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The Role of IMC in the Marketing Process


Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Marketing and Promotions Process Model

Opportunity analysis Identifying markets Product decisions Promotional decisions Pricing decisions Advertising Direct marketing Interactive marketing Sales promotion Publicity and public relations Personal selling Positioning through marketing strategies Internet/ Interactive Ultimate consumer Consumers Businesses Promotion to trade Promotion to final buyer

Competitive analysis

Market segmentation

Target marketing

Channel-ofdistribution decisions Selecting a target market

Resellers Purchase

Marketing to a Lifestyle

The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation

Select market to target

Position through marketing strategies

Grupo Modelo(A Product for Every Market Segment)

The Marketing Segmentation Process

Find ways to group consumers according to their needs
Find ways to group marketing actions available to the organization Develop a market/product grid to relate the market segments to the firms products and actions Select the product segments toward which the firm will direct its marketing actions

Take marketing actions to reach target segments

What do NASCAR, Coors, and Unilever know?

Bases for Segmentation

Psychographic Demographic

Customer Characteristics
Socioeconomic Geographic


Outlet Type


Buying Situation
Awareness Benefits

Geographic Marketing

Psychographic Segmentation

Dividing the market on the basis of

Personality Values Lifestyle

VALS lifestyle segmentation

Eight lifestyles with distinctive attitudes, behaviors, and decision-making patterns Combined with estimate of the resources on which the consumer can draw

Behavioristic Segmentation

Usage Buying Responses Loyalties

Benefit Segmentation

Selecting a Target Market

Determine how many segments to enter Determine which segments have the greatest potential

Market Positioning
Fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition

Developing a Positioning Strategy

What position do we have now? Does our creative strategy match it? What position do we want to own?

The 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?

Positioning Strategies
How should we position?
Attributes and Benefits?

Price or Quality?
Use or Application?

Product Class?
Product User?

Cultural Symbols?

Positioning by Use or Application

Developing a Positioning Platform

1. 2. 3. 4. 5. 6. Identify the competitors Assess perceptions of them Determine their positions Analyze consumer preferences Make the positioning decision Monitor the position

Making the Positioning Decision

Is the current position strategy working? Is the segmentation strategy appropriate?

The Checklist

How strong is the competition?

Are there sufficient resources to communicate the position?

Advertising Develops Brand Image

Branding and Product Names Brand names often communicate attributes and meaning
Safeguard I Cant Believe Its Not Butter! Easy-Off Arrid Spic and Span

Branding and Packaging Are Linked

Product Decisions

Brand name communicates attributes and meaning

Advertising creates and maintains brand equity

Has become increasingly important

Often customers first exposure to product

A Package is More than a Container(Saks fifth avenue)

Pricing Decisions
Factors the firm must consider What consumers give up to purchase a product or service


Price Variable



Mental activity

Perceived value

Behavioral effort

Relating Price to Ads and Promotion

Pricing Considerations
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 product position A product positioned as high quality while carrying a lower price than competitors will confuse customers

When Price is Not an Issue

Distribution Channel Decisions


Distribution Channel Decisions



Distribution Intermediaries

Distribution Channel Intermediaries




Promotional Strategy: Push or Pull?

Push Policy

Pull Policy

Retailer Consumer

Retailer Consumer

Information Flow