1. The Role of IMC in the Marketing Process
Chapter 2
The Role of IMC in the Marketing Process

2. Last Class Introduction to IMC
Links to marketing and promotional elements

4. Today’s Objectives
Role of IMC in Marketing

5. 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

6. What is?
A market opportunity
A competitive advantage
A market threat

7. Marketing and Promotions Process Model
Opportunity
Analysis
Competitive
Target
Marketing
Opportunity
Analysis
Competitive
Target
Marketing
Identifying
Markets
Market
Segmentation
Selecting a
Target Market
Positioning
Through
Marketing
Strategies
Identifying
Markets
Market
Segmentation
Selecting a
Target Market
Positioning
Through
Marketing
Strategies
Product
Decisions
Pricing
Distribution
Product
Decisions
Pricing
Distribution
Promotional
Decisions
Advertising
Direct Marketing
Interactive Marketing
Sales Promotion
Publicity and Public Relations
Personal Selling
Promotional
Decisions
Advertising
Direct Marketing
Interactive Marketing
Sales Promotion
Publicity and Public Relations
Personal Selling
Ultimate
Consumer
Consumers
Businesses
Promotion
to Final
Buyer
Ultimate
Consumer
Consumers
Businesses
Promotion
To Trade
Relation to text This slide relates to material on p. 39 of text and Figure 2-1.
Summary Overview This model is a framework for analyzing how promotion fits into an organization’s marketing strategy and programs. The model consists of four major components:
Marketing strategy and Analysis
Target Marketing Process
Marketing Planning Program Development (includes the promotional mix)
Target Market
As the model shows, the marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. Note that the promotion program is directed to both the ultimate consumer and the “trade” members or resellers that distribute the company’s products.
Use of this slide This slide can be used to provide an overview of a firm’s marketing process and how promotion fits into the program. You might provide a brief discussion of each stage of the marketing process shown in this model.
Resellers

8. Marketing to a Lifestyle
Relation to text This slide relates to material on pp and Exhibit 2-1 of the text.
Summary Overview This slide shows a print ad for Merrill shoes and relates to analyzing marketing opportunities. Marketing opportunities are areas where there are favorable trends, where companies believe customer needs are not being satisfied, and they can compete effectively. This ad shows how Merrill sees opportunity in the growing segment of “lifestyle” shoes.
Relation to text This slide can be used to show how companies need to capitalize on marketing opportunities. For instance the athletic shoe industry has changed dramatically as we have seen an emergence of a new segment called “lifestyle” shoes. Merrill is competing in this segment by using ads such as the one shown here. +

9. 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

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

12. Is a Roof just a Roof!

13. Different products for different needs!

14. Beer is Beer? Not Really!
Relation to text This slide relates to material on pp and Figure 2-3.
Summary Overview This graph shows the various market segments of the beer industry. There are many segments in the beer industry that correspond to different customers’ needs, lifestyles, budgets, and other characteristics. The market has become highly segmented with each segment appealing to a different set of needs such as taste, cost, image, lifestyle, and calorie content.
Use of this slide This slide can be used to show how the beer industry can be segmented and how it has evolved. Years ago beer was just beer, with little differentiation. Today the market is segmented based on many factors in an attempt to better satisfy customer needs.

15. A Product for Every Segment
Relation to text This slide relates to the material on pp and Exhibit 2-4
Summary Overview This slide for Grupo Modelo shows how companies compete in a variety of segments with a variety of products varying the marketing mix with each. This ad shows all the different types of beer offered by Grupo Modelo appealing to a different set of needs such as tastes, lifestyle, image, and even waistlines.
Use of slide This slide can be used to show how marketers identify customers with differing lifestyles, tastes, demographics, or images and develop different products to better satisfy their needs.

16. The Marketing Segmentation Process
Find Ways To Group Consumers According To Their Needs.
Find Ways To Group Consumers According To Their Needs
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions.
Relation to text This slide relates to the material on pp
Summary Overview In order to effectively segment markets the segmentation process involves five distinct steps:
Find ways to group customers according to their needs
Find ways to group the marketing actions – usually the products offered
Develop a market/product grid to relate the market segments to the firm’s products and actions
Select the product segments toward which the firm directs its marketing actions
Take marketing actions to reach target segments.
Use of this slide This slide can be used to provide an overview of market segmentation and the steps involved in this process.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Select the Product Segments Toward Which the Firm Directs Its Marketing Actions.
Take Marketing Actions To Reach Target Segments.

17. Bases for Segmentation
Psychographic
Psychographic
Demographic
Demographic
Customer
Characteristics
Socioeconomic
Geographic
Socioeconomic
Geographic
Relation to text
This slide relates to material on pp of the text and Figure 2-4.
Summary Overview
There are a number of methods that are available for segmenting markets. These methods can be broken into two broad categories based on customer characteristics and aspects of the buying situation. Segmentation based on customer characteristics includes:
Geographic segmentation, which divides markets by geographic locations such as nations, states, regions, or cities.
Demographic segmentation which divides markets based on demographic variables such as gender, age, education, race, and life stage.
Socioeconomic segmentation, which divides markets based on socioeconomic variables such as income, education, and occupation.
Psychographic segmentation, which divides markets based on personality values or lifestyle. SRI’s VALS 2 is a popular approach to lifestyle segmentation
Segmentation based on the buying situation includes:
Behavioral segmentation which divides a market into groups according to their level of involvement with and purchase behavior toward a product or service.
Outlets which segments a market based on the type of store where a product is sold such as convenience, supermarket, mass merchandiser, specialty
Benefit segmentation divides markets on the basis of the specific benefits or outcomes consumers want from a product or service.
Usage segmentation which classifies customer based on their level of use of a product or service including heavy, medium, and light users.
Use of this slide
This slide can be used to provide an overview of various approaches used by marketers in segmenting markets on the basis of customer characteristics and buying situations.
Behavior
Behavior
Outlets
Outlets
Buying
Situation
Usage
Benefits
Benefits

18. Segmentation
Age or Generation?

19. Segmentation Examples
Physical Size
Offerings might be big men's clothing, golf clubs for shorter players, etc.
Creation of or response to a fad
Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.
Geographic location
Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc.
Time related factors
You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.
Demographics/culture/religion
Ethnic products would fall into this category.
Social status
This could include country club memberships, philanthropic contributions, etc.
Segmentation Examples

20. Segmentation Examples
Education
Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling.
Avocation
This could include products for hunting, fishing, golf, art work, knitting, etc.
Special Interests
You could target cat lovers, science fiction readers, jazz music collectors, etc.
Accessibility
Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc.
Access (or lack of access) to competitive offerings
Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc.
Segmentation Examples

21. Segmentation Examples
Need for specific information
Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking.
Need for customization
Product/service examples are home decoration, fashion wear, personal portraits, etc.
Need for quality, durability, etc.
Product examples are mountain climbing gear, carpenter's tools, etc.
Degree of a product/service ingredient
Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others.
Segmentation Examples

22. Hispanics Prefer Spanish Language Ads
Relation to text This slide contains a Spanish language commercial for Philadelphia Cream Cheese from Kraft Foods and relates to Diversity Perspective 2-1 on pp
Summary of Slide This commercial for Philadelphia Cream Cheese is titled “Celestial Family” and is an example of how companies such as Kraft Foods are developing advertising specifically for the Hispanic market. Like many other ads targeting Hispanics, this message addresses a key Hispanic value which is the family and depicts the mother fulfilling an important role of providing for her children. Many marketers are developing commercials for the Hispanic market that can be broadcast on Spanish language TV networks and stations.
Use of this slide This commercial can be used as an example of how marketers are developing advertising specifically for the Hispanic market. As discussed in Diversity Perspective 2-1, Hispanics now represent the largest ethnic market in the U.S. and are also the fastest growing market. Marketers recognize that it is important to develop ads for this important market.

23. 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?

28. What is this?

29. The first production Model T Ford was built on September 27, 1908
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.

30. Ford Motor Company

31. Positioning Strategies
By Attributes and Benefits?
By Attributes and Benefits?
How should
we position?
By Price or Quality?
By Price or Quality?
By Use or Application?
By Use or Application?
Relation to text This slide relates to material on pp of the text.
Summary Overview A number of positioning strategies might be used by marketers. These include positioning on the basis of the following:
Attributes/Benefits – setting the brand apart from competition using specific characteristics or benefits offered. Marketers attempt to identify salient benefits which are those that are important to customers in their purchase decisions
Price/Quality – using price as characteristic of the brand. High quality/image pricing can be used as well as value pricing which reflects a very competitive price.
Use/Application – associate the brand with a specific use. This approach can also be effective way to expand usage of a product.
Product Class – competition can come from outside the product class whereby a product is positioned against another product category
Product User – associating a brand with a type of person or group that uses a product or service.
Competitor – positioning a company or brand against a competitor. Often another form of positioning is used as well to differentiate the brand.
Cultural Symbols – use symbols that have acquired cultural meaning and associating a brand with these symbols to differentiate it from competitors (e.g. Marlboro and the cowboy)
Use of the slide This slide can be used to explain the various approaches that can be used to position a brand and differentiate it from the competition.
By Product Class?
By Product Class?
By Product User?
By Product User?
By Competitor?
By Competitor?
By Cultural Symbols?

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

33. Developing a Positioning Strategy
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
product attribute/benefit -- setting a product apart by stressing a specific characteristic or benefit offered.
price/quality -- For example, some products set themselves apart by assuming a very high price/quality association, while others become "price products."
use or application -- products such as Arm and Hammer baking soda and Black & Decker have capitalized on this strategy.
product class -- Amtrak reflects this strategy in which the product is positioned against others that, while not exactly the same, provide the same class of benefits.
Positioning by product user -- in this strategy the product is positioned at a particular group of users.
Positioning by competitor -- in many cases the competition may be used to define the positioning strategy. Companies can position their products to set themselves apart from the competition, show superiority, etc.
Positioning by cultural symbol -- the koala of Quantas Airlines, Buster Brown, the Jolly Green Giant
Repositioning -- declining sales or changes in market conditions may lead a firm to reposition. ( Sears, Montgomery Ward).

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

35. Branding and Packaging Work Closely Together
Product Decisions
BRANDING
BRANDING
PACKAGING
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows two important elements of product decisions - branding and packaging. Branding and packaging are very important in creating an image for a product and must be coordinated to present an image or position that extends beyond a product’s physical attributes.
A brand name identifies a product or service and often communicates attributes and meaning.
Brand equity refers to the intangible assets of added value or goodwill that results from the favorable image, impression, and consumer attachment to a company, brand name, or trademark.
Packaging is an important part of brand’s identity. Traditionally, the package provided functional benefits such as economy, protection, and storage. However, the role of packaging has changed because of self-service in many stores and more buying decisions being made at the point-of-purchase.
Use of this slide This slide can be used to discuss two important product-related decisions which are branding and packaging. Many marketers rely on their brand name and packaging to communicate with consumers and help create a position and/or image.
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

36. A Package Is More than a Container
Relation to text This slide relates to material on pp and Exhibit 2-24 of the text.
Summary Overview This slide shows an ad for Tiffany perfume and provides a good example of the importance of packaging in creating a distinct identity and brand image. Many companies view the package as an important way to communicate and create an impression of their brand in the mind of consumers.
Use of this slide This slide can be used to show the importance of packaging in creating brand identity and image. Packaging can be used to communicate, hold the consumer’s attention, and differentiate a brand from competitors. +

37. Packaging Enhances Brand Identity
Relation to text This slide shows a commercial that relates to the discussion of branding on p. 59.
Summary Overview This commercial is for Skyy Blue, a flavored malt beverage that is a joint venture between Skyy Spirits and the Miller Brewing Company. Skyy Blue is a category extension that is designed to leverage the favorable brand equity that has been developed for Skyy vodka. Part of Skyy vodka’s success has been due to the distinctive cobalt blue packaging that is used for the brand and Skyy Blue uses a similar packaging concept.
Use of this slide This slide can be used to demonstrate how marketers can take advantage of strong brand equity by developing line and category extensions. It can also be used to show how distinctive packaging plays an important role in differentiating a brand as the cobalt blue bottle for Skyy Blue contributes to the identity of the brand.

39. For other products?

41. Which one is more expensive?

42. 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

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

44. Promotion to Push Goods Through Channels vs Promotion to Pull Goods Through Channels
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows examples of the various forms of promotion used with a push strategy. These promotions are used to motivate the resellers to build demand for a company’s products. Some examples are point-of-purchase displays, discounts, premiums, cooperative advertising, spiffs, contests, and other incentives.
Use of this slide This slide can be used to discuss the various promotion activities that might be used when a marketer is using a push strategy.

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

46. Promotion to Push Goods Through Channels
Point of Sale Displays, Racks, Stands
Point of Sale Displays, Racks, Stands
PUSH
Trade Deals, Special Displays
Trade Deals, Special Displays
Dealer Premiums, Prizes, Gifts
Dealer Premiums, Prizes, Gifts
Cooperative Advertising Deals
Cooperative Advertising Deals
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows examples of the various forms of promotion used with a push strategy. These promotions are used to motivate the resellers to build demand for a company’s products. Some examples are point-of-purchase displays, discounts, premiums, cooperative advertising, spiffs, contests, and other incentives.
Use of this slide This slide can be used to discuss the various promotion activities that might be used when a marketer is using a push strategy.
Advertising Materials, Mats, Inserts
Advertising Materials, Mats, Inserts
Push Money or “Spiffs"
Push Money or “Spiffs"
Collaterals, Catalogs, Manuals
Collaterals, Catalogs, Manuals
Company Conventions, Meetings

47. Promotion to Pull Goods Through Channels
Sampling, free trial
Sampling, free trial
PULL
Cents-off promotions
Cents-off promotions
Cents-off coupons
Cents-off coupons
Combination offers
Combination offers
Relation to text This slide relates to material on pp of the text.
Summary Overview This slide shows examples of the various forms of promotion used with a pull strategy. These promotions are used to create demand among consumers and encourage them to request the product from retailers. Some examples are free samples, coupons, premiums, contest, sweepstakes, rebates, premium offers and other incentives.
Use of this slide This slide can be used to discuss the various promotions activities that might be used when a marketer is using a pull strategy.
Premiums or gifts
Premiums or gifts
Contests, sweepstakes
Contests, sweepstakes
Point-of-purchase
Point-of-purchase
Trading stamps

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

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

50. Next Class
Organizing for Advertising and Promotion
Read Chapter 3!!!