Chapter 2

Role of IMC In Marketing Process

Presented to: Presented by:

DR. R.P Patel. Vishali Tickoo (17M42, Div-A)
Maurya Ankit (17M04, Div-A)

G.H Patel Institute of Post Graduation in Business Management (2017-19)

 Marketing and Promotions Process Model

Marketing Target
Strategy and Marketing Planning Target Market
Marketing Program Development
Analysis Process
Promotion to
Opportunity Identifying Product Promotional final buyer
analysis markets decisions decisions
•advertising
•direct
marketing Ultimate
Market •internet/ customer
segmentation interactive •Consumers
Pricing marketing •Businesses
Promotion
Competitive decisions •sales
Selecting a to trade
Analysis promotion
target •publicity and
market Resellers
public relations
•personal
Positioning selling
through Channel of Purchase
Target marketing distribution
marketing strategies decisions
The Target Marketing Process
 Bases for Segmentation

• Geographic Segmentation
– State - region - country - climate
• Demographic Segmentation
– Age, sex, income, education, occupation, social class
• Psychographic Segmentation
– AIOs, (Activities, Interests, Opinions)
– VALS (Values and Lifestyles)
– Personality traits
• Behavioristic Segmentation
– Usage, loyalties, occasions.
• Benefit Segmentation
– Types of specific needs or wants to be satisfied.
 Selecting a Target Market

Determining How Many Segments To Enter

•Undifferentiated Marketing – offering one product or service

to the entire market

•Differentiated marketing – competing in a number of

segments with separate marketing strategies for each

•Concentrated Marketing – focusing on one market segment

by or a range of products.
 Cont…..

Undifferentiated marketing -For may

years coca-cola used only one product
version for entire segment.
Cont….
 Cont…….

Determining Which Market Segments Offer the Most

Potential

•Determine sales potential of the segment

•Determine opportunities for growth of the market segment
•Analyze the competition in the segment
•Analyze the company’s ability to compete in the market
segment
•Decide how to compete in the market segment
 Positioning

 What is positioning?
In marketing and business strategy, market position refers to the
consumer’s perception of a brand or product in relation to
competing brands or products. Market positioning refers to the
process of establishing the image or identity of a brand
or product so that consumers perceive it in a certain way.
 Examples:
1. A car maker may position itself as a luxury status symbol.
2. Whereas a battery maker may position its batteries as the most reliable
and long-lasting
 Cont……

Approaches to Positioning A Product/Service or Brand

•By Product or Service Attributes and Benefits

•By Use or Application
•By Price/Quality
•By Product Class
•By Product or Service User
•By competition
•By cultural symbols
By Product or Service Attributes and Benefits
By Use or Application
 By Price/Quality

Philip Kotler’s nine quality-pricing strategy model

By Product Class
 By Product or Service User

For specially able

 By competition

offering 50% more in quantity at same price as that of competitor

Positioning by cultural symbol

Source: Courtesy The Pillsbury Company

 Product Decisions

A product is a bundle of benefits & values that satisfy the needs of

the targeted customer
• Product symbolism refers to what a product or brand means to
customers
• Product quality, branding, packaging, and company name
contribute to product image or its perception by customer . In an
IMC program all designed to portray not only the attributes of the
product but also its image and its position.
• Branding:
– Brand name communicates attributes and meaning
– Advertising creates and maintains brand equity which results
from the image and/or impression of a brand
 The Value of Strong Corporate /Brand Identity

Strong corporate/brand equity:

•Creates more options for competing against lower-priced

competitors
•Builds customer loyalty
•Allows companies to sell products/services at a premium price
and maintain larger profit margins
•Can facilitate brand and line extensions
•Makes customer response more inelastic to price increases and
elastic to price decreases
 Packaging

•Traditional functions of packaging:

economy, protection, storage
•Packaging has become increasingly important because:
 Self service emphasis of many stores
 Buying decisions made at point-of- purchase
 Often customers first exposure to product
•Packaging is a way to communicate to consumers
Cont…..
 Pricing Decisions

 Factors that should be considered cost, demand, competition

and perceived value.
 Price must be consistent with perceptions of the product
 Higher prices communicate higher product quality
 Lower prices often reflect bargain or “value” perceptions
 A product positioned as high quality while carrying a lower
price than competitors may confuse customers
 Price, advertising and distribution must be unified to create
the position for the product or service.
 Distribution Channel Decisions

Channel decisions involve:

•Determining the type of channel system:

•Direct channels – Tupperware, Herbalife, Telemarketing,
Industrial products.
•Indirect channels – Multiple organization involved.

•Selecting, managing and motivating marketing intermediaries such as

– Wholesalers
– Distributors
– Brokers
– Retailers
•Selecting channel partner should be in line with your IMC program
 Push Versus Pull

•Selecting push or pull strategies depend upon may factors including the
companies relation with trade partners, the promotional budget, and the demands of
the firms product
 "Push" Techniques

• Point of sale displays, racks, stands

• Trade deals, special displays
• Dealer premiums, prizes, gifts
• Cooperative advertising deals
• Advertising materials, mats, inserts
• Push money or "spiffs"
• Collaterals, catalogs, manuals
• Trade shows, conventions, meetings
 "Pull" Techniques

• Sampling, free trial

• Coupons
• Premiums or gifts
• Contests, sweepstakes
• Price-off deals
• Refunds/rebates
• Frequency/loyalty programs
• Point-of-purchase advertising
Premium offers are part of a pull strategy

Source: KELLOGG’S CORN FLAKES® is a trademark of Kellogg

Company. All rights reserved. Used with permission.