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McGraw-Hill/Irwin
The Role of IMC in the
Marketing Process
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Under Armour Protects Its House

Under Armour Protects Its House
• Keys to Under Armour’s success
– Niche markets
– Strong product positioning
– Unique brand identity
– Strong brand reputation

Marketing and Promotions Process Model
Opportunity analysis
Competitive analysis
Target marketing
Identifying markets
Market segmentation
Selecting a target market
Positioning through marketing strategies
Product decisions
Pricing decisions
Channel-ofdistribution decisions
Promotion to final buyer
Promotional decisions
• Advertising
• Direct marketing
• Interactive marketing
• Sales promotion
• Publicity and public relations
• Personal selling
Internet/
Interactive
Promotion to trade
Ultimate consumer
• Consumers
• Businesses
Resellers
Purchase

Marketing to a Lifestyle

Padres Pitch to the Fans
*Click outside of the video screen to advance to the next slide

The Target Marketing Process
Identify markets with unfulfilled needs
Determine market segmentation
Select market to target
Position through marketing strategies

A Product for Every Market Segment

The Marketing Segmentation Process
Find ways to group consumers according to their needs
Find ways to group marketing actions 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 will direct its marketing actions
Take marketing actions to reach target segments

What do NASCAR, Coors, and Unilever know?

Bases for Segmentation
Psychographic Demographic
Customer
Characteristics
Socioeconomic Geographic
Usage
Behavior Outlet Type
Awareness
Buying
Situation
Benefits

Geographic Marketing

Demographic Segmentation

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
Buying
Responses
Usage
Loyalties

Benefit Segmentation

HIGH
PRIZM Cluster Profiles
$
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 position do we have now?
Does our creative strategy match it?
What position do we want to own?
The
Position
Do we have the tenacity to stay with it?
From whom must we win this position?
Do we have the money to do the job?

Positioning Strategies
How should we position?
Attributes and Benefits?
Price or Quality?
Use or Application?
Product Class?
Product User?
Competitor?
Cultural Symbols?

Positioning by Use or Application

Developing a Positioning Platform
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

Making the Positioning Decision
Is the current position strategy working?
Is the segmentation strategy appropriate?
The
Checklist
How strong is the competition?
Are there sufficient resources to communicate the position?

Advertising Develops Brand Image

Branding and Product Names
• Brand names often communicate attributes and meaning
– Safeguard
– I Can’t Believe It’s Not Butter!
– Easy-Off
– Arrid
– Spic and Span

Branding and Packaging Are Linked
Product Decisions
BRANDING PACKAGING
Brand name communicates attributes and meaning
Advertising creates and maintains brand equity
Has become increasingly important
Often customers’ first exposure to product

A Package is More than a Container

Pricing Decisions
Factors the firm must consider
Price Variable
What consumers give up to purchase a product or service
Time
Costs
Demand
Competition
Perceived value
Mental activity
Behavioral effort

Relating Price to Ads and Promotion
Pricing
Considerations
Price must be consistent with perceptions of the product
Higher prices communicate higher product quality
Lower prices reflect bargain or
“value” perceptions
Price, advertising and distribution be unified in identifying product position
A product positioned as high quality while carrying a lower price than competitors will confuse customers

When Price is Not an Issue

Distribution Channel Decisions
Selecting
Distribution
Channel
Decisions
Managing
Motivating

Distribution Intermediaries
Brokers
Distribution
Channel
Intermediaries
Distributors
Wholesalers
Retailers

Promotional Strategy: Push or Pull?
Push Policy Pull Policy
Producer
Wholesaler
Retailer
Consumer
Information Flow
Producer
Wholesaler
Retailer
Consumer

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