The Role of IMC in the Marketing Process

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Padres Pitch to the Fans

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Cleveland Indians Want Fans to Play Ball

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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 Internet/ Interactive Ultimate consumer Consumers Businesses Promotion to trade Promotion to final buyer

Market segmentation

Target marketing Selecting a target market

Channel-ofdistribution decisions

Resellers Purchase
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Marketing to a Lifestyle

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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

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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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A Product for Every Segment

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Beer is Beer? Not Really!

Popular Imports Domestic specialties Premium Light

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

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

Usage

Buying Situation
Awareness Benefits

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SOCIO ECONOMIC CLASIFICATION INDIA

Browns Highlight Extreme Fan

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Home Depot Reaches Out to the Female Market

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Hispanics Prefer Spanish Language Ads

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Examples of Some PRIZM Clusters

HIGH

LOW

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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

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

Developing a Positioning Strategy

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

The Position
Do we have the tenacity to stay with with it? it? Do Do we we have have the the money money to to do do the the job? job?
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From whom must we win this position? 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. Identify the competitors Assess perceptions of them

3.
4. 5. 6.

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 the segmentation segmentation Is strategy appropriate?

The Checklist

How strong is the competition?

Are Are there there sufficient sufficient resources to communicate communicate the 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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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, Price, advertising advertising and and distribution distribution be must unified be 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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Test Your Knowledge

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

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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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