The SIM Framework

Brand Development Cycle

Defining Your Customers

This cycle defines the all important context for successful SIM. The interactive mediums are an enabler that should support your Brand. If no formal Brand definition exists, then it is important to gain an understanding of how consumers perceive your company and its products and services. SIM should either re-inforce that image, or in conjunction with other promotional activities, help to define a new Brand image.

Traditionally brands were related to Social Economic Groups (e.g. skilled manual workers) but in general this has been replaced by one related to lifestyles (e.g. fast city slicks, families with young children, empty-nesters). But even this is proving unsatisfactory as our lives become more fragmented.

A more recent development is to relate to behaviours, values and attitudes (e.g. individualists). Six possible general approaches are shown in the diagram. To these can be added a raft of niche markets, for example, ethical products aimed at environmentalists.

• Click here for further examples of segmentation models based on behaviour. Use your back button to return to this section.

Companies are only beginning to collect this "softer" data but even samples can be used to help profile the larger amounts of "hard" data that companies have now accumulated. With the increased power and affordability of IT, combined with sophisticated data analysis software, Data Mining is now viable.

Click the diagram to see it enlarged.

SIM Behavioural Segmentation

In the context of Financial Services, consumers are becoming more knowledgeable and more confident. Managing Change has defined a Behaviour Segmentation Model which has gained wide support from some of the major players within the UK Financial Services industry. It is based on consumer's awareness and confidence of financial services products and services. It has 4 segments:
 

1. Financially Unaware/Unsure
2. Financially Aware/Unsure
3. Financially Astute/Sure
4. Financially Niche

The model also defines the likely distribution methods for these different segments.

Defining Your Brand

The Brand Development Cycle is the process of ascertaining, defining and refining of your Brand. Whilst brands are generally above the level of market segments, they are closely related and can be derived by the same process:
 

• Segmentation: through market research consider the variables for segmenting the market, and validate for viability.
• Targeting: decide which segments to target, and ensuring that any conflicts can be managed.
• Positioning: understanding the consumer perceptions, positioning the brand in the mind of the consumer and in relationship to competitors, and designing the appropriate marketing mix.
• Refining: ongoing review of the above to ensure that the brand remains relevant to the target market, as well as the identification of further market segments.

Click the diagram to see it enlarged.

Brand Properties

In the context of SIM, the above process will address the following brand properties:
 

• target consumer that is intended to receive the communications (e.g. high net-worth individuals who demand a personalised service)
• needs being addressed, both those needs directly related to your products and services, and those needs that act as an attractor.
• key messages that are communicated to the audience, especially concerning types of products and services, quality, price points, intended type of consumer.
• mediums to be used, not only the new interactive mediums but also the traditional ones like post and print, as these can play an important support role.
• style of layout, colour, graphics, human-computer dialog, vocabulary, language, etc..
• facilities provided (e.g. investment portfolio management).
• level of knowledge and expertise required to use these facilities  (e.g. knowledge of the stock market).
• technology available and used (e.g. use of mobile 'phones).

Brand and Segmentation

Many financial services products are applicable to different market segments. It is possible to separately target these, each emphasising different aspects of the brand, but care must be taken that each market segment does not see messages intended for the other segments, as this will confuse and dilute the brand. This approach can also have problems when the same personnel must service more than one market segment.

It is possible to use the new mediums for simply brand promotion, steering consumers to the existing channels to purchase the products. This equates to the Mass Information stage of the Customer Relationship Cycle (see later) but it is an increasingly difficult proposition to justify.

Down is Product/Service Development Cycle

JS

External Resources
 

1. Newsletters and web site from Through the Loop, a forward thinking strategic market research company. One of its research areas is ConsumerLoop that looks at consumers and how they are adapting and exploiting the new delivery mediums.
2. Dibb, Sally et al, 1991, Marketing - Concepts and Strategies, Houghton Mifflin, Boston, Mass..
3. See the full list of resources for this web site for other related resources.

[Overview] [Brand Development Cycle] [ Product/Service Development Cycle]
[Customer Relationship Cycle] [Mass Information] [Mass Presentation] [Mass Personalisation] [Mass Customisation] 
[Acquisition Cycle] [ Service Cycle] [Disposal Cycle] [Communications Cycle] [Implementation] [Tom Vassos' Framework]

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To Follow: Link to behaviours, values and attitudes; Ref Dialogue Marketing software from Hans Martin Larssen / DMR