The Role of IMC in the

Marketing Process

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

Marketing and Promotions Process Model

Opportunity
analysis

Competitive
analysis

Identifying
markets

Market
segmentation

Target
marketing

Product
decisions

Pricing
decisions

Channel-ofdistribution
decisions
Selecting a
target market

Promotional
decisions
Advertising
Direct
marketing
Interactive
marketing
Sales
promotion
Publicity
and public
relations
Personal
selling

Promotion
to final
buyer

Internet/
Interactive

Promotion
to trade

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

Consumers
Businesses

Resellers

Positioning
through
marketing
strategies

Ultimate
consumer

Marketing to a Lifestyle (Athletes)

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

Opportunity Analysis
New Product to existing Market.
Eg. iPod touch.
Alternative use for current product
in new or current market Eg. Pran
Vinegar.
New Product, New Market Eg.
iPhone.

Competitive Analysis
Direct Brand Competition eg. Coke &
Pepsi
Competition from Substitutes eg. Coke
& Fruit Juices.
How much are the customers willing
to spend?
What is the trend in Bangladesh?
Finding your Competitive Advantage.
WalMart Vs Target

The Target Marketing Process

Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs

Determining
Determining market
market segmentation
segmentation

Selecting
Selecting market
market to
to target
target
Positioning
Positioning through
through marketing
marketing strategies
strategies
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Bases for Segmentation

Psychographic
Psychographic

Demographic
Demographic

Customer
Customer
Characteristics
Characteristics
Socioeconomic
Behavioral
Socioeconomic
Behavioral

Geographic
Benefit
Geographic
Benefit

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

A Product for Every Segment

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

A Product for Every Segment

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

A Product for Every Segment

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

Home Depot Reaches Out to the Female Market

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

Selecting Target Market

Undifferentiated: Ignore
Segmentation and offer one product
to all segments. Eg. Early Ford Cars
Differentiated: Involve a number of
segments and a product for each
segment Eg. Toyota and Lexus.
Concentrated: Selects one segment
and attempts to capture it
completely. Eg. Volkswagen.

Undifferentiated

Differentiated

Concentrated

Positioning Strategies
How should
we position?

By
By Attributes
Attributes and
and Benefits?
Benefits?
By
By Price
Price or
or Quality?
Quality?
By
By Use
Use or
or Application?
Application?
By
By Product
Product Class?
Class?
By
By Product
Product User?
User?
By
By Competitor?
Competitor?
By
By Cultural
Cultural Symbols?
Symbols?
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cultural Symbols Can Differentiate Brands

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

Positioning based on Price and Quality

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

Developing a Positioning Platform

1.
1.

Identify
Identify the
the competitors
competitors

2.
2.

Assess
Assess perceptions
perceptions of
of them
them

3.
3.

Determine
Determine their
their positions
positions

4.
4.

Analyze
Analyze consumer
consumer preferences
preferences

5.
5.

Make
Make the
the positioning
positioning decision
decision

6.
6.

Monitor
Monitor the
the position
position
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising Develops Brand Images

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

Branding and Packaging Work Closely Together

Product
Product Decisions
Decisions
BRANDING
BRANDING

Brand
Brand
name
name
communcommunicates
icates
attributes
attributes
and
and
meaning
meaning

Advertising
Advertising
creates
creates and
and
maintains
maintains
brand
brand
equity
equity

PACKAGING
PACKAGING

Packaging
Packaging
has
has become
become
increasingly
increasingly
important
important

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

Its
Its often
often
customers
customers
first
first
exposure
exposure to
to
product
product

A Package Is More than a Container

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

Pricing Must Be Coordinated with Other Factors

Pricing
Pricing
Considerations
Considerations

Price
Price must
must be
be consistent
consistent with
with
perceptions
perceptions of
of the
the product
product
Higher
Higher prices
prices communicate
communicate higher
higher
product
product quality
quality
Lower
Lower prices
prices reflect
reflect bargain
bargain or
or
value
value perceptions
perceptions
Price,
Price, advertising
advertising and
and distribution
distribution
must
be
unified
unified
in
must
bebe
be
unified
unified
in in
in
identifying
identifying the
the product
product position
position
AA product
product positioned
positioned as
as high
high quality
quality
while
while carrying
carrying aa lower
lower price
price than
than
competitors
competitors will
will confuse
confuse customers
customers
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Some Products Compete on Price

Others Compete on Quality

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

Push Versus Pull

Push
Push Policy
Policy

Pull
Pull Policy
Policy

Producer
Producer

Producer
Producer

Wholesaler
Wholesaler

Wholesaler
Wholesaler

Retailer
Retailer

Retailer
Retailer

Consumer
Consumer

Consumer
Consumer
Information Flow
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Promotion to Push Goods Through Channels

PUSH

Point
Point of
of sale
sale displays,
displays, racks,
racks, stands
stands
Trade
Trade deals,
deals, special
special displays
displays
Dealer
Dealer premiums,
premiums, prizes,
prizes, gifts
gifts
Cooperative
Cooperative advertising
advertising deals
deals
Advertising
Advertising materials,
materials, mats,
mats, inserts
inserts
Push
Push money
money or
or spiffs"
spiffs"
Collaterals,
Collaterals, catalogs,
catalogs, manuals
manuals
Company
Company conventions,
conventions, meetings
meetings
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Promotion to Pull Goods Through Channels

PULL

Sampling,
Sampling, free
free trial
trial
Cents-off
Cents-off promotions
promotions
Cents-off
Cents-off coupons
coupons
Combination
Combination offers
offers
Premiums
Premiums or
or gifts
gifts
Contests,
Contests, sweepstakes
sweepstakes
Point-of-purchase
Point-of-purchase
Trading
Trading stamps
stamps
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin