Role of IMC
Marketing and Promotions Process Model The Target Marketing Process Five-Step Segmentation Process Finding ways to group consumers according to their needs. Finding ways to group 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 and actions. Selecting the product segments toward which the firm directs its marketing actions. Taking marketing actions to reach target segments. Bases for Segmentation Geographic Segmentation State - region - country - climate Demographic Segmentation Age, sex, income, education, occupation, social class Psychographic Segmentation AIOs, (Activities, Interests, Opinions) VALS (Values and Lifestyles) Personality traits Behavioristic Segmentation Usage, loyalties, occasions. Benefit Segmentation Types of specific needs or wants to be satisfied . Selecting a Target Market Determining How Many Segments To Enter Undifferentiated Marketing – offering one product or service to the entire market Differentiated marketing – competing in a number of segments with separate marketing strategies for each Concentrated Marketing – focusing on one market segment Determining Which Market Segments Offer the Most Potential Determine sales potential of the segment Determine opportunities for growth of the market segment Analyze the competition in the segment Analyze the company's ability to compete in the market segment Decide how to compete in the market segment Segmentation Decision Check List Can the size of the market segment be measured? Is the market segment large and profitable enough to serve? Is the segment identified accessible? Can it be reached effectively and efficiently? Can effective marketing programs be developed to attract and serve the segment identified? The Positioning Process JetBlue Airways positions itself as a low price airline with great service Positioning Strategy Development Process Product/Service and Brand Positioning BASIC QUESTIONS TO ASK What position, if any do we currently hold in the mind of customers? What position do we want to hold? Whom do we have to compete against to establish this position? Do we have the resources to occupy and hold the position? Can we stay with one consistent positioning strategy? Does our marketing and advertising match our positioning strategy? Approaches to Positioning A Product/Service or Brand By Product or Service Attributes and Benefits By Price/Quality By Use or Application By Product Class By Product or Service User By competition By cultural symbols Positioning by cultural symbol Product Decisions Product symbolism refers to what a product or brand means to customers Product quality, branding, packaging, and company name contribute to product image Branding: Brand name communicates attributes and meaning Advertising creates and maintains brand equity which results from the image and/or impression of a brand The Value of Strong Corporate and/or Brand Identity Strong corporate/brand equity: Creates more options for competing against lower- priced competitors Builds customer loyalty Makes it easier to withstand economic fluctuations and marketing crises Allows companies to sell products/services at a premium price and maintain larger profit margins Can facilitate brand and line extensions Makes customer response more inelastic to price increases and elastic to price decreases Crest uses its strong brand equity to launch a line extension Packaging Traditional functions of packaging: economy, protection, storage Packaging has become increasingly important because: self service emphasis of many stores buying decisions made at point-of-purchase often customers first exposure to product Packaging is a way to communicate to consumers Arm & Hammer Promotes New Packaging Pricing Decisions Price must be consistent with perceptions of the product Higher prices communicate higher product quality Lower prices often reflect bargain or “value” perceptions A product positioned as high quality while carrying a lower price than competitors may confuse customers Price, advertising and distribution must be unified to create the position for the product or service. Distribution Channel Decisions Channel decisions involve: Determining the type of channel system: Direct channels Indirect channels Selecting, managing and motivating marketing intermediaries such as Wholesalers Distributors Brokers Retailers Push Versus Pull "Push" Techniques 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 Trade shows, conventions, meetings "Pull" Techniques Sampling, free trial Coupons ? Premiums or gifts Contests, sweepstakes Price-off deals Refunds/rebates Frequency/loyalty programs Point-of-purchase advertising Premium offers are part of a pull strategy
Marketing and Promotions Process Model
The Target Marketing Process
Five-Step Segmentation Process
Bases for Segmentation
Selecting a Target Market
Determining How Many Segments To Enter Undifferentiated Marketing – offering one product or service to the entire market Differentiated marketing – competing in a number of segments with separate marketing strategies for each Concentrated Marketing – focusing on one market segment
Determining How Many Segments To Enter
Determining Which Market Segments Offer the Most Potential
Segmentation Decision Check List
The Positioning Process
JetBlue Airways positions itself as a low price airline with great service
Positioning Strategy Development Process
Product/Service and Brand Positioning
BASIC QUESTIONS TO ASK What position, if any do we currently hold in the mind of customers? What position do we want to hold? Whom do we have to compete against to establish this position? Do we have the resources to occupy and hold the position? Can we stay with one consistent positioning strategy? Does our marketing and advertising match our positioning strategy?
BASIC QUESTIONS TO ASK
Approaches to Positioning A Product/Service or Brand
Positioning by cultural symbol
Product Decisions
The Value of Strong Corporate and/or Brand Identity
Strong corporate/brand equity: Creates more options for competing against lower- priced competitors Builds customer loyalty Makes it easier to withstand economic fluctuations and marketing crises Allows companies to sell products/services at a premium price and maintain larger profit margins Can facilitate brand and line extensions Makes customer response more inelastic to price increases and elastic to price decreases
Strong corporate/brand equity:
Crest uses its strong brand equity to launch a line extension
Packaging
Traditional functions of packaging: economy, protection, storage Packaging has become increasingly important because: self service emphasis of many stores buying decisions made at point-of-purchase often customers first exposure to product Packaging is a way to communicate to consumers
Traditional functions of packaging:
Packaging has become increasingly important because:
Packaging is a way to communicate to consumers
Arm & Hammer Promotes New Packaging
Pricing Decisions
Distribution Channel Decisions
Channel decisions involve: Determining the type of channel system: Direct channels Indirect channels Selecting, managing and motivating marketing intermediaries such as Wholesalers Distributors Brokers Retailers
Channel decisions involve:
Push Versus Pull
"Push" Techniques
"Pull" Techniques
Premium offers are part of a pull strategy
Background of IMC Group
Company introduction
Advertisement planning
Commonweal advertisement
Broadcast Media
Communication Process