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The Role of IMC in the Marketing Process
McGraw-Hill/Irwin
Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing and Promotions Process Model
Opportunity analysis Identifying markets Product decisions Promotional decisions Pricing decisions Advertising Direct marketing Interactive marketing Sales promotion Publicity and public relations Personal selling Positioning through marketing strategies Internet/ Interactive Ultimate consumer Consumers Businesses Promotion to trade Promotion to final buyer
Competitive analysis
Market segmentation
Target marketing
Channel-ofdistribution decisions Selecting a target market
Resellers Purchase
Marketing to a Lifestyle
The Target Marketing Process
Identify markets with unfulfilled needs
Determine market segmentation
Select market to target
Position through marketing strategies
Grupo Modelo(A Product for Every Market Segment)
The Marketing Segmentation Process
Find ways to group consumers according to their needs
Find ways to group marketing actions available to the organization Develop a market/product grid to relate the market segments to the firms products and actions Select the product segments toward which the firm will direct its marketing actions
Take marketing actions to reach target segments
What do NASCAR, Coors, and Unilever know?
Bases for Segmentation
Psychographic Demographic
Customer Characteristics
Socioeconomic Geographic
Behavior
Outlet Type
Usage
Buying Situation
Awareness Benefits
Geographic Marketing
Psychographic Segmentation
Dividing the market on the basis of
Personality Values Lifestyle
VALS lifestyle segmentation
Eight lifestyles with distinctive attitudes, behaviors, and decision-making patterns Combined with estimate of the resources on which the consumer can draw
Behavioristic Segmentation
Usage Buying Responses Loyalties
Benefit Segmentation
Selecting a Target Market
Determine how many segments to enter Determine which segments have the greatest potential
Market Positioning
Fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition
Developing a Positioning Strategy
What position do we have now? Does our creative strategy match it? What position do we want to own?
The Position
Do we have the tenacity to stay with it? Do we have the money to do the job? From whom must we win this position?
Positioning Strategies
How should we position?
Attributes and Benefits?
Price or Quality?
Use or Application?
Product Class?
Product User?
Competitor?
Cultural Symbols?
Positioning by Use or Application
Developing a Positioning Platform
1. 2. 3. 4. 5. 6. Identify the competitors Assess perceptions of them Determine their positions Analyze consumer preferences Make the positioning decision Monitor the position
Making the Positioning Decision
Is the current position strategy working? Is the segmentation strategy appropriate?
The Checklist
How strong is the competition?
Are there sufficient resources to communicate the position?
Advertising Develops Brand Image
Branding and Product Names Brand names often communicate attributes and meaning
Safeguard I Cant Believe Its Not Butter! Easy-Off Arrid Spic and Span
Branding and Packaging Are Linked
Product Decisions
BRANDING PACKAGING
Brand name communicates attributes and meaning
Advertising creates and maintains brand equity
Has become increasingly important
Often customers first exposure to product
A Package is More than a Container(Saks fifth avenue)
Pricing Decisions
Factors the firm must consider What consumers give up to purchase a product or service
Costs
Price Variable
Time
Demand
Competition
Mental activity
Perceived value
Behavioral effort
Relating Price to Ads and Promotion
Pricing Considerations
Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or value perceptions Price, advertising and distribution be unified in identifying product position A product positioned as high quality while carrying a lower price than competitors will confuse customers
When Price is Not an Issue
Distribution Channel Decisions
Selecting
Distribution Channel Decisions
Managing
Motivating
Distribution Intermediaries
Brokers
Distribution Channel Intermediaries
Distributors
Wholesalers
Retailers
Promotional Strategy: Push or Pull?
Push Policy
Producer
Pull Policy
Producer
Wholesaler
Retailer Consumer
Wholesaler
Retailer Consumer
Information Flow
