Chapter 2

The Role of IMC in the Marketing Process

Last Class

Introduction to IMC Links to marketing and

promotional elements

Today’s Objectives

Role of IMC in Marketing

What kind of a strategy is Samsung using to compete against Sony? a repositioning strategy niche market strategy a concentrated market strategy an undifferentiated market strategy lifestyle segmentation

What is?

A market opportunity A competitive advantage A market threat

Marketing to a Lifestyle

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The Role of IMC in Marketing Nike’s and Reebook’s success : they recognize their

business is no longer about just selling shoes.

It’s about selling sports, entertainment, style, and fashion.

Tell me about other brands… What business are they in?

Kale

Duru

Nivea

The Target Marketing Process

Identify markets with unfulfilled needsIdentify markets with unfulfilled needs

Determining market segmentationDetermining market segmentation

Selecting market to targetSelecting market to target

Positioning through marketing strategiesPositioning through marketing strategies

Is a Roof just a Roof!

Different products for different needs!

Take Marketing Actions To Reach Target Segments.Take Marketing Actions To Reach Target Segments.

Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.

Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.

Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.

Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.

Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.

Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.

Find Ways To Group Consumers According To Their Needs.

Find Ways To Group Consumers According To Their Needs.

Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.

Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.

Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.

Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.

Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.

Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.

Find Ways To Group Consumers According To Their Needs

Find Ways To Group Consumers According To Their Needs

The Marketing Segmentation Process

BehaviorBehavior

BenefitsBenefits

OutletsOutlets

BenefitsBenefits

OutletsOutletsBehaviorBehavior

PsychographicPsychographic

GeographicGeographic

DemographicDemographicPsychographicPsychographic DemographicDemographic

GeographicGeographic

Bases for Segmentation

CustomerCharacteristics

CustomerCharacteristics

SocioeconomicSocioeconomic

BuyingSituationBuying

Situation

UsageUsage

SocioeconomicSocioeconomic

Segmentation

Age or Generation?

Physical Size

Offerings might be big men's clothing, golf clubs for shorter players, etc. Creation of or response to a fad

Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.

Geographic location

Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc.

Time related factors

You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.

Demographics/culture/religion

Ethnic products would fall into this category. Social status

This could include country club memberships, philanthropic contributions, etc.

Seg

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Education

Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling.

Avocation

This could include products for hunting, fishing, golf, art work, knitting, etc.

Special Interests

You could target cat lovers, science fiction readers, jazz music collectors, etc.

Accessibility

Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc.

Access (or lack of access) to competitive offerings

Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc.

Seg

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Need for specific information

Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking.

Need for customization

Product/service examples are home decoration, fashion wear, personal portraits, etc.

Need for quality, durability, etc.

Product examples are mountain climbing gear, carpenter's tools, etc.

Degree of a product/service ingredient

Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others.S

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Hispanics Prefer Spanish Language Ads

Six Positioning Questions1.What position do we have now?

2.What position do we want to own?

3.From whom must we win this position?

4.Do we have the money to do the job?

5.Do we have the tenacity to stay with it?

6.Does our creative strategy match it?

What is this?

The first production Model T Ford was built on September 27, 1908. Ford continued building the "T" for the next 19 years, until it was replaced by the

Model "A" in 1928.

Ford Motor Company

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

How shouldHow shouldwe position?we position?

Positioning Strategy Development Process

1. Identify the competitorscompetitors1. Identify the competitorscompetitors

2. Assess perceptions of themperceptions of them2. Assess perceptions of themperceptions of them

3. Determine their positionstheir positions3. Determine their positionstheir positions

4. Analyze consumer preferencesconsumer preferences4. Analyze consumer preferencesconsumer preferences

6. Monitor the positionMonitor the position6. Monitor the positionMonitor the position

5. Make the positioning decisionpositioning decision5. Make the positioning decisionpositioning decision

Attribute/benefit Price/quality Use/application Product class Product users Competitor Cultural symbol Repositioning

- Energizer

- Ikea

- Baking Soda

- Butter or margarine

- Nike

- Sana vs. Aymar, 7UP

- CocaCola in Ramadan

- Volvo

Developing a Positioning Strategy

Product DecisionsA product is a bundle of benefits or

values.

Product quality, branding, packaging, and company name contribute to product image.

Branding and Packaging Work Closely Together

Product DecisionsProduct Decisions

BRANDINGBRANDING

Brand name

commun-icates

attributes and

meaning

Brand name

commun-icates

attributes and

meaning

Advertising creates and maintains

brand equity

Advertising creates and maintains

brand equity

Packaging has become increasingly important

Packaging has become increasingly important

It’s often customers’

first exposure to

product

It’s often customers’

first exposure to

product

PACKAGINGPACKAGINGBRANDINGBRANDING

A Package Is More than a Container

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Packaging Enhances Brand Identity

For other products?

Which one is more expensive?

Pricing Decisions consistent with perceptions of the product. Higher prices ------------ higher product quality. Lower prices reflect bargain or “value”

perceptions

Price, advertising and distribution be unified in identifying the product position

Distribution Channel Decisions

Channel decisions involve: Selecting Managing Motivating

-Independent intermediaries: Wholesalers Distributors Brokers Retailers

Promotion to Push Goods Through Channels vs Promotion to Pull Goods Through Channels

PUSHPUSH PULLPULL

Information Flow

Push PolicyPush Policy

ProducerProducer

RetailerRetailer

ConsumerConsumer

WholesalerWholesaler

Pull PolicyPull Policy

ProducerProducer

WholesalerWholesaler

RetailerRetailer

ConsumerConsumer

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

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 offers

Cents-off couponsCents-off coupons

Cents-off promotionsCents-off promotions

Sampling, free trialSampling, free trial

Promotion to Pull Goods Through Channels

PULLPULL

Trading stampsTrading stamps

Push strategies involve promoting the product only to the next link only to the next link

downdown the distribution channel;

advantage : cheapcheap and relatively straightforwardstraightforward, and Not consumer-orientatedconsumer-orientated. .

Techniques used:Techniques used: 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 deals etcCooperative advertising deals etc

Pull Strategies

Focuses on consumerconsumer,, aimed at the final consumers

Most launch strategieslaunch strategies would involve elements of both both push and pull.

Techniques used: Sampling, free trialSampling, free trial Cents-off promotionsCents-off promotions Cents-off coupons etc.Cents-off coupons etc.

Next Class

Organizing for Advertising and Promotion

Read Chapter 3!!!