The Role of IMC in the Marketing ProcessThe Role of IMC in the Marketing Process

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Padres Pitch to the Fans

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Cleveland Indians Want Fans to Play Ball

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Productdecisions

Pricingdecisions

Channel-of-distributiondecisions

Productdecisions

Pricingdecisions

Channel-of-distributiondecisions

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions

• Advertising

• Direct marketing

• Interactive marketing

• Sales promotion

• Publicity and public relations

• Personal selling

Ultimateconsumer

• Consumers

• Businesses

Promotionto finalbuyer

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions

• Advertising

• Direct marketing

• Interactive marketing

• Sales promotion

• Publicity and public relations

• Personal selling

Ultimateconsumer

• Consumers

• Businesses

Marketing and Promotions Process Model

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Resellers

Promotion to trade

Internet/Interactive

Purchase

Marketing to a Lifestyle

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Test Your Knowledge

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Factors that influence the decision as to how far the segmentation process should go include:

A) whether the segment is accessible B) whether sufficient funds exist for

developing the necessary advertising campaign

C) the availability of media that reaches the segment

D) the ability of the sales force to reach the segment

E) all of the above

Positioning through marketing strategiesPositioning through marketing strategies

Selecting market to targetSelecting market to target

Determining market segmentationDetermining market segmentation

Identify markets with unfulfilled needsIdentify markets with unfulfilled needs

Selecting market to targetSelecting market to target

Determining market segmentationDetermining market segmentation

Identify markets with unfulfilled needsIdentify markets with unfulfilled needs

The Target Marketing Process

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A Product for Every Segment

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Beer is Beer? Not Really!

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Popular

Imports

Domestic specialties

Premium

Light

Take marketing actions to reach target segments.Take marketing actions to reach target segments.

Select the product segments toward which the firm directs its marketing actions.

Select the product segments toward which the firm directs its marketing actions.

Develop a market/product grid to relate the market segments to the firm’s products and actions.

Develop a market/product grid to relate the market segments to the firm’s products and actions.

Find ways to group marketing actions - usually the products offered - available to the organization.

Find ways to group marketing actions - usually the products offered - available to the organization.

Find ways to group consumers according to their needs.

Find ways to group consumers according to their needs.

Select the product segments toward which the firm directs its marketing actions.

Select the product segments toward which the firm directs its marketing actions.

Develop a market/product grid to relate the market segments to the firm’s products and actions.

Develop a market/product grid to relate the market segments to the firm’s products and actions.

Find ways to group marketing actions - usually the products offered - available to the organization.

Find ways to group marketing actions - usually the products offered - available to the organization.

Find ways to group consumers according to their needs.

Find ways to group consumers according to their needs.

The Marketing Segmentation Process

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BehaviorBehavior

BenefitsBenefits

OutletsOutlets

BenefitsBenefits

OutletsOutletsBehaviorBehavior

PsychographicPsychographic

GeographicGeographic

DemographicDemographicPsychographicPsychographic DemographicDemographic

GeographicGeographic

Bases for Segmentation

CustomerCharacteristics

CustomerCharacteristics

SocioeconomicSocioeconomic

BuyingSituationBuying

SituationUsageUsage

SocioeconomicSocioeconomic

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AwarenessAwarenessAwarenessAwareness

SOCIO ECONOMIC CLASIFICATION INDIA

Browns Highlight Extreme Fan

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Home Depot Reaches Out to the Female Market

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Hispanics Prefer Spanish Language Ads

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Examples of Some PRIZM Clusters

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HIGH

LOW

$

Test Your Knowledge

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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 its manufacturer D) its distribution intensity E) the benefits the brand offers

What position do we have now?

What position do we have now?

Do we have the money to do the

job?

Do we have the money to do the

job?

What position do we want to own?What position do we want to own?

From whom must we win this position?

From whom must we win this position?

Do we have the tenacity to stay

with it?

Do we have the tenacity to stay

with it?

Do we have the tenacity to stay

with it?

Do we have the tenacity to stay

with it?

Do we have the money to do the

job?

Do we have the money to do the

job?

From whom must we win this position?

From whom must we win this position?

What position do we want to own?What position do we want to own?

What position do we have now?

What position do we have now?

Does our creative strategymatch it?

Does our creative strategymatch it?

Developing a Positioning Strategy

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ThePosition

ThePosition

By Attributes and Benefits?By Attributes and Benefits?

By Price or Quality?By Price or Quality?

By Use or Application?By Use or Application?

By Product Class?By Product Class?

By Product User?By Product User?

By Competitor?By Competitor?

By Cultural Symbols?By Cultural Symbols?

By Attributes and Benefits?By Attributes and Benefits?

By Price or Quality?By Price or Quality?

By Use or Application?By Use or Application?

By Product Class?By Product Class?

By Product User?By Product User?

By Competitor?By Competitor?

Positioning Strategies

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How shouldHow shouldwe position?we position?

Cultural Symbols Can Differentiate Brands

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6. Monitor the position6. Monitor the position

5. Make the positioning decision5. Make the positioning decision

4. Analyze consumer preferences4. Analyze consumer preferences

3. Determine their positions3. Determine their positions

2. Assess perceptions of them2. Assess perceptions of them

1. Identify the competitors1. Identify the competitors

5. Make the positioning decision5. Make the positioning decision

4. Analyze consumer preferences4. Analyze consumer preferences

3. Determine their positions3. Determine their positions

2. Assess perceptions of them2. Assess perceptions of them

1. Identify the competitors1. Identify the competitors

Developing a Positioning Platform

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Is the current position strategy

working?

Is the current position strategy

working?

Is the segmentation strategy

appropriate?

Is the segmentation strategy

appropriate?

Are there sufficient resources to

communicate the position?

Are there sufficient resources to

communicate the position?

Is the segmentation strategy

appropriate?

Is the segmentation strategy

appropriate?

Is the current position strategy

working?

Is the current position strategy

working?

Are there sufficient resources to

communicate the position?

Are there sufficient resources to

communicate the position?

How strong is the competition?

How strong is the competition?

Positioning Decisions

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TheChecklist

TheChecklist

Advertising Develops Brand Images

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Branding and Packaging Work Closely Together

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Product DecisionsProduct Decisions

BRANDINGBRANDING

Brand name

commun-icates

attributes and

meaning

Brand name

commun-icates

attributes and

meaning

Advertising creates and maintains

brand equity

Advertising creates and maintains

brand equity

Packaging has become increasingly important

Packaging has become increasingly important

It’s often customers’

first exposure to

product

It’s often customers’

first exposure to

product

PACKAGINGPACKAGINGBRANDINGBRANDING

A Package Is More than a Container

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Price must be consistent with perceptions of the product

Price must be consistent with perceptions of the product

Higher prices communicate higher product quality

Higher prices communicate higher product quality

Lower prices reflect bargain or “value” perceptions

Lower prices reflect bargain or “value” perceptions

Price, advertising and distribution be unified in

identifying the product position

Price, advertising and distribution be unified in

identifying the product position

Price must be consistent with perceptions of the product

Price must be consistent with perceptions of the product

Higher prices communicate higher product quality

Higher prices communicate higher product quality

Lower prices reflect bargain or “value” perceptions

Lower prices reflect bargain or “value” perceptions

Price, advertising and distribution must be unified in

identifying the product position

Price, advertising and distribution must be unified in

identifying the product position

Pricing Must Be Coordinated with Other Factors

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PricingConsiderations

PricingConsiderations

A product positioned as high quality while carrying a lower price than

competitors will confuse customers

A product positioned as high quality while carrying a lower price than

competitors will confuse customers

Some Products Compete on Price – Others Compete on Quality

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SelectingSelecting

ManagingManaging

MotivatingMotivating

SelectingSelecting

ManagingManaging

Distribution is a Vital Link in the Chain

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DistributionChannel

Decisions

DistributionChannel

Decisions

The “Middleman” Can Play a Key Role

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IndependentChannel

Intermediaries

IndependentChannel

Intermediaries

BrokersBrokers

DistributorsDistributors

WholesalersWholesalers

RetailersRetailers

BrokersBrokers

DistributorsDistributors

WholesalersWholesalers

Push PolicyPush Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

Push Versus Pull

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Information Flow

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An ad in a publication aimed at veterinarians explaining why they should recommend Eukanuba cat food to the owners of all the cats they treat 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

Point of sale displays, racks, standsPoint of sale displays, racks, stands

Trade deals, special displaysTrade deals, special displays

Dealer premiums, prizes, giftsDealer premiums, prizes, gifts

Cooperative advertising dealsCooperative advertising deals

Advertising materials, mats, insertsAdvertising materials, mats, inserts

Push money or “spiffs"Push money or “spiffs"

Collaterals, catalogs, manualsCollaterals, catalogs, manuals

Point of sale displays, racks, standsPoint of sale displays, racks, stands

Trade deals, special displaysTrade deals, special displays

Dealer premiums, prizes, giftsDealer premiums, prizes, gifts

Cooperative advertising dealsCooperative advertising deals

Advertising materials, mats, insertsAdvertising materials, mats, inserts

Push money or “spiffs"Push money or “spiffs"

Collaterals, catalogs, manualsCollaterals, catalogs, manuals

Promotion to Push Goods Through Channels

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PUSHPUSH

Company conventions, meetingsCompany conventions, meetings

Sampling, free trialSampling, free trial

Cents-off promotionsCents-off promotions

Cents-off couponsCents-off coupons

Combination offersCombination offers

Premiums or giftsPremiums or gifts

Contests, sweepstakesContests, sweepstakes

Point-of-purchasePoint-of-purchasePoint-of-purchasePoint-of-purchase

Contests, sweepstakesContests, sweepstakes

Premiums or giftsPremiums or gifts

Combination offersCombination offers

Cents-off couponsCents-off coupons

Cents-off promotionsCents-off promotions

Sampling, free trialSampling, free trial

Promotion to Pull Goods Through Channels

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PULLPULL

Trading stampsTrading stamps