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The Role of IMC in the
Marketing Process
© 2007 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
Channel-ofdistribution
decisions
Selecting a
target market
Promotion
to final
buyer
• Advertising
• Direct
marketing
• Interactive
marketing
• Sales
promotion
• Publicity
and public
relations
• Personal
selling
Internet/
Interactive
Promotion
to trade
Purchase
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Consumers
• Businesses
Resellers
Positioning
through
marketing
strategies
Ultimate
consumer
Marketing to a Lifestyle
© 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 firm’s products and actions.
Select the product segments toward which the firm
directs its marketing actions.
Take marketing actions to reach target segments.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bases for Segmentation
Psychographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Behavior
Usage
Outlets
Buying
Situation
Awareness
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Benefits
Segmentation by Gender
Focus on females’ fashion
Information source：Giordano
Segmentation by Age
Focus on kids
Information source：Giordano
Segmentation by Age
LEGO SEGMENTS
http://www.lego.com/dacta/products/
productsbyproductline.asp
• small kids 0-18mths
– 0-18 mths PRIMO baby,
stack and learn
– 18-36 mths PRIMO
motion, basic themes
• boys
– 3-5 yrsd DUPLO basic,
themes, toolo,
train/SYSTEM freestyle,
town junior
– 5-9 years SYSTEM
themes/TECHNIC starter
– 9+ SYSTEM model team,
TECHNIC model team,
advanced, cybermaster
• girls
SOURCE: http://www.lego.com
– 3-5 years DUPLO basic,
themes SYSTEM
freestyle, town junior,
LEGO scala
– 5-9 yrs SYSTEMS,
Segmentation by Lifestyles
• This ad illustrates
the way that
products like cars
are tightly
integrated into
consumers’
lifestyles, along
with leisure
activities, travel,
music, and so on.
Segmentation by Motivation
• This ad for
exercise shows
men a desired
state (as dictated
by contemporary
Western culture),
and suggests a
solution
(purchase of
equipment) to
attain it.
Segmentation by Benefits
• Lava soap lays out the options and invites
us to choose the solution.
Segmentation by Occasions
(Time Poverty)
• Time poverty is
creating
opportunities for
many new
products (like
portable soups)
that let people
multitask.
The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Target Marketing
• Based on consumer characteristics,
companies categorize the market and
provide products to meet consumers’
needs.
• EX: Shampoo
Anti-dandruff
Oily hair
Fine hair
Color-treated hair
Target market
Target Marketing
• Differentiated Marketing
Need for beauty
Working
women
Need for ballet
dancers
Need for running
joggers
Target Marketing
• Concentrated marketing
Limited resources
Concentrate on a
secondary market
Such secondary market:
niche market
Foot ball
players
Dancers
Working
women
Target Marketing
• Individual marketing
– customization (e.g., Bear Factory)
Target Marketing
• Mass customization
– Characteristics
• Needs high technology to customize
consumer needs
• Expensive goods
• Longer waiting time for customers to get the
products
Positioning
• Definition of Positioning
Consumers can differentiate a company’s
product with others.
positioning
The largest
auction
web site
position
Developing a Positioning Strategy
What
What position
position do
do
we
we have
have now?
now?
Does our creative
strategy
match it?
What
What position
position do
do
we
we want
want to
to own?
own?
The
Position
Do we have the
tenacity to stay
with
with it?
it?
From
From whom
whom
must
must we
we win
win this
this
position?
Do we have the
money to do the
job?
job?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Positioning
• Why to Position a Product?
– Differentiation
– Based on consumers’ subjective
judgments
– Repositioning when the marketing
environments change
Good Positioning
“..positioning is not what you
do to a product. Positioning is
what you do to the mind of the
prospect” (Ries and Trout)
• simple message
• credible
• benefits
• consistency
Product Positioning
• This ad for Sunkist lemon juice attempts to
establish a new category for the product by
repositioning it as a salt substitute.
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?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Cultural Symbols Can Differentiate Brands
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Develops Brand Images
© 2007 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
It’s often
customers’
first
exposure to
product
A Package Is More than a Container
© 2007 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,
Price,advertising
advertisingand
anddistribution
distributionbe
mustunified
be unified
in in
identifying the product position
A product positioned as high quality
while carrying a lower price than
competitors will confuse customers
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Some Products Compete on Price –
Others Compete on Quality
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Distribution is a Vital Link in the Chain
Selecting
Distribution
Channel
Decisions
Managing
Motivating
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The “Middleman” Can Play a Key Role
Brokers
Independent
Channel
Intermediaries
Distributors
Wholesalers
Retailers
© 2007 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
© 2007 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin