Padres Pitch to the Fans

The Role of IMC in the Marketing Process

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Cleveland Indians Want Fans to Play Ball

Marketing and Promotions Process Model

Opportunity analysis Identifying markets Product decisions Promotional decisions Competitive analysis 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

Market segmentation

Target marketing Selecting a target market

Channel-ofChanneldistribution ofdistribution decisions decisions

Resellers Purchase
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing to a Lifestyle

Test Your Knowledge

Factors that influence the decision as to how far the segmentation process should go include: A) whether the segment is accessible B) whether sufficient funds exist for developing the necessary advertising campaign C) the availability of media that reaches the segment D) the ability of the sales force to reach the segment E) all of the above

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Target Marketing Process

Identify markets with unfulfilled needs Identify markets with unfulfilled needs

A Product for Every Segment

Determining market segmentation Determining market segmentation

Selecting market to target Selecting market to target

Positioning through marketing strategies Positioning through marketing strategies

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Beer is Beer? Not Really!

The Marketing Segmentation Process

Find ways to group consumers Find ways to group consumers according to their needs. according to their needs. Find ways to group marketing actions - usually the Find ways to group marketing actions - usually the products offered - available to the organization. products offered - available to the organization.
Popular Imports Domestic specialties Premium Light

Develop a market/product grid to relate the market Develop a market/product grid to relate the market segments to the firms products and actions. segments to the firms products and actions. Select the product segments toward which the firm Select the product segments toward which the firm directs its marketing actions. directs its marketing actions.

Take marketing actions to reach target segments. Take marketing actions to reach target segments.
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Bases for Segmentation

Psychographic Psychographic Demographic Demographic

Browns Highlight Extreme Fan

Customer Customer Characteristics Characteristics Socioeconomic Socioeconomic Geographic Geographic Behavior Behavior Buying Buying Situation Situation Awareness Awareness
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Outlets Outlets

Usage Usage

Benefits Benefits

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2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Home Depot Reaches Out to the Female Market

Hispanics Prefer Spanish Language Ads

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Examples of Some PRIZM Clusters

HIGH

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 its manufacturer D) its distribution intensity E) the benefits the brand offers

LOW

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Developing a Positioning Strategy

What position do What position do What position do What position do we have now? we have now? we have now? we have now? Does our creative Does our creative strategy strategy match it? match it? What position do What position do we want to own? we want to own?

Positioning Strategies
How should we position?
By Attributes and Benefits? By Attributes and Benefits? By Price or Quality? By Price or Quality? By Use or Application? By Use or Application? By Product Class? By Product Class?

The The Position Position

Do we have the Do we have the Do we have the Do we have the tenacity to stay tenacity to stay tenacity to stay tenacity to stay with it? with it? with it? with it? Do we have the Do we have the money to do the money to do the job? job?
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

From whom From whom must we win this must we win this position? position?

By Product User? By Product User? By Competitor? By Competitor? By Cultural Symbols? By Cultural Symbols?
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cultural Symbols Can Differentiate Brands

Developing a Positioning Platform

1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. Identify the competitors Identify the competitors Assess perceptions of them Assess perceptions of them Determine their positions Determine their positions Analyze consumer preferences Analyze consumer preferences Make the positioning decision Make the positioning decision Monitor the position Monitor the position
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Positioning Decisions
Is the current Is the current position strategy position strategy working? working? Is the segmentation Is the segmentation Is the segmentation Is the segmentation strategy strategy strategy strategy appropriate? appropriate? appropriate? appropriate?

Advertising Develops Brand Images

The The Checklist Checklist

How strong is the How strong is the competition? competition?

Are there sufficient Are there sufficient Are there sufficient Are there sufficient resources to resources to resources to resources to communicate the communicate the communicate the communicate the position? position? position? position?
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Branding and Packaging Work Closely Together

A Package Is More than a Container

Product Decisions Product Decisions

BRANDING BRANDING PACKAGING PACKAGING

Brand Brand name name communcommunicates icates attributes attributes and and meaning meaning

Advertising Advertising creates and creates and maintains maintains brand brand equity equity

Packaging Packaging has become has become increasingly increasingly important important

Its often Its often customers customers first first exposure to exposure to product product

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Pricing Must Be Coordinated with Other Factors

Pricing Pricing Considerations Considerations
Price must be consistent with Price must be consistent with perceptions of the product perceptions of the product Higher prices communicate higher Higher prices communicate higher product quality product quality Lower prices reflect bargain or Lower prices reflect bargain or value perceptions value perceptions Price, advertising and distribution Price, advertising and distribution must be unified in be be unified be unified in must unified in in identifying the product position identifying the product position A product positioned as high quality A product positioned as high quality while carrying a lower price than while carrying a lower price than competitors will confuse customers competitors will confuse customers
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Some Products Compete on Price Others Compete on Quality

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Distribution is a Vital Link in the Chain

The Middleman Can Play a Key Role

Brokers Brokers

Selecting Selecting

Distribution Distribution Channel Channel Decisions Decisions

Managing Managing

Independent Independent Channel Channel Intermediaries Intermediaries

Distributors Distributors

Wholesalers Wholesalers

Motivating Motivating

Retailers Retailers
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2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Push Versus Pull

Push Policy Push Policy
Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer Information Flow
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

Pull Policy Pull Policy
Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer
An ad in a publication aimed at veterinarians explaining why they should recommend Eukanuba cat food to the owners of all the cats they treat 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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Promotion to Push Goods Through Channels

Promotion to Pull Goods Through Channels

PUSH

Point of sale displays, racks, stands Point of sale displays, racks, stands Trade deals, special displays Trade deals, special displays Dealer premiums, prizes, gifts Dealer premiums, prizes, gifts Cooperative advertising deals Cooperative advertising deals Advertising materials, mats, inserts Advertising materials, mats, inserts Push money or spiffs" Push money or spiffs" Collaterals, catalogs, manuals Collaterals, catalogs, manuals Company conventions, meetings Company conventions, meetings
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PULL

Sampling, free trial Sampling, free trial Cents-off promotions Cents-off promotions Cents-off coupons Cents-off coupons Combination offers Combination offers Premiums or gifts Premiums or gifts Contests, sweepstakes Contests, sweepstakes Point-of-purchase Point-of-purchase Trading stamps Trading stamps
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin