The Role of IMC in the Marketing Process
- 1. The Role of IMC in the Marketing Process Chapter 2
- 2. Consists of four major components: ◦ Organization’s marketing strategy and analysis, ◦ Target marketing process, ◦ Marketing planning program development (which includes the promotional mix), and ◦ Target market The IMC Model
- 3. The company must coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively The IMC Model
- 4. Marketing and Promotions Process Model
- 5. Any organization that wants to exchange its products or services in the marketplace successfully should have a strategic marketing plan to guide the allocation of its resources Marketing Strategy and Analysis
- 6. Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively. A company usually identifies market opportunities by carefully examining the marketplace and noting demand trends and competition in various market segments Opportunity Analysis
- 8. In developing the firm’s marketing strategies and plans for its products and services, the manager must carefully analyze the competition An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors Competitive advantage can also be achieved through advertising Competitive Analysis
- 10. Companies must be concerned with the ever- changing competitive environment. Competitors’ marketing programs have a major impact on a firm’s marketing strategy, so they must be analyzed and monitored. The reactions of competitors to a company’s marketing and promotional strategy are also very important. Competitors may cut price, increase promotional spending, develop new brands, or attack one another through comparative advertising Competitive Analysis
- 11. Marketers rarely go after the entire market with one product, brand, or service offering. Rather, they pursue a number of different strategies, This means different objectives may be established, different budgets may be used, and the promotional- mix strategies may vary Target Market Selection
- 12. Involves four basic steps: ◦ identifying markets with unfulfilled needs ◦ segmenting the market ◦ targeting specific segments ◦ positioning one’s product or service through marketing strategies. The Target Marketing Process
- 13. The segmentation process involves five distinct steps: ◦ Finding ways to group consumers according to their needs. ◦ Finding ways to group the marketing actions—usually the products offered-available to the organization. ◦ Developing a market-product grid to relate the market segments to the firm’s products or actions. ◦ Selecting the target segments toward which the firm directs its marketing actions. ◦ Taking marketing actions to reach target segments Marketing Segmentation
- 14. In the geographic segmentation approach, markets are divided into different geographic units. These units may include nations, states, counties, or even neighborhoods Geographic Segmentation
- 15. Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class is called demographic segmentation. Demographic Segmentation
- 16. Dividing the market on the basis of personality and/or lifestyles Many consider lifestyle the most effective criterion for segmentation. Psychographic Segmentation
- 17. Dividing consumers into groups according to their usage, loyalties, or buying responses to a product Degree of use relates to the fact that a few consumers may buy a disproportionate amount of many products or brands. Industrial marketers refer to the 80-20 rule, meaning 20 percent of their buyers account for 80 percent of their sales volume. Behaviorial Segmentation
- 18. In purchasing products, consumers are looking for products that provide specific benefits to satisfy these needs. Benefit Segmentation
- 19. The outcome of the segmentation analysis will reveal the market opportunities available. The next phase in the target marketing process involves two steps: ◦ Determining how many segments to enter ◦ Determining which segments offer the most potential Selecting a Target Market
- 20. Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market Undifferentiated Marketing
- 21. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each Differentiated Marketing
- 22. Used when the firm selects one segment and attempts to capture a large share of this market Concentrated Marketing
- 23. Positioning has been defined as “the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition.” Market Positioning
- 24. What position, if any, do we already have in the prospect’s mind? What position do we want to own? What companies must be outgunned if we are to establish that position? Do we have enough marketing money to occupy and hold the position? Do we have the guts to stick with one consistent positioning strategy? Does our creative approach match our positioning strategy? Developing a Positioning Strategy
- 25. A common approach to positioning is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Positioning by Product Attributes and Benefits
- 26. Marketers often use price/quality characteristics to position their brand Positioning by Price/Quality
- 27. Another way to communicate a specific image or position for a brand is to associate it with a specific use or application. Positioning by Use or Application
- 28. Often the competition for a product comes from outside the product class. Positioning by Product Class
- 29. Positioning a product by associating it with a particular user or group of users Positioning by Product User
- 30. Perhaps the best-known example of this strategy was Avis, which positioned itself against the car-rental leader, Hertz, by stating, “We’re number two, so we try harder.” Positioning by Competitor
- 33. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions. Repositioning is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand. Repositioning
- 35. Identifying competitors. Assessing consumers’ perceptions of competitors. Determining competitors’ positions. Analyzing the consumers’ preferences. Making the positioning decision. Monitoring the position. Determining the Positioning strategy
- 46. A product is not just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers. The needs may be purely functional, or they may include social and psychological benefits. The term product symbolism refers to what a product orbrand means to consumers and what they experience in purchasing and using it. For many products, strong symbolic features and social and psychological meaning may be more important than functional utility. Product Decisions
- 48. Choosing a brand name for a product is important from a promotional perspective because brand names communicate attributes and meaning. Marketers search for brand names that can communicate product concepts and help position the product in customers’ minds. Names such as Safeguard (soap), (margarine), Easy-Off (oven cleaner), and Spic and Span (floor cleaner) all clearly communicate the benefits of using these products Branding
- 50. One study estimated that as many as two- thirds of all purchases made in the supermarket are unplanned. Packaging
- 51. Packaging
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- 53. Packaging
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- 55. Packaging
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- 60. Packaging
- 61. Packaging
- 62. A firm must consider a number of factors in determining the price it charges for its product or service, including costs, demand factors, competition, and perceived value. From an IMC perspective, the price must be consistent with the perceptions of the product, as well as the communications strategy. Price Decisions
- 63. One of a marketer’s most important marketing decisions involves the way it makes its products and services available for purchase. A firm can have an excellent product at a great price, but it will be of little value unless it is available where the customer wants it, when the customer wants it, and with the proper support and service. Distribution Channel Decisions