2

The Role of IMC in the

Marketing Process

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

 Marketing and Promotions Process Model

Marketing Target
Strategy and Marketing Planning Target Market
Marketing Program Development
Analysis Process
Promotion to
final buyer
Identifying Product Promotional
markets decisions decisions
•advertising
•direct
Ultimate
Competitive Pricing marketing
Market customer
analysis decisions •internet/
segmentation •Consumers
interactive
Promotion •Businesses
marketing
•sales to trade
Selecting Channel of
Target a target distribution promotion
•publicity Resellers
marketing market decisions
and public
Positioning relations
through •personal
Purchase
marketing selling
strategies
The Target Marketing Process

Identify markets with unfulfilled needs

Determining market segmentation

Selecting market to target

Positioning through marketing strategies

Five-Step Segmentation Process

1. Finding ways to group consumers

according to their needs.
2. Finding ways to group marketing actions,
usually the products offered, available to
the organization.
3. Developing a market/product grid to
relate the market segments to the firm’s
products and actions.
4. Selecting the product segments toward
which the firm directs its marketing actions.
5. Taking marketing actions to reach target
segments.
Bases for Segmentation

• Geographic Segmentation
– State - region - country - climate
• Demographic Segmentation
– Age, sex, income, education, occupation,
social class
• Psychographic Segmentation
– AIOs, (Activities, Interests, Opinions)
– VALS (Values and Lifestyles)
– Personality traits
• Behavioristic Segmentation
– Usage, loyalties, occasions.
• Benefit Segmentation
– Types of specific needs or wants to be
satisfied.
 Selecting a Target Market

Determining How Many Segments To Enter

 Undifferentiated Marketing – offering one product or

service to the entire market

 Differentiated marketing – competing in a number of

segments with separate marketing strategies for each

 Concentrated Marketing – focusing on one market

segment
 Determining Which Market Segments
Offer the Most Potential

 Determine sales potential of the segment

 Determine opportunities for growth of the
market segment
 Analyze the competition in the segment
 Analyze the company’s ability to compete in
the market segment
 Decide how to compete in the market segment
Segmentation Decision Check List

 Can the size of the market

segment be measured?

 Is the market segment large and

profitable enough to serve?

 Is the segment identified

accessible? Can it be reached
effectively and efficiently?

 Can effective marketing programs

be developed to attract and serve
the segment identified?
 The Positioning Process

Positioning Concept
The desired perception or
association management wants
target customers to have for a
firm and/or its products

Positioning Effectiveness Positioning Strategy

The combination of marketing
The extent to which management’s
positioning objectives are achieved
Market actions used to portray the
positioning concept to targeted
in the market target Target buyers

Positioning of the brand

The positioning of the brand by
the buyers in the market target
JetBlue Airways positions itself as a low price
airline with great service
Positioning Strategy Development Process

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

 Product/Service and Brand Positioning

BASIC QUESTIONS TO ASK

1. What position, if any do we currently hold in the mind

of customers?

2. What position do we want to hold?

3. Whom do we have to compete against to establish this

position?

4. Do we have the resources to occupy and hold the

position?

5. Can we stay with one consistent positioning strategy?

6. Does our marketing and advertising match our

positioning strategy?
Approaches to Positioning A Product/Service
or Brand

1. By Product or Service Attributes and

Benefits

2. By Price/Quality

3. By Use or Application

4. By Product Class

5. By Product or Service User

6. By competition

7. By cultural symbols
Positioning by cultural symbol

Source: Courtesy The Pillsbury Company

 Product Decisions

AA product
product is
is aa bundle
bundle of
of benefits
benefits or
or values
values that
that
satisfies
satisfies the
the needs
needs of
of consumers
consumers

 Product symbolism refers to what a product or

brand means to customers
 Product quality, branding, packaging, and
company name contribute to product image
 Branding:
– Brand name communicates attributes and meaning
– Advertising creates and maintains brand equity which
results from the image and/or impression of a brand
 The Value of Strong Corporate and/or
Brand Identity

Strong corporate/brand equity:

 Creates more options for competing against
lower-priced competitors
 Builds customer loyalty
 Makes it easier to withstand economic
fluctuations and marketing crises
 Allows companies to sell products/services at a
premium price and maintain larger profit
margins
 Can facilitate brand and line extensions
 Makes customer response more inelastic to
price increases and elastic to price decreases
Crest uses its strong brand equity to launch
a line extension
Packaging

Traditional functions of packaging:

 economy, protection, storage
 Packaging has become increasingly
important because:
 self service emphasis of many stores
 buying decisions made at point-of-
purchase
 often customers first exposure to product
Packaging is a way to communicate
to consumers
Arm & Hammer Promotes New Packaging

Source: Courtesy Church & Dwight Co., Inc.

Pricing Decisions

 Price must be consistent with perceptions of

the product
 Higher prices communicate higher product
quality
 Lower prices often reflect bargain or “value”
perceptions
 A product positioned as high quality while
carrying a lower price than competitors may
confuse customers
 Price, advertising and distribution must be
unified to create the position for the product or
service.
Distribution Channel Decisions

Channel decisions involve:

 Determining the type of channel system:

– Direct channels
– Indirect channels

 Selecting, managing and motivating

marketing intermediaries such as
– Wholesalers
– Distributors
– Brokers
– Retailers
Push Versus Pull

Push Policy Pull Policy

Producer
Producer Producer
Producer

Wholesaler
Wholesaler Wholesaler
Wholesaler

Retailer
Retailer Retailer
Retailer

Consumer
Consumer Consumer
Consumer

Information Flow
"Push" Techniques

 Point of sale displays, racks, stands

 Trade deals, special displays
 Dealer premiums, prizes, gifts
 Cooperative advertising deals
 Advertising materials, mats, inserts
 Push money or "spiffs"
 Collaterals, catalogs, manuals
 Trade shows, conventions, meetings
"Pull" Techniques

 Sampling, free trial

 Coupons
 Premiums or gifts
 Contests, sweepstakes
 Price-off deals
 Refunds/rebates
 Frequency/loyalty programs
 Point-of-purchase advertising
Premium offers are part of a pull strategy

Source: KELLOGG’S CORN FLAKES is a trademark of Kellogg

®

Company. All rights reserved. Used with permission.