CHAPTER 2: THE ROLE OF IMC IN THE MARKETING PROCESS

strategic marketing plan

Any organization that wants to exchange its products or services in the marketplace successfully should have a ____ to guide the allocation of its resources.

strategic marketing plan

A ___usually evolves from an organization’s overall corporate strategy and serves as a guide for specific marketing programs and policies.

situation analysis

Marketing strategy is based on a _____ - a detailed assessment of the current marketing conditions facing the company, its product lines, or its individual brands.

Opportunity Analysis

Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can come effectively.

Competitive Analysis

An important aspect of marketing strategy development is the search for competitive advantage, something special a firm does or has that gives it an edge over competitors.

Target Market Selection

focus of the firm’s marketing effort, and goals and objectives are set according to where the company wants to be and what it hopes to accomplish in this market.

Identifying Markets

When employing a target marketing strategy, the marketer identifies the specific needs of groups of people (or segments), selects one or more of these segments as a target, and develops marketing programs directed to each.

Market segmentation

dividing a market into distinct groups that

(1) have common needs and

(2) will respond similarly to a marketing action.

-The more marketers segment the market, the more precise is their understanding of it.

Managers

consider whether the target segment is substantial enough to support individualized strategies.

Geographic

Nations, states, counties, or even neighborhoods.

Demographic

Age, sex, family size, education, income, and social class

Psychographic

personality, life-cycles, and/or lifestyles

Behavioristic

usage, loyalties, buying responses to a product

Benefit

Consumers that satisfy specific needs and or wants. Basis of attributes sought in a product.

(1)determining how many segments to enter

(2)determining which segments offer the most potential.

Selecting a target market – The next phase in the target marketing process involves two steps:

Undifferentiated Marketing

(1) determining how many segments to enter Three market coverage alternatives are available:

– involves ignoring segment differences and offering just one product or service to the entire market.

Differentiated Marketing

(1) determining how many segments to enter Three market coverage alternatives are available:

– involves marketing in a number of segments, developing separate marketing strategies for each.

Concentrated Marketing

(1) determining how many segments to enter Three market coverage alternatives are available:

–is used when the firm selects one segment and attempts to capture a large share of this market.

(2) Determining which Segments Offer Potential

The second stem in selecting a market involves determining the most attractive segment. The firm must examine the sales potential of the segment, opportunities for growth, the competition, and its own ability to compete.

Positioning

has been defined as “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 meaningfully apart from competition.”

Here are six such strategies by David Aaker and J. Gary Shansby

1. Positioning by Product Attributes and Benefits

2. Positioning by Price/Quality

3. Positioning by Use or Application

4. Positioning by Product Class

5. Positioning by Product User

6. Positioning Competitor

7. Positioning by Cultural Symbols – Added by Aaker and Myers

Positioning by Product Attributes and Benefits

Marketers attempt to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision.)

Positioning by Product Price/Quality

Marketers do this with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning.

Positioning by Use or Application

– Advertisements or promotions are specifically targeted to small business owners and/or entrepreneurs. – This is also an effective way to expand the usage of a product.

Positioning by Product Class (Product class)

refers to the different products offered to different customers.

Positioning by Product User

Positioning a product by associating it with a particular user or group of users.

Repositioning

a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions.

Repositioning

is often difficult to accomplish because of entrenched perceptions about and attitudes toward the product or brand.

DEVELOPING THE MARKETING PLAN PROGRAM

The next stage of the marketing process involves combining the various elements of the marketing mix into a cohesive, effective marketing program. We now examine product, price, and distribution channels and how each influences and interacts with the promotional program.

Product

is more than just a physical object; it is a bundle of benefits or values that satisfies the needs of consumers.

Product symbolism

refers to what a product or brand means to consumers and what they experience in purchasing and using it.

– Thus, advertising plays an important role in developing and maintaining the image of these brands.

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.

BRANDING

– Is about building and maintaining a favorable identity and image of the company and/or its products or services in the mind of the consumer.

Brand Identity

– consists of the combination of the name, logo, symbols, design, packaging, and image association held by consumers.

1. Build and maintain brand awareness and interest

2. Develop and enhance attitudes toward the company, product, or service

One important role of advertising in respect to branding strategies is creating and maintaining brand equity, which can be though of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark.3. Build and foster relationships between the consumer and the brand

The goal of branding is to:

brand equity

One important role of advertising in respect to branding strategies is creating and maintaining ______, which can be though of as an intangible asset of added value or goodwill that results from the favorable image, impressions of differentiation, and/or the strength of consumer attachment to a company name, brand name, or trademark.

Packaging

is another aspect of product strategy that has become increasingly important. – Traditionally, packaging provided tangible benefits. However, the role and function of the package have change.

price variable

efers to what the consumer must give up to purchase a product or service. The cost of a product to the consumer includes time, mental activity, and behavioral effort

highest quality but carrying a lower price

A product positioned as ______ than competitors would only confuse consumers.

Relating Price to Advertising and Promotion

Factors such as product quality, competition, and advertising all interact in determining what price a firm can and should charge. Studies have shown that pricing and advertising strategies go together.

Marketing channels

– the place element of the marketing mix, are “sets of interdependent organizations involved in the process of making a product or service available for use or consumption.”

1. direct channel

2. indirect channel

A company can choose not to use any channel intermediaries:

Direct Channels

This type of channel arrangement is sometimes used in the consumer market by firms using direct-selling programs.

Indirect channels

a network of wholesalers and/or retailers.

Promotional Push Strategy

these are programs used to persuade the trade to stock, merchandise, and promote a manufacturer’s products. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the items to the resellers or trade.

Promotional Pull Strategy

spending money on advertising and sales promotion efforts directed toward the ultimate consumer. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer.

Promotion

plays an important role in anorganization’s efforts to market its product, service, or ideas to its customers.

promotional program

planning process, the situation analysis requires that the marketing strategy be assumed. The ____ is developed with this strategy as a guide.

Agree

One of targeting, and positioning to target markets. There are several bases for segmenting the the key decisions to be made pertains to the target marketing process, which includes identifying, segmenting, market and various ways to position a product.

integrated marketing communications perspective

Once the target marketing process has been completed, marketing program decisions regarding product, price, distribution, and promotions must be made. All of these must be coordinated to provide an _____, in which the positioning strategy is supported by one voice.