Types of products:
1. Convenience – Available with ease
Each associated with different distribution.
Convenience – available everywhere (intensive distribution)
Shopping – Somewhat selective in distribution strategy (selective distribution)
Speciality – Available at certain places (exclusive distribution)
Now all can be under intensive due to e-commerce.
If your company comes into the top 7 options a consumer then you will do well. So if you have low share
of market but high share of mind (come into consumers top options) then all you need to do is maybe
increase number of outlets. Share of spend also comes into consideration – How much your competitor
Positioning has a lot to do with perception but also includes real factors. Positioning should be
consistent with the rest of the marketing mix.
Positioning Statement should consider:
- Target market
- USP (If there isn’t a real USP then you want to create a perceived USP)
- Should be succinct
- To create awareness/attention
- To inform consumers of products
- To persuade people – create differentiation of your good from others
- To increase sales
3 TYPES OF ADVERTISING:
1. Informative 2. Persuasive
Company should establish advertising objectives.
4 STEP MODEL:
1. Create awareness/attention of your brand
2. Get interest of consumer in making the purchase decision
3. Secure desire of consumer. (Ensure that consumer desires the product)
4. Make sure consumer goes through with the action of buying
Attention and interest create cognition: Increase awareness and knowledge of the brand.
Desire creates affect:
Measure advertising effectiveness:
- Profitability objectives
Explicit bargaining – Ex: Go on internet and see advert which says 25% off on aldo shoes. Aldo will be
paying money to the site for that advert on their website.
ADVERTISING AND PRODUCT LIFE CYCLE:
Introduction – Awareness and information
Growth - Enhance positive attitudes
Maturity - remind consumers
Decline - Reduction in ad spending
Cognitive ad - Engage the consumer’s brain.
1. One sided: Expresses product’s benefits. Ex – The fastest smartphone
2. Two sided: Express pros and cons. Usually stand out more and are considered more objective.
Ex - Ads for pharmaceuticals usually state the benefits as well as side effects.
Drama ad – A problem is depicted and the brand is featured as the solution. More memorable than
listing of features.
Fear ad – Use negative emotions. For a fear appeal to be effective the ad should provide a solution to
reduce the fear. Subliminal ad – Shown fast enough that viewers cannot point to the ad. Thought to affect the
Image ad – Are more abstract; used to convey an image. Great for positioning.
Endorsement ad – Have a brand spokesperson. Ex – celebrities, experts, etc.