The Role of IMC in the

Marketing Process
Marketing and Promotions Process Model

Opportunity Identifying Product Promotion

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

Positioning Resellers
through
marketing
strategies Purchase
The Target Marketing Process

Identify
Identify markets
markets with
with unfulfilled
unfulfilled needs
needs

Determine
Determine market
market segmentation
segmentation

Select
Select market
market to
to target
target

Position
Position through
through marketing
marketing strategies
strategies
• The process by which marketers develop different
marketing strategies to satisfy different customer
needs is called target marketing.
• Identify markets with unfulfilled needs – this isolates
consumers with similar lifestyles, needs, and wants
• Determine market segmentation – dividing a market into
distinct groups that have common needs and will respond
similarly to a marketing action.
• Select a market to target – determining how many
segments to enter, and which segments offer the most
potential.
• Position through marketing strategies – the art and science
of fitting the product or service to one or more segments
of the broad market in such a way as to set it meaningful
apart from competition.
Identifying Markets
• The marketer identifies the specific needs of groups
of people (or segments), selects one or more of
these segments as a target, and develops marketing
programs directed to each.
• Target market identification isolates consumers
with similar lifestyles, needs, and the like and
increases our knowledge of their specific
requirements.
• Eg. Beer Industry
Market Segmentation
• Market segmentation is the process of dividing a
market of potential customers into groups, or
segments, based on different characteristics.
• The segments created are composed of consumers
who will respond similarly to marketing strategies
and who share traits such as similar interests,
needs, or locations.
Bases for Segmentation

Psychographic
Psychographic Demographic
Demographic

Customer
Customer
Characteristics
Characteristics

Socioeconomic
Socioeconomic Geographic
Geographic

Behavior
Behavior Outlet
OutletType
Type

Buying
Buying
Usage
Usage Situation
Situation

Awareness
Awareness Benefits
Benefits
• Geographic segmentation divides markets by
geographic locations such as nations, states, regions, or
cities.
• Demographic segmentation divides markets based on
demographic variables such as gender, age, education,
race, and life stage.
• Socioeconomic segmentation divides markets based on
socioeconomic variables such as income, education, and
occupation.
• Psychographic segmentation divides markets based on
personality values or lifestyle.
Segmentation based on the
buying situation includes:
• Behavioral segmentation divides a market into groups according
to their level of involvement with and purchase behavior toward a
product or service.
• Outlet types segments a market based on the type of store
where a product is sold, such as convenience, supermarket, mass
merchandiser, specialty
• Benefit segmentation divides markets on the basis of the specific
benefits or outcomes consumers want from a product or service.
• Awareness segmentation is based on the product knowledge of
the consumer.
• Usage segmentation classifies customers based on their level of
use of a product or service.
Selecting a Target Market

Determine how many

segments to enter

Determine which segments

have the greatest potential
Determining How Many
Segments to Enter
• Undifferentiated marketing involves ignoring
segment differences and offering just one product
or service to the entire market. Eg: For many years,
Coca-Cola offered only one product version.
• Differentiated marketing involves marketing in a
number of segments, developing separate
marketing strategies for each. Eg: The Marriott
hotel chain offers a variety of customer services for
different travelers, including vacation, business,
long or short stay, and so forth.
• Concentrated marketing, is used when the firm
selects one segment and attempts to capture a
large share of this market. Eg: Rolls-Royce has
focused its automobile business exclusively on the
high-income segment, while L’Oréal competes in
the cosmetics and beauty segment.
Determining Which Segments
Offer Potential
• The second step in selecting a market involves
determining the most attractive segment.
• The firm must examine the sales potential of the
segment, the opportunities for growth, the
competition, and its own ability to compete.
• Then it must decide whether it can market to this
group.
• After selecting the segments to target and
determining that it can compete, the firm proceeds
to the final step: the market positioning phase.
Market Positioning
• “The art and science of fitting the product or
service to one or more segments of the broad
market in such a way as to set it meaningfully apart
from competition.”

• The term position has been used to indicate the

brand’s or product’s image in the marketplace.
 Developing a Positioning Strategy
What
Whatposition
positiondo
dowe
we
have
havenow?
now?

Does
Doesour
ourcreative
creative What
Whatposition
positiondo
dowe
we
strategy
strategy want
wanttotoown?
own?
match
matchit?
it?

The
The
Position
Position
Do
Dowe
wehave
havethe
the From
Fromwhom
whommust
must we
we
tenacity
tenacityto
tostay
stay with
with win
winthis
thisposition?
position?
it?
it?

Do
Dowe
wehave
havethe
the
money
money to
todo
dothe
thejob?
job?
Positioning Strategies
How should Attributes
Attributes and
and Benefits?
Benefits?
we position?
Price
Price or
or Quality?
Quality?

Use
Use or
or Application?
Application?

Product
Product Class?
Class?

Product
Product User?
User?

Competitor?
Competitor?

Cultural
Cultural Symbols?
Symbols?
Positioning by Product Attributes
and Benefits
• Setting the brand apart from competition using
specific characteristics or benefits offered.
• Marketers attempt to identify salient benefits
which are those that are important to customers in
their purchase decisions
• Eg: Apple’s ease of use and innovation.
Positioning by Price/Quality
• Using price as characteristic of the brand.
• High quality/image pricing can be used as well as
value pricing which reflects a very competitive
price.
• Premium brands positioned at the high end of the
market use this approach to positioning.
• Another way to use price/quality characteristics for
positioning is to focus on the quality or value
offered by the brand at a very competitive price.
Positioning by Use or Application
• Associate the brand with a specific use.
• This approach can also be effective way to expand
usage of a product.
• Eg: Product with multiple uses
Positioning by Product Class
• Competition can come from outside the product
class whereby a product is positioned against
another product category.
• Airlines know that while they compete with other
airlines, trains and buses are also viable
alternatives.
• Dole fruit juices encourage consumers to “drink
their fruits,” claiming that 8 ounces of juice is the
equivalent of two fruits.
Positioning by Product User
• Associating a brand with a type of person or group
that uses a product or service.
Positioning by Competitor
• Positioning a company or brand against a
competitor.
• Often another form of positioning is used as well to
differentiate the brand.
• Eg: Avis, which positioned itself against the car-
rental leader, Hertz, by stating, “We’re number two,
so we try harder.”
Positioning by Cultural Symbols
• Use symbols that have acquired cultural meaning
and associating a brand with these symbols to
differentiate it from competitors.
• When it is associated with a meaningful symbol,
the brand is easily identifiable and differentiated
from others.
• Eg: Ronald McDonald
Repositioning
• Repositioning a product usually occurs because of
declining or stagnant sales or because of
anticipated opportunities in other market positions.
• This strategy involves altering or changing a
product’s or brand’s position.
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
1. Identify the Competitors – requires broad thinking and considering all
likely competitors. Competitors can be from other product classes.
2. Assess Perceptions of Competitors – Once competitors are defined, it
must be decided how they are perceived by consumers. Market research
is used to assess which attributes are important in the decision process.
3. Determine Their Positions – what are our competitors’ positions, as well
as ours, in relation to important product or service attributes
4. Analyze Consumer Preferences – what are consumers’ purchase motives
and what attributes are important to them? Determining a consumer’s
ideal brand or product is one way to assess this.
5. Make Positioning Decision – going through the first four steps should
lead to a decision regarding which position to assume in the marketplace.
6. Monitor the Position – assessing how well the position is being
maintained in the marketplace
Making the Positioning Decision
IsIsthe
thecurrent
current position
position IsIsthe
thesegmentation
segmentation
strategy
strategy working?
working? strategy
strategy appropriate?
appropriate?

The
The
Checklist
Checklist

Are
Arethere
theresufficient
sufficient
How
Howstrong
strong isisthe
the resources
resourcesto
to
competition?
competition? communicate
communicatethe the
position?
position?
 DEVELOPING THE
MARKETING
PLANNING PROGRAM
Next step is to examine product, price, and
distribution channels and how each influences and
interacts with the promotional program.
Product Decisions
• An organization exists because it has some product,
service, or idea to offer consumers, generally in
exchange for money.
• This offering may come in the form of a physical
product (such as a soft drink, pair of jeans, or car), a
service (banking, airlines, or legal assistance), a
cause (Special Olympics, American Cancer Society),
or even a person (a political candidate).
• A product is more than just a physical object; it is a
bundle of benefits or values that satisfies the needs
of consumers.
• The term product symbolism refers to what a
product or brand means to consumers and what
they experience in purchasing and using it.
• Product planning involves decisions not only about
the item itself, such as design and quality, but also
about aspects such as service and warranties as
well as brand name and package design.
Branding
• Branding is about building and maintaining a
favorable identity and image of the company
and/or its products or services in the mind of the
consumer.
• The goal of branding is to (1) build and maintain
brand awareness and interest; (2) develop and
enhance attitudes toward the company, product, or
service; and (3) build and foster relationships
between the consumer and the brand.
• The brand identity consists of the combination of
the name, logo, symbols, design, packaging, and
image of associations held by consumers.
• brand equity, is an intangible asset of added value
or goodwill that results from the favorable image,
impressions of differentiation, and/or the strength
of consumer attachment to a company name,
brand name, or trademark.
Packaging
• Traditionally, the package provided functional
benefits such as economy, protection, and storage.
• However, the role and function of the package have
changed because of the self-service emphasis of
many stores and the fact that more and more
buying decisions are made at the point of purchase.
• Many companies view the package as an important
way to communicate with consumers and create an
impression of the brand in their minds.
 Branding and Packaging Are
Linked
Product
Product Decisions
Decisions

BRANDING
BRANDING PACKAGING
PACKAGING

Brand
Brand Advertising
Advertising Has
Has become
become Often
Often
name
name creates
creates and
and increasingly
increasingly customers’
customers’
commun-
commun- maintains
maintains important
important first
first
icates
icates brand
brand exposure
exposure to
to
attributes
attributes equity
equity product
product
and
and
meaning
meaning
Price Decisions
• The price variable refers to what the consumer
must give up to purchase a product or service.
• Higher prices, of course, will communicate a higher
product quality, while lower prices reflect bargain
or “value” perceptions.
• A product positioned as highest quality but carrying
a lower price than competitors would only confuse
consumers.
 Pricing Decisions
What
Whatconsumers
consumersgive
giveup
up
Factors
Factorsthe
thefirm
firmmust
must to purchase a product or
to purchase a product or
consider
consider service
service

Costs Price
PriceVariable
Variable
Costs Time
Time

Demand
Demand
Mental
Mentalactivity
activity
Competition
Competition

Behavioral
Behavioraleffort
effort
Perceived
Perceivedvalue
value
Distribution Channel Decisions
Selecting
Selecting

Distribution
Distribution
Channel
Channel Managing
Managing
Decisions
Decisions

Motivating
Motivating
• Distribution decisions are among the most
important made by marketers and often play a role
in shaping the image of a company or brand.
• The various distribution channel decisions
marketers must make include:
• Selecting the type of channels that will be used to
distribute a product
• Managing the relationship with channel members
• Motivating channel members to stock and promote the
company’s product
Distribution Intermediaries
Brokers
Brokers

Distributors
Distributors
Distribution
Distribution Channel
Channel
Intermediaries
Intermediaries
Wholesalers
Wholesalers

Retailers
Retailers
Developing Promotional
Strategies: Push or Pull?
• Programs designed to motivate the channel members,
persuade them to stock merchandise, and promote a
manufacturer’s products are part of a push strategy. A
push strategy encourages resellers to order
merchandise and push it through to their customers.
• A pull strategy involves spending money on advertising
and sales promotion efforts directed toward the
ultimate consumer. The goal of a pull strategy is to
create demand among consumers and encourage them
to request the product from the retailer.
Promotional Strategy: Push or
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