Saturday, January 22, 2011

Event Recap: (Part 1) VALS Presentation "Getting the Right Message to the Right People"

Hey GGUAMA members! In case you missed the VALS presentation by David Sleeth-Keppler, here are some highlights:

Issues marketing professionals face:
·      Businesses have great products to offer, but marketers are sending the message to the wrong consumer.
·      The turnover rate in brand management is very high (brands change their images all the time).
·      How can marketers craft the right message and get it to the right people?

Why do these issues persist?
·      There’s a lot of diversity among people, and it’s hard for marketers to keep track of people’s activities and preferences.
o   Marketing guru provides insights to different types of consumers.
·      Brands have different personalities:
o   Brands that are energetic and exciting make it in American market, and marketing gurus encourage their clients to create exciting brands.
o   However, statistics show that only 12.7% of consumers want excitement, and 22% want energetic brands. Thanks a lot, gurus!
·      There’s a disconnect between facts about what consumers want and the fiction that marketers believe. This is why marketers need good data in order to make good decisions.

Solution: develop specific markets for their products/services.
This is where segmentation comes in.

Segmentation: smaller chunks of the market, easier to control, more manageable. There are different types of segmentation, which will be covered later in the presentation.
·      These segments are identified by similarities shared by consumers within the market. Consumers in a particular group maintain similar interests and behave more like each other in comparison to the rest of the country.
·      Key to segmentation: know what you’re selling.
o   Marketers must analyze product characteristics and find consumers for whom the product is a good fit
o   By knowing your product (value proposition, what’s good about your product) you can predict which group of consumers may be interested in the product.
o   Marketers can develop the right message to convey about the product by knowing the right information to talk about.
o   Marketers cannot assume that the product has a universal appeal.

Developing the markets (segmentation):
·      Three steps:
1.     Identify the benefits derived from a product and purchasing barriers, which vary from person to person.
2.     Target identification must be based on understanding your audience.
3.     Advertising the product to the desired audience.
*ISSUE: Marketers may follow step 1 and 2, but the message does NOT get to the right people (step 3) because there is a disconnect between businesses (who understand their products) and ad agencies (who execute creatively based on a loose focus on what the product is all about)
·      Useful/effective segmentation should:
o   Describe groups of people
o   Estimate the sizes of these segments
o   Cover population of interest (your product hasn’t reached everyone you want to cover)


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