2

The Role of IMC in the

Marketing Process

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 Marketing and Promotions Process Model

Opportunity Identifying Product Promotion

analysis markets decisions to final
Promotional buyer
decisions
Pricing • Advertising
decisions • Direct
Competitive Market marketing
analysis segmentation Ultimate
• Interactive
Internet/ consumer
marketing
Channel-of- • Sales Interactive • Consumers
distribution promotion • Businesses
decisions
• Publicity
Target
Selecting a and public
marketing Promotion
target market relations
• Personal to trade
selling

Positioning Resellers
through
marketing
strategies Purchase
 Opportunity Analysis
Market opportunities are areas where there are favorable
demand trends, where the company believes customer
needs and opportunities are not being satisfied, and where
it can compete effectively.
 Competitive Analysis

Competitive Advantage
•Quality products -> premium price
•Superior customer service
•Lower production costs and prices
•Dominating channels of distribution
•Advertising -> product differentiation
+ brand equity
 The Target Marketing Process

Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs

Determine
Determine market
market segmentation
segmentation

Select
Select market
market to
to target
target

Position
Position through
through marketing
marketing strategies
strategies
The Marketing Segmentation Process

Find
Find ways
ways to
to group
group consumers
consumers
according
according to
to their
their needs
needs

Find
Find ways
ways to
to group
group marketing
marketing actions
actions
available
available to
to the
the organization
organization

Develop
Develop aa market/product
market/product gridgrid to
to relate
relate the
the market
market
segments
segments toto the
the firm’s
firm’s products
products andand actions
actions

Select
Select the
the product
product segments
segments toward
toward which
which the
the
firm
firm will
will direct
direct its
its marketing
marketing actions
actions

Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments
segments
 Bases for Segmentation

Psychographic
Psychographic Demographic
Demographic

Customer
Customer
Characteristics
Characteristics

Socioeconomic
Socioeconomic Geographic
Geographic

Behavior
Behavior Outlet
Outlet Type
Type

Buying
Buying
Usage
Usage Situation
Situation

Awareness
Awareness Benefits
Benefits
 Psychographic Segmentation

• Dividing the market on the basis of

– Personality
– Values
– Lifestyle
• VALS lifestyle segmentation
– Eight lifestyles with distinctive attitudes,
behaviors, and decision-making patterns
– Combined with estimate of the resources
on which the consumer can draw
Behavioristic Segmentation

Usage

Buying Loyalties
Responses
Benefit Segmentation
 PRIZM Cluster Profiles
HIGH

LOW
 Test Your Knowledge
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 the manufacturer
D) Its distribution intensity
E) The benefits the brand offers
Selecting a Target Market

Determine how many

segments to enter

Determine which segments

have the greatest potential
 Market Positioning

Fitting the product or service to one or more

segments of the broad market in such a way
as to set it apart from the competition
 Developing a Positioning Strategy

What
What position
position do
do
we
we have
have now?
now?

Does
Does our
our creative
creative What
What position
position do
do
strategy
strategy we
we want
want to
to own?
own?
match
match it?
it?

The
The
Position
Position
Do
Do we
we have
have thethe From
From whom
whom
tenacity
tenacity to
to stay
stay must
must we
we win
win this
this
with
with it?
it? position?
position?
Do
Do we
we have
have the
the
money
money toto do
do the
the
job?
job?
 Positioning Strategies

How should Attributes

Attributes and
and Benefits?
Benefits?
we position?
Price
Price or
or Quality?
Quality?

Use
Use or
or Application?
Application?

Product
Product Class?
Class?

Product
Product User?
User?

Competitor?
Competitor?

Cultural
Cultural Symbols?
Symbols?
Positioning by benefits/attributes
Position by price/quality
Positioning by competition
Positioning by cultural symbols
Positioning by product use
Developing a Positioning Platform

1.
1. Identify
Identify the
the competitors
competitors

2.
2. Assess
Assess perceptions
perceptions of
of them
them

3.
3. Determine
Determine their
their positions
positions

4.
4. Analyze
Analyze consumer
consumer preferences
preferences

5.
5. Make
Make the
the positioning
positioning decision
decision

6.
6. Monitor
Monitor the
the position
position
 Making the Positioning Decision

Is
Is the
the current
current Is
Is the
the segmentation
segmentation
position
position strategy
strategy strategy
strategy
working?
working? appropriate?
appropriate?

The
The
Checklist
Checklist

Are
Are there
there sufficient
sufficient
How
How strong
strong is
is the
the resources
resources toto
competition?
competition? communicate
communicate the the
position?
position?
 Branding and Packaging Are Linked

Product
Product Decisions
Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Has
Has become
become Often
Often
name
name creates
creates and
and increasingly
increasingly customers’
customers’
commun-
commun- maintains
maintains important
important first
first
icates
icates brand
brand exposure
exposure to
to
attributes
attributes equity
equity product
product
and
and
meaning
meaning
A Package is More than a Container
 Pricing Decisions

What
What consumers
consumers give
give
Factors
Factors the
the firm
firm must
must up
up to purchase aa
to purchase
consider
consider product
product or
or service
service

Costs Price
Price Variable
Variable
Costs Time
Time

Demand
Demand
Mental
Mental activity
activity
Competition
Competition

Behavioral
Behavioral effort
effort
Perceived
Perceived value
value
 Relating Price to Ads and Promotion

Pricing
Pricing Price
Price must
must be
be consistent
consistent with
with
Considerations perceptions
perceptions of
of the
the product
product
Considerations
Higher
Higher prices
prices communicate
communicate higher
higher
product
product quality
quality

Lower
Lower prices
prices reflect
reflect bargain
bargain or
or
“value”
“value” perceptions
perceptions

Price,
Price, advertising
advertising and
and distribution
distribution
be
be unified
unified in
in
identifying
identifying product
product position
position

AA product
product positioned
positioned asas high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse customers
customers
Distribution Channel Decisions

Selecting
Selecting

Distribution
Distribution
Channel
Channel Managing
Managing
Decisions
Decisions

Motivating
Motivating
 Distribution Intermediaries

Brokers
Brokers

Distributors
Distributors
Distribution
Distribution
Channel
Channel
Intermediaries
Intermediaries Wholesalers
Wholesalers

Retailers
Retailers
Promotional Strategy: Push or Pull?

Push
Push Policy
Policy Pull
Pull Policy
Policy

Producer
Producer Producer
Producer

Wholesaler
Wholesaler Wholesaler
Wholesaler

Retailer
Retailer Retailer
Retailer

Consumer
Consumer Consumer
Consumer

Information Flow
 Test Your Knowledge
An ad in a publication aimed at veterinarians explains
why they should recommend Eukanuba cat food to the
owners of the cats they treat. This 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