The Role of IMC in the
Marketing Process
Marketing and Promotions Process Model
Marketing Target
Strategy and Marketing Planning Target Market
Marketing Program Development
Analysis Process
Promotion to
Product Promotional
Identifying final buyer
decisions decisions
markets
•advertising
•direct
Pricing Ultimate
Competitive marketing
Market decisions customer
analysis •internet/
segmentation •Consumers
interactive
Promotion •Businesses
marketing
Channel of •sales to trade
Selecting distribution
Target a target promotion
Decisions •publicity Resellers
marketing market
and public
Positioning relations
Push /Pull •personal
through Purchase
strategy selling
marketing
strategies
The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
Five-Step Segmentation Process
1. Finding ways to group consumers according to their needs.
2. Finding ways to group marketing actions - usually the
products offered, available to the organization.
3. Developing a market/product grid to relate the market
segments to the firm’s products and actions.
4. Selecting the product segments toward which the firm directs
its marketing actions.
5. Taking marketing actions to reach target segments.
Bases for Segmentation
Geographic Segmentation
State - region - country - climate
Demographic Segmentation
Age, sex, income, education, occupation, social
class
Psychographic Segmentation
AIOs, (Activities, Interests, Opinions)
VALS (Values and Lifestyles)
Personality traits
Behavioristic Segmentation
Usage, loyalties, occasions.
Benefit Segmentation
Types of specific needs or wants to be satisfied.
Selecting a Target Market
Determining How Many Segments To Enter
Undifferentiated Marketing – offering one product or service to
the entire market
Differentiated marketing – competing in a number of segments
with separate marketing strategies for each
Concentrated Marketing – focusing on one market segment
Determining Which Market Segments
Offer the Most Potential
Determine sales potential of the segment
Determine opportunities for growth of the market segment
Analyze the competition in the segment
Analyze the company’s ability to compete in the market
segment
Decide how to compete in the market segment
Segmentation Decision Check List
Can the size of the market segment be
measured?
Is the market segment large and
profitable enough to serve?
Is the segment identified accessible? Can
it be reached effectively and efficiently?
Can effective marketing programs be
developed to attract and serve the
segment identified?
The Positioning Process
Positioning Concept
The desired perception or
association management wants
target customers to have of a
firm and/or its products
Positioning Effectiveness Positioning Strategy
The extent to which management’s The combination of marketing
positioning objectives are achieved
Market actions used to portray the
positioning concept to targeted
in the market target Target buyers
Positioning of the brand
The positioning of the brand by
the buyers in the market target
Positioning Strategy Development Process
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
Product/Service and Brand Positioning
BASIC QUESTIONS TO ASK
1. What position, if any do we currently hold in the mind of
customers?
2. What position do we want to hold?
3. Whom do we have to compete against to establish this position?
4. Do we have the resources to occupy and hold the position?
5. Can we stay with one consistent positioning strategy?
6. Does our marketing and advertising match our positioning
strategy?
Approaches to Positioning A Product/Service
or Brand
1. By Product or Service Attributes and
Benefits
2. By Price/Quality
3. By Use or Application
4. By Product Class
5. By Product or Service User
6. By competition
7. By cultural symbols
Product and Branding Decisions
A product is a bundle of benefits or values that
satisfies the needs of consumers
Product symbolism refers to what a product or brand means to
customers
Product quality, branding, packaging, and company name
contribute to product image
Branding:
Brand name communicates attributes and meaning
Advertising creates and maintains brand equity which results
from the image and/or impression of a brand
The Value of Strong Corporate and/or
Brand Identity
Strong corporate/brand equity:
Creates more options for competing against lower-priced
competitors
Builds customer loyalty
Makes it easier to withstand economic fluctuations and
marketing crises
Allows companies to sell products/services at a premium
price and maintain larger profit margins
Can facilitate brand and line extensions
Makes customer response more inelastic to price increases
and elastic to price decreases
Packaging
Traditional functions of packaging:
economy, protection, storage
Packaging has become increasingly
important because:
self service emphasis of many stores
buying decisions made at point-of-purchase
often customers first exposure to product
Packaging is a way to communicate to
consumers
Pricing Decisions
Price must be consistent with perceptions of the product
Higher prices communicate higher product quality
Lower prices often reflect bargain or “value” perceptions
A product positioned as high quality while carrying a lower
price than competitors may confuse customers
Price, advertising and distribution must be unified to create
the position for the product or service.
Distribution Channel Decisions
Channel decisions involve:
Determining the type of channel system:
Direct channels
Indirect channels
Selecting, managing and motivating marketing
intermediaries such as
Wholesalers
Distributors
Brokers
Retailers
Push Versus Pull
Push Policy Pull Policy
Producer Producer
Wholesaler Wholesaler
Retailer Retailer
Consumer Consumer
Information Flow
"Push" Techniques
Point of sale displays, racks, stands
Trade deals, special displays
Dealer premiums, prizes, gifts
Cooperative advertising deals
Advertising materials, mats, inserts
Push money or "spiffs"
Collaterals, catalogs, manuals
Trade shows, conventions, meetings
"Pull" Techniques
Sampling, free trial
Coupons
Premiums or gifts
Contests, sweepstakes
Price-off deals
Refunds/rebates
Frequency/loyalty programs
Point-of-purchase advertising
