MKTG 405-2.ppt

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					   MKTG 405-2
Integrated Marketing
    Spring 2007
    Week of January 22, 2007
• What is IMC?
• What are the elements of IMC?
• What is the IMC planning model?
• What is market analysis, and how important is it
  to IMC?
• How do the marketing mix elements affect IMC,
  and vice-versa (push & pull, etc.)?
• What is the difference between client
  organizations and IMC agencies?
• How are IMC agencies structured?
  What is Integrated Marketing
   Communications (IMC)?

IMC is the coordination and integration of all
 marketing communication tools, avenues,
  and sources within an organization that
 results in a seamless program, which has
the desired impact on consumers and other
   end users at an acceptable cost to the
Advertising & brands
      A focus on brands
• Most valuable brands
    What is a brand?
• The word “brand” is derived from
  the Old Norse word “brandr,” which
  means “to burn.”
• According to the AMA, a brand is a
  “name, term, sign, symbol, or
  design, or combination of them
  intended to identify the goods and
  services of one seller or group of
  sellers and to differentiate them
  from those of competition.”
        What distinguishes a
       product from a brand?
•   A product is any entity offered to a
    market for attention, acquisition, use
    or consumption that might satisfy a need
    or want (Kotler,2000).
•   A brand is the sum total of consumers’
    perceptions and feelings about the
    product’s attributes and how they
    perform, about the brand name and what
    it stands for, and about the company
    associated with the brand.
     • (Achenbaum, 1993)
 Customer-Based Brand Equity

“ . . . the differential effect that
brand knowledge has on customer
response to the marketing of that

    Kevin Lane Keller, 1998
Positive brand equity results
• Greater perceived
• Stronger brand loyalty
• Larger profit margins
• Higher trade support
• Increased marketing
  communication effectiveness
• Opportunities to extend and
  license brand name
    Brand Equity: 2005 Big Winners
2005 Rank    Brand    2005 Brand     2004 Brand     Percent
                         Value          Value       Change
                       ($billions)    ($billions)
   55        EBAY        $5.70          $4.70       +21%

   29        HSBC        10.43          8.67         +20

   20       SAMSUNG      14.96          12.55        +19

   41        APPLE       7.99           6.87         +16

   44         UBS        7.57           6.53         +16
        Brand Equity: 2005 Big Losers

2005 Rank    Brand     2005 Brand     2004 Brand     Percent
                          Value          Value       Change
                        ($billions)    ($billions)
   28        SONY        $10.75         $12.76        -16%

   33       MORGAN        9.78           11.50         -15
   56        VOLKS-       5.62           6.41          -12
   96        LEVI’S       2.66           2.98          -11

   13       HEWLETT-      18.87          20.98         -10
  Other elements of IMC
• Direct
• Interactive/Internet
• Sales Promotion
• PR/Publicity
• Personal Selling
    IMC Planning Model
• Review of the marketing plan
• Analysis of promotional program
• Analysis of communications process
• Budget determination
• Develop IMC program
• Integrate and implement marketing
  communication strategies
• Monitor, evaluate, and control IMC
A Fundamental Approach to
    Marketing Strategy

     • Segmentation
     • Targeting
     • Positioning
       Definitions of Market
    Segmentation, Targeting, and
•  Market segmentation: a process of
dividing a heterogeneous market into
homogeneous subparts
• Targeting: a process of selecting a
market segment(s) to pursue.
• Positioning: a process of creating and
serving a market niche defined by the
customer (often relative to the competition)
    What Constitutes a “Good”
• Uniqueness - Are there large between-
    group differences in segments?
•   Responsiveness - If we design specific
    strategies for a segment, will that
    segment respond?
•   Actionability - Can we take action with
    this segment?
•   Stability - Will the segment be stable
    over time?
•   Profitability - Will this segment benefit
    the organization?
    Purposes of and Bases for
   Segmenting Consumer Markets
Decision-making purpose   Bases for segmentation

Product design            Benefits or attributes sought
                          Product usage situation
Advertising message       Benefits or attributes sought
                          Product usage situation
Advertising media         Buyer characteristics
                          Heavy user characteristics
Packaging                 Volume or size of purchase
                          Product usage situation
Distribution              Shopping patterns
                          Significance of purchase
Price                     Price sensitivity
                          Volume or size of purchase
   Purposes of and Bases for
Segmenting Business-to-Business
Decision-making purpose     Bases for segmentation
Sales force allocation to   Volume
accounts                    Location
                            Product usage (industry type)

Product design and          Product usage (application type)
communication appeals       Benefits/attributes sought

Communication targets       Buying center members
  The Targeting Decision

• Segment size and growth rate
• Firm objectives and resources
 • Does this segment fit with our
 • What are the success requirements
   for this segment?
 • Do we possess the needed

• What is positioning?
• Why positioning?
• How do you know your
Approaches to Positioning

  • Attribute
  • Price/quality
  • Use or application
  • Product user
  • Product class
  • Competition
Push vs. Pull?
          Chapter 3
• Please prepare questions 1, 4,
  6, and 9 for the next class.

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