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    The Role of IMC in theMarketing Process

    2

    McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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    Marketing and Promotions Process Model

    Product

    decisions

    Pricingdecisions

    Channel-of-distributiondecisions

    Opportunity

    analysis

    Competitive

    analysis

    Targetmarketing

    Identifyingmarkets

    Market

    segmentation

    Selecting atarget market

    Positioningthrough

    marketingstrategies

    Promotionaldecisions

    Advertising

    Directmarketing

    Interactivemarketing

    Salespromotion

    Publicityand publicrelations

    Personalselling

    Ultimateconsumer

    Consumers

    Businesses

    Promotionto finalbuyer

    Resellers

    Promotionto trade

    Internet/Interactive

    Purchase

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    Marketing to a Lifestyle

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    The Target Marketing Process

    Position through marketing strategies

    Select market to target

    Determine market segmentation

    Identify markets with unfulfilled needs

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    Grupo Modelo(A Product for Every MarketSegment)

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    The Marketing Segmentation Process

    Take marketing actions to reach target segments

    Select the product segments toward which thefirm will direct its marketing actions

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

    Find ways to group marketing actionsavailable to the organization

    Find ways to group consumersaccording to their needs

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    What do NASCAR, Coors, and Unilever know?

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    Bases for Segmentation

    Behavior

    Benefits

    Outlet Type

    Psychographic

    Geographic

    Demographic

    CustomerCharacteristics

    Socioeconomic

    BuyingSituationUsage

    Awareness

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    Geographic Marketing

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    Psychographic Segmentation

    Dividing the market on the basis ofPersonality

    Values

    Lifestyle VALS lifestyle segmentation

    Eight lifestyles with distinctive attitudes,behaviors, and decision-making patterns

    Combined with estimate of the resourceson which the consumer can draw

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    Behavioristic Segmentation

    Usage

    LoyaltiesBuyingResponses

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    Benefit Segmentation

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    Selecting a Target Market

    Determine how manysegments to enter

    Determine which segmentshave the greatest potential

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    Market Positioning

    Fitting the product or service to one or more

    segments of the broad market in such a wayas to set it apart from the competition

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    Developing a Positioning Strategy

    What position dowe have now?

    Do we have themoney to do the

    job?

    What position dowe want to own?

    From whommust we win this

    position?

    Do we have thetenacity to stay

    with it?

    Does our creativestrategymatch it?

    ThePosition

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    Positioning Strategies

    Attributes and Benefits?

    Price or Quality?

    Use or Application?

    Product Class?

    Product User?

    Competitor?

    Cultural Symbols?

    How shouldwe position?

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    Positioning by Use or Application

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    Developing a Positioning Platform

    6. Monitor the position

    5. Make the positioning decision

    4. Analyze consumer preferences

    3. Determine their positions

    2. Assess perceptions of them

    1. Identify the competitors

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    Making the Positioning Decision

    Is the currentposition strategyworking?

    Is the segmentationstrategyappropriate?

    Are there sufficientresources to

    communicate theposition?

    How strong is thecompetition?

    TheChecklist

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    Advertising Develops Brand Image

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    Branding and Product Names

    Brand names often communicateattributes and meaning

    Safeguard

    I Cant Believe Its Not Butter!Easy-Off

    Arrid

    Spic and Span

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    Branding and Packaging Are Linked

    Product Decisions

    BRANDING

    Brandname

    commun-icates

    attributesand

    meaning

    Advertisingcreates andmaintainsbrandequity

    Has becomeincreasinglyimportant

    Oftencustomers

    firstexposure to

    product

    PACKAGING

    A Pac age is More t an a ontainer a s

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    A Pac age is More t an a ontainer a sfifth avenue)

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    Pricing Decisions

    What consumers giveup to purchase aproduct or service

    TimePrice Variable

    Mental activity

    Behavioral effort

    Factors the firm mustconsider

    Costs

    Demand

    Competition

    Perceived value

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    Relating Price to Ads and Promotion

    Price must be consistent withperceptions of the product

    Higher prices communicate higherproduct quality

    Lower prices reflect bargain orvalue perceptions

    Price, advertising and distribution beunified in

    identifying product position

    PricingConsiderations

    A product positioned as high qualitywhile carrying a lower price than

    competitors will confuse customers

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    When Price is Not an Issue

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    Distribution Channel Decisions

    Selecting

    Managing

    Motivating

    DistributionChannel

    Decisions

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    Distribution Intermediaries

    DistributionChannel

    Intermediaries

    Brokers

    Distributors

    Wholesalers

    Retailers

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    Promotional Strategy: Push or Pull?

    Push Policy

    Producer

    Wholesaler

    Retailer

    Consumer

    Information Flow

    Pull Policy

    Producer

    Wholesaler

    Retailer

    Consumer


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