the marketing process and imc. overview topics: definitions of “markets” the marketing concept...
TRANSCRIPT
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