Chapter 2 The Role of IMC in the Marketing Process

Last Class  Introduction to IMC  Links to marketing and promotional elements

Today’s Objectives  Role of IMC in Marketing

What kind of a strategy is Samsung using to compete against Sony? a repositioning strategy niche market strategy a concentrated market strategy an undifferentiated market strategy lifestyle segmentation

What is?  A market opportunity  A competitive advantage  A market threat

Product Decisions Pricing Decisions Distribution Decisions Product Decisions Pricing Decisions Distribution Decisions Opportunity Analysis Competitive Analysis Target Marketing Identifying Markets Market Segmentation Selecting a Target Market Positioning Through Marketing Strategies Promotional Decisions Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and Public Relations Personal Selling Resellers Ultimate Consumer Consumers Businesses Promotion to Final Buyer Promotion To Trade Opportunity Analysis Competitive Analysis Target Marketing Identifying Markets Market Segmentation Selecting a Target Market Positioning Through Marketing Strategies Promotional Decisions Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and Public Relations Personal Selling Ultimate Consumer Consumers Businesses Marketing and Promotions Process Model

Marketing to a Lifestyle +

The Role of IMC in Marketing  Nike’s and Reebook’s success : they recognize their business is no longer about just selling shoes.  It’s about selling sports, entertainment, style, and fashion. Tell me about other brands… What business are they in? Kale Duru Nivea

The Target Marketing Process Identify markets with unfulfilled needs Determining market segmentation Selecting market to target Positioning through marketing strategies

Is a Roof just a Roof!

Different products for different needs!

Beer is Beer? Not Really!

A Product for Every Segment

Take Marketing Actions To Reach Target Segments. Select the Product Segments Toward Which the Firm Directs Its Marketing Actions. Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions. Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization. Find Ways To Group Consumers According To Their Needs. Select the Product Segments Toward Which the Firm Directs Its Marketing Actions. Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions. Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization. Find Ways To Group Consumers According To Their Needs The Marketing Segmentation Process

Behavior Benefits Outlets Benefits Outlets Behavior Psychographic Geographic Demographic Psychographic Demographic Geographic Bases for Segmentation Customer Characteristics Customer Characteristics Socioeconomic Buying Situation Buying Situation Usage Socioeconomic

Hispanics Prefer Spanish Language Ads

Six Positioning Questions 1.What position do we have now? 2.What position do we want to own? 3.From whom must we win this position? 4.Do we have the money to do the job? 5.Do we have the tenacity to stay with it? 6.Does our creative strategy match it?

What is this?

The first production Model T Ford was built on September 27, Ford continued building the "T" for the next 19 years, until it was replaced by the Model "A" in 1928.

Ford Motor Company

By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By Competitor? By Cultural Symbols? By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By Competitor? Positioning Strategies How should we position?

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

 Attribute/benefit  Price/quality  Use/application  Product class  Product users  Competitor  Cultural symbol  Repositioning - Energizer - Ikea - Baking Soda - Butter or margarine - Nike - Sana vs. Aymar, 7UP - CocaCola in Ramadan - Volvo Developing a Positioning Strategy

Product Decisions A product is a bundle of benefits or values. Product quality, branding, packaging, and company name contribute to product image.

Branding and Packaging Work Closely Together Product Decisions BRANDING Brand name commun- icates attributes and meaning Advertising creates and maintains brand equity Packaging has become increasingly important It’s often customers’ first exposure to product PACKAGING BRANDING

A Package Is More than a Container +

Packaging Enhances Brand Identity

For other products?

Which one is more expensive?

Pricing Decisions  consistent with perceptions of the product.  Higher prices higher product quality.  Lower prices reflect bargain or “value” perceptions  Price, advertising and distribution be unified in identifying the product position

Distribution Channel Decisions Channel decisions involve: Selecting Managing Motivating -Independent intermediaries: Wholesalers Distributors Brokers Retailers

Promotion to Push Goods Through Channels vs Promotion to Pull Goods Through Channels PUSHPULL

Information Flow Push Policy Producer Retailer Consumer Wholesaler Pull Policy Producer Wholesaler Retailer Consumer

Point of Sale Displays, Racks, Stands Trade Deals, Special Displays Dealer Premiums, Prizes, Gifts Cooperative Advertising Deals Advertising Materials, Mats, Inserts Push Money or “Spiffs" Collaterals, Catalogs, Manuals Point of Sale Displays, Racks, Stands Trade Deals, Special Displays Dealer Premiums, Prizes, Gifts Cooperative Advertising Deals Advertising Materials, Mats, Inserts Push Money or “Spiffs" Collaterals, Catalogs, Manuals Promotion to Push Goods Through Channels PUSH Company Conventions, Meetings

Sampling, free trial Cents-off promotions Cents-off coupons Combination offers Premiums or gifts Contests, sweepstakes Point-of-purchase Contests, sweepstakes Premiums or gifts Combination offers Cents-off coupons Cents-off promotions Sampling, free trial Promotion to Pull Goods Through Channels PULL Trading stamps

Push strategies only to the next link down  involve promoting the product only to the next link down the distribution channel; cheapstraightforward  advantage : cheap and relatively straightforward, and consumer-orientated.  Not consumer-orientated.  Techniques used: Point of sale displays, racks, stands Point of sale displays, racks, stands Trade deals, special displays Trade deals, special displays Dealer premiums, prizes, gifts Dealer premiums, prizes, gifts Cooperative advertising deals etc Cooperative advertising deals etc

Pull Strategies consumer,  Focuses on consumer, aimed at the final consumers launch strategies both  Most launch strategies would involve elements of both push and pull.  Techniques used:  Sampling, free trial  Cents-off promotions  Cents-off coupons etc.

Next Class  Organizing for Advertising and Promotion  Read Chapter 3!!!