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The role of IMC in
   Marketing Process
                        
                 Chapter 2: Summary

                  Group : TheBestIIMS
Abhijeet Mishra             2011PGP001
Debasish Brahma             2011PGP008
Kanmingham Phungshok        2011PGP020
Pujarini Ghosh              2011PGP032
Shashank Singh              2011PGP040
Sourojit 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.
Marketing and promotions process model

                 
1.Marketing strategy and
         analysis
                          
     Opportunity Analysis:

A careful analysis of the marketplace
should lead to alternative market
opportunities or areas where the
company feels there are favourable
demand trends, where customer needs
and/or wants are not being satisfied and
where it could compete effectively.
Market     opportunities  are    usually
identified by examining demand trends
in various market segments.                Example: Porsche which is a
                                           luxury sports car maker
                                           entering new segment - SUV
Opportunity analysis of
      Porsche
          
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
Competitive analysis
    example
        
2. Target marketing process
            
Target marketing process
          
                 Identifying market:
Target market identification isolates consumers with similar
lifestyles, needs, and the like, and increases our knowledge
of their specific requirements.

The more marketers can establish this common ground with
consumers, the more effective they will be in addressing
these requirements in their communications programs and
informing and/or persuading potential consumers that the
product 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 enter
3 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 determining
the most attractive segment. The firm must examine the
sales potential of the segment, the opportunities for
growth, 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 and
quality, but also about aspects such as service and warranties as well as brand name and
package design.
Consumers look beyond the reality of the product and its ingredients. The product’s
quality, branding, packaging, and even the company standing behind it all contribute to
consumers’ 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 the
consumer must give up in exchange for a product or service,
Marketing managers must be concerned with establishing a price
level, developing pricing policies and monitoring consumers’ and
competitors’ reactions to price in the marketplace. Factors a firm
must 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 interdependent
organizations involved in the process of making a
product or service available to customers. This can be
of 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.


Thank You

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Chapter 2

  • 1. The role of IMC in Marketing Process  Chapter 2: Summary Group : TheBestIIMS Abhijeet Mishra 2011PGP001 Debasish Brahma 2011PGP008 Kanmingham Phungshok 2011PGP020 Pujarini Ghosh 2011PGP032 Shashank Singh 2011PGP040 Sourojit Ghose 2011PGP046
  • 2. 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.
  • 3. Marketing and promotions process model 
  • 4. 1.Marketing strategy and analysis  Opportunity Analysis: A careful analysis of the marketplace should lead to alternative market opportunities or areas where the company feels there are favourable demand trends, where customer needs and/or wants are not being satisfied and where it could compete effectively. Market opportunities are usually identified by examining demand trends in various market segments. Example: Porsche which is a luxury sports car maker entering new segment - SUV
  • 6. 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
  • 7. Competitive analysis example 
  • 8. 2. Target marketing process 
  • 9. Target marketing process  Identifying market: Target market identification isolates consumers with similar lifestyles, needs, and the like, and increases our knowledge of their specific requirements. The more marketers can establish this common ground with consumers, the more effective they will be in addressing these requirements in their communications programs and informing and/or persuading potential consumers that the product or service offering will meet their needs.
  • 10. 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
  • 11. 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
  • 12. Target marketing process  How many segment to enter 3 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.
  • 13. Target marketing process  Determining Which Segments Offer Maximum Potential : The second step in selecting a market involves determining the most attractive segment. The firm must examine the sales potential of the segment, the opportunities for growth, the competition, and its own ability to compete. Then it must decide whether it can market to this group.
  • 14. 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.
  • 15. Developing the marketing planning program  1. Product decisions: Product planning involves decisions not only about the item itself, such as design and quality, but also about aspects such as service and warranties as well as brand name and package design. Consumers look beyond the reality of the product and its ingredients. The product’s quality, branding, packaging, and even the company standing behind it all contribute to consumers’ 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.
  • 16. Developing the marketing planning program  2. Price Decisions: The price variable of the marketing mix refers to what the consumer must give up in exchange for a product or service, Marketing managers must be concerned with establishing a price level, developing pricing policies and monitoring consumers’ and competitors’ reactions to price in the marketplace. Factors a firm must consider in determining price levels include:  Costs  Demand  Competition  Perceived value
  • 17. Developing the marketing planning program  3. Distribution Channel Decisions: Marketing channels refers to the set of interdependent organizations involved in the process of making a product or service available to customers. This can be of two types:  Direct channel  Indirect channel
  • 18. 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.