Chapter 02 – The Role of IMC in the Marketing Process
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CHAPTER 2
THE ROLE OF IMC IN THE MARKETING PROCESS
Chapter Overview
The purpose of this chapter is to examine the marketing process and the role of advertising and promotion
in an organization’s integrated marketing program. A basic model of the marketing and promotional
process is presented, which can be used as a framework for analyzing how advertising and promotion fit
into a company’s marketing program. The chapter examines the various decision areas under each
element of the marketing mix and how they influence and interact with advertising and promotional
strategy. The chapter also introduces and/or refreshes the student on the concepts of target marketing,
segmentation and positioning. The target marketing process is introduced, and the specific elements of
this process—identifying markets with unfulfilled needs, market segmentation, selection of a target
market and positioning—are described in detail.
Learning Objectives
To examine the marketing process and the role of advertising and promotion in an organization’s
integrated marketing program.
2. To know the various decision areas under each element of the marketing mix and how they
influence and interact with advertising and promotional strategy.
4. To recognize the role of market segmentation and its use in an integrated marketing
communications program.
5. To understand the use of positioning and repositioning strategies.
Chapter and Lecture Outline
I. INTRODUCTION TO MARKETING AND PROMOTIONS PROCESS MODEL
A model is presented at the beginning of the chapter (Figure 2-1) which is a useful framework for
analyzing how promotion fits into an organization’s marketing program. The model consists of four
components:
• The organization’s marketing strategy and analysis
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Professor Notes
II. MARKETING STRATEGY AND ANALYSIS
The marketing process actually begins with the development of a marketing strategy whereby the
company determines the product or services area and particular markets in which it wants to compete. A
strategic marketing plan usually evolves from an organization’s overall corporate strategy and serves as
Steps in the Development of a Marketing Strategy
A. Opportunity Analysis—a careful analysis of the marketplace should lead to alternative market
opportunities or areas where the company feels there are favorable demand trends, where
customer needs and/or wants are not being satisfied and where it could compete effectively.
B. Competitive Analysis—in developing marketing strategies and programs a company must
analyze the competition its products or services face in the marketplace. Competition can range
from direct brand competition to other products and services that satisfy consumers’ needs and/or
compete for their dollars. Competitors’ marketing programs have a major impact on a firm’s
marketing strategy and must be carefully analyzed and monitored. Various aspects of advertising
and promotion such as promotional spending, media and creative strategy, and sales promotion
are often directly affected by competitors.
An important aspect of marketing strategy development is the search for an advantage over the
competition. A competitive advantage refers to something unique or special a firm does or
possesses that gives it an edge over competitors. Competitive advantage can be achieved in a
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C. Target Market Selection—after evaluating marketing opportunities for products/services in
Professor Notes
III. THE TARGET MARKETING PROCESS
The concept of target marketing is introduced, noting that there are four distinct steps involved in this
process—identifying target markets with unfulfilled needs, market segmentation, selecting a target
market, and positioning through marketing strategies. From this point, the chapter will go on to discuss in
detail the processes required in each step.
A. Identifying Markets—Target marketing involves the identification of the needs and wants of
specific groups of people (or segments), selection of one or more of these groups as targets, and
the development of marketing strategies aimed at each. This approach has found increased
applicability for a number of reasons.
• the diversity of consumers’ needs
The instructor should note that this process leads to a more homogeneous grouping of potential
customers, which allows the marketer to develop more precise strategies designed to reach them.
B. Market Segmentation—Once the marketer has identified who it is that is to be targeted; these
potential customers are grouped based on the fact that they have similar needs and/or behaviors
that are likely to cause them to respond similarly to marketing actions. This breaking up of the
market is referred to as the market segmentation process. This process includes five distinct
steps:
• Finding a way to group consumers according to their needs
C. A number of bases for segmentation are available to the marketer including the following: (Figure
2-4 will be helpful here.)
• Geographic—the market is divided into geographic units with alternative marketing strategies
targeted to each
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• Psychographic—markets are divided based on the personalities and/or lifestyles of
consumers. (The instructor should note that lifestyles have become a commonly employed
segmentation strategy.) Programs such as VALS and PRIZM are commonly employed by
marketers for this purpose.
D. The Process of Segmenting a Market—This section concludes by reminding the student that
market segmentation is indeed a process that develops over time and is a critical part of the
situation analysis.
E. Selecting a Target Market—Having conducted the segmentation analysis, the marketer will be
faced with two subsequent decisions:
1. Determining how many segments to enter
2. Determining which segments offer the most potential. The first of these decisions may lead
the marketer to three potential strategies:
• Undifferentiated marketing would involve the decision to ignore the segment
differences and develop one product for the entire market. It should be noted that few
firms pursue this strategy today.
F. Marketing Positioning—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 the competition.”
1. Approaches to Positioning—this section discusses the approaches to positioning as well as a
number of strategies for developing a position. Several distinct positioning strategies are
offered including:
a. positioning by product attribute/benefit—setting a product apart by stressing a specific
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e. positioning by product user—in this strategy the product is positioned at a particular
group of users. The DC Shoes example demonstrates this strategy in practice.
2. Determining the Positioning Strategy—while not noted in the text, the development of a
positioning strategy involves six distinct steps:
• Identifying competitors
• Assessing consumers’ perceptions of competitors
Professor’s Notes
IV. DEVELOPING THE MARKETING PROGRAM
The next stage of the marketing process involves combining the various elements of the marketing mix
A. Product Decisions—an organization exists because it has some product, service, idea or cause to
offer customers. Discussion can focus on benefits or values offered by the product and the fact
that products and services satisfy not only functional but social and psychological needs as well.
Product decision areas of branding and packaging are particularly important from a promotional
perspective because of the role the brand name and package play in communicating attributes,
information and meaning to the consumer.
1. Branding—choosing a brand name for a product is important from a promotional perspective
because brand names communicate attributes and meaning. One important role of advertising
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2. Packaging – the role and function of packaging has changed because of the self-service
B. Price Decisions—the price variable of the marketing mix refers to what the consumer must give
up in exchange for a product or service, Marketing managers must be concerned with establishing
a price level, developing pricing policies and monitoring consumers’ and competitors’ reactions
to price in the marketplace. Factors a firm must consider in determining price levels include:
• costs
Interesting findings from the PIMS project concerning the relationship between price, product
quality and advertising are discussed in the text.
C. Distribution Channel Decisions—marketing channels or the place element of the marketing mix
refers to the set of interdependent organizations involved in the process of making a product or
service available to customers. Differences in direct versus indirect channel arrangements
D. Developing Promotional Strategies: Push or Pull? – When a promotional push strategy is used,
the goal is to persuade the trade to stock, merchandise and promote a company’s products by
aggressively selling and promoting to resellers. This can be done by having the company’s sales
representatives call on resellers and offering special programs such as promotional allowances
Professor’s Notes
Teaching Suggestions
This chapter is designed to provide the student with an overview of the overall marketing process and the
role advertising and promotion play in the marketing program. The chapter may be somewhat of a review
for some students, particularly those who have had a basic marketing course. However, we feel that this
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We have found that the model of the marketing and promotion process is a very good framework for
analyzing how promotion fits into an organization’s marketing program. The three components of the
model cover the basic areas of marketing and the model shows that promotional programs must be
developed for the trade as well as for the ultimate customer in the target market. It is important to stress to
Answers to Discussion Questions
1. Discuss the role that integrated marketing communications plays in creating a brand image. How do
media contribute to the development of these images? (LO1)
IMC can be used to develop a brand image by focusing on the source, message, and media available
to create the image sought. The source of the message (consider the use of Tiger Woods as a
spokesperson before and after his problems) creates an image of the type of person that might use the
brand. The message—that is, what is said about the brand—positions the brand the way the marketer
wants it to be perceived. Is it a luxury brand (Jaguar) or a low-cost brand (WalMart) or a combination
(Kohls, Target). The photography, the background and the message all contribute to the brand’s
overall image.
2. Choose a company and discuss how it communicates with its customers in different market segments.
(LO4).
Perhaps the best example might be an automobile company like Toyota. First of all, Toyota makes
cars, trucks, SUV’s and vans, offering a vehicle for the needs and wants of a variety of segments. The
car segment offers a range from its low-priced entry the Yaris to the higher end Avalon. In between
are sports oriented vehicles, family vehicles and, of course, the hybrid Prius.
Chapter 02 – The Role of IMC in the Marketing Process
3. Discuss the strategy of market segmentation, and some of the reasons marketers are employing such
techniques. Are there any ethical issues involved in the strategy? (LO4)
Some examples of the various types of segmentation and companies employing this strategy include:
Geographic Automobile companies—import cars are purchased more in certain states or
regions of the country—with the MidWest being the least likely to purchase. Mt.
Dew sells better in the Suth than in other parts of the country.
Demographic Age: Pottery Barn, among others, offers catalogs for adults and teens (PB Teen.)
Sex: Secret and Soft & Dry Deodorants targeted to women. Old Spice Deodorant
for men for men.
In and of itself, the practice of segmentation imposes no specific ethical or moral issues. The basis for
such a strategy is to improve product and service offerings, not to take advantage of consumers.
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4. Marketing strategies are placing more and more effort on target marketing. What is target marketing?
Give examples of companies currently employing this strategy. (LO4)
Years ago, marketers could offer products to the entire market (Coca-Cola), with pretty much one
offering. As markets increasingly fragmented, this no longer became a viable marketing strategy. As a
5. Discuss the difference between demographic and psychographic segmentation. Give examples of
companies employing each. (LO4).
Demographic segmentation is the segmenting of markets based on age, income, sex, race, etc.
Psychographic segmentation is based on interests, activities, opinions and factors such as personality
and lifestyles—particularly the latter.
6. The lead-in to this chapter discussed GEICO’s successful market strategy. What factors led to the
success of this company? (LO1)
As seen in the chapter, GEICO started off with a successful segmentation and target marketing
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7. Marketers continue to increase their marketing efforts to the Hispanic market, while at the same time
evidence suggests that younger Hispanics are becoming more integrated into the mainstream. What
are the implications of these acculturation issues for the future of marketing? (LO3)
As shown in the text, the Hispanic market—already very substantial in some areas of the country—
continues to grow in size. This alone makes it an attractive market segment.
At the same time, there will always be those who do not assimilate into the “mainstream”, continuing
to hold on to their cultural heritage as opposed to becoming “like everyone else”. For this group,
brands that are targeted to Hispanics, rather than the mainstream market, will achieve success as
Hispanics maintain their identity, and use products and brands that appeal to them on this basis.
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8. As noted, packages are now becoming communications tools, serving as advertising vehicles. At the
same time, packages are changing the other marketing mix elements as well. Discuss how packages
are being used to impact price and distribution strategies as well as promotional strategies. (LO2)
Packages are also being used to make the product more convenient. Think about how lids have
changed. Plastic is becoming more popular than cans, tuna can now be carried in an easy-open pouch
instead of a can. Separate tops for consuming drinks while participating in sports, walking, etc. have
now become more attractive. Package sizes are used to differentiate—family size bottles, to regular
size cans, to half-cans, or mini-cans make consumption more convenient.
9. A number of companies were mentioned as having recently undergone repositioning strategies. Cite
additional examples of brands that you know have been repositioned in recent years. Discuss the pros
and cons of these efforts. (LO5)
It is not difficult to find companies that have repositioned themselves in recent years. A few of these
include:
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IBM—once a computer company, IBM now has a completely different image as a solutions
provider.
Xerox—the copy machine company has become the “Documents company”.
Kia and Hyundai—these Korean manufactured automobiles have been forced to reposition from a
low price positioning to one of higher quality. Both are doing so quite successfully.
10. Many brands have made little or no changes to their packages over the years. As noted in the text,
Heinz is one such company. Arm & Hammer Baking Soda is another. Provide a list of some
companies that have held their packaging and brand logos consistent over the years. Discuss some of
the pros and cons of this strategy. (LO2)
Additional Discussion Questions (not in text)
11. Discuss the difference between a push and a pull strategy. What kinds of firms would be more likely
to employ each strategy? Give examples. (LO2)
In a push strategy the communication and selling emphasis targets the channel of distribution
members. Thus, programs are designed to persuade the trade to stock, merchandise, and promote
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Companies may employ either a push or pull strategy. Proctor & Gamble—a perennial leader in
advertising to consumers—learned years ago that it must get the products on the shelves to be sold.
Thus, the company shifted much of its consumer targeted advertising to the trade to insure that it was
stocked—thus, pursuing both a pull and push strategy. Others have used a pull strategy—for example,
the Philadelphia Magazine ran an advertising campaign urging consumers to visit a newsstand to
demand their magazine be carried. Companies pursuing a push strategy tend to rely more on their
12. The text describes a number of different positioning strategies. Give examples of products and/or
brands that utilize each of these different strategies. (LO5)
The text lists a number of ways that companies can position their products. These include:
a. Positioning by product attribute and benefits—in this case a company differentiates itself based
on specific characteristics and/or benefits that it offers. Apple has positioned itself on its’
innovative technology and exciting products. BMW on its handling capabilities.
c. Positioning by use or application—again using Bose as an example, the company advertises its
expensive headset as the best for listening to music, and also as the best for its technological
capabilities for noise reduction (for example when riding on an airplane). The company’s print
campaign “Use it as a sanctuary or…. Reflects this positioning well.
Chapter 02 – The Role of IMC in the Marketing Process
13. It has been said that benefit segmentation should be the starting point for determining market
segments to target, and that other segmentation strategies may just be descriptors of the segment.
Discuss whether you agree or disagree with this position, citing specific examples to support your
case. (LO4)
Some marketers argue that all purchases are driven by the desire to achieve some specific benefit,
or to satisfy some need or want. These benefits may be driven by changes in lifestyle, income,
14. A number of companies have tried to reposition themselves in the marketplace. Some have been
successful, others have not. Cite examples of both. What area the factors that you think led to
their success or failure? (LO5)
One of the most successful efforts in recent years is the repositioning of Samsung. A few years
ago Samsung’s products in the consumer market were primarily low-end, copy products.
Samsung undertook a strategy to reposition upward, going head to head with Sony. Samsung’s
strength in a number of product categories was helpful in extending this positive image to their
consumer line. Within just a few short years Samsung not only matched Sony, but has overtaken
them in consumers’ perceptions of quality.
The text discusses a number of other efforts.
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15. Companies price their products at different levels. Some are positioned as “price” products while
others take on a position of “luxury goods.” Describe how the price positioning of a product or
brand leads to different strategies for each of the other marketing variables of product,
distribution, and promotion.(LO5)
16. A highly successful marketing strategy has been employed by the sports clothing company
Under Armour. Discuss what has led to UA’s success. (LO5)
A highly successful and growing company, Under Armour, like other companies has found that
the key to a successful product comes from its ability to satisfy a need. In this case, UA’s founder
recognized the need for a better undergarment for athletes. Once athletes used the product, the
advantage over existing products was clearly evident. The desire and perseverance of the founder
were a second requirement.
success. UA, now must be ready to defend its house through evolution of the IMC program.
17. Recently, some marketers have noted that it is easier to develop communications programs to
Generation X members than Generation Y. Briefly describe the characteristics of Gen X and Gen
Y and whether or not you believe this to be true. (LO3)
There is some debate as to whether Gen X’ers (born between 1965–1978) or Gen Y’ers (1978 to
1986) is more easily targeted by marketers. Each of these groups has their own identifying
characteristics. Generation X consumers are typically characterized as self-confident, yet
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Gen Y consumers love to spend. They process information quickly, are quick to adopt new
technologies and are more optimistic about the future. In the eyes of some, they are “shameless
consumers”. Compared to Gen X they are less rooted in social mores, and buy because they like
to do so.
18. As companies increase their efforts to target the Hispanic segment, they are likely to encounter
differences from other sub-cultural groups. Discuss some of the differences they might expect to
notice in the Hispanic sub-culture. (LO2)
Consider the example facing two of the Sears stores in Southern California. While in the same
city (Los Angeles) and within 20 miles of each other—and both in Hispanic oriented areas—they
have very different clientele. The result is that different product mixes, different ad campaigns
and other marketing strategies may be necessary to reach each subgroup effectively.
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19. Changing lifestyles can create both opportunities and threats for the marketer. Provide an
example of a changing lifestyle that poses a threat to marketers and one that provides an
opportunity. Give an example of a product or brand that has been affected in both of these
ways.(LO4)
Consider the ski industry. A review of Simmons or MRI will show that the typical skier is young
(less than 34), single, and upscale. Interestingly, participation in this sport drops off significantly
in the 30+ age group, and when families are started. This poses both an opportunity and a threat
to those in the ski industry. As a threat, they must figure out new ways to keep people skiing.
New equipment, new clothing, promotions, etc. need to be used to keep the sport of interest to the
participant, preventing them from leaving. At the same time, opportunities are created. Some ski
resorts run family packages—kids stay at the hotels and ski free. Others offer free ski lessons.
Hotels at some ski resorts have kids stay free packages, babysitting services, etc. Some resorts
have also become successful by positioning themselves as “kid friendly” or “family destinations”.
20. Describe how the positioning strategy adopted for a brand would need to be supported by all
other elements of the marketing mix.(LO5)
Positioning requires consistency among all marketing mix elements. For example, it is difficult
for the consumer to perceive that the very best brand/product can also be the least expensive. A
high priced perfume or cologne would certainly lose some of its image if distributed in a K-Mart.
Chapter 02 – The Role of IMC in the Marketing Process
IMC Exercise
The text discusses a number of efforts by marketers to reach diverse market segments by
AdForum Exercise: “Understanding Market Segmentation, Target Marketing and Positioning”
(See Advertising and Promotion Playlist, Chapter 2)
This chapter discusses how marketers use market segmentation, target marketing and positioning to
market their products and services. In the playlist are a number of commercials for a variety of food and
drink products. Your assignment is to watch each of the commercials and then answer the following
questions:
1. What is the primary segmentation strategy being employed by each of the products?
What other segmentation strategies also might be being used?