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Module 1
The Role of IMC in the Marketing Process
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
Learning Objectives
LO1 Describe the role of advertising and promotion in an
organization’s integrated marketing program.
LO2 Define target marketing.
LO3 Discuss the role of market segmentation in an IMC
program.
LO4 Describe positioning and repositioning strategies.
LO5 Identify the marketing-mix decisions that influence
advertising and promotional strategy.
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Figure 2-1 Marketing and Promotions Process Model
Access the text alternative for slide images.
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Marketing Strategy and Analysis 1
Strategic Marketing Plan
• Guides allocation of organization’s resources.
• Guides specific marketing programs and policies.
• Evolves from organization’s overall corporate strategy.
• Allows for understanding of market opportunities, competition, and
market segments.
• Market segments: Distinct consumer groups within a market who have
common needs.
LO2-1
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Marketing Strategy and Analysis 2
Opportunity Analysis
• Market opportunities are areas where:
• There are favorable demand trends.
• Customers’ needs and opportunities are not being satisfied.
• Firm can compete effectively.
• Steps to identify market opportunities:
• Examine the marketplace.
• Observe demand trends and competition in various market segments.
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Exhibit 2-1
The Milk Processor Education
Program saw the growing
demand for sports drinks and
seized on that market
opportunity. Flavoured milk is
a natural option for athletes to
"Bounce Back" after a hard
workout.
Source: @amul.coop on twitter.com
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Marketing Strategy and Analysis 3
Competitive Analysis
• Analyzing competition in the marketplace and searching for
competitive advantage.
• Competitive advantage: Attributes that give a firm an edge over
competitors.
• Better quality products.
• Superior customer service.
• Low production costs and lower prices.
• Dominating channels of distribution.
• Advertising.
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Marketing Strategy and Analysis 4
Target Market Selection
• Done after evaluating market opportunities and doing a competitive
analysis.
• Can select one or more target markets.
• Has direct implications on firm’s advertising and promotional efforts.
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Figure 2-2 The Target Marketing Process
LO2-2
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The Target Marketing Process 1
Identifying Markets
• Marketer identifies specific needs of groups of people (or segments).
• Selects one or more of these segments as a target.
• Isolates consumers with similar lifestyles, needs, and the like.
• Increases marketer’s knowledge of consumers’ specific requirements.
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The Target Marketing Process 2
Market Segmentation
• Dividing a market into distinct groups with common needs, who
respond similarly to a marketing situation.
• Bases for segmentation:
• Geographic: Dividing market on basis of region, city size, metropolitan
area, and/or density.
• Demographic: Dividing market on basis of age, sex, family size, marital
status, etc.
• Psychographic: Dividing market on basis of personality, lifecycles, and/or
lifestyles.
LO2-3
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Exhibit 2-9
AARP, The Magazine
dominates their
competitors in the 50+
age segment. They are
synonymous with this
demographic.
© McGraw Hill Source: AARP 12
The Target Marketing Process 3
Market Segmentation continued
• Behavioristic segmentation:
• Dividing consumers into groups according to usage, loyalties, or buying
responses to a product.
• 80 to 20 rule: 20 percent of buyers account for 80 percent of sales
volume.
• Benefit segmentation:
• Grouping of consumers on basis of attributes sought in a product.
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The Target Marketing Process 4
Market Segmentation continued
• The process of segmenting a market.
• Marketers determine as much as they can about the segment.
• Companies offer research services to define markets and develop
strategies targeting them.
• Clusters consumer households into distinct “microgeographic”
segments.
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Exhibit 2-11 Cluster Profiles
Source: Nielsen Claritas
Nielsen Claritas provides cluster profiles for marketers.
Access the text alternative for slide images.
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The Target Marketing Process 5
Selecting a Target Market
• Determine how many segments to enter.
• Undifferentiated marketing: Offering just one product or service to entire
market.
• Differentiated marketing: Developing separate marketing strategies for
different segments.
• Concentrated marketing: Attempting to capture a large share of one
market segment.
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The Target Marketing Process 6
Selecting a Target Market continued
• Determine which segments offer potential.
• Select most attractive segment through:
• Sales potential of segment.
• Opportunities for growth.
• Competition analysis.
• Ability to compete.
• Ability to market to this group.
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The Target Marketing Process 7
Market Positioning
• Positioning: Fitting product or service to one or more segments of a
broad market to make it unique within the marketplace.
• Approaches:
• Focus on consumer: Linking product with benefits consumer will derive.
• Focus on competition: Positioning product by comparing benefit it offers to
the competition.
LO2-4
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Developing a Positioning Strategy 1
Positioning by Product Attributes and Benefits
• Sets brand apart from competitors on basis of specific characteristics
or benefits offered.
• Salient attributes: Important to consumers and are basis for making a
purchase decision.
5-hour ENERGY positions itself
as an energy shot; by promoting
its vitamins, nutrients, zero sugar,
and low-calories it sets itself
apart from its competitors.
© McGraw Hill Source: Living Essentials Marketing, LLC. 19
Developing a Positioning Strategy 2
Positioning by Price/Quality
• Cost is secondary to quality.
• Quality or value at a very competitive price.
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Developing a Positioning Strategy 3
Positioning by Use or
Application
• Used to enter market or
expand usage.
Dabur demonstrates several ways to
consume its honey.
© McGraw Hill Source: advertgallery.com 21
Developing a Positioning Strategy 4
Positioning by Product Class
Positioning by Product User
In this ad, how does Maaza
positions itself as a drink that is a
substitute for mango?
© McGraw Hill Source: Maaza 22
Developing a Positioning Strategy 5
Positioning by Competitor
Positioning by Cultural
Symbols
• Makes the brand easily
identifiable and differentiated from
others.
© McGraw Hill Source: Sheila Fitzgerald/Shutterstock 23
Developing a Positioning Strategy 6
Repositioning
• Altering a product’s or brand’s position due to:
• Declining or stagnant sales.
• Anticipated opportunities in other market positions.
• Difficult to accomplish because of entrenched perceptions and
attitudes toward the product or brand.
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Developing the Marketing Planning Program 1
Product Decisions
• Product symbolism:
• What a product or brand means to consumers.
• What consumers experience in purchasing and using a product.
LO2-5
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Developing the Marketing Planning Program 2
Product Decisions continued
• Branding
• Builds and maintains brand awareness and interest.
• Develops and enhances attitudes toward the company or product.
• Builds relationships between consumer and brand.
• Brand identity:
• Combination of name, logo, symbols, design, packaging, image, and
associations held by consumers.
• Brand equity:
• Intangible asset of added value.
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Developing the Marketing Planning Program 3
Product Decisions continued
• Packaging
• Traditionally provided functional benefits—economy, protection, and
storage.
• Role and function have changed due to:
• Self-service emphases of many stores.
• More buying decisions at point of purchase.
• Used to communicate with consumers and create an impression of the
brand.
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Packaging
Many companies view the
package as an important
way to communicate with
consumers and create an
impression of the brand in
their minds. Packaging
shown for Women’s
Horlicks is designed to
create feminine image for
the brand targeted at
women.
© McGraw Hill Source; Horlicks 28
Developing the Marketing Planning Program 4
Price Decisions
• Price variable: What consumer has to give in exchange for purchase.
• Factors that determine price:
• Costs.
• Demand factors.
• Competition.
• Perceived value.
• Product quality.
• Advertising.
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Developing the Marketing Planning Program 5
Distribution Channel Decisions
• Marketing channels: Interdependent organizations involved in
making a product or service available for use.
• Direct channels: Directly deal with customers.
• Driven by direct-response ads, telemarketing, Internet.
• Used when selling expensive and complex products.
• Indirect channels: Network of wholesalers and/or retailers.
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Developing the Marketing Planning Program 6
Promotional Push Strategy
• Programs designed to persuade resellers to stock, merchandise, and
promote a manufacturer’s products.
• Trade advertising: Used to motivate wholesalers and retailers to
purchase products for resale.
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Developing the Marketing Planning Program 7
Promotional Pull Strategy
• Spending money on advertising and sales promotion efforts directed
toward the ultimate consumer.
• Goals:
• Create demand among consumers.
• Encourage consumers to request product from retailer.
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