Download Promotion Management

Chapter 2
The Role of IMC in the Marketing Process
Last Class
 Introduction to IMC
 Links to marketing and
promotional elements
Today’s Objectives
 Role of IMC in Marketing
What kind of a strategy is Samsung using to
compete against Sony?
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a repositioning strategy
niche market strategy
a concentrated market strategy
an undifferentiated market strategy
lifestyle segmentation
What is?
 A market opportunity
 A competitive advantage
 A market threat
Marketing to a Lifestyle
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The Role of IMC in Marketing

Nike’s and Reebook’s success : they recognize their
business is no longer about just selling shoes.
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It’s about selling sports, entertainment, style, and fashion.
Tell me about other brands… What business are they in?
Kale
Duru
Nivea
The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
Is a Roof just a Roof!
Different products for different needs!
The Marketing Segmentation Process
Find Ways To Group Consumers
According
According To
To Their
Their Needs.
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.
Bases for Segmentation
Psychographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Behavior
Outlets
Buying
Situation
Usage
Benefits
Hispanics Prefer Spanish
Language Ads
Six Positioning Questions
1. What position do we have now?
2. What position do we want to own?
3. From whom must we win this position?
4. Do we have the money to do the job?
5. Do we have the tenacity to stay with it?
6. Does our creative strategy match it?
What is this?
The first production Model T Ford was built on
September 27, 1908. Ford continued building the "T"
for the next 19 years, until it was replaced by the
Model "A" in 1928.
Ford Motor Company
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?
Positioning Strategy Development Process
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
Developing a Positioning
Strategy
 Attribute/benefit
 Price/quality
 Use/application
 Product class
 Product users
 Competitor
 Cultural symbol
 Repositioning
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Energizer
Ikea
Baking Soda
Butter or margarine
Nike
Sana vs. Aymar, 7UP
CocaCola in Ramadan
Volvo
Product Decisions
A product is a bundle of benefits or
values.
Product quality, branding, packaging,
and company name contribute to
product image.
Branding and Packaging Work Closely Together
Product Decisions
BRANDING
Brand
name
communicates
attributes
and
meaning
Advertising
creates and
maintains
brand
equity
PACKAGING
Packaging
has become
increasingly
important
It’s often
customers’
first
exposure to
product
A Package Is More than a
Container
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Packaging Enhances Brand Identity
For other products?
Which one is more expensive?
Pricing Decisions
 consistent with perceptions of the product.
 Higher prices ------------ higher product quality.
 Lower prices reflect bargain or “value”
perceptions
 Price, advertising and distribution be unified
in identifying the product position
Distribution Channel Decisions
Channel decisions involve:
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Selecting
Managing
Motivating
-Independent intermediaries:
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Wholesalers
Distributors
Brokers
Retailers
Promotion to Push Goods
Through Channels vs Promotion
to Pull Goods Through Channels
PUSH
PULL
Push Policy
Pull Policy
Producer
Producer
Wholesaler
Wholesaler
Retailer
Retailer
Consumer
Consumer
Information Flow
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
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
Push strategies
 involve promoting the product only to the next link
down the distribution channel;
 advantage : cheap and relatively straightforward, and
 Not consumer-orientated.
 Techniques used:
 Point of sale displays, racks, stands
 Trade deals, special displays
 Dealer premiums, prizes, gifts
 Cooperative advertising deals etc
Pull Strategies
 Focuses on consumer, aimed at the final
consumers
 Most launch strategies would involve
elements of both push and pull.
 Techniques used:
 Sampling, free trial
 Cents-off promotions
 Cents-off coupons etc.
Next Class
 Organizing for Advertising and
Promotion
 Read Chapter 3!!!