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Chapter 2

The Role of IMC in the Marketing Process

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Figure 2-1 Marketing and Promotions Process Model

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Summary Overview:�This slide provides an overview of a firm’s marketing process and how promotion fits into the program.

Use of this slide:

This slide can be used to discuss how promotion fits into an organization’s marketing strategy and programs. The model consists of four major components:

Marketing strategy and analysis
Target marketing process
Marketing planning program development
Target market

The marketing process begins with the development of a marketing strategy and analysis, during which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively. Note that the promotion program is directed to both the ultimate consumer and the trade members or resellers that distribute the company’s products.

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Marketing Strategy and Analysis 2

Opportunity Analysis

Market opportunities are areas where:

There are favorable demand trends.
Customers’ needs and opportunities are not being satisfied.
Firm can compete effectively.

Steps to identify market opportunities:

Examine the marketplace.
Observe demand trends
Competition
Various market segments.

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Marketing Strategy and Analysis 3

Competitive Analysis

Analyzing competition in the marketplace and searching for 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.

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Marketing Strategy and Analysis 4

Target Market Selection

Done after evaluating market opportunities and doing a competitive analysis.
Can select one or more target markets.
Has direct implications on firm’s advertising and promotional efforts.

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Figure 2-2 The Target Marketing Process

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Identifying Markets

Identify 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.
Increases 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.
Bases for segmentation:

Geographic:
Demographic:
Psychographic:
Behavioristic segmentation:
Benefit segmentation:

Selecting a Target Market

Determine how many segments to enter.

Undifferentiated marketing:
Differentiated marketing:
Concentrated marketing:.
Determine which segments offer potential

Market Positioning

Positioning: Fitting product or service to one or more segments of a broad market to make it unique within the marketplace.
the way a company / brand / product / service is defined by the consumers.

Summary Overview:�This slide presents the target marketing process and the basic steps involved. The process by which marketers develop different marketing strategies to satisfy different customer needs is called target marketing.

Use of this slide:

This slide can be used to introduce the target marketing process and provide a brief description of each step:

Identifying markets with unfulfilled needs - In this step, consumers with similar lifestyles, needs, and wants are isolated and increases the marketers knowledge of their specific requirements.
Determining market segmentation - In this step, a market is divided into distinct groups that have common needs and will respond similarly to a marketing action.
Selecting a market to target - This step determines how many segments to enter, and which segments offer the most potential.
Position through marketing strategies - This step determines the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition.

Each of these steps is presented in more detail on the following slides.

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Exhibit 2-11 Cluster Profiles

Source: Nielsen Claritas

Nielsen Claritas provides cluster profiles for marketers.

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Developing a Positioning Statement

Use these templates to create an effective positioning statement that will resonate with the defined target audience:�

For (target audience), (the brand) is the (your market) �that best delivers on (your brand promise) because �(your brand) and only (your brand) is (your evidence).

Among (target audience), (x) is the brand of (frame of reference), that (point of difference) because (reason to believe).

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Developing the Positioning Statement

Does it effectively differentiate your brand?
Is it believable
Is it flexible enough to allow for growth over time?
Does it paint a clear mental image?
Does it speak directly to your core audience?
Does it motivate your target audience?
Is it easy to understand?
Will it stand up to the competition?
Is it unique and memorable?

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