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Copyright 2012 McGraw-Hill Companies, Inc., All right reversed

The Role of IMC in the


Marketing Process

Geico Marketing Success

Strong brand image and strong IMC programs


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Marketing & Promotions Process Model

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Marketing Strategy and Analysis

Strategic Marketing
Marketing Plan
Plan
Strategic

Opportunity
Opportunity
Analysis
Analysis

Competitive
Competitive
Analysis
Analysis

Target
Target
Market
Market
Selection
Selection

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The Target Marketing Process

Identify markets with unfulfilled needs


Determine market segmentation
Select a market to target
Position through marketing strategies

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Target Market Identification

IsolateConsumers
ConsumersWith
WithSimilar
Similar
Isolate
Socialclass
class
Social

Lifestyles
Lifestyles
Economicstatus
status
Economic

Geographic
Geographic
location
location

Maritalstatus
status
Marital

Age
Age
Needs
Needs

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Market Segmentation

Dividing a market into distinct groups


With common needs
Who respond similarly to a marketing
situation
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Bases for Market Segmentation

Demographic

Geographic

Socioeconomic

Gender

Region

Income

Age

City size

Education

Race

Metropolitan area

Occupation

Life stage

Density

Birth era
Household size

Psychographic

Residence tenure

Personality

Marital status

Values/Lifestyle
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Geographic Segmentation

Big Red targets a specific geographic region


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Demographic Segmentation Ad

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Benefit Segmentation Ad

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PRIZM Social Groups


HIGH

LOW
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Test Your Knowledge


All of the following are considered market
coverage alternatives except:
A) Undifferentiated
B) Differentiated
C) Concentrated
D) Dispersed

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Selecting a Target Market

Determine how many


segments to enter

Determine which segments


have the greatest potential

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Segments

Undifferentiated

Concentrated

Differentiated

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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 competition
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Positioning Strategies
Attributes
Attributes and
and Benefits
Benefits
Price/Quality
Price/Quality
Use/Application
Use/Application
Product
Product Class
Class
Product
Product Users
Users
Competitors
Competitors
Cultural
Cultural Symbols
Symbols
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Positioning by Cultural Symbol

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The Marketing Planning Program


Product
Decisions

Promotional
Strategy

Distribution
Channels

Price
Decisions

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Branding Goals

Build &
maintain
brand
awareness
and interest

Develop &
enhance
attitudes
toward the
company,
product, or
service

Build &
foster
relationships
between the
consumer
and the
brand

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Branding

Brand Identity
vs.
Brand Equity

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Branding and Packaging Decisions

BRANDING
BRANDING
Brand
Brand
name
name
communcommunicates
icates
attributes
attributes
and
and
meaning
meaning

Advertising
Advertising
creates
creates
and
and
maintains
maintains
brand
brand
equity
equity

PACKAGING
PACKAGING
Has
Has become
become
increasingly
increasingly
important
important

Often
Often the
the
customers
customers
first
first
exposure
exposure
to
to product
product

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Packaging Creates Image

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Pricing Decisions

Factors
Factors the
the firm
firm
must
must consider
consider

What
What consumers
consumers
give
give up
up to
to buy
buy aa
product
product or
or service
service

Costs
Costs

Time
Time

Demand
Demand

Mental
Mental activity
activity

Competition
Competition

Behavioral
Behavioral effort
effort

Perceived
Perceived value
value

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Relating Price to Ads and Promotions

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 must
be unified in identifying product position

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Market Channels

Sets of interdependent
organizations involved in the
process of making a product
or service available for use

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Channels and Image


Channels can impact communication
objectives
Image
Store displays
Point-of-purchase merchandising
Shelf footage

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Types of Channels
Direct
Driven by direct-response ads,
telemarketing, the Internet
Often used when selling expensive and
complex products

Indirect
Network of wholesalers and/or retailers

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Push vs. Pull Strategies

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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
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