Integrated
Marketing
Communicatio
n
Designs
Prepared by Dr. Perihan
Salah
The Role of IMC
Planning Process
Lecture
2
Learning Objectives
-Describe the role of advertising and promotion in an organization’s
integrated marketing program.
-Define target marketing.
-Discuss the role of market segmentation in an IMC program.
-Describe positioning and repositioning strategies.
-Identify the marketing-mix decisions that influence advertising and
promotional strategy.
The IMC Planning Model
Review of marketing plan
Analysis of promotional program situation and the communication process
Budget determination
Develop integrated marketing communications programs
Direct Digital/Internet Sales
Advertising PR/publicity Personal selling
marketing marketing promotion
Advertising Direct- Internet Sales PR/publicity Personal-selling
marketing marketing promotion objectives objectives
objectives objectives objectives objectives
Advertising Direct- Internet Sales PR/publicity Personal-selling
marketing marketing promotion strategy strategy
strategy strategy strategy strategy
Direct-
Advertising Internet Sales promotion PR/publicity
marketing Sales message
message & message & message & message &
message & strategy and
media strategy media strategy media strategy media strategy
media strategy sales tactics
& tactics & tactics & tactics & tactics
& tactics
Integrate and implement marketing communications strategies
Monitor, evaluate, and control IMC Program
Marketing and Promotions Process Model
Marketing Strategy and Analysis
• Strategic marketing plan:
– Guides allocation of organization’s resources
– Guides specific marketing programs and policies
– Evolves from an organization’s overall corporate strategy
– Allows for an understanding of market opportunities,
competition, and market segments
• Market segments: distinct consumer groups within a market
who have common needs
Opportunity Analysis
• Market opportunities: Areas where:
o There are favorable demand trends
o Customers’ needs and opportunities are not being
satisfied
o Firm can compete effectively
• Steps to identify market opportunities
o Examine the marketplace
o Observe demand trends and competition in various
market segments
The Growth of Advertising and Promotion
• Analyzing the competition in the marketplace and searching for a 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
Target Market Selection
• Done after evaluating
market opportunities and
doing a competitive
analysis
• Has direct implications on a
firm’s advertising and
promotional efforts
The Target Marketing Process
Maslow’s Hierarchy of Needs
Identifying Markets
• Marketer identifies the 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
• Increased marketer’s knowledge of consumers’
specific requirements
Market Segmentation
– Dividing a market into distinct groups with
common needs, who respond similarly to a
marketing situation
Customer characteristics segmentation criteria
– Geographic: Dividing the market on the basis
of region, city size, metropolitan area, and/or
density into different geographic units.
– Demographic: Dividing the market on the
basis of age, sex, family size, marital status,
etc.
Market Segmentation
Socioeconomic:
Dividing the market on
the basis of income,
education, or occupation
Psychographic:
Dividing the market on
the basis of personality,
lifecycles, and/or
lifestyles
Market Segmentation
Buying Situations
Markets can also be divided by customer buying
situations
Buying situations segmentation criteria
Outlet type
Benefits sought
Usage
Awareness and intentions
Behavior
Market Segmentation
Behavioristic segmentation
Dividing consumers into groups according to their
usage, loyalties, or buying responses to a product
80-20 rule: 20 percent of buyers account for 80
percent of sales volume
Benefit segmentation
Grouping of consumers on the basis of attributes
sought in a product
Selecting Target Market
Determine how many segments to enter
Utilizing market coverage alternatives
Determine which segments offer the most
potential
Selecting the most attractive segment
Market Coverage
Alternatives
Undifferentiated marketing
Ignoring segment differences and offering just
one product or service to the entire market.
(convenience products)
Market Coverage
Alternatives
Differentiated marketing
Involves marketing in a number of segments,
developing separate marketing strategies for
each
Market Coverage
Alternatives
Concentrated marketing
Selecting a segment and attempting to capture a large
share of this market. (Niche market)
Selecting the Most Attractive
Segment
Sales potential of segment
Opportunities for growth
Competition analysis
Ability to compete
Ability to market to this group
Market Positioning
Positioning: Fitting a product or service to one
or more segments of the broad market to
make it unique within the marketplace
Approaches
Focusing on the consumer—
Linking the product with the
benefits the consumer will derive
Market Positioning
Focusing on competition—
Positions the product by
comparing the benefit it
offers versus the
competition
Positioning Strategies
Positioning by product attributes and benefits
Sets the brand apart from competitors on
the basis of specific characteristics or
benefits offered
Salient attributes: Important to consumers
and are the basis for making a purchase
decision
Market Positioning
Positioning Strategies
Positioning by price/quality
Done where cost comes
secondary to quality
Positioning by use or application
Used to enter a market on the basis of a particular use
or application
Positioning Strategies
Positioning by product class
Positioning by product user
Positioning by competitor
Positioning by cultural symbols
Makes the brand easily identifiable and
differentiated from others
Positioning by usage occasion
Positioning by usage occasion
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
Repositioning
Product Decisions
Product symbolism: Refers to:
What a product or brand means to
consumers
What consumers experience
in purchasing and using a
product
Branding
Building and maintaining a favorable
identity of the company and its
products
Product Decisions
Packaging
Provides functional
benefits such as economy,
protection, and storage
Builds and maintains brand awareness
and interest
Develops and enhances attitudes
toward the company or product
Builds relationships between the
consumer and the brand
Product Decisions
Brand identity
Combination of name, logo,
symbols, design, packaging,
image, and associations held by
consumers
Brand equity
Intangible asset of added value
Packaging
Traditionally, the package 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
First impressions matter
Often first exposure to product
Price Decisions
Price variable—Refers to what the consumer has to give in exchange for a purchase
Factors that determine price
Costs
Demand factors
Competition
Perceived value
Product quality
Advertising
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, the Internet
– Used when selling expensive and
complex products
• Indirect channels: Network of
wholesalers and/or retailers
Promotional Push Strategies
• Programs designed to persuade the trade to stock, merchandise
and promote a manufacturer’s products
• Goal
– Push the product through the channels of distribution by
selling and promoting it
• Trade advertising: Used to motivate wholesalers and retailers to
purchase products for resale
Promotional Pull Strategies
Spending money on advertising and sales promotion
efforts directed toward the ultimate consumer
Goals
Create demand among consumers
Encourage consumers to request the product from the
retailer
To Sum Up…
• We described the role of advertising and promotion in an organization’s integrated
marketing program.
• We defined target marketing.
• We discussed the role of market segmentation in an IMC program.
• We described positioning and repositioning strategies.
• We identified the marketing-mix decisions that influence
advertising and promotional strategy.
Thank You
Dr. Perihan
Salah
