ROLE OF IMC IN THE

MARKETING PROCESS

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 REVIEW OF PREVIOUS SESSION

➢ Concept of integrated marketing communications (IMC)

➢ How IMC has evolved

➢ Tools of promotional mix

➢ Types of contact points or touch points

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 LEARNING OBJECTIVES
➢ Marketing process and the role of promotion in an
organization’s integrated marketing program

➢ How each element of the marketing mix influence IMC

➢ Concept of target marketing and the role of IMC

➢ Market segmentation and its role in IMC

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MARKETING & PROMOTIONS PROCESS MODEL
 MARKETING & PROMOTIONS PROCESS MODEL

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3
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MARKETING STRATEGY AND ANALYSIS

Strategic Marketing Plan

Target
Opportunity Competitive
Market
Analysis Analysis
Selection
 MARKETING STRATEGY AND ANALYSIS
Strategic Marketing Plan

Opportunity Competitive Target Market

Analysis Analysis Selection

Lead to: Goal: To find 1. After evaluating

1. Alternative market opportunities
for existing product lines
2. New products for current markets
3. New products for new markets
competitive advantage marketing opportunities
→ company selects
target markets.
2. Target market becomes
focus of firm’s marketing
 MARKETING & PROMOTIONS PROCESS MODEL

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Identify markets with unfulfilled needs

Determine market segmentation

Select a market to target

Position through marketing strategies

 TARGET MARKETING PROCESS
Target marketing
Process by which marketers develop different marketing
strategies to satisfy different customer needs

Target marketing involves:

• Identification of the needs and wants of specific groups of
people (or segments)
• Selection of one or more of these groups as targets
• Development of marketing strategies aimed at each
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 TARGET MARKET IDENTIFICATION

Isolate Consumers With Similar…

Lifestyles Social class

Geographic
Economic status Age
location

Marital status Needs

 MARKET SEGMENTATION

• Dividing a market into distinct groups

• With common needs
• Who respond similarly to a marketing situation
BASES FOR MARKET SEGMENTATION
Demographic Geographic Socioeconomic

Gender Region Income

City size Education
Age
Metropolitan area Occupation
Race
Density
Life stage
Birth era
Household size Psychographic

Residence tenure Personality

Marital status Values/Lifestyle
BASES FOR MARKET SEGMENTATION
Demographic
Geographic Benefit
Dividing market on the
Markets divided into Grouping of consumers
basis of demographic
different geographic on product attributes
variables such as
units. sought.
Gender, Age, etc.,

Psychographic

Markets divided on the basis

of personality and lifestyle.
 GEOGRAPHIC SEGMENTATION

Kitkat with certain flavours like Green Tea- Matcha are available only in Japan
BENEFIT SEGMENTATION AD
Benefit segmentation Ad:
AT&T is offering worldwide cell phone coverage

Who might be included in this market segment?

- Business travelers
- People going overseas on vacation, etc.
 MARKETING & PROMOTIONS PROCESS MODEL

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1

3
4

Identify markets with unfulfilled needs

Determine market segmentation

Select a market to target

Position through marketing strategies

SELECTING A TARGET MARKET

Determine how many

1 segments to enter

Determine which segments

2 have the greatest potential
SEGMENTS - THREE POTENTIAL STRATEGIES

Concentrated
Undifferentiated
Marketing
Marketing

Differentiated
Marketing
 MARKETING & PROMOTIONS PROCESS MODEL

2
1

3
4

Identify markets with unfulfilled needs

Determine market segmentation

Select a market to target

Position through marketing strategies

 MARKET POSITIONING

Definition of 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."
 MARKET POSITIONING
How water is positioned?

Lifewater
Positions as a vitamin-rich water
 MARKET POSITIONING
How water is positioned?

Fiji water

Bottled on the island of Fiji

Positions as earth’s finest water
 MARKET POSITIONING
How water is positioned?

Perrier

Positions itself as a luxury item.

Green glass bottle of Perrier
Good packaging can command a premium price
POSITIONING STRATEGIES
Attributes and Benefits
Price/Quality
Use/Application
Product Class
Product Users
Competitors
Cultural Symbols
 POSITIONING BY CULTURAL SYMBOL
Ronald McDonald
 POSITIONING BY CULTURAL SYMBOL
Michelin Man
MARKETING & PROMOTIONS PROCESS MODEL
THE MARKETING PLANNING PROGRAM

Product Distribution
Decisions Channels

Promotional Price
Strategy Decisions
PRODUCT DECISIONS: BRANDING AND
PACKAGING DECISIONS
BRANDING PACKAGING

Brand Advertising Has become Often the

name creates increasingly customers’
commun- and important first
icates maintains exposure
attributes brand to product
and equity
meaning
 BRANDING
Brand Identity Brand identity
vs. Combination of the name, logo,
Brand Equity symbols, design, packaging, and image
associations held by the consumer
Brand equity
• Added value or goodwill
• Results from the favorable image, impressions of
differentiation, strength of consumer attachment to a
company name, brand name, or trademark
PACKAGING CREATES IMAGE
Saks Fifth Avenue perfume

Packaging in creating a distinct identity

and brand image
 PRICING DECISIONS

Factors the firm What consumers

must consider give up to buy a
product or service

Costs Time

Demand Mental activity

Competition Behavioral effort

Perceived value
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
 MARKET CHANNELS
Marketing channels or the place element of the marketing mix

Sets of interdependent organizations

involved in the process of making a product
or service available for use
 CHANNELS AND IMAGE
Channels can impact communication objectives
• Image
• Store displays
• Point-of-purchase merchandising
• Shelf footage
 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
DEVELOPING PROMOTIONAL STRATEGIES
PUSH VS. PULL STRATEGIES
 PULL v/s PUSH STRATEGY
PUSH MARKETING COMMUNICATION PULL MARKETING COMMUNICATION

• Promoted to distribution channel • Promoted to end users

- Wholesalers, Retailers
Consumers create demand –

In turn, promote to end consumers pull products through distribution channels

• Emphasis: Personal selling, Sales promotions • Emphasis: Advertising

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 MARKETING & PROMOTIONS PROCESS MODEL

2
1

3
4
 REVIEW OF LEARNING OBJECTIVES
➢ Marketing process and the role of promotion in an
organization’s integrated marketing program

➢ How each element of the marketing mix influence IMC

➢ Concept of target marketing and the role of IMC

➢ Market segmentation and its role in IMC

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