adv 435 ch 3 market analysis
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Market Analysis
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Market = Geographic
Target Market = Population Segment
andGeographic Area
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Focus on Geo. Targets- Media Allocation- Creative Thrusts
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Research Tools
• Nielsen• Simmons• BPI• SRDS• BDI• CDI
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Research Tools
Nielsen SCANTRACK = info for food, grocery and general merchandise.
Nielsen PROCISION = info for health and beauty aids
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Research Tools
Simmons Market Research Bureau
(SMRB) = info on 800 brands by usage and geography.
Mediamark Research, Inc. (MRI) =
Competing company with similar data
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Research Tools
BPI = Buying Power Index
From Sales & Marketing Management’s
Survey of Buying Power• Helps predict sales potential
–Population–Disposable Income–Retail Sales
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Research Tools
Standard Rate and Data Service(SRDS)
• Media rates• Market Data
–Population–Households–Disposable Income–USA/Regions/States
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Research Tools
BDI CDI
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Research Tools
Brand Development
Index = % Brand’s US Sales in
Market x 100 % US
Population in Market
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Research Tools
Category Development
Index = % Category US Sales
in Mkt x 100 % US
Population in Market
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Research Tools
BDI greater than
100 CDI greater than
100Suggest receptive markets
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Research ToolsPhilly accounts for 1.25%
brand’s sales and 1% USA population.
BDI = 1.25 x 100
1.00Index = 125
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Research ToolsNY accounts for 3.00% brand
sales and 4% USA population
BDI = 3.00 x 100
4.00Index =75
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Research Tools
Why would index be low?
•Distribution•Local Promo Support•Right Target
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Research Tools
Higher BDI than CDI is good if both are 100+
Means brand is strong
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Research Tools
Lower BDI than CDI
Means competition is stronger
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Implications
High BDI & High CDI =
Increase Media Spending to Protect Share of Market
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Implications
High BDI & Low CDI =
Maintain Media Budget
(Unless CompetitionIncreases SOV/Media Weight)
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Implications
Low BDI & High CDI =
Investment Spending toCapitalize on Opportunity DMA’s
• Added weight• Promos/Distribution
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Implications
Low BDI & Low CDI =
Limited Media Support
due to ROI
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Research ToolsDemographics & Psychographics
• Choice III (Simmons/MRI)• PRIZM (Claritas, Inc)• ACORN (Caci Systems, Inc)• Lifestyle Market Analyst• Sourcebook of Zip Code
Demographics
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Product/Brand AnalysisThe More MATURE a brand is…
The More Strategic Focus shifts from
Physical Qualities to Intangibles
From “contains x, y or z” to “ a name you can trust!”
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Product/Brand AnalysisCustomers Perception IS Reality
The Essence of the Brand
Ex: Cadillac = Prestigious, Classy, $$
but…it’s what old folks drive
Overcome that with younger actors, celebs, active lifestyle…Build or rebuild the brand
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Product/Brand AnalysisBrand Loyalty is GoalProcess =
• Awareness – Advertising Media• Acceptance – Attributes (Copy)• Preference - Functions• Insistence - Benefits - Personality
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A Brand Personality Framework
Sincerity
Down-to-earth
Family-oriented
Honest
Sincere
Whole-some
Cheerful
Excite-ment
Daring
Trendy
Exciting
Imagina-tive
Unique
Up-to-date
Compe-tence
Reliable
Hard-work-ing
Intelligent
Successful
Confident
Sophistica-tion
Upper-class
Glamorous
Charming
Feminine
Smooth
Rugged-ness
Outdoorsy
Masculine
Western
Tough
Rugged
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Brand Personality
Categories are not absolute:
Take ten other brands and create a word that fits their personality or place them into:
• Sincerity - Sophistication
• Excitement - Ruggedness• Competence
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Competitive AnalysisStart with the other 3 P’s
Price–Higher/Lower–Why?
• Ingredients• Market• Promo• Elasticity
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Competitive AnalysisPlace–Distribution
• Greater than or less than• Types of Outlets• Placement of Retail• Quality of channels
– Wholesalers– Jobbers/agents– retailers
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Competitive AnalysisPromotion–Ad Budget Mass Media
(CMR – Competitive Media Report or LNA – Leading National Advertisers)
–PR–Social–Digital–Message – Tone–Sales Promo
• Coupons/Incentives/Discounts/POP
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Competitive AnalysisProduct ComparisonsPerceptual Mapping - Image
• Where brand is in Consumers Mind
• Four Quadrants–High/Low–Physical/Functional/
Psychological–Limited to two dimensions–Purely Judgmental but….Perception IS Reality!