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The Role of IMC in
the Marketing Process
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing and Promotions Process Model
Opportunity
Analysis
Identifying
Markets
Product
Decisions
Promotional
Decisions
Competitive
Analysis
Market
Segmentation
Target
Marketing
Pricing
Decisions
Distribution
Decisions
Selecting a
Target Market
Promotion
to Final
Buyer
• Advertising
• Direct
Marketing
• Interactive
Marketing
Promotion
To Trade
• Consumers
• Sales
Promotion
• Businesses
• Publicity and
Public
Relations
• Personal
Selling
Positioning
Through
Marketing
Strategies
Resellers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ultimate
Consumer
Marketing to a Lifestyle
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Target Marketing Process
Identify Markets With Unfulfilled Needs
Determining Market Segmentation
Selecting Market To Target
Positioning Through Marketing Strategies
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Beer is Beer? Not Really!
Popular
Imports
Specialties
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Premium
Light
A Product for Every Segment
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© 2003 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 Firm’s Products and Actions.
Select the Product Segments Toward Which the Firm
Directs Its Marketing Actions.
Take Marketing Actions To Reach Target Segments.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bases for Segmentation
Psychographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Behavior
Outlets
Buying
Situation
Usage
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Benefits
Abercrombie & Fitch Targets Echo Boomers
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Hispanics Prefer Spanish Language Ads
*Click outside of the video screen to advance to the next slide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cultural Symbols Can Differentiate Brands
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Develops Brand Images
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Branding and Packaging Work Closely Together
Product Decisions
BRANDING
Brand
name
communicates
attributes
and
meaning
PACKAGING
Advertising
creates and
maintains
brand
equity
Packaging
has become
increasingly
important
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
It’s often
customers’
first
exposure to
product
A Package Is More than a Container
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Packaging Enhances Brand Identity
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Some Products Compete on Price –
Others Compete on Quality
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Push Versus Pull
Push Policy
Pull Policy
Producer
Producer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Information Flow
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Class Discussion
1. The slides describe different positioning
strategies. Give examples of products
and/or brands that utilize each of these
different strategies.
2. Changing lifestyles can create both
opportunities and threats for the
marketer. Provide an example of a
change in lifestyle that poses a threat
to marketers, and one that provides an
opportunity. Give an example of a
product or brand that has been affected
in both of these ways.
Assignment
1.
Discuss the difference between a push and a
pull strategy. What kinds of firms would be
more likely to employ each strategy? Give
examples
2. A number of approaches to segmentation
have been cited in the text. Provide
examples of companies and/or brands that
employ each.
3. Recently some marketers have noted that it
is easier to develop communications
programs to Generation X members than
Generations Y. Briefly describe the
characteristics of Gen X and Gen Y, and
whether or not you believe this to be true