The Role of IMC in the Marketing Process

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

Productdecisions

Pricingdecisions

Channel-of-distributiondecisions

Productdecisions

Pricingdecisions

Channel-of-distributiondecisions

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions• Advertising• Direct

marketing• Interactive

marketing• Sales

promotion• Publicity

and public relations

• Personal selling

Ultimateconsumer• Consumers• Businesses

Promotionto finalbuyer

Opportunityanalysis

Competitiveanalysis

Targetmarketing

Identifyingmarkets

Marketsegmentation

Selecting atarget market

Positioningthrough

marketingstrategies

Promotionaldecisions• Advertising• Direct

marketing• Interactive

marketing• Sales

promotion• Publicity

and public relations

• Personal selling

Ultimateconsumer• Consumers• Businesses

Marketing and Promotions Process Model

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Resellers

Promotion to trade

Internet/Interactive

Purchase

Marketing to a Lifestyle (Athletes)

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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

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

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Bases for Segmentation

Psychographic

Geographic

DemographicPsychographic Demographic

Benefit

CustomerCharacteristics

SocioeconomicBehavioral

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A Product for Every Segment

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A Product for Every Segment

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A Product for Every Segment

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Home Depot Reaches Out to the Female Market

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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

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

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How shouldHow shouldwe position?we position?

Cultural Symbols Can Differentiate Brands

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Positioning based on Price and Quality

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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

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Advertising Develops Brand Images

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Branding and Packaging Work Closely Together

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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

PACKAGINGBRANDING

A Package Is More than a Container

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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

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PricingConsiderations

A product positioned as high quality while carrying a lower price than

competitors will confuse customers

Some Products Compete on Price – Others Compete on Quality

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Push Policy

Producer

Wholesaler

Retailer

Consumer

Producer

Wholesaler

Retailer

Consumer

Push Versus Pull

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Information Flow

Pull Policy

Producer

Wholesaler

Retailer

Consumer

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

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PUSHPUSH

Company conventions, meetings

Sampling, free trial

Cents-off promotions

Cents-off coupons

Combination offers

Premiums or gifts

Contests, sweepstakes

Point-of-purchasePoint-of-purchase

Contests, sweepstakes

Premiums or gifts

Combination offers

Cents-off coupons

Cents-off promotions

Sampling, free trial

Promotion to Pull Goods Through Channels

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PULLPULL

Trading stamps