The Role of IMC in the Marketing Process

Big Ideas
Segmentation Positioning
So what do these concepts mean?

Big Ideas
Segmentation
The process dividing a market in to parts on the bases of common characteristics of the group demographic, psychographic, behavioral, benefit ...

Positioning
The desired perception or association the advertiser wants target customer to have for a firm and/or its products

Before you can do this

Components of Strategic need to know Marketing You all this

FIGURE 1.1

Marketing and Promotions Need to know allProcess this --- before youModel can do this
Marketing Strategy and Analysis Target Marketing Process Identifying markets Competitive analysis Marketing Planning Program Development Promotional decisions advertising direct marketing internet/ interactive marketing sales promotion publicity and public relations personal selling

Target Market
Promotion to final buyer

Product decisions Pricing decisions Channel of distribution decisions

Market segmentation Selecting a target market

Promotion to trade

Ultimate customer Consumers Businesses

Target marketing

Resellers

Positioning through marketing strategies

Purchase

The Target Marketing Process

1. Identify markets with unfulfilled needs

2. Determining market segmentation

3. Selecting market to target

4. Positioning through marketing strategies

Market Segmentation Selection Process

This is Step 2 (Determine Market Segmentation) and 3 (Select Target to Market) of the Target Market Process

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

 Geographic Segmentation

Bases for 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.

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 companys ability to compete in the market segment

Decide how to compete in the market segment

Segmentation Decision Check List Can the size of the market segment be
measured?
Is the market segment large and profitable enough to serve? Is the segment identified accessible? Can it be reached effectively and efficiently?

Can effective marketing programs be developed to attract and serve the segment identified?

The Positioning Process

Positioning Concept
The desired perception or association management wants target customers to have for a firm and/or its products

Positioning Effectiveness
The extent to which managements positioning objectives are achieved in the market target

Positioning Strategy

Market Target

The combination of marketing actions used to portray the positioning concept to targeted buyers

Positioning of the brand

The positioning of the brand by the buyers in the market target

Positioning Strategy Development Process

1. 2. Identify the competitors Assess perceptions of them

3.
4. 5.

Determine their positions

Analyze consumer preferences Make the positioning decision

6.

Monitor the position

Product/Service and Brand Positioning

BASIC QUESTIONS TO ASK 1. What position, if any do we currently hold in the

mind of customers? 2. What position do we want to hold? 3. Whom do we have to compete against to establish this position?

4. Do we have the resources to occupy and hold the position?

5. Can we stay with one consistent positioning strategy?

Approaches to Positioning A Product Service or Brand

1. By Product or Service Attributes and Benefits
2. By Price/Quality 3. By Use or Application 4. By Product Class 5. By Product or Service User

6. By competition
7. By cultural symbols

Position Statement
To (target segment and need1) our (brand2) is (concept3) that (point-of-difference4)
Example To busy professionals who need to say organized1, Palm Pilot2 is an electronic organizer3 that allows you to backup files on your PC more easily and reliably than competitive products4

Position Statement
For the person who wants a pure, unadulterated driving experience, the X Coupe is a high performance machine with remarkable charisma.

Is it this 1987 Trabant w/spoiler from E. Germany

2004 Mercedes Benz CLK 320 without spoiler