Copyright © 2012 McGraw-Hill Companies, Inc.

, All right reversed

2

The Role of IMC in the

Marketing Process
 Geico Marketing Success

Strong brand image and strong IMC programs

2-2
Marketing & Promotions Process Model

2-3
 Marketing Strategy and Analysis

Strategic Marketing
Strategic Marketing Plan
Plan

Target
Target
Opportunity
Opportunity Competitive
Competitive Market
Market
Analysis
Analysis Analysis
Analysis Selection
Selection

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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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 Target Market Identification

IsolateConsumers
Isolate ConsumersWith
WithSimilar…
Similar…

Lifestyles
Lifestyles Socialclass
Social class

Geographic
Geographic
Economicstatus
Economic status Age
Age
location
location

Maritalstatus
Marital status Needs
Needs

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 Market Segmentation

• Dividing a market into distinct groups

• With common needs
• Who respond similarly to a marketing
situation
2-7
 Bases for Market Segmentation

Demographic Geographic Socioeconomic

Gender Region Income
Age City size Education
Race Metropolitan area Occupation
Life stage Density
Birth era
Household size Psychographic
Residence tenure Personality
Marital status Values/Lifestyle

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 Geographic Segmentation

Big Red targets a specific geographic region

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Demographic Segmentation Ad

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Benefit Segmentation Ad

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 PRIZM Social Groups

HIGH

LOW

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 Test Your Knowledge

All of the following are considered market

coverage alternatives except:
A) Undifferentiated
B) Differentiated
C) Concentrated
D) Dispersed

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 Selecting a Target Market

Determine how many

1 segments to enter

Determine which segments

2 have the greatest potential

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 Segments

Undifferentiated Concentrated

Differentiated

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 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 competition

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Positioning Strategies

Attributes
Attributes and
and Benefits
Benefits
Price/Quality
Price/Quality
Use/Application
Use/Application
Product
Product Class
Class
Product
Product Users
Users
Competitors
Competitors
Cultural
Cultural Symbols
Symbols

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Positioning by Cultural Symbol

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 The Marketing Planning Program

Product Distribution
Decisions Channels

Promotional Price
Strategy Decisions

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 Branding Goals

Develop & Build &

Build & enhance foster
maintain attitudes relationships
brand toward the between the
awareness company, consumer
and interest product, or and the
service brand

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 Branding

Brand Identity
vs.
Brand Equity

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 Branding and Packaging Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Has
Has become
become Often
Often thethe
name
name creates
creates increasingly
increasingly customers’
customers’
commun-
commun- and
and important
important first
first
icates
icates maintains
maintains exposure
exposure
attributes
attributes brand
brand to
to product
product
and
and equity
equity
meaning
meaning

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Packaging Creates Image

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 Pricing Decisions

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

Costs
Costs Time
Time

Demand
Demand Mental
Mental activity
activity
Competition
Competition Behavioral
Behavioral effort
effort

Perceived
Perceived value
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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 Market Channels

Sets of interdependent
organizations involved in the
process of making a product
or service available for use

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 Channels and Image

• Channels can impact communication

objectives
• Image
• Store displays
• Point-of-purchase merchandising
• Shelf footage

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 Types of Channels

• Direct
• Driven by direct-response ads,
telemarketing, the Internet
• Often used when selling expensive and
complex products

• Indirect
• Network of wholesalers and/or retailers

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Push vs. Pull Strategies

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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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