Chapter 2
The Role of IMC in the
Marketing Process
Chapter Objectives
• To understand the marketing process and the role of
advertising and promotion in an organisation’s integrated
marketing program.
• To know the various decision areas under element of the
marketing mix and how they influence and interact with
advertising and promotional strategy
• To understand the concepts of target marketing in an
integrated marketing communication program.
• To recognise the role of market segmentation and its use in
an integrated marketing communications program
• To understand the use of positioning and repositioning
strategies.
The
Marketing
Marketing and Promotions Process Model
Target
Strategy & Marketing Marketing Planning
analysis Process program and Development
Target Market
Identifying Promotional Promotion to
Identifying Product decisions final buyer
markets
markets decisions
•Advertising
Market •Direct
Competitive Segmentation Pricing
marketing
analysis decisions •Interactive ultimate
Internet /
marketing Consumer
Interactive
Selecting a •Sales CONSUMERS
Target target Channel of promotion BUSINESSES
marketing market distribution •Publicity
Promotions to
decisions and public trade
relations
Positioning •Personal
through selling Resellers
marketing
strategies
Purchase
The Marketing and Promotional Process
1. The organisations marketing strategy
and analysis,
2. The target marketing process,
3. The marketing planning program
development (including the promotional
mix)
4. Target Market
1. Marketing Strategy and Analysis
• Opportunity Analysis
• Competitive Analysis
• Target Marketing Selection
Opportunity Analysis
• Market Opportunities are areas where there are
favourable demand trends, where the company
believes customer needs and opportunities are
not being satisfied and where it can compete
effectively.
• For eg – branded athletic footwear market
- Personal computer industry
Competitive Analysis
• In developing the firm’s marketing strategies and
plans for its products and services, the manager
must carefully analyse the competition to be
faced in the market place.
• This may range from direct brand competition to
more indirect forms of competition.
• Eg; Colgate, Nike, Sony,
2.
2. The
The Target
Target Marketing
Marketing Process
Process
I d e n t if y in g D e t e r m in in g S e l e c t in g a P o s it io n in g
m a r k e t s w it h m a rk e t m a rk e t t h r o u g h m a r k e t in g
u n f u lf ille d n e e d s s e g m e n t a t io n to ta rg e t s t r a t e g ie s
Slide 2-2
Figure 2-2
2. The Target Marketing Process
a) Identifying Markets
b) Market Segmentation
c) Selecting a Target Market
Market Breakdown by Product in
the Beer Industry
16% 7% Popular
3%
Imports
Domestic
12%
25%
Premium
Light
37%
a) Identifying Markets
Slide 2-3
Figure 2-3
Steps
Steps in
in the
the Segmentation
Segmentation Process
Process
• Finding ways to group consumers
according to their needs
• Finding ways to group the marketing
actions available to the organization
• Developing a market -product grid
• Selecting the target segments
• Taking marketing actions to reach
segments
Slide 2-4
2. The Target Marketing Process
b) Market Segmentation
– Geographic Segmentation – Region, City size Area,
Density
– Demographic Segmentation – Gender, Age, Race,
Life stage, birth era, household size, residence tenure,
marital status
– Socio-economic – Income, Education and Occupation
– Psychographic – Personality, VALS
– Behavioristic Segmentation
– Benefit Segmentation
2. The Target Marketing Process
c) Selecting a Target Market
i. Determining how many segments to enter
a. Undifferentiated Marketing – offering one product or service to
the entire market.
b. Differentiated Marketing – marketing in a number of segments,
developing separate marketing strategies for each
c. Concentrated Marketing – selecting one segment and attempts
to capture a larger share of their market
ii. Determining which segment offers the most potential.
Developing a Positioning Strategy
• Attribute/benefit
• Price/quality
• Use or application
• Product class
• Product user
• Competitor
• Cultural symbol
• Repositioning
Slide 2-5
Attribute / Benefit Positioning
Consider the example of Ariel that offers a specific benefit
of cleaning even the dirtiest of clothes because of the
micro cleaning system in the product.
Colgate offers benefits of preventing cavity and fresh
breath.
Promise, Balsara’s toothpaste, could break Colgate’s
stronghold by being the first to claim that it contained
clove, which differentiated it from the leader.
Nirma offered the benefit of low price over Hindustan
Lever’s Surf to become a success.
Maruti Suzuki offers benefits of maximum fuel efficiency
and safety over its competitors. This strategy helped it to
get 60% of the Indian automobile market.
Price/quality
Parle Bisleri – “Bada Bisleri, same
price” ad campaign.
Product by use/ application
Surf Excel is positioned as stain
remover ‘ Surf Excel hai na!’
Also, Clinic All Clear – “Dare to wear
Black”.
Product Class
Often the competition for a particular
product comes from outside the
product class. For example, airlines
know that while they compete with
other airlines, trains and buses are
also viable alternatives
Product User
Positioning a product by associating it with a particular
user or group of users is yet another approach.
Motography Motorola Mobile Ad. in this ad the persona of
the user of the product is been positioned.
Johnson & Johnson positioned their baby shampoo by
product user, originally as a baby product. To boost market
share as the product category matured, they repositioned it
as a shampoo for people who wash their hair frequently
and need a mild shampoo.
BMW stresses handling and engineering efficiency, Volvo safety
and durability
Competition
Onida was positioned against the giants in
the television industry through this
strategy, ONIDA colour TV was launched
with the message that all others were
clones and only Onida was the leader.
“neighbour’s Envy, Owners Pride”.
Dettol,
AMD better than Intel
Cultural symbol
An additional positioning strategy
where in the cultural symbols are
used to differentiate the brands.
Examples would be Hamara Bajaj,
Tata Tea, Chevrolet, McDonald. Each
of these symbols has successfully
differentiated the product it
represents from competitors
Repositioning – Marico Starz
• Marico known for its Saffola edible oil and parachute
haircare brands.
• Competitor – HLL extended its Pears brand by launching
soaps for kids called Pears Junior.
• Marico launched - Sparsh brand for babies, Starz for kids
between 5-12 years – shampoo (Rs. 54/- for 100 ml) , non-
sticky oil (R. 29/- for 100 ml) and crème gel.
• Parachute Starz is launched in attractive pink bottles and
features cartoon characters with the tagline “ gentle care
for young hair ”
• Starz takes strength from Parachute and relies on the
goodness of coconut to differentiate
Repositioning – Marico Starz
• The brand also claims advantage of vitamins, proteins and
strawberry and essential takes up nourishment as the main
brand benefit.
• 4-6 Kids, 6-9 – teenagers, 10-12 years Tweenagers.
• Marico intends to develop a new cateogory of specialised
hair care solutions for the kids aged 5-10 and even the
tweens.
• This is the age where kids develop lot of hair related
problems because of their active and careless lifestyle.
• The success of Starz will depend on how Marico motivates
the younger ones to pester their mothers into buying these
products and also on how the brand captures the trust of
the mothers.
Determining
Determining the
the Positioning
Positioning
Strategy
Strategy
1. Identifying competitors
2. Assessing consumers' perceptions of competitors
3. Determining competitors' positions
4. Analyzing consumers' preferences
5. Making the positioning decision
6. Monitoring the decision
Slide 2-6
Developing the Marketing Planning Program
• Product Decisions
• Branding
• Packaging
• Price Decisions
• Distribution channel decisions
– Developing promotional Strategies : Push or
pull
• Thank you.
