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The Role of IMC in theMarketing Process
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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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
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