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The Role of IMC in theMarketing Process

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Product

decisions

Pricingdecisions

Channel-of-distribution

decisions

Productdecisions

Pricingdecisions

Channel-of-distribution

decisions

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Market

segmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions• Advertising• Direct

marketing• Interactivemarketing• Sales

promotion• Publicity

and publicrelations

• Personalselling

Ultimateconsumer• Consumers• Businesses

Promotionto final buyer

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Market

segmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions• Advertising• Direct

marketing• Interactivemarketing• Sales

promotion• Publicity

and publicrelations

• Personalselling

Ultimateconsumer• Consumers• Businesses

Marketing and Promotions Process Model

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

Resellers

Promotionto trade

Internet/ Interactive

Purchase

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Marketing to a Lifestyle

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

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Test Your Knowledge

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

Factors that influence the decision as to how far the

segmentation process should go include:A) whether the segment is accessibleB) whether sufficient funds exist for

developing the necessary advertisingcampaign

C) the availability of media that reaches thesegment

D) the ability of the sales force to reach thesegment

E) all of the above

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Positioning through marketing strategies

Selecting market to target

Determining market segmentation

Identify markets with unfulfilled needs

Selecting market to target

Determining market segmentation

Identify markets with unfulfilled needs

The Target Marketing Process

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

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A Product for Every Segment

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Beer is Beer? Not Really!

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

Popular Imports

Domestic specialties

Premium

Light

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Take marketing actions to reach target segments.

Select the product segments toward which the firmdirects its marketing actions.

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

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

Find ways to group consumers

according to their needs.

Select the product segments toward which the firmdirects its marketing actions.

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

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

Find ways to group consumers

according to their needs.

The Marketing Segmentation Process

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

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Behavior

Benefits

Outlets

Benefits

OutletsBehavior

Psychographic

Geographic

DemographicPsychographic Demographic

Geographic

Bases for Segmentation

CustomerCharacteristics

Socioeconomic

BuyingSituationUsage

Socioeconomic

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

AwarenessAwareness

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Home Depot Reaches Out to the Female Market

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Examples of Some PRIZM Clusters

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

HIGH

LOW

$

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Test Your Knowledge

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

The key factor in communicating information about a

brand and differentiating it from competitors is:A) its perceived price differentialB) its integrated promotional strategyC) the market positioning strategy assigned

it by its manufacturer

D) its distribution intensityE) the benefits the brand offers

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What position dowe have now?

Do we have themoney to do the

job?

What position dowe want to own?

From whom

must we win thisposition?

Do we have the

tenacity to staywith it?

Do we have the

tenacity to staywith it?

Do we have themoney to do the

job?

From whom

must we win thisposition?

What position dowe want to own?

What position dowe have now?

Does our creativestrategy

match it?

Developing a Positioning Strategy

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

ThePosition

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By Attributes and Benefits?By Price or Quality?

By Use or Application?

By Product Class?

By Product User?

By Competitor?

By Cultural Symbols?

By Attributes and Benefits?By Price or Quality?

By Use or Application?

By Product Class?

By Product User?

By Competitor?

Positioning Strategies

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

How shouldwe position?

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Cultural Symbols Can Differentiate Brands

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6. Monitor the position

5. Make the positioning decision

4. Analyze consumer preferences

3. Determine their positions

2. Assess perceptions of them

1. Identify the competitors

5. Make the positioning decision

4. Analyze consumer preferences

3. Determine their positions

2. Assess perceptions of them

1. Identify the competitors

Developing a Positioning Platform

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

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Is the currentposition strategyworking?

Is the segmentationstrategyappropriate?

Are there sufficientresources to

communicate theposition?

Is the segmentationstrategyappropriate?

Is the currentposition strategyworking?

Are there sufficientresources to

communicate theposition?

How strong is thecompetition?

Positioning Decisions

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

TheChecklist

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Advertising Develops Brand Images

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Branding and Packaging Work Closely Together

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

Product Decisions

BRANDING

Brandname

commun-icates

attributesand

meaning

Advertisingcreates andmaintains

brand equity

Packaginghas becomeincreasingly

important

It’s oftencustomers’

firstexposure to

product

PACKAGINGBRANDING

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A Package Is More than a Container

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

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Price must be consistent withperceptions of the product

Higher prices communicate higherproduct quality

Lower prices reflect bargain or “value” perceptions

Price, advertising and distribution beunified in

identifying the product position

Price must be consistent withperceptions of the product

Higher prices communicate higherproduct quality

Lower prices reflect bargain or “value” perceptions

Price, advertising and distributionmust be unified in

identifying the product position

Pricing Must Be Coordinated with Other Factors

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

PricingConsiderations

A product positioned as high qualitywhile carrying a lower price than

competitors will confuse customers

d

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Some Products Compete on Price – Others Compete on Quality

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Selecting

Managing

Motivating

Selecting

Managing

Distribution is a Vital Link in the Chain

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

DistributionChannel

Decisions

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The “Middleman” Can Play a Key Role

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

IndependentChannel

Intermediaries

Brokers

Distributors

Wholesalers

Retailers

Brokers

Distributors

Wholesalers

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Push Policy

Producer

Wholesaler

Retailer

Consumer

Producer

Wholesaler

Retailer

Consumer

Push Versus Pull

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

Information Flow

Pull Policy

Producer

Wholesaler

Retailer

Consumer

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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 catfood to the owners of all the cats they treat is anexample of:

A) consumer advertisingB) a promotional pull strategy

C) a harvesting strategyD) a consumer promotionE) a promotional push strategy

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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

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

Promotion to Push Goods Through Channels

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

PUSH

Company conventions, meetings

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Sampling, free trial

Cents-off promotions

Cents-off coupons

Combination offers

Premiums or gifts

Contests, sweepstakesPoint-of-purchasePoint-of-purchase

Contests, sweepstakes

Premiums or gifts

Combination offers

Cents-off coupons

Cents-off promotions

Sampling, free trial

Promotion to Pull Goods Through Channels

PULL

Trading stamps