Chapter 2 MKT337

Chapter 2
The Role of IMC in the

Marketing Process
Figure 2.1 - Marketing and Promotions
Process Model
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Marketing Strategy and Analysis
- carefully examining the

marketplace
- noting demand trends Designing 4Ps to win over
and competition in various competitors
market segments Through advertising to create
differentiation and brand
equity
Competing in global economy
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• Opportunity coming from the competitors
• Opportunity coming from the change in
technology and macroenvironment
Figure 2.2 - The Target Marketing
Process
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Market Segmentation
 Dividing a market into distinct groups with common
needs, who respond similarly to a marketing situation
 Criteria
 Geographic segmentation: Markets are divided into
different geographic units
 Demographic segmentation: Dividing the market on
the basis age, sex, family size, education, income, and
social class
 Psychographic segmentation: Dividing the market on
the basis of personality, lifecycles, and/or lifestyles
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Bases for 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
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Selecting Target Market
Determine how many segments to

enter
Determine which segments offer the

most potential
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Market Coverage Alternatives
Undifferentiated marketing
• 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
• Selecting a segment and attempting to capture a large share of
this market
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Positioning Strategies
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Positioning by Product Attributes & Benefits
• Talks about specific characteristics and benefits offered

• Salient attributes
Positioning by Price/Quality
• Reflects the image of a high quality brand, while cost, if not

irrelevant, secondary
• Product quality must reflect the high price
Positioning by product Class
• Competition comes from outside the product
class/category. This positioning tries to battle it

Positioning by Competitors
against the
• Position their products
competitor’s positioning
Positioning by Symbols
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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• Change target market
• Change brand image
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
 Packaging
 Provides functional benefits such as economy,
protection, and storage
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Branding
Builds and maintains brand awareness and interest
Develops and enhances attitudes toward the company or product
Builds relationships between the consumer and the brand
Brand identity: Combination of name, logo, symbols, design,

packaging, and image of associations held by consumers
Brand equity: Intangible asset of added value
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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
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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
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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
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Promotional Pull Strategies
 Spending money on advertising and sales
promotion efforts directed toward the ultimate
consumer
 Goal
 Create demand among consumers
 Encourage consumers to request the product from
the retailer
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Chapter 2

The Role of IMC in the

- carefully examining the

• Dividing consumers into groups according to their

• Grouping of consumers on the basis of attributes

Determine how many segments to

Determine which segments offer the

• Talks about specific characteristics and benefits offered

• Reflects the image of a high quality brand, while cost, if not

• Competition comes from outside the product

class/category. This positioning tries to battle it

Develops and enhances attitudes toward the company or product

Builds relationships between the consumer and the brand

Brand identity: Combination of name, logo, symbols, design,

Brand equity: Intangible asset of added value

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