2
The Role of IMC in the
Marketing Process
McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Under Armour Protects Its House
Under Armour Protects Its House
Keys to Under Armours success
Niche markets
Strong product positioning
Unique brand identity
Strong brand reputation
Marketing and Promotions Process Model
Opportunity Identifying Product Promotion
analysis markets decisions to final
Promotional buyer
decisions
Pricing Advertising
decisions Direct
Competitive Market marketing
analysis segmentation Ultimate
Interactive consumer
marketing Internet/
Channel-of- Interactive Consumers
Sales
distribution promotion Businesses
decisions
Target Publicity
Selecting a and public
marketing Promotion
target market relations
Personal to trade
selling
Positioning Resellers
through
marketing
strategies Purchase
Marketing to a Lifestyle
Padres Pitch to the Fans
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The Target Marketing Process
Identify markets with unfulfilled needs
Determine market segmentation
Select market to target
Position through marketing strategies
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
Buying
Usage Situation
Awareness Benefits
Geographic Marketing
Demographic Segmentation
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 Loyalties
Responses
Benefit Segmentation
PRIZM Cluster Profiles
HIGH
LOW
Test Your Knowledge
The key factor in communicating information about
a brand and differentiating it from competitors is:
A) Its perceived price differential
B) Its integrated promotional strategy
C) The market positioning strategy assigned
it by the manufacturer
D) Its distribution intensity
E) The benefits the brand offers
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
What position do
strategy
we want to own?
match it?
The
Position
Do we have the From whom
tenacity to stay must we win this
with it? position?
Do we have the
money to do the
job?
Positioning Strategies
How should Attributes and Benefits?
we position?
Price or Quality?
Use or Application?
Product Class?
Product User?
Competitor?
Cultural Symbols?
Positioning by Use or Application
Developing a Positioning Platform
1. Identify the competitors
2. Assess perceptions of them
3. Determine their positions
4. Analyze consumer preferences
5. Make the positioning decision
6. Monitor the position
Making the Positioning Decision
Is the current Is the segmentation
position strategy strategy
working? appropriate?
The
Checklist
Are there sufficient
How strong is the resources to
competition? 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 Advertising Has become Often
name creates and increasingly customers
commun- maintains important first
icates brand exposure to
attributes equity product
and
meaning
A Package is More than a Container
Pricing Decisions
What consumers give
Factors the firm must
up to purchase a
consider
product or service
Costs Price Variable
Time
Demand
Mental activity
Competition
Behavioral effort
Perceived value
Relating Price to Ads and Promotion
Pricing Price must be consistent with
Considerations 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 Managing
Decisions
Motivating
Distribution Intermediaries
Brokers
Distributors
Distribution
Channel
Intermediaries
Wholesalers
Retailers
Promotional Strategy: Push or Pull?
Push Policy Pull Policy
Producer Producer
Wholesaler Wholesaler
Retailer Retailer
Consumer Consumer
Information Flow
Test Your Knowledge
An ad in a publication aimed at veterinarians explains
why they should recommend Eukanuba cat food to the
owners of the cats they treat. This is an example of:
A) Consumer advertising
B) A promotional pull strategy
C) A harvesting strategy
D) A consumer promotion
E) A promotional push strategy