The Marketing Process and IMC. Overview Topics: Definitions of “Markets” The Marketing Concept The Four Ps (The Marketing Mix) The Marketing Plan.

The Marketing Process and IMC

Overview

Topics:Definitions of “Markets”The Marketing ConceptThe Four Ps (The Marketing Mix)The Marketing Plan

Definitions of “Market”Different uses of the term “market”:Region

E.g., Chicago, Midwest, Urban areasType of consumer

E.g., Women, Hispanic, UpscaleType of product

E.g, Tires, Laundry detergents, Athletic shoesLocus of exchange….

Locus of ExchangeConsumerBusiness-to-businessInstitutional E.g., Government, Schools

Reseller E.g., Retailers

The Marketing ConceptOld model: Make product => Figure out how to sell it

New model: Developed since World War II Study consumers to identify needs => Make or

modify product to satisfy those needs

Goal: understanding consumersStrategic communication: relative advantage Based on need satisfaction

Real vs imagined needs Rational vs irrational needs

The Marketing ProcessDiscover consumer needs

Develop product to satisfy needs

Emphasizing existing needs is easier than trying to create them

Advertising as information rather than persuasion

The Marketing Mix (The Four Ps)

Integrated strategies for:The ProductThe PriceThe Place (distribution)The Promotion

The ProductDesign, development, branding and packaging

Product life cycle IntroductionGrowthMaturityDecline

Reformulation

Place (distribution channels)

Moving products to consumers

Channels:WholesalersRetailersTransportation modes

Place (distribution channels) continued

Push vs pull marketingPush: targeting resellersPull: targeting consumers

Market coverage strategyExclusive distributionSelective distribution Intensive distribution

Pricing

Sale vs manufacturer pricePsychological pricingAdvertising and pricePromotional costs add to priceAds create product legitimacy

Thereby permitting higher pricing

Promotion

Strategic communication to selected target audiencesForms of promotion: Personal selling Advertising Sales promotion Public relations Direct marketing

e.g., direct mail, telemarketing Point-of-sale

Principles of the Marketing Mix

Product drives the marketing mixTechnical products:

emphasize personal sellingLow-involvement products:

emphasize advertising, emotional appeals, and brand image

High-involvement productsAdvertising can include more information

The Marketing Plan:Document guides marketing efforts

Covers all elements of the marketing mix Including basic promotional strategies

Developed as part of the Business Plan

Top-Down Marketing Planning Model

Situationanalysis

Marketingobjectives

Marketingstrategy

Marketingtactics

Similar Model to Advertising/ Promotion Planning

Situationanalysis

Promotionalobjectives

Promotionalstrategy

Promotionaltactics

Stages of Marketing Plan

ResearchBackground on product and competition

StrategicFormulating campaign strategy

ImplementationPutting plan into effect

EvaluationEvaluating the plan

Marketing Communication Process

Source (s) Message Media Receiver(s) Decision

Manufacturer Distributor Wholesaler Ad agency Salesperson Spokesperson Promo. Man.

Act

ion

Peo

ple

Creative Dir.Writer • Copywriter • ScreenwriterGraphic ArtistFilm Producer(and 5 others)

Media Rep.Media OwnerMedia BuyerPromotion/Ad Manager

Target Markets • Consumers • Trade customersSuppliers

Decide Promo. • Policy • StrategyDraft PlansManage Promotion

Create MessageFit message to suitable formatFit format to medium

Select mediaCoordinate ad placement Schedule adsSuperviseQuality checkDocumentation

Perceive • Medium • Symbols • MessageDecode symbols

Attitudes toward productImages of productPurchase

Target Markets • Consumers • Trade customersSuppliers

IMC - Integrated Marketing Comm.

Attempt to unify the various marketing communications approaches into a seamless wholeHarmonize

Utilize unique strengths of the different marketing communication channels in a coordinated fashionSynchronize

The New Normal

The “new normal” in the way marketing communication is conducted

Merge advertising, public relations, direct marketing, sales promotion, event planning, trade communication, retail marketing, package design and other marketing communication elements

Why do it?

Whole is greater than sum of its parts

By emitting an united message, you are more likely to build awareness, raise recollection, and foster trial

Less likely to confuse consumers with multiple, potentially contradictory, ideas

Sound easy?

It’s not!

IMC is difficult to install in agencies because of “functional silos”

Specialists trying to protect their turf, their autonomy, their data, their budgets

Issues of Structure

Agencies have tried many methods to get disciplines to work together Bring in external specialists shops

70s and 80s - Merger Mania Centralize power under an account executive to

coordinate different departments/specialties Early 90s - Large Agencies

Change structure of the agency itself Merge job descriptions -- “generalize” tasks

Late 90s - Smaller Agencies

How do you do it?

Need specialists to share information and ideas with one anotherOpen lines of communication

Must adopt open decision makingGreat ideas can come from anyone

Requires a commitment to coordinationMust share work and responsibility

Techniques in IMC

Mass marketing vs. “market-driven” approaches “Micro-marketing” and “Point-casting”

Speak to specialized market segments “Data mining”

Building information profiles of consumers “One-to-one targeting”

create over-time ties with consumers “Consumer-initiated”

customers begin communication process

Bridging the Divide

These are the techniques; must be pulled together into a plan or system

Integrate various communication strategies at individual execution and campaign-wide levels theme, timing, goals

The IMC Landscape

Limited effects of advertising and PR compelled many marketers to look to consumer sales promotion and direct response for “fast” results

However, these “limited time offers” don’t help build a brand image -- too much and brand equity is sacrificed

The Solution

Integrate the behavior-oriented efforts of sales promotion and direct response with the image-oriented efforts of public relations and advertisingTactically-oriented -- “Integrated”

communication executionsStrategically-oriented -- “Coordinated”

communications campaigns

Model of IMC

A Cyclical Process