01-10-2016

IMC as an Integral Part of Marketing

Prof. Rajesh Prasad

Marketing Analytics

Prof. Rajesh Prasad

LECTURE TAKEAWAYS

Understand marketing strategy, its impact on

communication, and vice versa

Identify a firms area of competitive advantage, and

understand basic competitive strategies

Learn about segmenting, targeting, differentiating and

positioning

Comprehend decisions related to marketing mix elements

and their impact on promotions

Integrated Marketing Communications

Prof. Rajesh Prasad

01-10-2016

MARKETING FACTORS IMPACTING COMMUNICATION

Product
Strategies
Targeting &
Positioning
Strategies

Competitive
Strategies

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Price
Strategies

Promotion

Place
Strategies

Prof. Rajesh Prasad

DEALING WITH COMPETITION

Identify direct & indirect competitors

Identify objectives, strengths,

weaknesses, etc.

Competition includes Substitutes;

Definition neither too narrow nor too wide

Identify competitive advantage the

ability to perform in ways that are
better than competition & difficult to
copy

Ability to perform better: viz Distribution network

(HUL, ITC); Service (Maruti); design (Apple);
Glamorous Image

Use strategies to tackle competition:

a) maintain leadership
b) challenge the leader
c) follow the leader, etc.

Attract more users; discover and promote new

uses, more usage, price discounts, innovative
products, improved service, intensify advertising
etc.

Integrated Marketing Communications

Prof. Rajesh Prasad

01-10-2016

THE TARGET MARKETING PROCESS - STP

Identify markets with

unfulfilled needs

Incredible India campaign: diff messages in

different countries

Discover segments on the Viz- P&G launch of Dish washing liquids

basis of consumer
characteristics
Analyse segment potential &
finalise segments to target
Differentiate product
offering from competitors
Create a distinctive
positioning in the minds of
consumers
Integrated Marketing Communications

Prof. Rajesh Prasad

TO SEGMENT OR NOT?

Mass
Marketing

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Segment
Marketing

Prof. Rajesh Prasad

01-10-2016

SEGMENTATION CRITERIA

Measurable

Substantial

Accessible

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Differentiab
le

Actionable

Prof. Rajesh Prasad

BASES FOR SEGMENTING

CONSUMER MARKETS

Region,
population,
density, climate

Geogra
phic

Age, gender,
income,
occupation,
family size,
Demog religion,
raphic nationality, etc.

Behavi
oural

Psychog
raphic

Use occasions,
benefits, user
status, usage rate,
product
knowledge, loyalty
status, attitude
towards product,
involvement
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Lifestyle,
personality,
values
(VALS)

Prof. Rajesh Prasad

01-10-2016

Criteria to use while detrmining segment attractiveness

I. Size and Growth
1. Size:

Market potential, current market penetration

2. Growth:

Growth forecasts of adopting new technologies

II. Structural Characteristics

3. Competition:

Barriers to entry, barriers to exit, position of competitors, ability to

retaliate

4. Segment saturation:

Gaps in the market

5. Protectability:

Patentability of products, barriers to entry

6. Environmental risk:

Economic, political, and technological change

III. Product-Market Fit

7. Fit:

Coherence with companys strengths and image

8. Relationships with

Synergy, cost interactions, image transfers, cannibalization

other segments
9. Profitability:

Entry costs, margin levels, return on investment

Integrated Marketing Communications

Prof. Rajesh Prasad

Determining Segment attractiveness

Start with Nine measures grouped into three broad factors

Factor 1: pertains to the size of the segment and its growth potential
Factor 2: relates to the structural characteristics of
the segment and includes four criteria (criteria 36): competition,
segment saturation, protectability, and environmental risk
Factor 3: Product market fit
A company should ask at least three types of screening questions:
1. Does serving a particular segment fit the Companys strengths and
desired corporate image?
2. Can the company gain any synergy from serving this segment?
3. Can the company sustain the costs of entering this segment, and can it
price its products and services to achieve the desired margins and returns
on investment (ROI)?
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Prof. Rajesh Prasad

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Selecting target segments and allocating resources to

segments
After developing the criteria to evaluate the attractiveness of various
market segments, the firm selects the segment it will serve. They have 5
basic options:
1. Concentrate on a single segment.
2. Select segments in which to specialize.
3. Provide a range of offerings to a single segment
4. Provide one offering to many segments.
5. Cover the whole market (all offerings to all segments).

Integrated Marketing Communications

Prof. Rajesh Prasad

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GE Model

A procedure to implement this process uses the following six steps:

1: Specify drivers of each dimension
2: Weight drivers
3: Rate segments on each driver
4: Multiply weights by ratings for each segment
5: View resulting group
6: Review/sensitivity analysis

Integrated Marketing Communications

Prof. Rajesh Prasad

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High
Med
Low

Companys Strengths

GE Model

Low

Med

High

Segment Attractiveness
Integrated Marketing Communications

Prof. Rajesh Prasad

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BRANDS SEGMENT ON VARIOUS BASES

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Prof. Rajesh Prasad

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Geographic Segmentation: McDonalds Indianisation; Nokias Made for India design; Pepsi
advertising through Indian Singers, Indian Language

Demographic Segmentation: Hero Honda Pleasure- scooter for girls;

Psychographic Segmentation: Value & Lifestyle (VALS) model. Levis offering different
products to Self Projection, Style & Prestige, Street group customers. Offer product with
matching Brand Personality.

Behavioural Segmentation: Lreals product for Salon and Home; Different offerings to heavy
users

Benefit Segmentation: A/Cs; Hotels

Hybrid Segmentation

Integrated Marketing Communications

Prof. Rajesh Prasad

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Prof. Rajesh Prasad

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SEGMENTING WITH
HYBRID VARIABLES

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01-10-2016

TARGET MARKETING

MASS
MARKETING

DIFFERENTI
ATED
MARKETING

CONCENTRA
TED
MARKETING

Integrated Marketing Communications

Prof. Rajesh Prasad

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QUICK Q!

In which of the following markets would consumers

be willing to pay the maximum premium for the
product?
Mass market
b) Segmented market
c) Niche market
d) One-on-one market
a)

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Prof. Rajesh Prasad

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DIFFERENTIATION

Product Characteristics
Service Characteristics
Personnel Characteristics
Distribution Characteristics
Image Characteristics

Integrated Marketing Communications

Prof. Rajesh Prasad

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Prof. Rajesh Prasad

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POSITIONING

The act of designing and projecting

a distinctive image of the
companys offering in the minds of
the target market

Positioning map indicates the

relative placement of brands in
consumers minds based on 2-3
select product characteristics.

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POSITIONING OPTIONS
Benefit Positioning

Attribute Positioning
Application Positioning
User Positioning
Quality or price Positioning
Product class Positioning
Competitor Positioning

Image/ Personality Positioning

Integrated Marketing Communications

Prof. Rajesh Prasad

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BENEFIT POSITIONING

Product can be represented as the leader in a particular benefit.

If more than one benefit to be emphasised, then they can be grouped to into one key benefit to
facilitate remembering

Nokia positioned as Leading user friendly cell-phone

KamaSutra is positioned as sexual pleasure enhancer with the tagline For the pleasure of
making love

Odomos as Mosquito repelant

Baygon as Instant insect-killer.

Integrated Marketing Communications

Prof. Rajesh Prasad

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ATTRIBUTE POSITIONING
Based on the basis of key attributes such as design, automativ operation, non-corrosive material,
years of experience, number of awards etc
Parle Monaco positioned on the basis of lightness

Integrated Marketing Communications

Prof. Rajesh Prasad

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USER POSITIONING
Associate with a particular user group

Elle 18 cosmetics is the teenage girls brand

Johnson & Johnson for Babies & Mothers

Parker Boss for top corporate honchos

Femina for modern, educated urban women

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Prof. Rajesh Prasad

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Quality & Price Positioning

Offer the best value, either in terms of price or quality

Nirma & Surf have been battling over price & quality positioning

Parle- Value for money

Sunfeast- offering variety and promising contentment and pleasure

Integrated Marketing Communications

Prof. Rajesh Prasad

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Product Class Positioning

Product is represented as the leader in a certain product class or category that is different from its
traditional product category. Helps in bypassing the competition.

Castrol India , market leaders in retail automotive lubricant segment, has relaunched itself in the
range of high tech offering with Liquid Engineering slogan.

Castrol Edge, Castrol CRB Plus, CRB Turbo, Castrol Magnatech

Integrated Marketing Communications

Prof. Rajesh Prasad

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Use or Application Positioning

A product can associate itself with a specific use or application.

Moov positioned itself as a backache reliever, specially for women (based on market research)

Cadburys dairy milk ads for Pappu Pas ho gaya

Integrated Marketing Communications

Prof. Rajesh Prasad

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Competitor Positioning
Pitching against a named or apparent competitor and claim to be better in some way

Captain Cook positioned as free flowing salt against TATA SALT

Savlon positioned as no burn, no smell antiseptic compared to Dettol

Nutalite positioned as an upgrade to butter

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Prof. Rajesh Prasad

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Image or Personality Positioning

Associate itself with a strong image or Personality

LUX- known for its celebrity image

ThumsUp for Rugged Macho image

Axe for Sensational, women-attracting image

Integrated Marketing Communications

Prof. Rajesh Prasad

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CHOOSING A
POSITIONING STRATEGY

Brand
Strategy

Attributes
Valued by
Consumers

Profit
Probability

Positioning

Companys
Strengths &
Resources

Competitor
Positioning

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Prof. Rajesh Prasad

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REPOSITIONING BRAND IMAGE

8-to-8 banking

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Employee presentations for

culture change

Prof. Rajesh Prasad

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The Marketing Mix Strategies

Integrated Marketing Communications

Prof. Rajesh Prasad

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PRODUCT STRATEGIES
WHAT IS A PRODUCT?

Anything that can be offered to the

market to satisfy needs & wants

Goods,

Services, Experience, an idea, an event, a person, a

place. Almost anything

Services
Intangible
Inseparable
Variable
Perishable
Product
Viz-

symbolism: Sum total of product/brand experience

Starbucks

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Prof. Rajesh Prasad

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Prof. Rajesh Prasad

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PRODUCT SYMBOLISM

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PRODUCT LIFE CYCLE STRATEGIES

Introduction:

Objective- stimulate primary demand. Communicate to build

product awareness, acceptance among end users, and trade
channels. Viz: Cocoberry
Growth:

Objective: persuade, repeat purchases, greater interest in product

Maggi enjoyed 70% of instant noodles market
New brands like Horlicks Foodles, Sunfeast Yippee, Tasty Treat,
Chings Secret entered
Communication shifted from convenience food to platform of meal
replacement, health and taste

Integrated Marketing Communications

Prof. Rajesh Prasad

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PRODUCT LIFE CYCLE STRATEGIES

Maturity:

Characterised by decline in start of decline in sales or sales

increase rate
Stress brand differences and advantages
Sales Promotion
Decline:

either discontinue or revamp

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Prof. Rajesh Prasad

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RIN MEETS CHALLENGES

AT VARIOUS STAGES OF ITS LIFE CYCLE

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Prof. Rajesh Prasad

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Case Study - RIN

Launched in 1970 in Bar Form

No direct competition. Communication for superior benefits

Whiteness strikes with RIN

10 years later, focus was shifted to creating emotional bond with Indians

Bhala uski kameez meri kameez se safed kaise

Very successful. Ran for 10 years

Till 1987, hardly any competition. Then low priced bars like NIRMA came in.

Intro of Super Power RIN

Greater whiteness, lesser quantity requirement (Zara sa RIN), & more no of clothes washed

Mid 1990s, market stagnating, competition with powders

RIN Supreme bar (showing less sogginess) & RIN Shakti Powder(aspirational brand) launched

Competition remained tough. Research showed the importance of whiteness for Indians

2004, TIDE was introduced by P&G at low price

RIN stayed won whiteness platform. But TIDE was also on the same.

Launch of RIN Advance. Establishing only RIN white was true white.

Integrated Marketing Communications

Prof. Rajesh Prasad

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RIN..

Commercials with Amitabh Bachchan defining Advanced White, a new colour

Safedi ka Shanshah promotion was launched

RIN Shakti Powder relaunched

Bijli Girl campaign

Points for discussion

Different stages of PLC

Communication Strategies used & expected customer behaviour

In 35 years, any common theme

Integrated Marketing Communications

Prof. Rajesh Prasad

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PRODUCT ATTRIBUTES
Product attributes: quality, features, design

Amaron Batterries: Zero Maintainnance, Longer Life

Mobile Phones: Features can drive the positioning

In B2B marketing, it may be better to have personal selling

If attributes are more complex, resort to personal selling
Eureka Forbes
Product design can also be communicated. (differentiate between design & style)
Crocs design is unique. Positioned on Experiential platform

Integrated Marketing Communications

Prof. Rajesh Prasad

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Packaging
Packaging: Conceptualize, design & produce product container

Sachets
Blister Packs
Easy to open juice packs
Recyclable soft drink bottles
Microwavable noodle packs
Detergant boxes with handles and measuring spoons
Squeeze tubes of toothpaste

Package can also be used to communicate

Integrated Marketing Communications

Prof. Rajesh Prasad

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Branding
Branding: Investing a product with desired brand attributes

Integrated Marketing Communications

Prof. Rajesh Prasad

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QUICK Q!
A products package serves as:
a)

A container to hold & protect a product

b)

A means for clubbing product into assortments

c)

A safety device

d)

A communication tool

e)

All of the above

Integrated Marketing Communications

Prof. Rajesh Prasad

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COMMUNICATION CAN CREATE A BRAND

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Prof. Rajesh Prasad

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DISTRIBUTION

Distribution
Channels:

Resellers

Organisations,
individuals &
processes making
products available
from manufacturer
to end user

Direct
marketing

Indirect

Wholesalers

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Retailers

Prof. Rajesh Prasad

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PUSH VS. PULL STRATEGY

PUSH STRATEGY

Manufa
cturer

Trade/Promotional
advertising

PULL
STRATEGY
Manufa Consumer
advertising
cturer

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Reseller

Consumer

Stocking product
Cooperative ads
Reseller promotion

Asks for
product

Prof. Rajesh Prasad

Consumer

Reseller

Product use

Stocks &
supplies

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PUSH VS. PULL STRATEGY

PULL

PUSH

Appropriate when:
Low

brand loyalty in category

Brand choice made in store
Retailer recommendations are
valued
Product is an impulse purchase
item
Marketers have low budget and/or
good channel relations

Integrated Marketing Communications

Prof. Rajesh Prasad

Appropriate when:
High

brand loyalty
product involvement
Product has unique benefits or is
superior to competition
Purchase decision is made before going
to the store
High

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PRESTIGE PULLS CONSUMERS

THROUGH ADVERTISING

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Prof. Rajesh Prasad

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PRICE

What a consumer pays or gives

up for product acquisition includes
time, energy & psychic costs

Price serves as an indicator of product quality

high price is associated with superior
quality

Pricing considerations:

Advertising increases a firms ability to

charge a higher price without lowering
demand

Product perception
Consistency with other marketing mix
elements
Market & competition

Integrated Marketing Communications

Prof. Rajesh Prasad

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BRAND IMAGE ALLOWS REEBOK TO CHARGE A PRICE

PREMIUM

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RASNA COMMUNICATES
ITS VALUE-FOR-MONEY PRICING

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Prof. Rajesh Prasad

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QUICK Q!

A product that has high quality and low price will usually:
a)
b)
c)
d)

Integrated Marketing Communications

Confuse the consumer

Excite the consumer
Communicate a high product quality
None of the above

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IndiGo: The Efficient Budget Airline

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