Chapter 2
The Role of
IMC in the
Marketing
Process
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Learning Objectives
To understand the marketing process and the role of
advertising and promotion in an organization’s
integrated marketing program
To understand the concept of target marketing in an
integrated marketing communications program
To recognize the role of market segmentation and
its use in an integrated marketing communications
program
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Learning Objectives
To understand the use of positioning and
repositioning strategies
To know the various decision areas under each
element of the marketing mix and how they
influence and interact with advertising and
promotional strategy
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Figure 2.1 - Marketing and Promotions
Process Model
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Strategic Marketing Plan
Guides
Allocation of organization’s resources
Specific marketing programs and policies
Evolves from an organization’s overall corporate
strategy
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Opportunity Analysis
Market opportunities: Areas where:
There are favorable demand trends
Customer’s needs and opportunities are not being
satisfied
Firm can compete effectively
Steps to identify market opportunities
Examine the marketplace
Observe demand trends and competition in various
market segments
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Competitive Analysis
Analyzing the competition in the marketplace and
searching for a competitive advantage
Competitive advantage: Attributes that give a firm
an edge over competitors
Better quality products
Superior customer service
Low production costs and lower prices
Dominating channels of distribution
Advertising
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Target Market Selection
Done after evaluating market opportunities and
doing a competitive analysis
Has direct implications on a firm’s advertising and
promotional efforts
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Figure 2.2 - The Target Marketing
Process
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Market Segmentation
Dividing a market into distinct groups with common
needs, who respond similarly to a marketing situation
Criteria
Geographic segmentation: Markets are divided into
different geographic units
Demographic segmentation: Dividing the market on
the basis age, sex, family size, education, income, and
social class
Psychographic segmentation: Dividing the market on
the basis of personality, lifecycles, and/or lifestyles
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Bases for Market Segmentation
Behavioristic segmentation
• Dividing consumers into groups according to their
usage, loyalties, or buying responses to a product
• 80-20 rule: 20 percent of buyers account for 80
percent of sales volume
Benefit segmentation
• Grouping of consumers on the basis of attributes
sought in a product
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Selecting Target Market
Determine how many segments to
enter
Determine which segments offer the
most potential
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Market Coverage Alternatives
Undifferentiated marketing
• Ignoring segment differences and offering just one product or
service to the entire market
Differentiated marketing
• Involves marketing in a number of segments, developing
separate marketing strategies for each
Concentrated marketing
• Selecting a segment and attempting to capture a large share of
this market
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Positioning
Fitting a product or service to one or more
segments of the broad market to make it unique
within the marketplace
Approaches
Focusing on the consumer - Linking the product
with the benefits the consumer will derive
Focusing on competition - Positions the product by
comparing the benefit it offers versus the
competition
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Positioning Strategies
Positioning by product attributes and benefits
Sets the brand apart from competitors on the basis of
specific characteristics or benefits offered
Salient attributes: Important to consumers and are
the basis for making a purchase decision
Positioning by price/quality
Done where cost comes secondary to quality
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Positioning Strategies
Positioning by use or application
Used to enter a market on the basis of a particular
use or application
Positioning by product class
Positioning by product user
Positioning by competitor
Positioning by cultural symbols
Makes the brand easily identifiable and
differentiated from others
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Repositioning
Altering a product’s or brand’s position due to:
Declining or stagnant sales
Anticipated opportunities in other market positions
Difficult to accomplish because of entrenched
perceptions and attitudes toward the product or
brand
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Product Decisions
Product symbolism: Refers to:
What a product or brand means to consumers
What consumers experience in purchasing and using a
product
Branding
Building and maintaining a favorable identity of the
company and its products
Packaging
Provides functional benefits such as economy,
protection, and storage
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Branding
Builds and maintains brand awareness and interest
Develops and enhances attitudes toward the company or product
Builds relationships between the consumer and the brand
Brand identity: Combination of name, logo, symbols, design,
packaging, and image of associations held by consumers
Brand equity: Intangible asset of added value
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Price Decisions
Price variable - Refers to what the consumer has to
give in exchange for a purchase
Factors that determine price
Costs
Demand factors
Competition
Perceived value
Product quality
Advertising
2-20
Marketing Channels
Interdependent organizations involved in making a
product or service available for use
Direct channels: Directly deal with customers
Driven by direct-response ads, telemarketing, the
Internet
Used when selling expensive and complex products
Indirect channels: Network of wholesalers and/or
retailers
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Promotional Push Strategies
Programs designed to persuade the trade to stock,
merchandise and promote a manufacturer’s
products
Goal
Push the product through the channels of
distribution by selling and promoting it
Trade advertising: Used to motivate wholesalers
and retailers to purchase products for resale
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Promotional Pull Strategies
Spending money on advertising and sales
promotion efforts directed toward the ultimate
consumer
Goal
Create demand among consumers
Encourage consumers to request the product from
the retailer
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