CyberThread dmcm team

Tuesday 22 February 2011

Digital Marketing and Communications Management (DMCM) assignment - Katie's version

Spinningfields
Spinningfields is a “world-class commercial, civic, residential, hotel, leisure and retail space” open to the public in the heart of Manchester. Whilst Spinningfields is effectively digitally marketed as a brand, a consumer review platform ceased to exist. This new value is a tool for consumer interaction, helping promote the area and shape the brand.


Target market report
The consumer review service will be supported by two consumer segments, existing consumers who visit Spinningfields and therefore can review the area and potential consumers whom will read the reviews to inform their decision during the ‘information search’ of their purchasing process. Existing consumers will vary in lifecycle stage whilst new consumers hold high potential of lifetime value. 

Segmentation approach
Advantages
Disadvantages

Demographics

Data is easily accessible through database and analytic tools such as Acorn, which enables precise targeting.
Where consumers are active online is influenced by consumer lifestyle, interest and attitudes. Whilst these may be determined by demographics, a marketer cannot define consumer online location purely through age or residence.

Psychographical

Ability to target “world class” lifestyle leaders who may engage with the sophisticated digital world, such as LinkedIn.

Whilst consumers may act with world-class sophistication online, this may be aspirational only and not affordable realities for the consumers – they may search for the information but then not purchase it.

Behavioural

Able to segment and target active online consumers through identification of relevant websites, key word searches and consumer reviews platforms, tracking consumer online journeys.
There are 43.1 million people who search online in the UK (comScore, Aug 2010) a large market of confident online behaviour.
Active reviewers may be loyal to familiar services and difficult to acquire. Without database access, CyberThread are unable to target existing consumers by use of RFM value model.


Geographical

Able to target consumers who are based in and around Manchester, to whom Spinningfields is easily accessible.
Potentially eliminates existing Spinningfields consumers further afield who are sporadically based in Manchester.

Occasional

Ability to segment consumers through occasions such as “birthday” or “Christmas” which are of demand all year round.
Spinningfields as a product is not designed to specifically meet these needs; a push on this segment would only provide short-term revenue as apposed to stability of RFM value, affecting lifetime value.


The most appropriate segmentation approaches for the Spinningfields review platform are Psychographic and Behavioural consumer segmentation as they identify closest to the Spinningfields ethos of “world class”. With the nature of the service, the ideal consumer will be critical and responsive to consumer feedback/advice. 

Psychographically, they may aspire to or lead a lifestyle of consuming only high quality products or services.
Behaviourally, consumer will search for product or service closely related to Spinningfields. This segmentation targeting will include geographical search terms in order to target consumer who may not be searching for Spinningfields but rather activities within Manchester. This will determine the key search terms identified to target segments. For example, for “reviews” consumer may search for “Manchester shopping review”, “Discounts in Manchester” or “Quality food in Manchester”.

Geographically, whilst potential consumers based on geographic location is relevant, Spinningfields (the product) may not meet these consumer interests and needs. A risk of not using this segmentation is a loss potential consumers who may have recognised a relevant want or need as a result of product awareness.

Organisational segmentation plays no relevance to this service which is consumer experience focussed. If a consumer wishes to find out data regarding the organisation, they would naturally visit the official website for details. A risk is that there may be a small market which could be targeted based on this need, whom may uses the service as they benefit from the additional consumer review feedback, however their primary objective is not directly relevant enough.

Students - There are over 85,000 students within Manchester centre. (Manchester.com, 2010)
Whilst there is great potential to form a relationship with young people and develop loyalty, this segment are mostly active during term times only and will return to their local communities for the 5 months of the year. Spinningfields will only appeal to the student of calibre taste, few of which will actually be able to afford it.

Local business professionals
  • In 2010 there are 85400 employees in the Financial and business sectors of Greater Manchester, which is set to rise to 96300 by 2015.
  • Of these, 42.3% are classed as “Manager and Senior officials”, “Professional” and “Associate professional and technical” which International Standard Classification of Occupation (ISCO) class respectively as 1, 2 and 3. These groups include the likes of accountants, lawyers, directors and managers.
  • It could be guestimated that there are 36,000 high earning, financial and business sector professionals within Manchester city centre in 2010.
Source: Manchester Economic Factsheet – Manchester County Council, February 2010.

Tourists - In 2008 Greater Manchester saw 102milliom visitors (Marketing Manchester – Visit Manchester, 2010)
Searching with terms such as “things to do”, “attractions” and “parking” as well as particular attractions, they are most likely to use the Visit Manchester website for tourist information. These consumers are likely to eat and relax in between visiting tourist attractions however, Spinningfields location means high competition and missing visitors to main attractions such as Manchester United Stadium or Museum of Science Industry (Visit Manchester, 2010). Spinningfields is surrounded by 4 NCP parking complexes, providing opportunities to target tourists behaviourally seeking parking options in advance. A risk lies in short-term relationship and higher costs through higher acquisition than retention rates.

Local shoppers - In 2008 there were 480,000 residents within Manchester, 82% of which are 16years or over (Manchester Economic Factsheet, 2010) providing opportunities for frequent purchasing behaviour.
Most likely to search for information regarding specific shops, entertainment, events or bars. An example is “Nandos in Manchester”. These consumers can be targeted through key search terms as means to problem recognition. However, as locals they are most familiar with Manchester offerings and most likely already local to certain areas.

Architecture -Architecture enthusiasts visiting or living in the local area may take an interest in the award winning Spinningfields development. Enthusiasts are likely to be familiar with the Manchester Society of Architecture and may be targeted accordingly. However, it is not a strong basis for a long-term relationship as consumers are unlikely to frequently revisit the same site.

Most appropriate target markets are:
Students
Persona 1: minority of students yet reflective of Spinningfields calibre
Wealthy, mature or final year students seeking to embrace high calibre lifestyle in preparation for life after university/ professional life
·         Luxury shopping, lunch or bars which Spinningfields Avenue, Carluccios or The Alchemist bar would fulfil.

Persona 2:  majority of students yet less reflective of Spinningfields calibre
  • Young person seeking discount rates for high quality.
  • Potentially avid users of studentbeans.com (500,000+ members) or the NUS student card whom have over 7 millions card users.
  • Would appreciate and benefit from the Spinningfields Yellow Discount Card which provides discounts across all Spinningfields shops/bars etc.
Local professionals
Persona: High earning professional seeking lunch-time eateries, possibly to entertain clients, within a professional and/or quality environment, product, service and reputation.
  • Potentially users of manchesterconfidential.com on which Spinningfields is currently present.
Examples of search terms within these consumer segments include:

-       “Manchester review” which performed better in terms of search performance than “Manchester reviews” at 66%
-       “Manchester discount”, as above performance better at 77% without the “s”
-       “Manchester cinema” performed best amongst entertainment category at 47%
-       “Places to eat in Manchester“ currently with a search performance rate of 66%
-       “Manchester events” scores 75%

Search terms can be considered further in relation to the number of Google search results per search term. The higher the performance and the lower the number of results, the more valuable the search term.
Opportunity costs include the tourist and architectural consumers who are likely to search for information online, shoppers own ‘expertise’ and knowledge appropriate in reviewing shops etc within the Spinningfields area, however they may not be interested in the reviewing process.
Whilst Students and Local professionals have been chosen, consumer interests; lifestyle and attitudes may still be applicable to the discarded segments tourist, local shoppers and architecture. For example, an architect may be classed as a ‘professional’ and own a similar online behaviour.

Marketing approaches – Viability report
Tools used to target students and professionals are determined by web activity related to their interests, lifestyles and attitudes.
Digital marketing communications objectives
-       To gain 500 ‘Home’ blog page views by April 2011
-       Retain a bounce rate below the standard average of 40% by April 2011.
-       To gain 100 comments or reviews on the CyberThread Spinningfields consumer review blog by April 2011 from potential and existing Spinningfield consumers.

Method
Advantages
Disadvantages
SEO – Organic searches
Allows CyberThread to actively and cheaply target consumer based on repetitive use of key words or phrases on the consumer review blog and other traffic driving sources. Examples of current strong terms have previously been identified from Google insights.

Incomplete or incorrect research may lead to ineffective key word or phrase search terms being chosen. Consumer search behaviour may also change over time and hence will need constant monitoring
Social Medias
High usage of social medias amongst target market
24million UK Facebook users, 22% of which are aged 24 or under (potential students) and 58% of which earn £30K or more (potential professionals).
LinkedIn has 4 million UK users, all of which fit into the ISCO classification 1, 2 and 3. 11% are 24 years or under and 57% earn £30K or over.
Twitter has 3.4 million UK users - 23% of which are 24 years or under whilst 47% earn £30K or more.
Unlike SEO, a facebook or LinkedIn profile can only be searched/found under one key page name, limiting opportunity to be visible. Social medias such as Facebook may be scene as less professional then desired, however statistics show high usage amongst high earning UK population.
Location Based Services
(LBS)

Ability for consumers in the area to view near-by attractions/location. ‘Tips’ are posted by consumers regarding the area. Ability to ‘tip’ the Spinningfields blog for further consumer information and reviews. Highly targets potential consumers and existing consumer who appreciate the review programme.
Consumer are most likely to access LBS such as Foursquare, from their mobiles and may be less inclined to click through to a webpage due to high content mass.

Social medias allow CyberThread to create profiles detailing the aim and benefits of our service and a high proportion of users fit our target consumer market. Whilst Facebook is the least appropriate in terms of professionalism, it allows for consumer interaction and involvement which is ‘newsfeed’ to the participants’ “friends” acting as a digital form of word of mouth. Therefore, at the risk of tarnishing the professional brand status, awareness will reach a wider market without the use of CyberThread’s time and expertise. LBS is new and highly relevant to our service as it enables consumers to leave comments or ‘tips’ about locations they visit. From a business perspective, a consumer may visit a location they have not previously as a result of location acknowledgement through LBS’s.

Marketing approaches - Anti-viability report

Method
Advantages
Disadvantage
Direct Email marketing
Ability to personalise email based on consumer data. Therefore, consumers are more likely to read and engage.
The lack of a consumer database disables CyberThread to action this tool. Email marketing can be perceived as spam, hindering the Spinningfields brand image.
Banner advertising
Ablility to target consumers based on their online behaviour such as a particular websites.
Banner advertisements are costly, set aside from main web content and consumers have adapted and ‘ignore’ these ‘unwanted’ adverts which means click through rate may be low.
SEO
Pay-per-click

Correctly identified key search terms within main consumer segments means increased opportunity of click-through-rates as relevance to consumer information search if higher.
Proven successful, tools and services such Google Adwords are costly, and without a direct sale exchange at the point of the click-though (the product is a service) it is difficult to justify.
Risk of incorrect search term through inappropriate consumer segmentations.

These marketing approaches are not suitable due a variety of budget and consumer information limitations. Direct Email could be substituted with the cheap and wide spread Viral E-mail/marketing, however unless delivered to a high standard, such as the well known T-Mobile ‘flash mob’ campaigns, it can damage the brand reputation and perceived quality. This is an attribute from the ‘information search’ which will affect the consumer purchase decision.
Banner advertising entails artwork costs in addition to placement costs, an aspect which would need to be outsourced as CyberThread to now own the capabilities.

As a small organisation, these successful approaches are simply not realistically achievable for CyberThread.

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