Download Advertising and Promotion

Chapter 2
IMC Role in Marketing
Chapter Objectives
• To understand the marketing process and the role
of advertising and promotion in an organization’s
integrated marketing program.
• To know how the various decisions of the
marketing mix influence and interact with
advertising and promotional strategy.
Chapter 2 : IMC Role in Marketing
Chapter Objectives
• To understand the target market process in an
integrated marketing communications program.
• To recognize the role of market segmentation and
its use in an integrated marketing communications
program.
• To understand the concepts of market positioning
and brand positioning.
Chapter 2 : IMC Role in Marketing
Marketing and Promotions Process
Model
• Figure 2-1
Chapter 2 : IMC Role in Marketing
Market Analysis
• Market opportunity analysis
– Favourable demand trends
– Unsatisfied customer needs and opportunities
– Companies compete effectively
• Competitive analysis
– Direct and indirect competition
– Competitive advantage
Chapter 2 : IMC Role in Marketing
The Target Market Process
Segment the market
Select a target market
Determine the market positioning strategy
Chapter 2 : IMC Role in Marketing
Segment the Market Bases for Segmentation
• Geographic segmentation.
– Province - region - country - climate.
• Demographic segmentation.
– Age - sex - family status - education - occupation income - social class.
• Psychographic segmentation.
– Values - personality traits - lifestyles.
Chapter 2 : IMC Role in Marketing
Segment the Market Bases for Segmentation
• Behaviouristic segmentation.
– Usage, loyalties, buying responses.
• Benefit segmentation.
– Types of specific needs or wants to be satisfied.
Chapter 2 : IMC Role in Marketing
Select a Target Market
• 2 steps:
– Determine how many segments to enter
– Determine which segments offer the most potential
• 3 market coverage alternatives:
– Undifferentiated marketing
– Differentiated marketing
– Concentrated marketing
Chapter 2 : IMC Role in Marketing
Determine the Market Positioning
Strategy
• The final decision of the market(s) in which firms
wish to compete, combined with the specific
elements of the marketing mix designed to fulfill
the respective needs of the market(s).
• Figure 2-4 - hypothetical illustration of market
positioning strategy.
Chapter 2 : IMC Role in Marketing
Marketing Program Development
• Product decisions and IMC
• Price decisions and IMC
• Distribution decisions and IMC
• IMC decisions relating to marketing strategy
Chapter 2 : IMC Role in Marketing
Product Decisions
A product is a bundle of benefits or values
Product symbolism refers to what a product or
brand means to customers
• Product quality, branding, packaging, and company
name contribute to consumers’ perceptions
Chapter 2 : IMC Role in Marketing
Product Decisions
• Branding:
– Brand name communicates attributes and meaning
– Advertising creates and maintains brand equity
• Packaging:
– Packaging has become increasingly important
– It is often the customer’s first exposure to product
Chapter 2 : IMC Role in Marketing
Pricing Decisions
• What the consumer must give up to purchase a
product
• Cost include:
– Time
– Mental activity
– behavioural effort
Chapter 2 : IMC Role in Marketing
Pricing Decisions
• The communications strategy must be consistent
with the price of the product
• Product quality, competition, and advertising all
interact in determining what price a firm can and
should charge
Chapter 2 : IMC Role in Marketing
Distribution Decisions
• Marketing channel decisions involve:
– Selecting
– Managing
– Motivating
• Intermediaries (resellers):
–
–
–
–
Wholesalers
Distributors
Brokers
Retailers
Chapter 2 : IMC Role in Marketing
Promotional Push Strategy
• Programs designed to persuade the trade to
stock, merchandise, and promote a
manufacturer’s products
• The goal is to push the product through the
channels of distribution by aggressively selling
and promoting the item to the resellers, or trade
Chapter 2 : IMC Role in Marketing
Promotional Pull Strategy
• Spending money on advertising and sales
promotion efforts directed toward the ultimate
consumer.
• The goal is to create demand among consumers
and encourage them to request the product from
the retailer.
Chapter 2 : IMC Role in Marketing
Push Versus Pull
Push Policy
Pull Policy
Producer
Producer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Information Flow
Chapter 2 : IMC Role in Marketing
Positioning
The art and science of fitting the product or service
to one or more segments of the broad market in
such a way as to set it meaningfully apart from
competition.
Chapter 2 : IMC Role in Marketing
Positioning
• Brand positioning strategy.
– Relates to the image of the product or brand relative to a
competing brand for a given competitive space as
defined by certain product market or category
characteristics.
• Brand position.
– The opinion a consumer has of a brand.
Chapter 2 : IMC Role in Marketing
Brand Positioning Strategy Options
• Attributes and benefits
• Price/quality
• Use or application
• Product user
• Competitor
• Repositioning
• Product class
Chapter 2 : IMC Role in Marketing
Brand Positioning Strategy Process
1. Identify competitors.
2. Assess consumers’ perceptions of competitors.
3. Determine competitors’ positions.
4. Analyze the consumers’ preferences.
5. Make the brand positioning strategy decision.
6. Monitor the position.
Chapter 2 : IMC Role in Marketing