What’s Happening?

 http://www.canadiangrocer.com/top-
stories/president%E2%80%99s-choice-among-
canadas-%E2%80%98leading-edge%E2%80%99-
brands-survey-10908

 http://www.youtube.com/watch?v=33j2a6Gvzns

 http://www.youtube.com/watch?v=VAQjF5RPgbg
The IMC Planning Process

CHAPTER 4
 PetSmart

Pets are now part of the family.

• Attitudes have changed.

• New animal care products.
• New animal care services.
• Prices are secondary.
Why the Change?

Discussion Slide
 IMC Planning Process

Must accomplish two objectives:

1. Determine which promotional objectives exist for
the company.

2. Identify the characteristics of each target market, to

better understand how to reach that target audience.
 FIGURE 4.1

The IMC Planning Process

Target
Budget
Market

Context
Customers
Competitors Objectives
Communication

Product
IMC
Positioning Components
 IMC Planning Process

Step 1: Current Context and Situation (Market

Analysis)
 Customer Analysis
 Current customers
 http://www.youtube.com/watch?v=hINpvlYlIGM&feature=relate
d
 Former customers
 Potential customers
 Competitors’ customers
 IMC Planning Process

Step 1: Current Context and Situation (Market

Analysis)
 Competitor Analysis
 Direct competitors
 Indirect competitors
 Market leaders
 Identify communication strategies and tactics of each
competitor through primary and secondary research.
 What do consumers and others say/think about the competition?
 IMC Planning Process

Step 1: Current Context and Situation (Market

Analysis)
 Communication Analysis
 Company Communication
 Current communications at all levels and in all channels
 Industry Communication
 What types of strategies are used in the industry by competing
firms.
 IMC Planning Process

Step 2: Target Market and Positioning Analysis

 Selection of target markets
 Consumer markets
 Business markets
 Dual markets
 Product/service/brand Positioning
 Created by factors such as product quality, prices, distribution,
image and market communication
 Perception created by consumer regarding the company and
its products relative to the competition
FIGURE 4.6

Product Positioning Strategies

• Product Attributes
• Competitors
• Use or application
• Price/quality
• Product user
• Product class
• Cultural symbol
 IMC Planning Process

 Marketing Segmentation and Promotion

 Segmentation helps to clarify marketing objectives geared
towards specific target markets – critical to address in the
planning process.
 This allows for more precise communications budgeting.

 This also helps link the firm’s strategies and tactics to a specific
target group.
 Determining Viable Market Segments

 The segment is different from the population as a

whole and distinct from other market segments.
 The segment is large enough to be financially viable
to target with a separate marketing campaign.
Examples?
 The individuals or businesses within the segment are
homogeneous.
 Segmentation Variables

 Demographics
 Psychographics - click
 Geographic
 Benefits Sought
 Usage
 Geodemographic Segmentation
 Combines census demographic data with psychographic and
geographic information
 Generations - see page 90, Table 4.1 - click
 VALS 2: Psychographic Segmentation

 Innovators – successful, sophisticated – upscale products.

 Thinkers – educated, conservative, practical – durability, value.
 Achievers – goal-oriented, conservative, career, and family
 Experiencers – young, enthusiastic, impulsive, fashion, social
 Believers – conservative, conventional, traditional
 Strivers – trendy, fun-loving, peers important
 Makers – self-sufficient, respect authority, not materialistic
 Survivors – safety, security, focus on needs, price
 Click to go back
Generation Segmentation
Marketing Communications Objectives

Target
Markets
Organization Positioning
Context

Communications
Objectives

Budget IMC Components

 IMC Planning Process

Step 3: Establishing Communication Objectives

What are some communication objectives that a firm
may wish to pursue?
 __________
 __________
 __________
 __________
 __________
FIGURE 4.7

Communication Objectives

 Develop brand awareness

 Increase category demand
 Change customer beliefs and attitudes
 Enhance purchase actions
 Encourage repeat purchases
 Build customer traffic
 Enhance firm image
 Increase market share
 Increase sales
 Reinforce purchase decisions
 IMC Planning Process

Step 4: Budget Planning and Considerations

 Budgets based on
 Communication objectives
 Overall marketing objectives

 Budgets vary from consumer to B-to-B markets

 Unrealistic assumption to assume direct relationship

between advertising sales and market share
 Restaurant Chains
U.S. Market Share vs. Media Ad Spending

Rank Brand Market Share Media Ad Cost Per

Spend (Mil) Share Pt. (Mil)
1 McDonald’s 7.7% $ 727.7 $ 93.9
2 Burger King 2.4% $ 268.8 $ 113.2
3 Wendy’s 2.3% $ 374.7 $161.5
4 Subway 2.2% $ 325.2 $150.1
5 Taco Bell 1.9% $ 231.7 $125.1

Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008

 F I G U R E 4. 4
An comparative example: Communication Spending
for Consumers and B-to-B

60.0% 52.6%
% of Total Marketing Budget

50.0%
40.0%
30.1%
30.0% 22.6%
21.2% 19.6%
20.0%
11.3% 11.9%
8.8% 7.2%
10.0% 4.1% 5.2% 5.3%

0.0%
Television Radio Magazine Newspaper Telephone Direct Mail
Marketing
Marketing Methodology/Media

Business-to-Business Consumer
 Creating a Communications Budget

Most common methods of creating a communications

budget include:
 Percentage of sales
 Affordable method
 Competitive-Parity method
 Objective and task method
 Payout Planning
 Quantitative methods
 Factors Impacting Relationship
Between Promotions and Sales

 The goal of the promotion

 Threshold effects
 Carryover effects
 Wear-out effects
 Decay effects
 Random events
Sales-Response Curve
Carryover effects are
important in advertising
products such as boats.
 FIGURE 4.9

A Decay Effects Model

 IMC Planning Process
Step 5: IMC Components
 Traditional advertising
 Trade promotions
 Consumer promotions
 Media spending
 Alternative media spending
 Business-to-business media spending
F I G U R E 4 . 12

U.S. Ad Spending by Media

Other, 1.3%
Internet, 7.6%

Magazines, 20.0%

Television, 43.6%

Newspapers,
17.7%

Radio, 7.2% Outdoor, 2.6%

Source: Adapted from “U.S. Ad Expenditures,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 22.
F I G U R E 4 . 13

U.S. Alternative Media Spending

Social Media
$1.43
Brand Entertainment 2% Interactive Marketing
$22.30 $11.91
30% 16%

Entertainment/Digital
Online/Mobile
out-of-home
$29.94
$9.28
40%
12%

Source: Adapted from “U.S. Alternative Media Spending,” 2008 Marketing Fact Book, Marketing News, July 15, 2008, p. 18, 22.