The role of IMC in Marketing Process Chapter 2: Summary Group : TheBestIIMSAbhijeet Mishra 2011PGP001Debasish Brahma 2011PGP008Kanmingham Phungshok 2011PGP020Pujarini Ghosh 2011PGP032Shashank Singh 2011PGP040Sourojit Ghose 2011PGP046
Chapter Objectives 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.
1.Marketing strategy and analysis Opportunity Analysis:A careful analysis of the marketplaceshould lead to alternative marketopportunities or areas where thecompany feels there are favourabledemand trends, where customer needsand/or wants are not being satisfied andwhere it could compete effectively.Market opportunities are usuallyidentified by examining demand trendsin various market segments. Example: Porsche which is a luxury sports car maker entering new segment - SUV
Marketing strategy and analysis (contd.) 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
Target marketing process Identifying market:Target market identiﬁcation isolates consumers with similarlifestyles, needs, and the like, and increases our knowledgeof their speciﬁc requirements.The more marketers can establish this common ground withconsumers, the more effective they will be in addressingthese requirements in their communications programs andinforming and/or persuading potential consumers that theproduct 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 enter3 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 determiningthe most attractive segment. The firm must examine thesales potential of the segment, the opportunities forgrowth, the competition, and its own ability to compete.Then it must decide whether it can market to this group.
Target marketing process Market positioning: Approaches to Positioning : Positioning by Product Attributes and Benefits Positioning by Price/Quality Positioning by Use or Application Positioning by Product Class Determining the Positioning Strategy Positioning by Product User Identifying competitors Positioning by Competitor Consumers’ perceptions of competitors Positioning by Cultural Symbols Determining competitors’ positions Repositioning Analysing the consumers’ preferences Making the positioning decision Monitoring the position.
Developing the marketing planning program 1. Product decisions: Product planning involves decisions not only about the item itself, such as design andquality, but also about aspects such as service and warranties as well as brand name andpackage design.Consumers look beyond the reality of the product and its ingredients. The product’squality, branding, packaging, and even the company standing behind it all contribute toconsumers’ 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 theconsumer must give up in exchange for a product or service,Marketing managers must be concerned with establishing a pricelevel, developing pricing policies and monitoring consumers’ andcompetitors’ reactions to price in the marketplace. Factors a firmmust 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 interdependentorganizations involved in the process of making aproduct or service available to customers. This can beof two types: Direct channel Indirect channel
Developing promotional strategy-push/pull? 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.