FREE ASSOCIATION 1.

Create a mental map When mentioning the brand Nescafe, please think of 20 things you associate with it Do this for 2 other competing brands 2. Write down all individual answers 3. Choose the top 5 mostly mentioned 4. From the top 5 is there an association which is unique to Nescafe? 5. Is this association positive for Nescafe? 6. Can be grouped into related categories with descriptive labels: Attributes Benefits Values Personality Resonance/Loyalty/Attitude

What are your key Insight learning: You may gauge based on: Inspirational: (Defines why the consumer uses the specific product) Emotional: (Defines how consumers feel about a product) Intensity: (Determines the degree of satisfaction with a product)

Source: MBA Cristina Quinones Consumer Insights Consultant & Researcher

ASSOCIATIONS ASSOCIATIONS ASSOCIATIONS

IMAGE

MIND
STRENGTH The more links there are the stronger the recall -Create better recall by creating narratives around Intended brand images : TVCs - Leverage on positive or Secondary associations: sponsorships/endorsers FAVORABILITY -is it desirable: relevant, distinctive and how believable are the associations in the consumers minds - Is it deliverable: actual or potential ability of the product to perform, current or future prospects of communicating that performance & sustainability of the communicated performance over time UNIQUENESS The more exclusive the association, the more unique it is Are the images/recollections/feelings towards the images true among a representative group of consumers in your target market?

Source: Strategic Brand Management, Kevin Lane Keller

How important is the image association to consumers brand image and decisions?
serve as basis of brand positioning in terms of how they can create points of parity and points of differentiation

Gives us an insight into the brand knowledges/awareness Not all brand associations are equally important Different mental maps for specific brands among different set of markets
Brand equity: power in the MIND

How is this relevant in understanding consumer behavior? Unique associations help consumers choose a brand

Source: Strategic Brand Management, Kevin Lane Keller

The essence of brand positioning is that the brand has a sustainable competitive advantage or unique selling proposition Positioning is not an activity played in the marketplace but in the minds of the consumers

Source: Strategic Brand Management, Kevin Lane Keller

INSIGHT = IDEA

An INSIGHT is a discovery that links consumers with brands and drives actions: purchase, use, disposition, recommendation, buzz, etc.; It reveals the symbolic & emotional bond with brands. (MRA services) A consumer INSIGHT is a new, creative opportunity derived from a profound understanding of the consumer. It describes how we might add new value to consumers through brands (Reckitt Benckinser) Consumer insights fuel concept development such that All innovation concepts should be based on insights 1. If the concept fails, it should fail because because it has not met a consumer insight very well rather than is has no underlying insight 2. However, there are far too many concepts do not have an underpinning basic insight (Research International 2008. Op.Cit)

Source: MBA Cristina Quinones Consumer Insights Consultant & Researcher

How is an INSIGHT useful?: When it spurs an innovation idea: It is not just a market data or research finding When it can be integrated into the over-all business strategy: brand equity, advertising communication and ultimately a competitive advantage When it helps identify opportunities to address consumer needs: drives action such as consumption, purchase

Source: MBA Cristina Quinones Consumer Insights Consultant & Researcher

Although all types of consumer responses are possible driven from both the head and heart ultimately what matters is how positive they are. Responses must also be accessible and come to mind when consumers think of the brand. Brand judgments and feelings can favorably affect consumer behavior only if consumers internalize or think of positive responses in their encounters with the brand.

Source: Strategic Brand Management, Kevin Lane Keller

SEGMENTATION PRINCIPLES

The ultimate goal is to create a DIFFERENTIATION

WHY? To continue to exist, in the marketplace WHY? When there is COMPETITION selling the same core product BUT the differentiation has to be valuable to the target audience

STRATEGIC PROCESS FLOW:

DIFFERENTIATION /COMPETITIVE POSITIONING (USP)
(positive/beneficial to target market)

TARGET MARKET
(from among the actual + potential)

HOW DO WE KNOW IF its VALUABLE? We need to understand the consumers perception of value
BUT first we have to know to whom it is valuable to

MARKET SEGMENTATION
(from among the actual + potential)

MARKET
(actual + potential)

Market Segmentation
CUSTOMERS

Competitive Positioning

MARKET

set of all actual & potential buyers who have Sufficient interest Income for Access to a product

MARKET SEGMENTATION

divides the market into distinct groups of homogeneous consumers with similar needs, behavior and requires similar marketing mixes

How to determine your MARKET?

1. 2. 3. What is your product category? Who are other players in your product category Establish hurdles for consumers to avail of the product/service Sufficient interest Income for Access to a product

Category/Industry: Sub-category:
Products:

Broadcasting TV Broadcasting (Film Radio, Print)

Public Affairs: News, Documentaries Entertainment: Variety shows, Soaps, Showbiz Talk Shows TV (UHF frequency)

Product Delivery: (Hurdle)

MARKET

Actual:

Households, establishments, internet users, mobile phone users

Category/Industry: Sub-category: Products:

Real Estate Condominiums (H&L, Apartments) 1BR, 2BR, 3BR units Parking units DP, Monthly amortizations, Staggered payments

Product Delivery: (Hurdle)

MARKET

Actual:

Permanent residents: Families Transients: Long-term, short-term Investors

MARKET SEGMENTATION

divides the market into distinct groups of homogeneous consumers with similar needs, behavior and requires similar marketing mixes

where there are differences in the customer needs or wants, attitudes and dispositions towards market offerings between groups and individuals then there are opportunities to segment the market
the finer the segmentation the easier it is to address the specific need but the higher the cost due to reduced standardization

SEGMENTATION BASES
Objective Measure Non-Marketing specific DEMOGRAPHICS (age, gender, race, ethnicity, georgraphy) Subjective Measure Personality Inventories

PSYCHOGRAPHICS

Marketing Specific

BEHAVIOR (usage/Consumer Lifecycle, ACORN, Media cuts)

Lifestyle

Descriptive/Consumer-oriented

Behavioral/ Product -oriented

Segmentation Base Demographic

Coverage
Age Gender Family Socio-Economic Class Sub-culture (Race, ethnicity, Religion & Geography)

Pros
Ease of measurement Most often-used by media-research as available syndicate research is present

Cons
Not guaranteed to produce segments that are internally homogeneous but externally heterogeneous Low level of correspondence between demography & behavior Presence of strong nontrad media & other forms of communications which help measure behavior Different classes may diff purchase/consumption behavior

Geographic

International, Regional

Could be used by small or mediumsized companies that cannot hope to compete in highly dispersed markets

Segmentation Base Consumer Lifecycle

Coverage
Composite of demographics Family Marital Status

Pros
Help in identifying people in a particular product field Most often-used by media-research as available syndicate research is present Versus a demographics, it explains certain similarities of consumer behavior based on geographic influences

Cons

Low level of correspondence between demography & behavior

ACORN
(A classification of Residential Neighborhoods)

Direct challenge to the demoggeodemographics Classifies residential neighborhoods into 36 types of 12 main groups Derived from clustering of responses from census

Low level of correspondence between demography even geography & behavior

Segmentation Base Psychographic

Coverage Values, Opinions, Attitudes, Activities & Lifestyle (activities, interaction w/ others, opinions)
User-status, Usage Rate/Occasion, Brand Loyalty/Benefits sought

Pros
Great for guiding creative content ads

Cons
Requires major data gathering tasks thus unlikely to supplement demographic

Behavioral