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2
The Role of IMC in the
Marketing Process
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Under Armour Protects Its House
Under Armour Protects Its House
• Keys to Under Armour’s success
– Niche markets
– Strong product positioning
– Unique brand identity
– Strong brand reputation
Marketing and Promotions Process Model
Opportunity
analysis
Identifying
markets
Product
decisions
Promotional
decisions
Competitive
analysis
Target
marketing
Market
segmentation
Pricing
decisions
Channel-ofdistribution
decisions
Selecting a
target market
• Advertising
• Direct
marketing
• Interactive
marketing
• Sales
promotion
• Publicity
and public
relations
• Personal
selling
Positioning
through
marketing
strategies
Promotion
to final
buyer
Internet/
Interactive
Ultimate
consumer
• Consumers
• Businesses
Promotion
to trade
Resellers
Purchase
Marketing to a Lifestyle
Padres Pitch to the Fans
*Click outside of the video screen to advance to the next slide
The Target Marketing Process
Identify markets with unfulfilled needs
Determine market segmentation
Select market to target
Position through marketing strategies
A Product for Every Market Segment
The Marketing Segmentation Process
Find ways to group consumers
according to their needs
Find ways to group marketing actions
available to the organization
Develop a market/product grid to relate the market
segments to the firm’s products and actions
Select the product segments toward which the
firm will direct its marketing actions
Take marketing actions to reach target segments
What do NASCAR, Coors, and Unilever know?
Bases for Segmentation
Psychographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Behavior
Usage
Outlet Type
Buying
Situation
Awareness
Benefits
Geographic Marketing
Demographic Segmentation
Psychographic Segmentation
• Dividing the market on the basis of
– Personality
– Values
– Lifestyle
• VALS lifestyle segmentation
– Eight lifestyles with distinctive attitudes,
behaviors, and decision-making patterns
– Combined with estimate of the resources
on which the consumer can draw
Behavioristic Segmentation
Usage
Buying
Responses
Loyalties
Benefit Segmentation
PRIZM Cluster Profiles
HIGH
$
LOW
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 the manufacturer
D) Its distribution intensity
E) The benefits the brand offers
Selecting a Target Market
Determine how many
segments to enter
Determine which segments
have the greatest potential
Market Positioning
Fitting the product or service to one or more
segments of the broad market in such a way
as to set it apart from the competition
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?
From whom
must we win this
position?
Do we have the
money to do the
job?
Positioning Strategies
How should
we position?
Attributes and Benefits?
Price or Quality?
Use or Application?
Product Class?
Product User?
Competitor?
Cultural Symbols?
Positioning by Use or Application
Developing a Positioning Platform
1.
Identify the competitors
2.
Assess perceptions of them
3.
Determine their positions
4.
Analyze consumer preferences
5.
Make the positioning decision
6.
Monitor the position
Making the Positioning Decision
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?
Advertising Develops Brand Image
Branding and Product Names
• Brand names often communicate
attributes and meaning
– Safeguard
– I Can’t Believe It’s Not Butter!
– Easy-Off
– Arrid
– Spic and Span
Branding and Packaging Are Linked
Product Decisions
BRANDING
Brand
name
communicates
attributes
and
meaning
Advertising
creates and
maintains
brand
equity
PACKAGING
Has become
increasingly
important
Often
customers’
first
exposure to
product
A Package is More than a Container
Pricing Decisions
What consumers give
up to purchase a
product or service
Factors the firm must
consider
Costs
Demand
Price Variable
Time
Mental activity
Competition
Perceived value
Behavioral effort
Relating Price to Ads and Promotion
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 be
unified in
identifying product position
A product positioned as high quality
while carrying a lower price than
competitors will confuse customers
When Price is Not an Issue
Distribution Channel Decisions
Selecting
Distribution
Channel
Decisions
Managing
Motivating
Distribution Intermediaries
Brokers
Distribution
Channel
Intermediaries
Distributors
Wholesalers
Retailers
Promotional Strategy: Push or Pull?
Push Policy
Pull Policy
Producer
Producer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Information Flow
Test Your Knowledge
An ad in a publication aimed at veterinarians explains
why they should recommend Eukanuba cat food to the
owners of the cats they treat. This 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