2

The Role of IMC in the

Marketing Process

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Under Armour Protects Its House
 Under Armour Protects Its House

Keys to Under Armours success

Niche markets
Strong product positioning
Unique brand identity
Strong brand reputation
 Marketing and Promotions Process Model

Opportunity Identifying Product Promotion

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

Positioning Resellers
through
marketing
strategies Purchase
Marketing to a Lifestyle
 Padres Pitch to the Fans

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The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation

Select market to target

Position through marketing strategies

A Product for Every Market Segment
The Marketing Segmentation Process

Find ways to group consumers

according to their needs

Find ways to group marketing actions

available to the organization

Develop a market/product grid to relate the market

segments to the firms products and actions

Select the product segments toward which the

firm will direct its marketing actions

Take marketing actions to reach target segments

What do NASCAR, Coors, and Unilever know?
 Bases for Segmentation

Psychographic Demographic

Customer
Characteristics

Socioeconomic Geographic

Behavior Outlet Type

Buying
Usage Situation

Awareness Benefits
Geographic Marketing
Demographic Segmentation
 Psychographic Segmentation

Dividing the market on the basis of

Personality
Values
Lifestyle
VALS lifestyle segmentation
Eight lifestyles with distinctive attitudes,
behaviors, and decision-making patterns
Combined with estimate of the resources
on which the consumer can draw
Behavioristic Segmentation

Usage

Buying Loyalties
Responses
Benefit Segmentation
 PRIZM Cluster Profiles
HIGH

LOW
 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 the manufacturer
D) Its distribution intensity
E) The benefits the brand offers
Selecting a Target Market

Determine how many

segments to enter

Determine which segments

have the greatest potential
 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 the competition
 Developing a Positioning Strategy

What position do
we have now?

Does our creative

What position do
strategy
we want to own?
match it?

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

Do we have the
money to do the
job?
 Positioning Strategies

How should Attributes and Benefits?

we position?
Price or Quality?

Use or Application?

Product Class?

Product User?

Competitor?

Cultural Symbols?
Positioning by Use or Application
Developing a Positioning Platform

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

 Making the Positioning Decision

Is the current Is the segmentation

position strategy strategy
working? appropriate?

The
Checklist

Are there sufficient

How strong is the resources to
competition? communicate the
position?
Advertising Develops Brand Image
 Branding and Product Names

Brand names often communicate

attributes and meaning
Safeguard
I Cant Believe Its Not Butter!
Easy-Off
Arrid
Spic and Span
 Branding and Packaging Are Linked

Product Decisions

BRANDING PACKAGING

Brand Advertising Has become Often

name creates and increasingly customers
commun- maintains important first
icates brand exposure to
attributes equity product
and
meaning
A Package is More than a Container
 Pricing Decisions

What consumers give

Factors the firm must
up to purchase a
consider
product or service

Costs Price Variable

Time

Demand
Mental activity
Competition

Behavioral effort
Perceived value
 Relating Price to Ads and Promotion

Pricing Price must be consistent with

Considerations perceptions of the product

Higher prices communicate higher

product quality

Lower prices reflect bargain or

value perceptions

Price, advertising and distribution be

unified in
identifying product position

A product positioned as high quality

while carrying a lower price than
competitors will confuse customers
When Price is Not an Issue
Distribution Channel Decisions

Selecting

Distribution
Channel Managing
Decisions

Motivating
 Distribution Intermediaries

Brokers

Distributors
Distribution
Channel
Intermediaries
Wholesalers

Retailers
Promotional Strategy: Push or Pull?

Push Policy Pull Policy

Producer Producer

Wholesaler Wholesaler

Retailer Retailer

Consumer Consumer

Information Flow
 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