IMC as an Integral Part of Marketing

Chapter takeaways
Understand marketing strategy, its impact on communication, and vice versa Identify a firms area of competitive advantage, and understand basic competitive strategies Learn about segmenting, targeting, differentiating and positioning Comprehend decisions related to marketing mix elements and their impact on promotions

Marketing factors impacting communication

Product strategies Price strategies

Targeting & positioning strategies

Competitive strategies

Promotion

Place strategies

Dealing with competition

Identify direct & indirect competitors

Identify objectives, strengths, weaknesses, etc. Identify competitive advantage the ability to perform in ways that are better than competition & difficult to copy

Use strategies to tackle competition: a) maintain leadership, b) challenge the leader, c) follow the leader, etc.

The target marketing process

Identify markets with unfulfilled needs Discover segments on the basis of consumer characteristics Analyse segment potential & finalise segments to target

Create a distinctive positioning in the minds of consumers

Differentiate product offering from competitors

To segment or not?
Mass marketing Segment marketing

Segmentation criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Bases for segmenting consumer markets

Region, population, density, climate Age, gender, income, occupation, family size, religion, nationality, etc.

Geographic

Demographic

Behavioural
Use occasions, benefits, user status, usage rate, product knowledge, loyalty status, attitude towards product, involvement

Psychographic

Lifestyle, personality, values (VALS)

Brands segment on various bases

Segmenting with hybrid variables

Target marketing
Mass marketing

Differentiated marketing

Concentrated marketing

Differentiation
Product characteristics

Service characteristics

Image characteristics

Personnel characteristics

Distribution characteristics

Positioning
The act of designing and projecting a distinctive image of the companys offering in the minds of the target market Positioning map indicates the relative placement of brands in consumers minds based on 2-3 select product characteristics.

Positioning options
Competitor positioning Image/ personality positioning

Benefit positioning

User positioning

Attribute positioning Application positioning

Quality or price positioning Product class positioning

Attribute positioning/Benefit positioning

User Positioning

Brands position using different strategies

Positioning strategy-Taaza orange juice

Benefit Positioning- Healthy orange juice, vitamin C enhancer, protects from cold Attribute positioning- 100% pure orange, sugar free juice Application or use positioning- a breakfast juice User positioning- a drink for diabetics Quality or price positioning- Value-for-money juice Image positioning- fun juice

Choosing a positioning strategy

Brand strategy

Profit probability

Attributes valued by consumers

Positioning

Competitor positioning

Companys strengths & resources

Repositioning brand image

Employee presentations for culture change

8-to-8 banking

Nutri-Bar Positioned as convenience snack Good food to go Repositioned as breakfast substitute Respect yourself in the morning

Developing the marketing planning Program Product

Anything that can be offered to the market to satisfy needs & wants Services
Intangible Inseparable Variable Perishable

Product life cycle

Introduction Growth Maturity Decline

Product symbolism: Sum total of product/brand experience

Product attributes: quality, features, design Packaging: Conceptualize, design & produce product container Branding: Investing a product with desired brand attributes

Product symbolism

Rin meets challenges at various stages of its life cycle

Communicating product-related aspects

Communication can create a brand

Quick Q!
A products package serves as:
a) b) c) d) e) A container to hold & protect a product A means for clubbing product into assortments A safety device A communication tool All of the above

Distribution
Distribution channels: Organisations, individuals & processes making products available from manufacturer to end user
Resellers

Indirect

Direct marketing

Wholesalers

Retailers

Push vs. Pull Strategy

Push strategy

Manufact urer

Trade/Promotional advertising

Reseller

Stocking product Cooperative ads Reseller promotion

Consumer

Product use

Pull strategy

Manufact urer

Consumer advertising

Consumer

Asks for product

Reseller

Stocks & supplies

Push vs. Pull Strategy

PUSH Appropriate when:
Low brand loyalty in category Brand choice made in store Retailer recommendations are valued Product is an impulse purchase item Marketers have low budget and/or good channel relations

PULL Appropriate when:

High brand loyalty High product involvement Product has unique benefits or is superior to competition Purchase decision is made before going to the store

Prestige pulls consumers through advertising

Price
What a consumer pays or gives up for product acquisition includes time, energy & psychic costs Pricing considerations:
Product perception Consistency with other marketing mix elements Market & competition

Price serves as an indicator of product quality high price is associated with superior quality Advertising increases a firms ability to charge a higher price without lowering demand

Brand image allows Reebok to charge a price premium

Rasna communicates its value-for-money pricing

Quick Q!
A product that has high quality and low price will usually:
a) b) c) d) Confuse the consumer Excite the consumer Communicate a high product quality None of the above