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The Role of IMC in the
Marketing Process
McGraw-Hill/Irwin
Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed
Marketing to Millennials
• Gen Y born between 1982 and 2000
• Difficult to market to
• Cheap / stingy / disinterested
• Bad economy / no jobs / live at home
• No disposable income
• Mobile / tech savvy
•
•
•
•
Information overload
Multi-task
Rather buy enhanced cell phone vs car
Communicate / share info with others
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Marketing to Millennials - continued
• Companies trying to understand Millennials
• Zipcar
• Airbnb
• GM concept cars with high mileage and high-tech
features
• Geico mobile app to access insurance
• Want not just social media but content
• Millenials will be loyal and tell their friends
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Marketing & Promotions Process Model
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Strategic Marketing Plan
• The Strategic Marketing Plan Guides
• Allocation of organization’s resources
• Specific marketing programs and policies
• Evolves from an organization’s overall
corporate strategy
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Opportunity Analysis
• Market Opportunities
• Areas with favorable demand trends
• Customer needs not being satisfied
• Where it can compete effectively
• Market is rarely just one group, but
many segments
• Develop different programs targeting
each segment
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Competitive Analysis
• Types of competition
(ex. in Airline Category)
• Direct (e.g. Delta, United, Lufthansa, Singapore)
• Indirect (e.g. Amtrak, Greyhound, Avis)
• Competitive Advantage
• Something special giving edge over
competition
• Superior customer service / High quality
product / Low cost / Memorable advertising
• Analyze competitive marketing
programs (including foreign competition)
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The Target Marketing Process
Identify markets with unfulfilled needs
Determine market segmentation
Select a market to target
Position through marketing strategies
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Identifying Markets
• Identify specific needs of groups of
people (segments)
• Select segment to target
• Develop programs to each segment
• Understand consumers as much as
possible to design programs to meet
their needs
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Market Segmentation
Not possible to market to every consumer
• Divide a market into distinct groups
• With common needs who respond
similarly to a marketing situation
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Bases for Market Segmentation
Demographic
Geographic
Behavioristic
Gender
Region
Usage
Age
City size
80/20 Rule
Race
Metropolitan area
Life stage
Density
Birth era
Household size
Psychographic
Benefit
Residence tenure
Personality
Specific need
Marital status
Values/Lifestyle
Usually one major basis and 1-2 minor bases used
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Geographic Segmentation
“Cream” flavored red soda popular in South
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Demographic Segmentation
Targets
50+
Hispanic
segment
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Benefit Segmentation
Eliminates split ends
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Psychographic Segmentation
HIGH
PRIZM
Social
Groups
$
LOW
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Selecting a Target Market
1
Determine how many
segments to enter
2
Determine which segments
have the greatest potential
• Opportunities for growth
• Competition
• Own ability to compete
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Market Coverage Alternatives
Undifferentiated
One
product
to
everyone
Concentrated
Differentiated
Different strategies
for different segments
Capture
large
share of
one
segment
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Market Positioning
• Fitting the product to one or more
segments of the market in such a
way as to set it apart from
competition
• Image that comes to mind and
attributes consumers think of
(e.g.. Volvo = Safety)
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Approaches to Positioning
• Approaches:
• Focusing on the consumer
• Linking the product with the benefits the
consumer will derive
• Focusing on competition
• Positions the product by comparing the benefit
it offers versus the competition
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Positioning Strategies
Attributes and Benefits
Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols
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Positioning by Cultural Symbol
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Repositioning
• Alter a brand’s
positioning
• Declining sales
• Anticipated opportunities
in other market
segments
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The Marketing Planning Program
Product
Decisions
Promotional
Strategy
Distribution
Channels
Price
Decisions
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Product Decisions
More than physical object; has functional or
psychological benefits
BRANDING
Brand
Identity
Brand
Equity
PACKAGING
- Protection
- Storage
- Name
- Logo
- Symbols
Intangible
assets
resulting from
favorable
image
- Usage
instructions
- Often the
first
exposure
to product
- Makes
favorable
impression
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Branding
Apple
iPhone
has a
strong
Brand Equity
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Packaging Creates Image
Creates
luxurious
image
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Pricing Decisions
Factors to
consider
What consumers
give up to buy a
product or service
Costs
Time
Demand
Mental activity
Competition
Behavioral effort
Perceived value
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Relating Price to Ads and Promotions
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 must
be unified in identifying product position
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Distribution Channels
MARKETING CHANNELS
Sets of interdependent
organizations involved in the
process of making a product
available for purchase
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Channels and Image
• Where product is distributed sends an
image to consumers
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Types of Channels
• Direct
• Sell directly to consumer (e.g. Avon, Tupperware)
• Driven by direct-response ads,
telemarketing, the Internet
• Often used when selling expensive and
complex products (e.g. industrial products)
• Indirect
• Network of wholesalers and/or retailers
who sell to consumers (e.g. Kraft to Shop Rite to
you)
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Promotional Strategies
• Promotional Push
• Persuade retailers to stock merchandise
and promote products to consumer
• Trade advertising motivates retailers to
purchase product to sell to consumers
• Promotional Pull
• Use advertising and sales promotion to
consumer
• Create demand among consumers to
request product from retailer
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Push vs. Pull Strategies
CONSUMERS
Pull Strategy
Push Strategy
$$$
$$$
RETAILERS
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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
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