The Role of IMC in

the Marketing Process

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

 Marketing and Promotions Process Model

Opportunity Identifying Product Promotion

Analysis Markets Decisions to Final
Promotional Buyer
Decisions
Competitive Pricing Advertising
Analysis Decisions Direct
Market Marketing Promotion
Segmentation To Trade Ultimate
Interactive
Consumer
Marketing
Target Distribution Sales Consumers
Marketing Decisions Promotion Businesses
Publicity and
Selecting a Public
Target Market Relations
Personal
Selling

Positioning
Through
Marketing
Strategies
Resellers
Marketing to a Lifestyle

+
The Target Marketing Process

Identify
Identify Markets
Markets With
With Unfulfilled
Unfulfilled Needs
Needs

Determining
Determining Market
Market Segmentation
Segmentation

Selecting
Selecting Market
Market To
To Target
Target

Positioning
Positioning Through
Through Marketing
Marketing Strategies
Strategies
 Beer is Beer? Not Really!

Popular Imports Specialties Premium Light

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

A Product for Every Segment

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Marketing Segmentation Process

Find
Find Ways
Ways To
To Group
Group Consumers
Consumers
According
According To
To Their
Their Needs.
Needs.

Find
Find Ways
Ways To
To Group
Group Marketing
Marketing Actions
Actions -- Usually
Usually the
the
Products
Products Offered
Offered -- Available
Available To
To the
the Organization.
Organization.

Develop
Develop aa Market/Product
Market/Product Grid
Grid To
To Relate
Relate the
the Market
Market
Segments
Segments ToTo the
the Firms
Firms Products
Products and
and Actions.
Actions.

Select
Select the
the Product
Product Segments
Segments Toward
Toward Which
Which the
the Firm
Firm
Directs
Directs Its
Its Marketing
Marketing Actions.
Actions.

Take
Take Marketing
Marketing Actions
Actions To
To Reach
Reach Target
Target Segments.
Segments.

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

 Bases for Segmentation

Psychographic
Psychographic Demographic
Demographic

Customer
Customer
Characteristics
Characteristics

Socioeconomic
Socioeconomic Geographic
Geographic

Behavior
Behavior Outlets
Outlets

Buying
Buying
Situation
Situation

Usage
Usage Benefits
Benefits
Abercrombie & Fitch Targets Echo Boomers

+
 Developing a Positioning Strategy

What
What Position
Position Do
Do
We
We Have
Have Now?
Now?

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

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

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

 Positioning Strategies

How should By
By Attributes
Attributes and
and Benefits?
Benefits?
we position?
By
By Price
Price or
or Quality?
Quality?

By
By Use
Use or
or Application?
Application?

By
By Product
Product Class?
Class?

By
By Product
Product User?
User?

By
By Competitor?
Competitor?

By
By Cultural
Cultural Symbols?
Symbols?
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cultural Symbols Can Differentiate Brands

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

+
Developing a Positioning Platform

1.
1. Identify
Identify the
the Competitors
Competitors

2.
2. Assess
Assess Perceptions
Perceptions of
of Them
Them

3.
3. Determine
Determine Their
Their Positions
Positions

4.
4. Analyze
Analyze Consumer
Consumer Preferences
Preferences

5.
5. Make
Make the
the Positioning
Positioning Decision
Decision

6.
6. Monitor
Monitor the
the Position
Position
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Positioning Decisions

Is
Is the
the Current
Current Is
Is the
the Segmentation
Segmentation
Position
Position Strategy
Strategy Strategy
Strategy
Working?
Working? Appropriate?
Appropriate?

The
The
Checklist
Checklist

Are
Are There
There Sufficient
Sufficient
How
How Strong
Strong Is
Is the
the Resources
Resources ToTo
Competition?
Competition? Communicate
Communicate the the
Position?
Position?

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

Advertising Develops Brand Images

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

+
 Branding and Packaging Work Closely Together

Product
Product Decisions
Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Packaging
Packaging Its
Its often
often
name
name creates
creates and
and has
has become
become customers
customers
commun-
commun- maintains
maintains increasingly
increasingly first
first
icates
icates brand
brand important
important exposure
exposure to to
attributes
attributes equity
equity product
product
and
and
meaning
meaning

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

A Package Is More than a Container

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Packaging Enhances Brand Identity

*Click outside of the video screen to advance to the next slide

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

 Pricing Must Be Coordinated with Other Factors

Pricing
Pricing Price
Price Must
Must Be
Be Consistent
Consistent With
With
Considerations
Considerations Perceptions
Perceptions of
of the
the Product
Product

Higher
Higher Prices
Prices Communicate
Communicate Higher
Higher
Product
Product Quality
Quality

Lower
Lower Prices
Prices Reflect
Reflect Bargain
Bargain or
or
Value
Value Perceptions
Perceptions

Price,
Price, Advertising
Advertising and
and Distribution
Distribution
must
be
mustbebe
Unified
be Unified
Unified In
In In
Unified In
Identifying
Identifying the
the Product
Product Position
Position

AA Product
Product Positioned
Positioned as
as High
High Quality
Quality
While
While Carrying
Carrying aa Lower
Lower Price
Price than
than
Competitors
Competitors Will
Will Confuse
Confuse Customers
Customers
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Some Products Compete on Price
Others Compete on Quality

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Distribution is a Vital Link in the Chain

Selecting
Selecting

Distribution
Distribution
Channel
Channel Managing
Managing
Decisions
Decisions

Motivating
Motivating

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

The Middleman Can Play a Key Role

Brokers
Brokers

Distributors
Distributors
Independent
Independent
Channel
Channel
Intermediaries
Intermediaries Wholesalers
Wholesalers

Retailers
Retailers

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

Push Versus Pull

Push
Push Policy
Policy Pull
Pull Policy
Policy

Producer
Producer Producer
Producer

Wholesaler
Wholesaler Wholesaler
Wholesaler

Retailer
Retailer Retailer
Retailer

Consumer
Consumer Consumer
Consumer

Information Flow
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Promotion to Push Goods Through Channels

Point
Point of
of Sale
Sale Displays,
Displays, Racks,
Racks, Stands
Stands
PUSH
Trade
Trade Deals,
Deals, Special
Special Displays
Displays

Dealer
Dealer Premiums,
Premiums, Prizes,
Prizes, Gifts
Gifts

Cooperative
Cooperative Advertising
Advertising Deals
Deals

Advertising
Advertising Materials,
Materials, Mats,
Mats, Inserts
Inserts

Push
Push Money
Money or
or Spiffs"
Spiffs"

Collaterals,
Collaterals, Catalogs,
Catalogs, Manuals
Manuals

Company
Company Conventions,
Conventions, Meetings
Meetings
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Promotion to Pull Goods Through Channels

Sampling,
Sampling, free
free trial
trial
PULL
Cents-off
Cents-off promotions
promotions

Cents-off
Cents-off coupons
coupons

Combination
Combination offers
offers

Premiums
Premiums or
or gifts
gifts

Contests,
Contests, sweepstakes
sweepstakes

Point-of-purchase
Point-of-purchase

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