Chapter 4

IMC PLANNING
PROCESS
 THE IMC PLANNING PROCESS

Communications
Research Budget

Target Product
Objectives
Market Positioning

IMC
Components
4-2
 COMMUNIC ATION RESEARCH

Customer-oriented research
Product-specific research involves focuses on the users of the product and
Target-market research utilizes the
identifying the key selling points of a how, when, and why the product is
information gathered through product
product and the desirable features. To used. Researchers can use approaches
and customer research to determine
develop an advertising campaign, the based in anthropology, sociology, and
the best target market for the brand,
creative staff should understand the psychology. A common method used by
product, or particular campaign.
product. agencies for customer-oriented
research is the focus group.
 STEP 2: DEFINE TARGET MARKET

Target
Budget
Market

Context
Customers
Competitors Objectives
Communication

Product IMC
Positioning Component
 TARGET MARKETS

1. Selection of target markets

1. There may be target segments that
no one is reaching or communicating
to.
2. There may be target markets that
are being served by competitors, but
not very well.
3. Other target markets may be
saturated with options.
4. Part of the decision on target
markets is the segmentation
approach that will be used and the
product positioning strategy
2. Market segmentation approaches
3. Product positioning strategies
 TESTS TO DETERMINE IF A PARTICULAR
MARKET SEGMENT IS VIABLE

The market segment The market segment The market segment

The individuals or is different from the is large enough to be must be reachable
businesses within the population as a financially viable to through some type of
segment are whole and distinct target with a media or marketing
homogeneous. (alike) from other market separate marketing communications
segments. campaign. method.
 METHODS OF SEGMENTING THE
MARKET

• Demographics
• Psychographics
• Generations
• Geographic
• Geodemographics
• Benefits
• Usage
 DEMOGRAPHICS

GENDER AGE INCOME ETHNIC

GROUP
 SEGMENTS BASED ON
DEMOGRAPHICS

GENDER

• Gender based products

• Gender difference in communications
• Female consumers
• Control 66% of spending ($12
trillion)
• Involved in purchasing high-priced
electronics (90%)
• Deal with financial advisors (90%)
• Buy and sell stocks (80%)
• Household’s primary accountant
(70%)
 P ROD UCT S E G M E N TATIO N – D I V IDE S
THE M ARK E T B AS E D O N M AL E / F E M ALE
 TIPS FOR MARKETING TO WOMEN

• Focus on how brand can improve life

• Engage them with the brand
• Focus on practical, not trivial
• Tell a story that resonates
• Provide details
• Be positive
 MARKETING TO
MOTHERS

• Buyers of iPhones
• Like media websites
• Share photos/news
• 20% of online users
• Largest web spenders
• Online
• Mobile devices

4-
14
 MARKETING TO
MEN

• Men are visual shoppers

• Shopping more
• Focus on product performance
• Prefer looking for specific
information
• Favor products that reflect
status
• Like well-known brands

4-
15
 AGE

• Marketing programs target persons of

a certain age
• Children
• Teens
• Young adults
• Middle-age adults
• Senior citizens
• Age is often combined with gender
• Children is the most attractive group
 INCOME

• Closely related to education

• Lower income – necessities
• Higher income - luxuries

Ad directed to
“exhausted affluent”

4-
17
INCOME
 ETHNICITY

• Buying power - $2.5

trillion
• Significant part of
identity
• Need to understand
ethnic groups
• Translation insufficient
• Holistic approach

4-
19
 CHARACTERISTICS OF GENERATION
SEGMENTS

Name of Segment Year of Birth Characteristics

Millennials 1978-2002 Spend money on clothes, automobiles, college, televisions, and

stereos. Ninety percent live at home or in a dorm or rent an
apartment.

Generation X 1965-1977 Focus on family and children. Spend on food, housing, transportation,
and personal services.

Younger Boomers 1954-1964 Focus on home and family. Spend on home mortgage, pets, toys,
playground equipment, and large recreational items.

Older Boomers 1952-1953 Spend on upgrading homes, ensuring education and independence of
their children, and luxury items, such as boats.

Seniors Up to 1951 Most have fixed incomes. Spend heavily on health care and related
medical items.
 PSYCHOGRAPHIC SEGMENTATION

Psychographic
Segmentation

Market segmentation on the basis

of activities, interest, opinions,
attitudes and values.
PSYCHOGRAPHIC
SEGMENTATION
DEMOGRAPHIC VS.
PSYCHOGRAPHIC
PSYCHOGRAPHIC SEGMENTATION

4-24
DATA ANALYTICS IS GIVING US THIS
INFORMATION
VAL’S PSYCHOGRAPHIC
SEGMENTATION

Innovators – successful, sophisticated – upscale products

Thinkers – educated, conservative, practical – durability,

value
Achievers – goal-oriented, conservative, career, and family

Experiencers – young, enthusiastic, impulsive, fashion,

social
Believers – conservative, conventional, traditional

Strivers – trendy, fun-loving, peers important

Makers – self-sufficient, respect authority, not materialistic

Survivors – safety, security, focus on needs, price

New Enthusiasts –
Hopefuls – cutting
cutting edge, eager, Faithful – not eager,
edge, lack financial
high but not averse
means
incomes/education

Independents – Surfers – ambivalent

Oldliners – not
higher incomes, but about new
interested in new
do not value new technology, cynical
technologies
technology about business

PSYCHOGRAPHICS AND
TECHNOLOGY
 TEENAGE MARKETS
DEMOGRAPHIC AND PSYCHOGRAPHIC

• Young metrosexuals – top 25%, outward appearance

• Big man on campus
• Technosapians
• Red-blooded boys
• Tuned inward
• Under construction
 TEENAGE MARKETS
DEMOGRAPHIC AND PSYCHOGRAPHIC

• Jockettes
• In-style socialites
• Most likely to succeed
• Style meets thrift
YouTube: Thrift Girls
• Traditionalists
 GEODEMOGRAPHIC SEGMENTATION

Combines PRIZM

• Demographic • 66 market
census data segments
• Geographic • Southside City
information • Towns and
• Psychographic Gowns
information

4-33
 BENEFIT SEGMENTATION

• Benefit segmentation focuses on the

advantages consumers receive from a
product rather than the characteristics of
the consumer

Fitness Industry
• Winners
• Dieters
• Self-improvers
USAGE SEGMENTATION

• Usage or purchase history

• Create clusters
• Target specific clusters
• Create marketing programs
for each cluster
• Measure growth and migration
Communications
Research Budget

Target Product
Objectives
Market Positioning

IMC
Components
 PRODUCT
POSITIONING

• Is the perception created

in the consumer’s mind
regarding the nature of the
company and its products
relative to the competition
• Positioning is created by:
• Product quality
• Prices
• Distribution
• Image
• Marketing
communications.
SNEAKER MARKET – PRICE & AGE
O P P O RT U N I T Y
 PRODUCT POSITIONING
STRATEGIES

1. Product Attributes
2. Competitors
3. Use or application
4. Price/quality
5. Product user
6. Product class
7. Cultural symbol
Product Attribute: promoting a unique attribute that is superior to the competition.
Competitive Positioning: Contrasting a brand against the competition
PR IC E/QUALITY
PRODUCT USER
Communications
Research Budget

Target Product
Objectives
Market Positioning

IMC
Components

4-47
 COMMUNIC ATION OBJECTIVES

• Develop brand awareness

• Increase category demand
• Change customer beliefs and attitudes
• Enhance purchase actions
• Encourage repeat purchases
• Build customer traffic
• Enhance firm image
• Increase market share
• Increase sales
• Reinforce purchase decisions
AWARENESS
INCREASE DEMAND
INCREASING DEMAND
CHANGING BELIEFS AND
ATTITUDES
ENCOURAGE TRIAL AND
PURCHASE
SHINOLA AD
 ESTABLISHING THE
COMMUNIC ATION BUDGET

Unrealistic assumption to
Budgets vary from
assume direct
Budgets based on consumer to B-to-B
relationship between
markets
advertising and sales

For example: increasing

communication your advertising budget
objectives will not automatically
increase sales by 25%

marketing objectives
 What we Set after all other items budgeted
can afford No understanding importance of marketing

Budgets determined by objectives

Objective Best method of budgeting
and task
Used by 50% of firms
TYPES OF
BUDGETS
Ratio—advertising to sales or market share
Payout Larger percent at product launch
planning Lower percent when brand established
Based on threshold effect

Quantitative Computer simulations

models Develop models based on historical data
 ESTABLISHING A BUDGET

Target
Budget
Market

Context
Customers
Competitors Objectives
Communication

Product IMC
Positioning Component
 IMC COMPONENTS

Traditional advertising

Trade promotions

Consumer promotions

Media spending

Alternative media spending

Business-to-business media spending

ADVERTISING EXPENDITURES
BY MEDIA
• end