Transcript Chapter 2
2 The Role of IMC in the Marketing Process McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Under Armour Protects Its House Under Armour Protects Its House • Keys to Under Armour’s success – Niche markets – Strong product positioning – Unique brand identity – Strong brand reputation Marketing and Promotions Process Model Opportunity analysis Identifying markets Product decisions Promotional decisions Competitive analysis Target marketing Market segmentation Pricing decisions Channel-ofdistribution decisions Selecting a target market • Advertising • Direct marketing • Interactive marketing • Sales promotion • Publicity and public relations • Personal selling Positioning through marketing strategies Promotion to final buyer Internet/ Interactive Ultimate consumer • Consumers • Businesses Promotion to trade Resellers Purchase Marketing to a Lifestyle Padres Pitch to the Fans *Click outside of the video screen to advance to the next slide The Target Marketing Process Identify markets with unfulfilled needs Determine market segmentation Select market to target Position through marketing strategies A Product for Every Market Segment The Marketing Segmentation Process Find ways to group consumers according to their needs Find ways to group marketing actions available to the organization 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 will direct its marketing actions Take marketing actions to reach target segments What do NASCAR, Coors, and Unilever know? Bases for Segmentation Psychographic Demographic Customer Characteristics Socioeconomic Geographic Behavior Usage Outlet Type Buying Situation Awareness Benefits Geographic Marketing Demographic Segmentation Psychographic Segmentation • Dividing the market on the basis of – Personality – Values – Lifestyle • VALS lifestyle segmentation – Eight lifestyles with distinctive attitudes, behaviors, and decision-making patterns – Combined with estimate of the resources on which the consumer can draw Behavioristic Segmentation Usage Buying Responses Loyalties Benefit Segmentation PRIZM Cluster Profiles HIGH $ LOW Test Your Knowledge The key factor in communicating information about a brand and differentiating it from competitors is: A) Its perceived price differential B) Its integrated promotional strategy C) The market positioning strategy assigned it by the manufacturer D) Its distribution intensity E) The benefits the brand offers Selecting a Target Market Determine how many segments to enter Determine which segments have the greatest potential Market Positioning Fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition Developing a Positioning Strategy What position do we have now? Does our creative strategy match it? What position do we want to own? The Position Do we have the tenacity to stay with it? From whom must we win this position? Do we have the money to do the job? Positioning Strategies How should we position? Attributes and Benefits? Price or Quality? Use or Application? Product Class? Product User? Competitor? Cultural Symbols? Positioning by Use or Application Developing a Positioning Platform 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 Making the Positioning Decision Is the current position strategy working? Is the segmentation strategy appropriate? The Checklist How strong is the competition? Are there sufficient resources to communicate the position? Advertising Develops Brand Image Branding and Product Names • Brand names often communicate attributes and meaning – Safeguard – I Can’t Believe It’s Not Butter! – Easy-Off – Arrid – Spic and Span Branding and Packaging Are Linked Product Decisions BRANDING Brand name communicates attributes and meaning Advertising creates and maintains brand equity PACKAGING Has become increasingly important Often customers’ first exposure to product A Package is More than a Container Pricing Decisions What consumers give up to purchase a product or service Factors the firm must consider Costs Demand Price Variable Time Mental activity Competition Perceived value Behavioral effort Relating Price to Ads and Promotion Pricing Considerations Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices reflect bargain or “value” perceptions Price, advertising and distribution be unified in identifying product position A product positioned as high quality while carrying a lower price than competitors will confuse customers When Price is Not an Issue Distribution Channel Decisions Selecting Distribution Channel Decisions Managing Motivating Distribution Intermediaries Brokers Distribution Channel Intermediaries Distributors Wholesalers Retailers Promotional Strategy: Push or Pull? Push Policy Pull Policy Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer Information Flow Test Your Knowledge An ad in a publication aimed at veterinarians explains why they should recommend Eukanuba cat food to the owners of the cats they treat. This is an example of: A) Consumer advertising B) A promotional pull strategy C) A harvesting strategy D) A consumer promotion E) A promotional push strategy