The Role of IMC in the Marketing Process

Pertemuan 13 & 14

Mata kuliah : 00274 - INTEGRATED MARKETING COMMUNICATIONTahun : 2009/2010

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The Role of IMC in the Marketing Process (1)

Figure 2-1 as the marketing process begins with the development of a marketing strategy and analysis The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively.

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The Role of IMC in the Marketing Process (2)

Promotion program is directed not only to the final buyer but also to the channel or “trade” members Promotions play an important role in building and maintaining demand among final consumers and the trade

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I. Marketing Strategy and Analysis

I.1 Opportunity Analysis

Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively

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I. Marketing Strategy and Analysis

I.2 Competitive Analysis Competing for the consumer’s discretionary income Must understand the various ways potential customers choose to spend their money.

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I. Marketing Strategy and Analysis

Ways to achieve a competitive advantage include having quality products that command a premium price, providing superior customer service, having the lowest production costs and lower prices, or dominating channels of distribution Competitive advantage can also be achieved through advertising that creates and maintains product differentiation and brand equity

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I. Marketing Strategy and Analysis

I.3. Target Market Selection

After evaluating the opportunities presented by various market segments, including a detailed competitive analysis, the company may select one, or more, as a target market.

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Figure—The Target Market Figure—The Target Market ProcessProcess

Identifying Markets with

unfulfilledneeds

DeterminingMarket

segmentation

SelectingA marketTo target

PositioningThrough

Marketingstrategies

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II. The Target Marketing Process

II.1. Identifying Markets

Marketer identifies the specific needs of groups of people, selection one or more of these segments as a target, and develops marketing programs directed to each.

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II. The Target Marketing Process

II.1. Identifying Markets

Target market identification isolates consumers with similar lifestyle, needs, and the like, and increases our knowledge of their specific requirements Example : figure 2-3, the beer market has become quite segmented, offering super premiums, premiums, popular (low price), imports, lights low calorie and malts.

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Figure—Market breakdown by product in the beer industry

Popular 25.8%

Premium 21.1%

Light40.1%

Domestic specialties

3.0%

Imports10.0%

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II. The Target Marketing Process

II.2. Market segmentation “Dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action

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II. The Target Marketing Process

The segmentation process involves five distinct steps:

Finding ways to group consumers according to their needsFinding ways to group the marketing actions usually the products offered available to the organizationDeveloping a market-product grid to relate the market segments to the firm’s products or actionsSelecting the target segments toward which the firm directs its marketing actionsTaking marketing actions to reach target segments

The more the market becomes divided, the fewer consumers there are in each segment.

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Bases for Segmentationa) Geographic Segmentationb) Demographic Segmentationc) Psychographics Segmentation

Personality and/or lifestyles Based on an analysis of the activities, interest and opinions (AIOs) of consumers

d) Behavioristics Segmentation According to their usage, loyalties, or buying responses to a product.

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Bases for Segmentatione) Benefit Segmentation

In purchasing products, consumers are generally trying to satisfy specific needs and/or wants. They are looking for products that provide specific benefits to satisfy these needs The grouping of consumers on the basis of attributes sought in a product is known as benefit segmentation

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III. Selecting a Target Market Three market coverage alternatives 1. Undifferentiated marketing

Involves ignoring segment differences and offering just one product or service to the entire market. For many years, Coca-Cola offered only one product version.

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III. Selecting a Target Market

2. Differentiated marketingInvolves marketing in a number

of segments, developing separate marketing strategies for each.

E.g. Indocafe, Cappuccino

3. Concentrated marketingIs used when the firm selects one segment and attempts to capture a large share of this market.

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GOOD LUCK AND DON’T GIVE UP!