The Role of IMC in the Marketing Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Product decisions Pricing decisions Channel-of- distribution decisions Product decisions Pricing decisions Channel-of- distribution decisions Opportunity analysis Competitive analysis Target marketing Identifying markets Market segmentation Selecting a target market Positioning through marketing strategies Promotional decisions Advertising Direct marketing Interactive marketing Sales promotion Publicity and public relations Personal selling Ultimate consumer Consumers Businesses Promotion to final buyer Opportunity analysis Competitive analysis Target marketing Identifying markets Market segmentation Selecting a target market Positioning through marketing strategies Promotional decisions Advertising Direct marketing Interactive marketing Sales promotion Publicity and public relations Personal selling Ultimate consumer Consumers Businesses Marketing and Promotions Process Model © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Resellers Promotion to trade Internet/ Interactive Purchase

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Factors that influence the decision as to how far the segmentation process should go include: A)whether the segment is accessible B)whether sufficient funds exist for developing the necessary advertising campaign C)the availability of media that reaches the segment D)the ability of the sales force to reach the segment E)all of the above

Positioning through marketing strategies Selecting market to target Determining market segmentation Identify markets with unfulfilled needs Selecting market to target Determining market segmentation Identify markets with unfulfilled needs The Target Marketing Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Beer is Beer? Not Really! © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Take marketing actions to reach target segments. 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. Find ways to group marketing actions - usually the products offered - available to the organization. Find ways to group consumers according to their needs. 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. Find ways to group marketing actions - usually the products offered - available to the organization. Find ways to group consumers according to their needs. The Marketing Segmentation Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Behavior Benefits Outlets Benefits Outlets Behavior Psychographic Geographic Demographic Psychographic Demographic Geographic Bases for Segmentation Customer Characteristics Customer Characteristics Socioeconomic Buying Situation Buying Situation Usage Socioeconomic © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Awareness

Examples of Some PRIZM Clusters © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin HIGH LOW $

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The key factor in communicating information about a brand and differentiating it from competitors is: A)its perceived price differential B)its integrated promotional strategy C)the market positioning strategy assigned it by its manufacturer D)its distribution intensity E)the benefits the brand offers

What position do we have now? Do we have the money to do the job? What position do we want to own? From whom must we win this position? Do we have the tenacity to stay with it? Do we have the money to do the job? From whom must we win this position? What position do we want to own? What position do we have now? Does our creative strategy match it? Developing a Positioning Strategy © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Position The Position

By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By Competitor? By Cultural Symbols? By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By Competitor? Positioning Strategies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin How should we position?

6.Monitor the position 5.Make the positioning decision 4.Analyze consumer preferences 3.Determine their positions 2.Assess perceptions of them 1.Identify the competitors 5.Make the positioning decision 4.Analyze consumer preferences 3.Determine their positions 2.Assess perceptions of them 1.Identify the competitors Developing a Positioning Platform © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Is the current position strategy working? Is the segmentation strategy appropriate? Are there sufficient resources to communicate the position? Is the segmentation strategy appropriate? Is the current position strategy working? Are there sufficient resources to communicate the position? How strong is the competition? Positioning Decisions © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Checklist The Checklist

Branding and Packaging Work Closely Together © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Product Decisions BRANDING Brand name commun- icates attributes and meaning Advertising creates and maintains brand equity Packaging has become increasingly important It’s often customers’ first exposure to product PACKAGING BRANDING

Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or “value” perceptions Price, advertising and distribution be unified in identifying the product position Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or “value” perceptions Price, advertising and distribution must be unified in identifying the product position Pricing Must Be Coordinated with Other Factors © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Pricing Considerations Pricing Considerations A product positioned as high quality while carrying a lower price than competitors will confuse customers

Selecting Managing Motivating Selecting Managing Distribution is a Vital Link in the Chain © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Distribution Channel Decisions Distribution Channel Decisions

The “Middleman” Can Play a Key Role © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Independent Channel Intermediaries Independent Channel Intermediaries Brokers Distributors Wholesalers Retailers Brokers Distributors Wholesalers

Push Policy Producer Wholesaler Retailer Consumer Producer Wholesaler Retailer Consumer Push Versus Pull © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Information Flow Pull Policy Producer Wholesaler Retailer Consumer

Test Your Knowledge © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin An ad in a publication aimed at veterinarians explaining why they should recommend Eukanuba cat food to the owners of all the cats they treat is an example of: A)consumer advertising B)a promotional pull strategy C)a harvesting strategy D)a consumer promotion E)a promotional push strategy

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 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 Promotion to Push Goods Through Channels © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PUSH Company conventions, meetings

Sampling, free trial Cents-off promotions Cents-off coupons Combination offers Premiums or gifts Contests, sweepstakes Point-of-purchase Contests, sweepstakes Premiums or gifts Combination offers Cents-off coupons Cents-off promotions Sampling, free trial Promotion to Pull Goods Through Channels © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PULL Trading stamps