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The Role of IMC in theMarketing ProcessThe Role of IMC in theMarketing Process

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

Padres Pitch to the Fans

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Cleveland Indians Want Fans to Play Ball

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Productdecisions

Pricingdecisions

Channel-of-

distributiondecisions

Productdecisions

Pricingdecisions

Channel-of-distribution

decisions

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioning

throughmarketingstrategies

Promotionaldecisions

Advertising

Directmarketing

Interactivemarketing

Salespromotion

Publicityand publicrelations

Personalselling

Ultimateconsumer

Consumers

Businesses

Promotionto finalbuyer

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioning

throughmarketingstrategies

Promotionaldecisions

Advertising

Directmarketing

Interactivemarketing

Salespromotion

Publicityand publicrelations

Personalselling

Ultimateconsumer

Consumers

Businesses

Marketing and Promotions Process Model

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

Resellers

Promotionto trade

Internet/Interactive

Purchase

Marketing to a Lifestyle

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

Test Your Knowledge

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

Factors that influence the decision as to how far thesegmentation process should go include:

A) whether the segment is accessibleB) whether sufficient funds exist for

developing the necessary advertisingcampaign

C) the availability of media that reaches thesegment

D) the ability of the sales force to reach thesegment

E) all of the above

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Positioning through marketing strategiesPositioning through marketing strategies

Selecting market to targetSelecting market to target

Determining market segmentationDetermining market segmentation

Identify markets with unfulfilled needsIdentify markets with unfulfilled needs

Selecting market to targetSelecting market to target

Determining market segmentationDetermining market segmentation

Identify markets with unfulfilled needsIdentify markets with unfulfilled needs

The Target Marketing Process

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

A Product for Every Segment

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

Beer is Beer? Not Really!

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

Popular

Imports

Domestic specialties

Premium

Light

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

Select the product segments toward which the firmdirects its marketing actions.

Select the product segments toward which the firmdirects its marketing actions.

Develop a market/product grid to relate the marketsegments to the firms products and actions.

Develop a market/product grid to relate the marketsegments to the firms products and actions.

Find ways to group marketing actions - usually theproducts offered - available to the organization.

Find ways to group marketing actions - usually theproducts offered - available to the organization.

Find ways to group consumersaccording to their needs.

Find ways to group consumersaccording to their needs.

Select the product segments toward which the firmdirects its marketing actions.

Select the product segments toward which the firmdirects its marketing actions.

Develop a market/product grid to relate the marketsegments to the firms products and actions.

Develop a market/product grid to relate the marketsegments to the firms products and actions.

Find ways to group marketing actions - usually theproducts offered - available to the organization.

Find ways to group marketing actions - usually theproducts offered - available to the organization.

Find ways to group consumersaccording to their needs.

Find ways to group consumersaccording to their needs.

The Marketing Segmentation Process

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

BehaviorBehavior

BenefitsBenefits

OutletsOutlets

BenefitsBenefits

OutletsOutletsBehaviorBehavior

PsychographicPsychographic

GeographicGeographic

DemographicDemographicPsychographicPsychographic DemographicDemographic

GeographicGeographic

Bases for Segmentation

CustomerCharacteristics

CustomerCharacteristics

SocioeconomicSocioeconomic

BuyingSituationBuying

SituationUsageUsage

SocioeconomicSocioeconomic

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

AwarenessAwarenessAwarenessAwareness

Browns Highlight Extreme Fan

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Home Depot Reaches Out to the Female Market

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

Hispanics Prefer Spanish Language Ads

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Examples of Some PRIZM Clusters

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

HIGH

LOW

$

Test Your Knowledge

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

The key factor in communicating information about abrand and differentiating it from competitors is:

A) its perceived price differentialB) its integrated promotional strategyC) the market positioning strategy assigned

it by its manufacturerD) its distribution intensityE) the benefits the brand offers

What position dowe have now?

What position dowe have now?

Do we have themoney to do the

job?

Do we have themoney to do the

job?

What position dowe want to own?What position dowe want to own?

From whommust we win this

position?

From whommust we win this

position?

Do we have thetenacity to stay

with it?

Do we have thetenacity to stay

with it?

Do we have thetenacity to stay

with it?

Do we have thetenacity to stay

with it?

Do we have themoney to do the

job?

Do we have themoney to do the

job?

From whommust we win this

position?

From whommust we win this

position?

What position dowe want to own?What position dowe want to own?

What position dowe have now?

What position dowe have now?

Does our creative

strategymatch it?

Does our creative

strategymatch it?

Developing a Positioning Strategy

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

ThePosition

Th ePosition

By Attributes and Benefits?By Attributes and Benefits?

By Price or Quality?By Price or Quality?

By Use or Application?By Use or Application?

By Product Class?By Product Class?

By Product User?By Product User?

By Competitor?By Competitor?

By Cultural Symbols?By Cultural Symbols?

By Attributes and Benefits?By Attributes and Benefits?

By Price or Quality?By Price or Quality?

By Use or Application?By Use or Application?

By Product Class?By Product Class?

By Product User?By Product User?

By Competitor?By Competitor?

Positioning Strategies

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

How shouldHow shouldwe position?w e position?

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Cultural Symbols Can Differentiate Brands

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

6. Monitor the position6. Monitor the position

5. Make the positioning decision5. Make the positioning decision

4. Analyze consumer preferences4. Analyze consumer preferences

3. Determine their posi tions3. Determine their posit ions

2. Assess perceptions of them2. Assess perceptions of them

1. Identify the competitors1. Identify the competi tors

5. Make the positioning decision5. Make the positioning decision

4. Analyze consumer preferences4. Analyze consumer preferences

3. Determine their posi tions3. Determine their posit ions

2. Assess perceptions of them2. Assess perceptions of them

1. Identify the competitors1. Identify the competi tors

Developing a Positioning Platform

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

Is the currentposition strategy

working?

Is the currentposition strategy

working?

Is the segmentationstrategy

appropriate?

Is the segmentationstrategy

appropriate?

Are there sufficientresources to

communicate theposition?

Are there sufficientresources to

communicate theposition?

Is the segmentationstrategy

appropriate?

Is the segmentationstrategy

appropriate?

Is the currentposition strategy

working?

Is the currentposition strategy

working?

Are there sufficientresources to

communicate theposition?

Are there sufficientresources to

communicate theposition?

How strong is the

competition?

How strong is the

competition?

Positioning Decisions

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

Th eChecklist

Th eChecklist

Advertising Develops Brand Images

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

Branding and Packaging Work Closely Together

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

Product DecisionsProduct Decisions

BRANDINGBRANDING

Brandname

commun-icates

attributesand

meaning

Brandname

commun-icates

attributesand

meaning

Advertisingcreates andmaintains

brand equity

Advertisingcreates andmaintains

brand equity

Packaginghas becomeincreasingly

important

Packaginghas becomeincreasingly

important

Its oftencustomers

firstexposure to

product

Its oftencustomers

firstexposure to

product

PACKAGINGPACKAGINGBRANDINGBRANDING

A Package Is More than a Container

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

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Price must be consistent withperceptions of the product

Price must be consistent withperceptions of the product

Higher prices communicate higherproduct quality

Higher prices communicate higherproduct quality

Lower prices reflect bargain or value perceptions

Lower prices reflect bargain or value perceptions

Price, advertising and distributionbe unified in

identifying the product position

Price, advertising and distributionbe unified in

identifying the product position

Price must be consistent withperceptions of the product

Price must be consistent withperceptions of the product

Higher prices communicate higherproduct quality

Higher prices communicate higherproduct quality

Lower prices reflect bargain or value perceptions

Lower prices reflect bargain or value perceptions

Price, advertising and distributionmust be unified in

identifying the product position

Price, advertising and distributionmust be unified in

identifying the product position

Pricing Must Be Coordinated with Other Factors

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

PricingConsiderations

PricingConsiderations

A product positioned as high qualitywhile carrying a lower price than

competitors will confuse customers

A product positioned as high qualitywhile carrying a lower price than

competitors will confuse customers

Some Products Compete on Price Others Compete on Quality

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

SelectingSelecting

ManagingManaging

MotivatingMotivating

SelectingSelecting

ManagingManaging

Distribution is a Vital Link in the Chain

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

DistributionChannel

Decisions

DistributionChannel

Decisions

The Middleman Can Play a Key Role

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

IndependentChannel

Intermediaries

IndependentChannel

Intermediaries

BrokersBrokers

DistributorsDistributors

WholesalersWholesalers

RetailersRetailers

BrokersBrokers

DistributorsDistributors

WholesalersWholesalers

Push PolicyPush Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

Push Versus Pull

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

Information Flow

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

Test Your Knowledge

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

An ad in a publication aimed at veterinariansexplaining why they should recommend Eukanuba catfood to the owners of all the cats they treat is anexample of:

A) consumer adv erti sin gB) a promotional pull stra tegyC) a harvesting stra tegyD) a consumer promotionE) a promotional push s trategy

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Point of sale displays, racks, standsPoint of sale displays, racks, stands

Trade deals, special displaysTrade deals, special displays

Dealer premiums, prizes, giftsDealer premiums, prizes, gifts

Cooperative advertising dealsCooperative advertising deals

Advertising materials, mats, insertsAdvertising materials, mats, inserts

Push money or spiffs"Push money or spiffs"

Collaterals, catalogs, manualsCollaterals, catalogs, manuals

Point of sale displays, racks, standsPoint of sale displays, racks, stands

Trade deals, special displaysTrade deals, special displays

Dealer premiums, prizes, giftsDealer premiums, prizes, gifts

Cooperative advertising dealsCooperative advertising deals

Advertising materials, mats, insertsAdvertising materials, mats, inserts

Push money or spiffs"Push money or spiffs"

Collaterals, catalogs, manualsCollaterals, catalogs, manuals

Promotion to Push Goods Through Channels

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

PUSHPUSH

Company conventions, meetingsCompany conventions, meetings

Sampling, free trialSampling, free trial

Cents-off promotionsCents-off promotions

Cents-off couponsCents-off coupons

Combination offersCombination offers

Premiums or giftsPremiums or gifts

Contests, sweepstakesContests, sweepstakes

Point-of-purchasePoint-of-purchasePoint-of-purchasePoint-of-purchase

Contests, sweepstakesContests, sweepstakes

Premiums or giftsPremiums or gifts

Combination offersCombination offersCents-off couponsCents-off coupons

Cents-off promotionsCents-off promotions

Sampling, free trialSampling, free trial

Promotion to Pull Goods Through Channels

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

PULLPULL

Trading stampsTrading stamps