IMC Role in Marketing

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Chapter 2

• IMC Role in Marketing

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Chapter Objectives

• Understand the marketing process and the role of
  advertising and promotion in an organizations
  integrated marketing program.
• Know how the various decisions of the marketing
  mix influence and interact with advertising and
  promotional strategy.

3
Chapter Objectives

• Understand the target market process in an
  integrated marketing communications program.
• Recognize the role of market segmentation and its
  use in an integrated marketing communications
  program.
• Understand the concepts of market positioning and
  brand positioning.

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Marketing and Promotions Process Model
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Market Analysis

• Market opportunity analysis
• Favourable demand trends
• Unsatisfied customer needs and opportunities
• Companies compete effectively
• Competitive analysis
• Direct and indirect competition
• Competitive advantage

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The Target Market Process
Segment the market
Select a target market
Determine the market positioning strategy
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Segment the Market - Bases for Segmentation

• Geographic segmentation.
• Province - region - country - climate.
• Demographic segmentation.
• Age - sex - family status - education -
  occupation - income - social class.
• Psychographic segmentation.
• Values - personality traits - lifestyles.

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Segment the Market - Bases for Segmentation

• Behaviouristic segmentation.
• Divide groups based on their usage, loyalties,
  buying responses.
• Usually combined with another segment profile
• Benefit segmentation.
• Types of specific needs or wants to be satisfied.
• A variety of benefits can be derived from the
  same product but for different groups.
• What benefits can be derived from the purchase of
  a watch?

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Select a Target Market

• Two steps
• Determine how many segments to enter
• Determine which segments offer the most potential
• Three potential market coverage alternatives
• 1. Undifferentiated marketing one product for
  entire market
• 2. Differentiated marketing compete in
  segments, different strategies for each
• 3. Concentrated marketing efforts on one
  specific segment in order to gain market share,

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Determine the Market Positioning Strategy

• The final decision of the market(s) in which
  firms wish to compete, combined with the specific
  elements of the marketing mix designed to fulfill
  the respective needs of the market(s).

Determine the Market positioning strategy
Segment the Market
Select a Target Market
The target market process
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Marketing Program Interaction

• Product decisions and IMC
• Price decisions and IMC
• Distribution decisions and IMC
• IMC decisions relating to marketing strategy
• The notion of positioning with IMC

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Product Decisions

• A product is a bundle of benefits or values
• Product symbolism refers to what a product or
  brand means to customers
• Product quality, branding, packaging, service,
  warranties and company name contribute to
  consumers perceptions

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Product Decisions

• Branding Positions the product in the consumers
  mind.
• Brand name communicates attributes and meaning
• Advertising creates, reinforces and maintains
  brand equity
• Added value and goodwill

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Product Decisions

• Packaging
• Packaging has become increasingly important
• It is often the customers first exposure to
  product
• Creates an impression of the brand
• Shape, size, colour, lettering can create a
  distinct brand image and identity for a product.
• Functional aspects (Tylenols Safe Ty-Lock)
• Absolute Vodka Distinct package
• Duracell package battery tester

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Pricing Decisions

• Price Decisions for IMC
• What the consumer must give up to purchase a
  product
• Cost include
• Time
• Mental activity
• behavioural effort

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Pricing Decisions

• The communications strategy must be consistent
  with the price of the product
• Product quality, competition, and advertising all
  interact in determining what price a firm can and
  should charge
• Walmart Holt Renfrew

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Pricing Decisions

• Pricing and Advertising Strategies go together
• PREMIUM PRICE HIGH EXPECTATIONS
• HIGHER AD EXPENDITURES
• LOW PRICE LOWER EXPECTATION
• LOWER AD EXPENDITURES

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Distribution Decisions

• Marketing channel decisions involve
• Making the product or service available for use
  or consumption.
• Are consistent with product and pricing
  strategies.
• What message/image does a product that is sold at
  Holt Renfrew convey?
• What message image does a product that is sold at
  Walmart covey?

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Distribution Decisions

• Marketing channel decisions involve
• Selecting
• Managing
• Motivating
• Intermediaries (resellers) are
• Wholesalers
• Distributors
• Brokers
• Retailers

Intermediaries/resellers
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Promotional Push Strategy

• Programs designed to persuade the trade to stock,
  merchandise, and promote a manufacturers
  products
• The goal is to push the product through the
  channels of distribution by aggressively selling
  and promoting the item to the resellers, or trade

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Promotional Pull Strategy

• Spending money on advertising and sales promotion
  efforts directed toward the ultimate consumer.
• The goal is to create demand among consumers and
  encourage them to request the product from the
  retailer.

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Push Versus Pull
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Positioning

• 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.
• How is the product positioned in the consumers
  mind?

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Positioning

• Brand positioning strategy.
• Relates to the image of the product or brand
  relative to a competing brand for a given
  competitive space as defined by certain product
  market or category characteristics.
• Brand position.
• The opinion a consumer has of a brand.

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Brand Positioning Strategy Options

• Attributes and benefits
• Price/quality
• Use or application
• Product user
• Competitor
• Repositioning
• Product class

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Determine the Market Positioning Strategy
Full Service
Air Canada
Low Price
High Price
West Jet
Limited Service
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Brand Positioning Strategy Process

• Positioning Strategy Process
• Identify competitors.
• 2. Assess consumers perceptions of competitors.
• 3. Determine competitors positions in relation
  to each other.
• 4. Analyze the consumers preferences.

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Brand Positioning Strategy Process

• 5. Make the brand positioning strategy decision.
• Is the segmentation approach appropriate?
• Are there sufficient resources available?
• How strong is the competition?
• Is the current brand positioning strategy
  working?
• 6. Monitor the position. Track changes in
  consumer perception.