Chapter - 2

 The Role of IMC in the Marketing Process

After reading this lesson you would be able to answers to the following questions:
1. How a marketing process works?
2. What is the role of advertising and promotion in an organization’s Integrated marketing program?
3. What is Target marketing?
4. Role of Market segmentation and its use in IMC program?
5. What are the different positioning and repositioning strategies?  

We use the model in Figure below as a framework for analyzing how promotion fits into an organization’s marketing strategy and programs for creating a coherent and effective integrated marketing communications plan.

This model consists of four major components:
a) The organization’s marketing strategy and analysis
b) The target marketing process
c) The marketing planning program development (which includes the promotional mix)
d) The target market

Marketing and promotions process model


Marketing Strategy and Analysis
Let’s examine the different steps of the marketing strategy and planning process: 

Opportunity Analysis
It refers to the market opportunities or the areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied, and where it can compete effectively.

Competitive Analysis
In developing the firm’s marketing strategies and plans for its products and services, the manager must carefully analyze 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.

Target Market Selection
After evaluating the opportunities presented by various market segments, including a detailed competitive analysis, the company may select one, or more, as a target market. This target market becomes the 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.
To reach out to the selected target market, the marketers follow the below mentioned process:

  
The target marketing process

Identifying Markets
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 and informing and persuading potential consumers that the product or service offering will meet their needs.


Market Segmentation
Market segmentation refers to the dividing up of a market into distinct groups that have common needs and (b) will respond similarly to a marketing action.

The segmentation process involves five distinct steps:
1. Finding ways to group consumers according to their needs
2. Finding ways to group the marketing actions usually the products offered available to the organization
3. Developing a market-product grid to relate the market segments to the firm’s products or actions
4. Selecting the target segments toward which the firm directs its marketing actions
5. Taking marketing actions to reach target segments



Bases for Segmentation

Geographic Segmentation refers to the dividing of the markets into different geographic units. These units may include nations, states, counties, or even neighborhoods. Consumers often have different buying habits depending on where they reside.

Demographic Segmentation is dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class.

Psychographic Segmentation is dividing the market on the basis of personality and/or lifestyles.

Behaviouristic Segmentation refers to dividing consumers into groups according to their usage, loyalties, or buying responses to a product.



  
Market Positioning
Positioning Strategy refers as to how you want to be perceived in the minds of prospects versus your competition. It must clearly distinguish you from competitors and make it obvious you are the best available choice.

Approaches to Positioning
There are generally two strategies for positioning based on whether the focus is on the consumer or the competition.
a)  The former does focusses on the benefits the consumer will derive from the product or creating a favorable brand image
b) While the latter approach positions the product by comparing it and the benefit it offers with the competition

Developing a Positioning Strategy



Repositioning is one final positioning strategy which involves altering or changing a product’s or brand’s position. Repositioning a product usually occurs because of declining or stagnant sales or because of anticipated opportunities in other market positions.




Developing the Marketing Planning Program (Marketing Mix)

Product Decisions




Price Decisions
From an IMC perspective, the price must be consistent with the perceptions of the product, as well as the communications strategy.
Higher prices, of course, will communicate a higher product quality, while lower prices reflect bargain or “value” perceptions. A product positioned as highest quality but carrying a lower price than competitors will only confuse consumers. In other words, the price, the advertising, and the distribution channels must present one unified voice speaking to the product’s positioning.


Distribution Channels Decisions



Promotional Strategy: Pull or Push?





The Role of Advertising and Promotion
The marketing program includes promotion both to the trade (channel members) and to the company’s ultimate customers. Marketers use various promotional-mix elements e.g. advertising, sales promotion, direct marketing, public relations, and personal selling—to inform consumers about their products, their prices, and places where the products are available. Each promotional-mix variable helps marketers achieve their promotional objectives, and all variables must work together to achieve an integrated marketing communications program.



The development and implementation of a successful Integrated Marketing Communications program is depends on how strong the foundation is, which includes market analysis, target marketing and positioning, and good coordination of the various marketing-mix elements.

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