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McGraw-Hill/Irwin

The Role of IMC in the Marketing Process

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 Competitive analysis Target marketing Identifying markets Market segmentation Selecting a target market Positioning through marketing strategies Product decisions Pricing decisions Channel-of distribution decisions • • Promotional decisions Advertising Direct marketing • • Interactive marketing Sales promotion • Publicity and public relations • Personal selling

Promotion to final buyer Internet/ Interactive Promotion to trade

• • Ultimate consumer Consumers Businesses 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 Usage Behavior Outlet Type Awareness

Buying Situation

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 Buying Responses Usage Loyalties

Benefit Segmentation

HIGH

PRIZM Cluster Profiles

$ 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 Undifferentiated, Differentiated Concentrated 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 4.

5.

6.

1.

2.

3.

Identify the competitors Assess perceptions of them Determine their positions Analyze consumer preferences Make the positioning decision 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 PACKAGING Brand name commun icates attributes and meaning Advertising creates and maintains

brand equity

Has become increasingly important Often customers’ first exposure to product

A Package is More than a Container

Pricing Decisions Factors the firm must consider Costs Demand Competition Perceived value

Price Variable

What consumers give up to purchase a product or service Time Mental activity 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 Wholesaler Retailer Consumer

Information Flow

Producer Wholesaler Retailer Consumer

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