The role of IMC in Marketing Process

Chapter 2: Summary

Group : TheBestIIMS

Abhijeet Mishra 2011PGP001

Debasish Brahma 2011PGP008

Kanmingham Phungshok 2011PGP020

Pujarini Ghosh 2011PGP032

Shashank Singh 2011PGP040

Sourojit Ghose 2011PGP046

To understand the marketing process and the role of

advertising and promotion in an organization’s integrated marketing program.

To know the various decision areas under each element of the marketing mix and how they influence and interact with advertising and promotional strategy.

To understand the concept of target marketing in an integrated marketing communications program.

To recognize the role of market segmentation and its use in an integrated marketing communications program.

To understand the use of positioning and repositioning strategies.

Chapter Objectives

Marketing and promotions process model

Opportunity Analysis:

A careful analysis of the marketplace should lead to alternative market opportunities or areas where the company feels there are favourable demand trends, where customer needs and/or wants are not being satisfied and where it could compete effectively. Market opportunities are usually identified by examining demand trends in various market segments.

1.Marketing strategy and analysis

Example: Porsche which is a luxury sports car maker entering new segment - SUV

Opportunity analysis of Porsche

Competitive analysis:

In developing the firms marketing strategies and plans for its products and services, the manager must carefully analyse the competition to be faced in the marketplace

This may range from direct brand competition (which can also include its own brands) to more indirect forms of competition, such as product substitutes

At a more general level, marketers must recognize they are competing for the consumers discretionary income, so they must understand the various ways potential customers choose to spend their money

An important aspect of marketing strategy development is the search for a competitive advantages something special a firm does or has that gives it an edge over competitors

Marketing strategy and analysis (contd.)

Competitive analysis example

2. Target marketing process

Identifying market:

Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements.

The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs and informing and/or persuading potential consumers that the product or service offering will meet their needs.

Target marketing process

Market Segmentation

Dividing up a market into distinct groups that have common needs and will respond similarly to a marketing. The Process Involves following steps:

Finding ways to group consumers according to their needs Finding ways to group the marketing actions—usually the products offered

available to the organization. Developing a market-product grid to relate the market segments to the firm’s

products or actions. Selecting the target segments toward which the firm directs its marketing actions. Taking marketing actions to reach target segments.

Bases for Segmentation Geographic Segmentation

Demographic Segmentation Psychographic Segmentation Behaviouristic Segmentation Benefit Segmentation

Target marketing process

Selecting a target market:

The outcome of the segmentation analysis will reveal the market opportunities available.

The next phase in the target marketing process involves two steps:   determining how many segments to enter and  determining which segments offer the most

potential

Target marketing process

How many segment to enter

3 market coverage alternatives are available: Undifferentiated marketing involves ignoring

segment differences and offering just one product or service to the entire market.

Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each.

Concentrated marketing is used when the firm selects one segment and attempts to capture a large share of this market.

Target marketing process

Determining Which Segments Offer

Maximum Potential :

The second step in selecting a market involves determining the most attractive segment. The firm

must examine the sales potential of the segment, the opportunities for growth, the competition, and its own ability to compete. Then it must decide whether it can market to this group.

Target marketing process

Market positioning:

Target marketing process

Determining the Positioning Strategy Identifying competitorsConsumers’ perceptions of competitorsDetermining competitors’ positionsAnalysing the consumers’ preferencesMaking the positioning decisionMonitoring the position.

Approaches to Positioning :Positioning by Product Attributes and Benefits Positioning by Price/Quality Positioning by Use or Application Positioning by Product Class Positioning by Product User Positioning by Competitor Positioning by Cultural Symbols Repositioning

1. Product decisions:

Product planning involves decisions not only about the item itself, such as design and quality, but also about aspects such as service and warranties as well as brand name and package design. Consumers look beyond the reality of the product and its ingredients. The product’s quality, branding, packaging, and even the company standing behind it all contribute to consumers’ perceptions.

Branding: One important role of advertising in respect to branding strategies is creating and maintaining brand equity, which can be thought of as an intangible asset of added value or goodwill that results from the favourable image, impressions of differentiation and/or the strength of consumer attachment to a company name, brand name, or trademark.

Packaging: Packaging is another aspect of product strategy that has become increasingly important. The package is often the consumer’s first exposure to the product, so it must make a favourable first impression.

Developing the marketing planning program

2. Price Decisions:

The price variable of the marketing mix refers to what the consumer must give up in exchange for a product or service, Marketing managers must be concerned with establishing a price level, developing pricing policies and monitoring consumers’ and competitors’ reactions to price in the marketplace. Factors a firm must consider in determining price levels include: Costs Demand Competition Perceived value

Developing the marketing planning program

3. Distribution Channel Decisions:

Marketing channels refers to the set of interdependent organizations involved in the process of making a product or service available to customers. This can be of two types:

Direct channel Indirect channel

Developing the marketing planning program

Promotional push strategy: The goal of

this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers or trade.

Promotional pull strategy: The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer. Seeing the consumer demand, retailers will order the product from wholesalers (if they are used), which in turn will request it from the manufacturer.

Developing promotional strategy-push/pull?

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