Chapter 2 Advertising And Promotion, 6/E - Belch

1. The Role of IMC
in the Marketing Process
Group 8
Chapter 2 Integrated Marketing
Advertising And Promotion, 6/E - Belch Communications
Aditya GSN Indrajit Bage N Krishna Chaitanya Neeraj Panghal Prateek Jaiswal Silpa Kamath

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. Marketing Strategy and Analysis
Opportunity Analysis Competitive Analysis
• A careful analysis of the • In developing the firm’s marketing
marketplace should lead to strategies and plans for its
alternative market opportunities products and services, the manager
for existing product lines in must carefully analyse the
current or new markets, new competition to be faced in the
products for current markets, or marketplace.
new products for new markets. • This may range from direct brand
competition (which can also
• Market opportunities are areas include its own brands) to more
where there are favourable indirect forms of competition, such
demand trends, where the as product substitutes.
company believes customer
needs and opportunities are not • An important aspect of marketing
being satisfied, and where it can strategy development is the search
compete effectively for a competitive advantage,
something special a firm does or
has that gives it an edge over
competitors

5. 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 in their
communications programs and informing and/or persuading potential
consumers that the product or service offering will meet their needs.

6. The 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

7. The Target Marketing Process
Selecting a Target Market
 Determining How Many Segments to Enter
Three 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.
 Determining Which Segments Offer 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.

8. The 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
Positioning by Product User
Positioning by Competitor
Positioning by Cultural Symbols
Repositioning
 Determining the Positioning Strategy
Identifying competitors
Assessing consumers’ perceptions of competitors
Determining competitors’ positions
Analysing the consumers’ preferences
Making the positioning decision
Monitoring the position.

9. Developing the Marketing Planning Program
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.

10. Developing the Marketing Planning Program
Price Decisions
The price variable refers to what the consumer must give up to purchase a product or
service. While price is discussed in terms of the dollar amount exchanged for an item,
the cost of a product to the consumer includes time, mental activity, and behavioural
effort.
A firm must consider a number of factors in determining the price it charges for its
product or service, including costs, demand factors, competition, and perceived value.
 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.
Distribution Channel Decisions
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.
Direct channels Indirect channels
 Developing Promotional Strategies: Push or Pull?
Promotional push strategy Trade advertising Promotional pull strategy

11. So, Any Queries ?