The Role of IMC in the Marketing Process

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Chapter 2

• The Role of IMC in the Marketing Process

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Marketing and Promotions Process Model
Marketing Strategy and Analysis
Target Marketing Process
Marketing Planning Program Development
Target Market
Promotion to final buyer
Competitive analysis Target marketing
Identifying markets
Product decisions Pricing decisions Channel
of distribution decisions

• Promotional
• decisions
• advertising
• direct
• marketing
• internet/
• interactive
• marketing
• sales
• promotion
• publicity
• and public
• relations
• personal
• selling

• Ultimate
• customer
• Consumers
• Businesses

Market segmentation
Promotion to trade
Selecting a target market
Resellers
Positioning through marketing strategies
Purchase
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The Target Marketing Process
Identify markets with unfulfilled needs
Determining market segmentation
Selecting market to target
Positioning through marketing strategies
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Five-Step Segmentation Process

• 1. Finding ways to group consumers according to
  their needs.
• 2. Finding ways to group marketing actions -
  usually the products offered - available to the
  organization.
• 3. Developing a market/product grid to relate the
  market segments to the firms products and
  actions.
• 4. Selecting the product segments toward which
  the firm directs its marketing actions.
• 5. Taking marketing actions to reach target
  segments.

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Bases for Segmentation

• Geographic Segmentation
• State - region - country - climate
• Demographic Segmentation
• Age - sex - family status - education -
  occupation - income - social class.
• Psychographic Segmentation
• Values - personality traits - lifestyles.
• Behavioristic Segmentation
• Usage, loyalties, buying responses.
• Benefit Segmentation
• Types of specific needs or wants to be satisfied.

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Six Positioning Questions

• 1. 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?

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Positioning By What?

• Attributes and Benefits
• Price/Quality
• Use or Application
• Product Class
• Product User
• Competitor
• Cultural Symbols

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Positioning by attributes and benefits 1964
Crest Toothpaste original vintage advertisement.
"Crest has been shown to be an effective
decay-preventative dentrifice
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Positioning by .1951 Rolex Oyster Watch
original vintage advertisement. Illustrated in
black white featuring a man's woman's Oyster.
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Positioning by
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In one example of the pork campaign's unusual
approach, an advertisement mimics an obituary.
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• Positioning
• by

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• Positioning by
• competitor

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Positioning by cultural symbols
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Positioning Strategy Development Process
1. Identify the competitors
2. Assess perceptions of them
3. Determine their positions
4. Analyze consumer preferences
5. Make the positioning decision
6. Monitor the position
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Segmentation Decision Check List

• Is the segmentation strategy appropriate?
• Are there sufficient resources to communicate the
  position?
• How strong is the competition?
• Is the current position strategy working?

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Product Decisions

• A product is a bundle of benefits or values
• Product symbolism refers to what a product or
  brand means to customers
• Product quality, branding, packaging, and company
  name contribute to product image
• BRANDING
• Brand name communicates attributes and meaning
• Advertising creates and maintains brand equity
• PACKAGING
• Packaging has become increasingly important
• It is often the customers first exposure to
  product

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Pricing Decisions

• Price must be consistent with perceptions of the
  product
• Higher prices communicate higher product quality
• Lower prices reflect bargain or value
  perceptions
• A product positioned as high quality while
  carrying a lower price than competitors will
  confuse customers
• Price, advertising and distribution be unified in
  identifying the product position

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Distribution Channel Decisions

• Channel decisions involve
• Selecting
• Managing
• Motivating
• Independent intermediaries
• Wholesalers
• Distributors
• Brokers
• Retailers

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"Push" Techniques

• Point of sale displays, racks, stands
• Trade deals, special displays
• Dealer premiums, prizes, gifts
• Cooperative advertising deals
• Advertising materials, mats, inserts
• Push money or "spiffs"
• Collaterals, catalogs, manuals
• Company conventions, meetings

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"Pull" Techniques

• Sampling, free trial
• Cents-off promotions
• Cents-off coupons
• Combination offers
• Premiums or gifts
• Contests, sweepstakes
• Point-of-purchase advertising
• Trading stamps

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Push Versus Pull
Push Policy
Pull Policy