The Role of IMC in the Marketing Process

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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 Promotion To Trade Ultimate Consumer Consumers Businesses Promotion to Final Buyer

Market Segmentation

Target Marketing Selecting a Target Market

Distribution Decisions

Resellers
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Marketing to a Lifestyle

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The Target Marketing Process

Identify Markets With Unfulfilled Needs

Determining Market Segmentation

Selecting Market To Target

Positioning Through Marketing Strategies

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Beer is Beer? Not Really!

Popular

Imports

Specialties

Premium

Light

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A Product for Every Segment

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The Marketing Segmentation Process

Find Ways To Group Consumers According To Their Needs.
Find Ways To Group Marketing Actions - Usually the Products Offered - 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 Directs Its Marketing Actions.

Take Marketing Actions To Reach Target Segments.

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Bases for Segmentation

Psychographic Demographic

Customer Characteristics
Socioeconomic Geographic

Behavior

Outlets

Buying Situation
Usage
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Benefits

Abercrombie & Fitch Targets Echo Boomers

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Hispanics Prefer Spanish Language Ads

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Developing a Positioning Strategy

What Position Do We Have Now? Does Our Creative Strategy Match It? What Position Do We Want To Own?

The Position
Do We Have the Tenacity To Stay With It? Do We Have the Money To Do the Job?
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From Whom Must We Win This Position?

Positioning Strategies
How should we position?
By Attributes and Benefits?

By Price or Quality?
By Use or Application?

By Product Class?
By Product User? By Competitor? By Cultural Symbols?
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Cultural Symbols Can Differentiate Brands

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Developing a Positioning Platform

1. 2. 3. 4. 5. 6. Identify the Competitors Assess Perceptions of Them Determine Their Positions Analyze Consumer Preferences Make the Positioning Decision Monitor the Position
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Positioning Decisions
Is the Current Position Strategy Working? Is the Segmentation Strategy Appropriate?

The Checklist

How Strong Is the Competition?

Are There Sufficient Resources To Communicate the Position?

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Advertising Develops Brand Images

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Branding and Packaging Work Closely Together

Product Decisions
BRANDING PACKAGING

Brand name communicates attributes and meaning

Advertising creates and maintains brand equity

Packaging has become increasingly important

Its often customers first exposure to product

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A Package Is More than a Container

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Packaging Enhances Brand Identity

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Pricing Must Be Coordinated with Other Factors

Pricing Considerations
Price Must Be Consistent With Perceptions of the Product Higher Prices Communicate Higher Product Quality Lower Prices Reflect Bargain or Value Perceptions Price, Advertising and Distribution must be be Unified Unified In In Identifying the Product Position A Product Positioned as High Quality While Carrying a Lower Price than Competitors Will Confuse Customers
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Some Products Compete on Price Others Compete on Quality

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Distribution is a Vital Link in the Chain

Selecting

Distribution Channel Decisions

Managing

Motivating

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The Middleman Can Play a Key Role

Brokers

Independent Channel Intermediaries

Distributors

Wholesalers

Retailers
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Push Versus Pull

Push Policy
Producer

Pull Policy
Producer

Wholesaler
Retailer Consumer

Wholesaler
Retailer Consumer

Information Flow
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Promotion to Push Goods Through Channels

PUSH

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 Company Conventions, Meetings
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Promotion to Pull Goods Through Channels

PULL

Sampling, free trial Cents-off promotions Cents-off coupons Combination offers Premiums or gifts Contests, sweepstakes Point-of-purchase Trading stamps
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