The Role of IMCin the Marketing ProcessChapter 2Advertising And Promotion, 6/E - Belch

Aditya GSN Indrajit Bage N Krishna Chaitanya Neeraj Panghal Prateek Jaiswal Silpa Kamath

Group 8Integrated Marketing Communications

Chapter Objectives

To understand the marketing process and the role of advertising and promotion in an organization’s integrated marketing program.

To know the various decision areas under each element of the marketing mix and how they influence and interact with advertising and promotional strategy.

To understand the concept of target marketing in an integrated marketing communications program.

To recognize the role of market segmentation and its use in an integrated marketing communications program.

To understand the use of positioning and repositioning strategies.

Marketing and promotions process model

Marketing Strategy and Analysis

Opportunity Analysis• A careful analysis of the

marketplace should lead to alternative market opportunities for existing product lines in current or new markets, new products for current markets, or new products for new markets.

• Market opportunities are areas where there are favourable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively

Competitive Analysis• In developing the firm’s

marketing strategies and plans for its products and services, the manager must carefully analyse the competition to be faced in the marketplace.

• This may range from direct brand competition (which can also include its own brands) to more indirect forms of competition, such as product substitutes.

• An important aspect of marketing strategy development is the search for a competitive advantage, something special a firm does or has that gives it an edge over competitors

The Target Marketing Process

Identifying Markets

Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements.

The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs and informing and/or persuading potential consumers that the product or service offering will meet their needs.

The Target Marketing ProcessMarket Segmentation• Dividing up a market into distinct groups that have common

needs and will respond similarly to a marketing. The Process Involves following steps:

• Finding ways to group consumers according to their needs • Finding ways to group the marketing actions—usually the products

offered available to the organization.• Developing a market-product grid to relate the market segments to

the firm’s products or actions.• Selecting the target segments toward which the firm directs its

marketing actions.• Taking marketing actions to reach target segments.

Bases for Segmentation Geographic Segmentation

Demographic Segmentation Psychographic Segmentation Behaviouristic Segmentation Benefit Segmentation

The Target Marketing ProcessSelecting a Target Market Determining How Many Segments to Enter

Three market coverage alternatives are available:

Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market.

Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each.

Concentrated marketing, is used when the firm selects one segment and attempts to capture a large share of this market.

Determining Which Segments Offer Potential The second step in selecting a market involves determining the most

attractive segment. The firm must examine the sales potential of the segment, the opportunities for growth, the competition, and its own ability to compete. Then it must decide whether it can market to this group.

The Target Marketing ProcessMarket Positioning Approaches to Positioning

Positioning by Product Attributes and Benefits Positioning by Price/Quality Positioning by Use or Application Positioning by Product Class Positioning by Product User Positioning by Competitor Positioning by Cultural Symbols Repositioning

Determining the Positioning Strategy Identifying competitorsAssessing consumers’ perceptions of competitorsDetermining competitors’ positionsAnalysing the consumers’ preferencesMaking the positioning decisionMonitoring the position.

Developing the Marketing Planning Program

Product DecisionsProduct planning involves decisions not only about the item itself, such as

design and quality, but also about aspects such as service and warranties as well as brand name and package design.

Consumers look beyond the reality of the product and its ingredients. The product’s quality, branding, packaging, and even the company standing behind it all contribute to consumers’ perceptions.

Branding One important role of advertising in respect to branding strategies is

creating and maintaining brand equity, which can be thought of as an intangible asset of added value or goodwill that results from the favourable image, impressions of differentiation and/or the strength of consumer attachment to a company name, brand name, or trademark.

Packaging

Packaging is another aspect of product strategy that has become increasingly important. The package is often the consumer’s first exposure to the

product, so it must make a favourable first impression.

Developing the Marketing Planning Program

Price DecisionsThe price variable refers to what the consumer must give up to purchase a

product or service. While price is discussed in terms of the dollar amount exchanged for an item, the cost of a product to the consumer includes time, mental activity, and behavioural effort.

A firm must consider a number of factors in determining the price it charges for its product or service, including costs, demand factors, competition, and perceived value.

Relating Price to Advertising and Promotion Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge.

Distribution Channel DecisionsMarketing channels, the place element of the marketing mix, are “sets of interdependent organizations involved in the process of making a product or

service available for use or consumption.

Direct channels Indirect channels

Developing Promotional Strategies: Push or Pull?

Promotional push strategy Trade advertising Promotional pull strategy

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