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The Role of IMC in the

Marketing Process

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Marketing and Promotions Process Model

Opportunity Identifying Product Promotion


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

Positioning Resellers
through
marketing
strategies Purchase

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


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

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Beer is Beer? Not Really!

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 toto the
the firms
firms products
products andand actions.
actions.

Select
Select the
the product
product segments
segments toward
toward which
which the
the firm
firm
directs
directs its
its marketing
marketing actions.
actions.

Take
Take marketing
marketing actions
actions to
to reach
reach target
target segments.
segments.

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Bases for Segmentation

Psychographic
Psychographic Demographic
Demographic

Customer
Customer
Characteristics
Characteristics

Socioeconomic
Socioeconomic Geographic
Geographic

Behavior
Behavior Outlets
Outlets

Buying
Buying
Usage
Usage Situation
Situation

Awareness
Awareness Benefits
Benefits

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Examples of Some PRIZM Clusters

HIGH

LOW

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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


Developing a Positioning Strategy

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

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

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

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Positioning Strategies

How should By
By Attributes
Attributes and
and Benefits?
Benefits?
we position?
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?
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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
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Positioning Decisions

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

The
The
Checklist
Checklist

Are
Are
Are there
Are there
there sufficient
there sufficient
How
How strong
strong is
is the
the resources
resources to to
competition?
competition? communicate
communicate
communicate the
communicate the
the
the
position?
position?
position?
position?

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


Branding and Packaging Work Closely Together

Product
Product Decisions
Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Packaging
Packaging Its
Its often
often
name
name creates
creates and
and has
has become
become customers
customers
commun-
commun- maintains
maintains increasingly
increasingly first
first
icates
icates brand
brand important
important exposure
exposure to to
attributes
attributes equity
equity product
product
and
and
meaning
meaning

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Pricing Must Be Coordinated with Other Factors

Pricing
Pricing Price
Price must
must be
be consistent
consistent with
with
Considerations
Considerations 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 andand distribution
distribution
mustbe
bebe
must unified
be unified
unified in
in in
unified in
identifying
identifying the
the 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
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Distribution is a Vital Link in the Chain

Selecting
Selecting

Distribution
Distribution
Channel
Channel Managing
Managing
Decisions
Decisions

Motivating
Motivating

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The Middleman Can Play a Key Role

Brokers
Brokers

Distributors
Distributors
Independent
Independent
Channel
Channel
Intermediaries
Intermediaries Wholesalers
Wholesalers

Retailers
Retailers

2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin


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


Promotion to Push Goods Through Channels

Point
Point of
of sale
sale displays,
displays, racks,
racks, stands
stands
PUSH
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
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Promotion to Pull Goods Through Channels

Sampling,
Sampling, free
free trial
trial
PULL
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