Transcript Ch. 2
Chapter 2 The Role of IMC in the Marketing Process Last Class Introduction to IMC Links to marketing and promotional elements Today’s Objectives Role of IMC in Marketing What kind of a strategy is Samsung using to compete against Sony? a repositioning strategy niche market strategy a concentrated market strategy an undifferentiated market strategy lifestyle segmentation What is? A market opportunity A competitive advantage A market threat Marketing to a Lifestyle + The Role of IMC in Marketing Nike’s and Reebook’s success : they recognize their business is no longer about just selling shoes. It’s about selling sports, entertainment, style, and fashion. Tell me about other brands… What business are they in? Kale Duru Nivea The Target Marketing Process Identify markets with unfulfilled needs Determining market segmentation Selecting market to target Positioning through marketing strategies Is a Roof just a Roof! Different products for different needs! The Marketing Segmentation Process Find Ways To Group Consumers According According To To Their Their Needs. Needs Find Ways To Group Marketing Actions - Usually the Products Offered - Available To the Organization. Develop a Market/Product Grid To Relate the Market Segments To the Firm’s Products and Actions. Select the Product Segments Toward Which the Firm Directs Its Marketing Actions. Take Marketing Actions To Reach Target Segments. Bases for Segmentation Psychographic Demographic Customer Characteristics Socioeconomic Geographic Behavior Outlets Buying Situation Usage Benefits Segmentation Age or Generation? Physical Size Offerings might be big men's clothing, golf clubs for shorter players, etc. Segmentation Examples Creation of or response to a fad Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc. Geographic location Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc. Time related factors You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM. Demographics/culture/religion Ethnic products would fall into this category. Social status This could include country club memberships, philanthropic contributions, etc. Education Segmentation Examples Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling. Avocation This could include products for hunting, fishing, golf, art work, knitting, etc. Special Interests You could target cat lovers, science fiction readers, jazz music collectors, etc. Accessibility Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc. Access (or lack of access) to competitive offerings Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc. Need for specific information Segmentation Examples Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking. Need for customization Product/service examples are home decoration, fashion wear, personal portraits, etc. Need for quality, durability, etc. Product examples are mountain climbing gear, carpenter's tools, etc. Degree of a product/service ingredient Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others. Hispanics Prefer Spanish Language Ads Six Positioning Questions 1. What position do we have now? 2. What position do we want to own? 3. From whom must we win this position? 4. Do we have the money to do the job? 5. Do we have the tenacity to stay with it? 6. Does our creative strategy match it? What is this? The first production Model T Ford was built on September 27, 1908. Ford continued building the "T" for the next 19 years, until it was replaced by the Model "A" in 1928. Ford Motor Company Positioning Strategies How should we position? By Attributes and Benefits? By Price or Quality? By Use or Application? By Product Class? By Product User? By Competitor? By Cultural Symbols? Positioning Strategy Development Process 1. Identify the competitors 2. Assess perceptions of them 3. Determine their positions 4. Analyze consumer preferences 5. Make the positioning decision 6. Monitor the position Developing a Positioning Strategy Attribute/benefit Price/quality Use/application Product class Product users Competitor Cultural symbol Repositioning - Energizer Ikea Baking Soda Butter or margarine Nike Sana vs. Aymar, 7UP CocaCola in Ramadan Volvo Product Decisions A product is a bundle of benefits or values. Product quality, branding, packaging, and company name contribute to product image. Branding and Packaging Work Closely Together Product Decisions BRANDING Brand name communicates attributes and meaning Advertising creates and maintains brand equity PACKAGING Packaging has become increasingly important It’s often customers’ first exposure to product A Package Is More than a Container + Packaging Enhances Brand Identity For other products? Which one is more expensive? Pricing Decisions consistent with perceptions of the product. Higher prices ------------ higher product quality. Lower prices reflect bargain or “value” perceptions Price, advertising and distribution be unified in identifying the product position Distribution Channel Decisions Channel decisions involve: Selecting Managing Motivating -Independent intermediaries: Wholesalers Distributors Brokers Retailers Promotion to Push Goods Through Channels vs Promotion to Pull Goods Through Channels PUSH PULL Push Policy Pull Policy Producer Producer Wholesaler Wholesaler Retailer Retailer Consumer Consumer Information Flow Promotion to Push Goods Through Channels PUSH 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 Company Conventions, Meetings Promotion to Pull Goods Through Channels PULL Sampling, free trial Cents-off promotions Cents-off coupons Combination offers Premiums or gifts Contests, sweepstakes Point-of-purchase Trading stamps Push strategies involve promoting the product only to the next link down the distribution channel; advantage : cheap and relatively straightforward, and Not consumer-orientated. Techniques used: Point of sale displays, racks, stands Trade deals, special displays Dealer premiums, prizes, gifts Cooperative advertising deals etc Pull Strategies Focuses on consumer, aimed at the final consumers Most launch strategies would involve elements of both push and pull. Techniques used: Sampling, free trial Cents-off promotions Cents-off coupons etc. Next Class Organizing for Advertising and Promotion Read Chapter 3!!!