Chapter 2 IMC Role in Marketing

Chapter 2 : IMC Role in Marketing Chapter Objectives To understand the marketing process and the role of advertising and promotion in an organization’s integrated marketing program. To know how the various decisions of the marketing mix influence and interact with advertising and promotional strategy.

Chapter 2 : IMC Role in Marketing Chapter Objectives To understand the target market process in an integrated marketing communications program. To recognize the role of market segmentation and its use in an integrated marketing communications program. To understand the concepts of market positioning and brand positioning.

Chapter 2 : IMC Role in Marketing Marketing and Promotions Process Model Figure 2-1

Chapter 2 : IMC Role in Marketing Market Analysis Market opportunity analysis –Favourable demand trends –Unsatisfied customer needs and opportunities –Companies compete effectively Competitive analysis –Direct and indirect competition –Competitive advantage

Chapter 2 : IMC Role in Marketing The Target Market Process Segment the market Select a target market Determine the market positioning strategy

Chapter 2 : IMC Role in Marketing Segment the Market - Bases for Segmentation Geographic segmentation. –Province - region - country - climate. Demographic segmentation. –Age - sex - family status - education - occupation - income - social class. Psychographic segmentation. –Values - personality traits - lifestyles.

Chapter 2 : IMC Role in Marketing Segment the Market - Bases for Segmentation Behaviouristic segmentation. –Usage, loyalties, buying responses. Benefit segmentation. –Types of specific needs or wants to be satisfied.

Chapter 2 : IMC Role in Marketing Select a Target Market 2 steps: –Determine how many segments to enter –Determine which segments offer the most potential 3 market coverage alternatives: –Undifferentiated marketing –Differentiated marketing –Concentrated marketing

Chapter 2 : IMC Role in Marketing Determine the Market Positioning Strategy The final decision of the market(s) in which firms wish to compete, combined with the specific elements of the marketing mix designed to fulfill the respective needs of the market(s). Figure hypothetical illustration of market positioning strategy.

Chapter 2 : IMC Role in Marketing Marketing Program Development Product decisions and IMC Price decisions and IMC Distribution decisions and IMC IMC decisions relating to marketing strategy

Chapter 2 : IMC Role in Marketing 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 consumers’ perceptions

Chapter 2 : IMC Role in Marketing Branding: –Brand name communicates attributes and meaning –Advertising creates and maintains brand equity Packaging: –Packaging has become increasingly important –It is often the customer’s first exposure to product Product Decisions

Chapter 2 : IMC Role in Marketing Pricing Decisions What the consumer must give up to purchase a product Cost include: –Time –Mental activity –behavioural effort

Chapter 2 : IMC Role in Marketing Pricing Decisions The communications strategy must be consistent with the price of the product Product quality, competition, and advertising all interact in determining what price a firm can and should charge

Chapter 2 : IMC Role in Marketing Distribution Decisions Marketing channel decisions involve: –Selecting –Managing –Motivating Intermediaries (resellers): –Wholesalers –Distributors –Brokers –Retailers

Chapter 2 : IMC Role in Marketing Promotional Push Strategy Programs designed to persuade the trade to stock, merchandise, and promote a manufacturer’s products The goal is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade

Chapter 2 : IMC Role in Marketing Promotional Pull Strategy Spending money on advertising and sales promotion efforts directed toward the ultimate consumer. The goal is to create demand among consumers and encourage them to request the product from the retailer.

Chapter 2 : IMC Role in Marketing Push Versus Pull Information Flow Push Policy Producer Retailer Consumer Wholesaler Pull Policy Producer Wholesaler Retailer Consumer

Chapter 2 : IMC Role in Marketing 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.

Chapter 2 : IMC Role in Marketing Positioning Brand positioning strategy. –Relates to the image of the product or brand relative to a competing brand for a given competitive space as defined by certain product market or category characteristics. Brand position. –The opinion a consumer has of a brand.

Chapter 2 : IMC Role in Marketing Brand Positioning Strategy Options Attributes and benefits Price/quality Use or application Product user Competitor Repositioning Product class

Chapter 2 : IMC Role in Marketing Brand Positioning Strategy Process 1. Identify competitors. 2. Assess consumers’ perceptions of competitors. 3. Determine competitors’ positions. 4. Analyze the consumers’ preferences. 5. Make the brand positioning strategy decision. 6. Monitor the position.