The Role of IMC in the
Marketing Process
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Marketing and Promotions Process Model
Opportunity
analysis
Identifying
markets
Product
decisions
Promotional
decisions
Competitive
analysis
Market
segmentation
Target
marketing
Selecting a
target market
Pricing
decisions
Channel-ofChanneldistribution
ofdistribution
decisions
decisions
Promotion
to final
buyer
• Advertising
• Direct
marketing
• Interactive
marketing
• Sales
promotion
• Publicity
and public
relations
• Personal
selling
Internet/
Interactive
Ultimate
consumer
• Consumers
• Businesses
Promotion
to trade
Resellers
Positioning
through
marketing
strategies
Purchase
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1
Marketing to a Lifestyle
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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The Target Marketing Process
Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs
Determining
Determining market
market segmentation
segmentation
Selecting
Selecting market
market to
to target
target
Positioning
Positioning through
through marketing
marketing strategies
strategies
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Product for Every Segment
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3
Beer is Beer? Not Really!
Popular
Imports
Domestic specialties
Premium
Light
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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 -- usually
usually the
the
products
products offered
offered -- available
available to
to the
the organization.
organization.
Develop
Develop aa market/product
market/product grid
grid to
to relate
relate the
the market
market
segments
segments to
to the
the firm’s
firm’s products
products and
and actions.
actions.
Select
Select the
the product
product segments
segments toward
toward which
which the
the firm
firm
directs
its
marketing
actions.
directs its marketing actions.
Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments.
segments.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
4
Bases for Segmentation
Psychographic
Psychographic
Demographic
Demographic
Customer
Customer
Characteristics
Characteristics
Socioeconomic
Socioeconomic
Geographic
Geographic
Behavior
Behavior
Usage
Usage
Outlets
Outlets
Buying
Buying
Situation
Situation
Awareness
Awareness
Benefits
Benefits
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Home Depot Reaches Out to the Female Market
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
5
Examples of Some PRIZM Clusters
HIGH
$
LOW
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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 its manufacturer
D)
its distribution intensity
E)
the benefits the brand offers
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
6
Developing a Positioning Strategy
What
What
position
do
What
position
do
What position
position do
do
we
have
now?
we
have
now?
we
have
now?
we have now?
Does
Does our
our creative
creative
strategy
strategy
match
match it?
it?
What
What position
position do
do
we
we want
want to
to own?
own?
The
The
Position
Position
Do
Do
we
have
the
Do we
we have
have the
the
tenacity
tenacity
to
stay
tenacity to
to stay
stay
with
with
it?
with it?
it?
From
From whom
whom
must
must we
we win
win this
this
position?
position?
Do
Do we
we have
have the
the
money
money to
to do
do the
the
job?
job?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Positioning Strategies
How should
we position?
By
By Attributes
Attributes and
and Benefits?
Benefits?
By
By Price
Price or
or Quality?
Quality?
By
By Use
Use or
or Application?
Application?
By
By Product
Product Class?
Class?
By
By Product
Product User?
User?
By
By Competitor?
Competitor?
By
By Cultural
Cultural Symbols?
Symbols?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7
Cultural Symbols Can Differentiate Brands
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
8
Positioning Decisions
Is
Is the
the current
current
position
position strategy
strategy
working?
working?
Is
Is the
the segmentation
segmentation
strategy
strategy
appropriate?
appropriate?
The
The
Checklist
Checklist
How
How strong
strong is
is the
the
competition?
competition?
Are
Are there
there sufficient
sufficient
resources
resources to
to
communicate
communicate the
the
position?
position?
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Develops Brand Images
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Branding and Packaging Work Closely Together
Product
Product Decisions
Decisions
BRANDING
BRANDING
Brand
Brand
name
name
communcommunicates
icates
attributes
attributes
and
and
meaning
meaning
Advertising
Advertising
creates
creates and
and
maintains
maintains
brand
brand
equity
equity
PACKAGING
PACKAGING
Packaging
Packaging
has
has become
become
increasingly
increasingly
important
important
It’s
It’s often
often
customers’
customers’
first
first
exposure
exposure to
to
product
product
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Package Is More than a Container
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
10
Pricing Must Be Coordinated with Other Factors
Pricing
Pricing
Considerations
Considerations
Price
Price must
must be
be consistent
consistent with
with
perceptions
perceptions of
of the
the product
product
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
must
be
unified
unified
in
bebe
unified
in in
must
be
unified
in
identifying
identifying the
the product
product position
position
AA product
product positioned
positioned as
as high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse customers
customers
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Some Products Compete on Price –
Others Compete on Quality
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
11
Distribution is a Vital Link in the Chain
Selecting
Selecting
Distribution
Distribution
Channel
Channel
Decisions
Decisions
Managing
Managing
Motivating
Motivating
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The “Middleman” Can Play a Key Role
Brokers
Brokers
Independent
Independent
Channel
Channel
Intermediaries
Intermediaries
Distributors
Distributors
Wholesalers
Wholesalers
Retailers
Retailers
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
12
Push Versus 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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
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
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
13
Promotion to Push Goods Through Channels
PUSH
Point
Point of
of sale
sale displays,
displays, racks,
racks, stands
stands
Trade
Trade deals,
deals, special
special displays
displays
Dealer
Dealer premiums,
premiums, prizes,
prizes, gifts
gifts
Cooperative
Cooperative advertising
advertising deals
deals
Advertising
Advertising materials,
materials, mats,
mats, inserts
inserts
Push
Push money
money or
or “spiffs"
“spiffs"
Collaterals,
Collaterals, catalogs,
catalogs, manuals
manuals
Company
Company conventions,
conventions, meetings
meetings
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Promotion to Pull Goods Through Channels
PULL
Sampling,
Sampling, free
free trial
trial
Cents-off
Cents-off promotions
promotions
Cents-off
Cents-off coupons
coupons
Combination
Combination offers
offers
Premiums
Premiums or
or gifts
gifts
Contests,
Contests, sweepstakes
sweepstakes
Point-of-purchase
Point-of-purchase
Trading
Trading stamps
stamps
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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