maturity phase, to the sales decline phase. So, it is important for brands/marketers to reinvent their products to stimulate more demand once sales decline phase arrives.
- Listen to consumer: The deeper the user understanding, the better the product can be suited for their needs.
- Learn from competitors: Sometimes, the product change become a necessity because of the competition.
- Cultural landscape: At times, the changes in products are needed to make sure that you ride a cultural wave.
2. Price:
Price is a crucial component of the marketing mix as it dictates a company's survival and profit. It is the amount the customer pays for to enjoy it. Adjusting the price of the product has a huge impact on the entire marketing strategy, also it affects the demand and sales of the product in the market. While determining the price of the product, a few things should be kept in mind: the competitor's price, the cost of the product, location of customer, terms of sale, list price, discount etc.
Pricing can act as a symbol of exclusivity or luxury, signal of quality, better experience to the customer, get the mass to enter a category.
Pricing Determination:
1. Bottom Up: Start from the price customer is willing to pay, subtract profit margins that you want, then arrive at a cost and optimize the product/offering basis that.
A lot of work needs to be done to reduce the cost: Product changes, production, excise duties etc.
2. Top Down: Start from the costs that brand will incur, add the margins and arrive at the price.
3. Place/Distribution:
Brands should position and distribute the products in a place that is easily accessible to potential customers.
Your product should be available in places where the consumers are most likely to buy it. Your product should be visible in the places where consumer does not miss seeing you. Your product should be easily accessible in those places as much as possible so that consumers can experience/use it.
For arriving at a distribution plan, the following questions should be answered:
1. Who is your customer?
2. Where is the consumer when the need arises?
3. Where does the customer shop currently?
4. Promotion:
It's a marketing communication process for publicizing the product and it's features to the audiences. It helps to grab the attention of customers and influence them to buy the product. It may include direct marketing, advertising, sales promotion and personal branding etc.
For arriving at a promotion plan, the following questions should be answered:
1. Which media platforms are the customers spending time on?
2. What kinds of content are they consuming on those platforms?
3. Why are they consuming that media/content?
Golden rules of promotion/media planning:
Talk to your customer when they are most open to hearing your message.
Collaborate with platforms and partners that lend credibility to the initiative while delivering reach.
Hearing the same message from multiple platforms works better than hearing it from one source only.
To break the clutter on any medium, you need to achieve a threshold reach and frequency.
The 3 more new Ps are: People, Process, Physical Evidence.
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