Chapter 2 - The role of IMC in the marketing process. After reading the material in this chapter, you should be able to: To understand the marketing process and the role of advertising and promotion in an organization's integrated marketing program, 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,. | Chapter 2 The Role of IMC in the Marketing Process Figure - Marketing and Promotions Process Model Marketing Strategy and Analysis Figure - The Target Marketing Process Market Segmentation Dividing a market into distinct groups with common needs, who respond similarly to a marketing situation Criteria Geographic segmentation: Markets are divided into different geographic units Demographic segmentation: Dividing the market on the basis age, sex, family size, education, income, and social class Psychographic segmentation: Dividing the market on the basis of personality, lifecycles, and/or lifestyles Bases for Market Segmentation Dividing consumers into groups according to their usage, loyalties, or buying responses to a product 80-20 rule: 20 percent of buyers account for 80 percent of sales volume Behavioristic segmentation Grouping of consumers on the basis of attributes sought in a product Benefit segmentation Selecting Target Market Determine how many segments to enter Determine which segments offer the most potential Market Coverage Alternatives Ignoring segment differences and offering just one product or service to the entire market Undifferentiated marketing Involves marketing in a number of segments, developing separate marketing strategies for each Differentiated marketing Selecting a segment and attempting to capture a large share of this market Concentrated marketing Positioning Strategies Repositioning Altering a product’s or brand’s position due to: Declining or stagnant sales Anticipated opportunities in other market positions Difficult to accomplish because of entrenched perceptions and attitudes toward the product or brand or declining sales or because of anticipated opportunities in other market positions. Product Decisions Product symbolism: Refers to: What a product or brand means to consumers What consumers experience in purchasing and using a product Branding Building . | Chapter 2 The Role of IMC in the Marketing Process Figure - Marketing and Promotions Process Model Marketing Strategy and Analysis Figure - The Target Marketing Process Market Segmentation Dividing a market into distinct groups with common needs, who respond similarly to a marketing situation Criteria Geographic segmentation: Markets are divided into different geographic units Demographic segmentation: Dividing the market on the basis age, sex, family size, education, income, and social class Psychographic segmentation: Dividing the market on the basis of personality, lifecycles, and/or lifestyles Bases for Market Segmentation Dividing consumers into groups according to their usage, loyalties, or buying responses to a product 80-20 rule: 20 percent of buyers account for 80 percent of sales volume Behavioristic segmentation Grouping of consumers on the basis of attributes sought in a product Benefit segmentation Selecting Target Market .
