PART ONE
MARKETING PROCESSES
A. Marketing Strategy and Analysis
In order to create a successful advertising and promotional strategy, it is
imperative for a company to carefully choose a suitable spokesperson who can effectively
communicate a persuasive message via appropriate channels or media. The
communication model comprises controllable elements such as source, message, and
channel factors. The utilization of the persuasion matrix facilitates marketers in
comprehending the manner in which each modifiable component interacts with the
consumer's response mechanism. 1 The matrix comprises two distinct sets of variables.
Marketers possess the ability to select the messenger or origin of the message, the manner
in which the message is presented, and the mode or platform through which it is
disseminated. While the sender may not have control over the receiver, they do have the
ability to choose their intended audience. The inclusion of the destination variable is
motivated by the possibility that the primary recipient of the message may engage in
informal communication with others, such as acquaintances or colleagues, thereby
necessitating the specification of the intended recipient. In the realm of promotional
planning, it is crucial for practitioners to possess an understanding of how decisions
pertaining to individual variables can impact the various stages of the response hierarchy.
This knowledge is essential in order to avoid the inadvertent prioritization of one stage
over another. The utilization of humor in a message may capture the audience's interest;
however, it may lead to a reduction in their ability to comprehend the message if they are
unable to effectively process its content. Several advertisements that employ comedic
elements, sexual appeals, or celebrity endorsements tend to attract the attention of
consumers, yet they often yield inadequate retention of the brand name or message.
The subsequent instances serve as illustrations of choices that are amenable to
assessment through the employment of the persuasion matrix: The first stage of the
communication process is the receiver/comprehension stage. Is the advertisement
comprehensible to the recipient? In order to effectively communicate their messages,
marketers must possess a thorough understanding of their intended audience. Individuals
with lower levels of education may encounter challenges when attempting to comprehend
complex messages. The use of technical language or specialized terminology, commonly
referred to as jargon, may pose a challenge to certain recipients who lack familiarity with
such terminology. Marketers can enhance their understanding of their target market by
identifying the words, symbols, and expressions that resonate with their customers. 2.
Medium selection: What are the appropriate media channels for conveying the
advertising message? Advertisers procure media based on exposure potential, which
refers to the likelihood of consumers encountering their message. Media determinations
are predominantly influenced by the magnitude and configuration of the audience
attained, along with the expenses incurred. NCIS, a widely viewed prime-time television
program, garners a weekly audience of up to 15 million individuals. In a similar vein,
Time and People magazines boast a readership of over 3 million individuals per weekly
issue, with additional readership through their digital platforms. The crucial aspect
pertains to the efficacy of a media platform in effectively reaching the intended audience
of the marketer. The television program Keeping Up with the Kardashians, broadcast on
the E! cable network, attracts a weekly viewership of approximately 2 million
individuals. The program's primary audience comprises young adults aged between 18
and 49 who exhibit a keen interest in fashion and possess a high level of technological
proficiency. Despite the recent decline in ratings, numerous corporations perceive the
show as a viable means of accessing a highly sought-after demographic. This audience is
particularly attractive to advertisers due to their potential as prime consumers of clothing,
fashion, consumer electronics, and various other products. 2 What kind of message is
likely to elicit positive attitudes or emotions?
Marketers typically aim to generate favorable messages that elicit positive
emotions toward the product or service. Amusing messages have the potential to induce
positive emotions in consumers, which can subsequently be linked to the advertised
brand. The inclusion of music in communication can evoke emotional responses that
enhance the audience's receptivity to the intended message. Numerous advertisers employ
explicit sexual appeals that are intended to elicit arousal among consumers or imply that
their products can augment their appeal to the opposite gender. Certain marketing
professionals engage in brand comparisons with their competitors. Which entity is most
likely to effectively capture the attention of consumers? The pervasive volume of
advertisements that inundate individuals on a daily basis poses a challenge for marketers
seeking to effectively capture their target audience's attention. To address this issue,
marketers employ individuals who possess the ability to captivate the attention of the
intended audience, such as actors, athletes, entertainers, or aesthetically pleasing models.
B. The Target Marketing Process
The utilization of a target marketing strategy involves the identification of distinct
needs among various segments of people. The marketer then selects one or more of these
segments as a target and proceeds to develop marketing programs that are specifically
directed towards each of them. The utilization of this strategy has gained greater
relevance in the field of marketing due to several factors, such as alterations in the market
landscape, where consumers are exhibiting greater heterogeneity in their requirements,
perspectives, and ways of life. Additionally, there has been a surge in the implementation
of segmentation by rival firms, and more managers are being trained in this technique and
acknowledging the benefits associated with its adoption. Arguably, the most compelling
rationale for this proposition is rooted in the fundamental principle that comprehending
consumers to the fullest extent possible is imperative in devising marketing initiatives
that optimally cater to their requirements. The process of identifying the target market
involves the isolation of consumers who share similar lifestyles, needs, and other
characteristics, thereby enhancing our understanding of their distinct requirements. The
effectiveness of marketers in addressing consumer requirements through their
communication programs and persuading potential consumers that their product or
service offering will meet their needs is directly proportional to their ability to establish a
common ground with consumers.
The development of marketing strategies for each individual consumer is not a
feasible undertaking. The marketer endeavors to ascertain general categories of
consumers who possess comparable requirements and are likely to react in a similar
manner to marketing initiatives. Market segmentation refers to the process of
categorizing a market into discrete groups that share common needs and exhibit similar
responses to marketing initiatives. During the planning of promotional activities,
managers take the size of the target segment into account to determine if it is significant
enough to warrant personalized strategies. In particular, they evaluate the accessibility of
this group. The company could potentially face challenges in generating the necessary
financial resources to execute the advertising campaign, a shortage of sales personnel to
cater to all regions, or other inadequacies in promotional efforts. Upon recognizing the
need for a segmentation strategy, the marketer must proceed to establish the fundamental
criteria for addressing the market. Consumers typically aim to fulfill particular needs
and/or desires when engaging in the act of purchasing products. The consumers are in
search of merchandise that caters to their particular requirements and fulfills their desired
outcomes. Benefit segmentation, which involves categorizing consumers based on the
specific attributes they seek in a product, is a commonly employed strategy in marketing.
Geographic segmentation is a marketing strategy that involves dividing a market
into smaller groups based on their geographic location. This approach allows businesses
to tailor their marketing efforts to specific regions, cities, or even neighborhoods, taking
into account factors such as climate, culture, and demographics. By understanding the
unique characteristics of each geographic segment, businesses can create more effective
marketing campaigns and better meet the needs of their target audience. The geographic
segmentation strategy involves the division of markets into distinct geographic units. The
units in question may encompass various geographical entities such as nations, states,
counties, or neighborhoods. The purchasing behaviors of consumers may vary based on
their geographical location. There may be variations across regions with respect to
cuisine, beverages, perceptions of international goods, and related factors.
Demographic segmentation refers to the process of dividing a population into
smaller groups based on various demographic factors such as age, gender, income,
education, occupation, and marital status. This approach is commonly used in marketing
and advertising to better understand the needs and preferences of different consumer
groups and tailor products and services accordingly. By analyzing demographic data,
businesses can develop more effective marketing strategies and improve their overall
customer engagement and satisfaction. Demographic segmentation refers to the practice
of segmenting the market based on demographic variables, including but not limited to
age, gender, family size, education, income, and social class. The utilization of gender as
a basis for segmentation has proven to be a successful strategy for products such as
Secret deodorant and the Lady Schick shaver.
Psychographic segmentation is a marketing strategy that involves dividing a
market into smaller groups based on shared personality traits, values, interests, and
lifestyles. This approach is used to better understand consumer behavior and tailor
marketing efforts to specific segments. By analyzing psychographic data, marketers can
create more effective messaging and product offerings that resonate with their target
audience. Psychographic segmentation is a marketing strategy that involves categorizing
the market based on personality traits, lifecycles, and/or lifestyles. Although there exists a
certain degree of discord regarding the utility of personality as a segmentation criterion,
lifestyle variables have been successfully employed for this purpose. Lifestyle is widely
regarded as the most efficacious criterion for market segmentation. Consumer lifestyles
are typically ascertained through an evaluation of their activities, interests, and opinions
(AIOs). Subsequently, these lifestyles exhibit a correlation with the product, brand,
and/or media usage of the consumers. In several instances, the most effective means of
distinguishing between usage and non-usage of various products and/or services is
through lifestyle analysis. This approach takes into account variations in consumer
behavior such as food, clothing, and car preferences, among others.
Behavioristic segmentation is a marketing strategy that involves dividing a market
into groups based on consumer behavior. This approach focuses on understanding the
buying habits, preferences, and attitudes of consumers in order to tailor marketing efforts
to their specific needs and interests. By analyzing consumer behavior, marketers can
create targeted campaigns that are more likely to resonate with their target audience and
drive sales. Behavioristic segmentation refers to the practice of categorizing consumers
based on their usage patterns, brand loyalty, or purchasing behaviors in relation to a
particular product. Market segments are developed by combining demographic and/or
psychographic criteria with factors such as product or brand usage, degree of use (heavy
vs. light), and brand loyalty. Regarding usage, marketers posit that non-purchasers of a
brand or product who share similar characteristics with purchasers exhibit a higher
propensity for adoption compared to non-users with dissimilar characteristics.
The results of the segmentation analysis will reveal the potential market prospects
that exist. The subsequent stage in the process of target marketing comprises two
fundamental steps, namely: (1) determining the number of segments to be targeted and
(2) identifying the segments that present the highest potential. There are three distinct
alternatives for market coverage. Undifferentiated marketing is a strategy that entails
disregarding variations among market segments and providing a single product or service
to the entire market. As an illustration, upon the introduction of the initial assembly-line
automobile by Henry Ford, all prospective buyers were presented with a uniform product,
namely a black Ford. Coca-Cola had a single product variant for an extended period.
Although the implementation of a standardized strategy results in cost savings for the
company, it precludes the possibility of catering to diverse markets through the provision
of varied product versions.
The marketing approach of differentiated marketing entails the process of
targeting multiple segments and devising distinct marketing strategies for each segment.
The Marriott hotel chain provides a diverse range of customer services tailored to various
types of travelers, such as those on vacation, business trips, or short or extended stays.
Concentrated marketing is a strategic approach employed by firms to target a single
market segment with the aim of acquiring a significant portion of that market. During the
1950s, Volkswagen implemented a particular approach whereby it was the sole
significant automotive enterprise vying for market share in the economy car division
within the United States. Although Volkswagen has adopted a more diversified approach,
several other firms have found the focused strategy to be advantageous. Positioning
strategies typically center on either the consumer or the competition. Although both
methodologies entail connecting product advantages with consumer requirements, the
former achieves this by establishing a correlation between the product and the benefits
that the consumer will receive or by constructing a positive brand perception.
The aforementioned strategy situates the product by juxtaposing it with its
competitors and evaluating the advantages it provides. Scope Outlast mouthwash and
Burt's Bees have effectively utilized the strategy of product positioning to differentiate
themselves from their competitors. Scope Outlast mouthwash has positioned itself as a
brand that lasts five times longer than other mouthwash brands, while Burt's Bees has
positioned itself as a brand that offers better value than its competitors. The concept of
positioning has been characterized as an amalgamation of artistic and scientific principles
aimed at aligning a product or service with one or multiple segments of the expansive
market with the objective of establishing a distinctive differentiation from rival offerings.
The location of a product, service, or establishment is a significant factor in shaping
consumers' mental images and their associated perceptions of its attributes.
C. Developing a Positioning Strategy
A prevalent strategy for brand positioning involves differentiating the brand from
its competitors based on unique attributes or advantages provided. It is possible for a
product to be positioned based on multiple benefits. Marketers endeavor to recognize
significant characteristics, which hold significance for consumers and serve as the
foundation for their purchase decision-making. At the time of its initial release, Apple's
computers were marketed with a primary emphasis on their user-friendly nature, which
proved to be a successful tactic considering the intricate nature of computer technology
available in the market during that era.
Brand positioning is a common practice among marketers, wherein they utilize
price and quality attributes to differentiate their products in the market. One approach
employed by marketers is to utilize advertisements that project the perception of a
premium brand, wherein the cost factor, although not negligible, is of secondary
importance as compared to the superior quality advantages that accrue from the
utilization of the said brand. This approach to positioning is utilized by premium brands
that are situated at the upper echelon of the market. An alternative approach to utilizing
price/quality attributes for brand positioning involves emphasizing the brand's quality or
value proposition at a highly competitive price point.
An alternative approach to conveying a distinct image or stance for a brand is to
link it with a particular utilization or implementation. The utilization of this approach is
frequently employed to penetrate a market based on a specific use or application.
However, it also serves as a proficient method to broaden the scope of a product's usage.
Arm & Hammer baking soda has been marketed for various purposes, including baking,
alleviating heartburn, and eliminating odors in household items such as carpets and
refrigerators.
Frequently, the rivalry for a given product emanates from beyond its respective
product category. Airlines are cognizant of the fact that they face competition not only
from other airlines, but also from trains and buses, which are feasible substitutes. Amtrak
has established itself as a viable substitute to air travel, citing benefits such as reduced
expenses, enhanced passenger experience, and other favorable factors. Dole fruit juices
promote fruit consumption by suggesting that a serving size of 8 ounces of juice is
nutritionally equivalent to two servings of fruit. The V8 brand advocates for the
consumption of vegetables in liquid form. Instead of adopting a confrontational approach
towards a rival brand, an alternative tactic is to establish a distinctive market position by
contrasting oneself with a different product category. One strategy for product
positioning involves linking it to a specific user or demographic. The significance of
competitors in a firm's positioning strategy can be as crucial as the firm's own products or
services. In the past, advertisers held the belief that referencing a competitor in their
promotional material was a significant transgression. In contemporary markets, a
successful approach to positioning a product or brand may prioritize particular
competitors. The aforementioned methodology bears resemblance to the strategy of
product class positioning, albeit with the distinction that the rivalry is confined to the
confines of the identical product category.
Aaker and Myers have incorporated an extra approach to positioning strategy that
involves the utilization of cultural symbols to establish a distinction between brands. The
brand can be readily distinguished from others when it is linked with a significant
symbol. Exemplars include the Jolly Green Giant, the Keebler elves, Speedy Alka-
Seltzer, the Pillsbury Doughboy, the Wells Fargo stagecoach, Ronald McDonald,
Chiquita Banana, and Mr. Peanut. Tony the Tiger, a long-standing mascot utilized by
Kellogg's for more than six decades, can be unequivocally classified as a cultural icon.
A positioning strategy that can be employed involves the modification or
adjustment of a product or brand's existing position. The act of repositioning a product is
typically prompted by either a plateau or decrease in sales, or the identification of
potential advantages in alternative market positions. The task of repositioning can pose a
challenge due to the deeply ingrained perceptions and attitudes that exist towards a
particular product or brand. The second perspective in Integrated Marketing
Communications (IMC) delves into the case of Buick, a well-established brand, and its
recent shift in direction, making for an intriguing subject of analysis. Several other
companies, such as JCPenney, La-Z-Boy, and MTV, have made efforts to alter their
stance, with differing levels of achievement.
D. Developing The Marketing Planning Program
The formulation of the marketing strategy and identification of target markets
inform the marketing department as to which customer segments to prioritize and which
needs to be addressed. The subsequent phase of the marketing procedure entails
integrating the diverse components of the marketing mix to form a unified and efficient
marketing scheme. The marketing mix comprises various decision areas that are
multidimensional in nature.
A commodity encompasses more than its tangible form; it comprises a collection
of advantages or principles that fulfill the requirements of customers. The requirements
may encompass solely utilitarian purposes, or they may entail both communal and
psychological advantages. The Michelin tire campaign emphasizes the inherent quality
(value) of Michelin tires, in addition to their performance and durability (function).
Product symbolism pertains to the significance that a product or brand holds for
consumers, as well as the experiential aspects associated with its acquisition and
utilization. 16 In numerous instances, the potent symbolic attributes and socio-
psychological significance of products may hold greater significance than their utilitarian
functionality. 17 Designer apparel from brands like Versace, Gucci, and Prada is
frequently acquired based on its symbolic connotations and representation, particularly
among adolescents and young adults. The role of advertising is significant in the
development and maintenance of brand image. The process of product planning
encompasses not only determinations pertaining to the product's intrinsic characteristics,
such as its design and quality, but also considerations regarding ancillary features such as
warranties and service, as well as the branding and packaging of the product.
Consumers tend to consider factors beyond the factual composition of a product
and its constituent elements. Consumers' perceptions are influenced by various factors,
such as the quality of the product, its branding, its packaging, and the reputation of the
company that produces it. 18 Within a proficient Integrated Marketing Communications
(IMC) program, the strategies of advertising, branding, and packaging are strategically
crafted to present the product as a comprehensive entity that transcends its mere
attributes. All elements are synchronized to portray a specific image or positioning of the
product that transcends its tangible characteristics.
The variable of price pertains to the cost that a consumer incurs in order to
acquire a particular product or service. The concept of price encompasses the monetary
value that is exchanged for a particular item. However, the overall cost of a product to the
consumer extends beyond the mere dollar amount and takes into account additional
factors such as time, cognitive exertion, and behavioral effort. 20 The role of the
marketing manager typically involves the establishment of pricing levels, the formulation
of pricing policies, and the observation of competitors' and consumers' responses to
prices in the market. In order to establish the price for a product or service, a company
must take into account various elements such as expenses, market demand, rivals, and the
perceived worth of the offering. The coherence between the price of a product, its
perceived value, and the communication strategy is a crucial aspect to consider from an
Integrated Marketing Communications (IMC) standpoint. Elevated pricing can signify
superior product quality, whereas reduced pricing may indicate a perception of a bargain
or value. If a product is marketed as superior in quality but is priced lower than its
competitors, it may lead to consumer confusion. It is imperative that the price,
advertising, and distribution channels of a product convey a cohesive message that aligns
with its positioning.
One of the crucial marketing decisions that a marketer has to make pertains to the
manner in which it offers its products and services for sale. The availability of a product
in terms of its location, timing, and accompanying support and service is crucial for its
value proposition, even if the product itself is of high quality and affordable. Marketing
channels, which constitute the place component of the marketing mix, refer to a
collection of mutually dependent entities that participate in the process of rendering a
product or service accessible for utilization or consumption.
The majority of individuals possess knowledge regarding advertising and various
promotional techniques aimed at end consumers or corporate clients. The advertisements
are frequently encountered in the media and frequently cater to our demographic. Apart
from formulating a consumer marketing mix, it is imperative for a company to establish a
channel member incentive program. Promotional push strategies encompass initiatives
aimed at inducing the trade to carry, display, and advertise a manufacturer's merchandise.
The objective of this approach is to facilitate the movement of the product across various
distribution channels by means of assertive sales and promotional activities directed
towards the intermediaries, or trade. The act of promoting to the trade encompasses all
the constituent components of the promotional mix. Sales representatives of a company
engage with resellers to elucidate the product, deliberate on the company's strategies for
augmenting demand among end consumers, and explicate distinctive programs that are
being extended to the trade, such as initial discounts, promotional allowances, and
cooperative advertising programs.
The utilization of trade advertising by the company can potentially generate
interest among wholesalers and retailers, thereby incentivizing them to procure its
products for the purpose of reselling them to their respective customer bases. Advertising
related to trade is commonly found in publications that cater to a specific industry. The
push strategy is a marketing approach that aims to persuade intermediaries to perceive the
potential profitability of a manufacturer's product and motivate them to place orders for
the goods and promote them to their end customers. An alternative approach involves the
implementation of a promotional pull strategy, which entails allocating funds towards
advertising and sales promotion initiatives aimed at the end consumer. The objective of a
pull strategy is to stimulate consumer demand and incentivize them to request the product
from the retailer. Retailers respond to consumer demand by placing orders for products
with wholesalers, who may then procure the requested items from the manufacturer.
Stimulating demand at the end-user level facilitates the movement of the product through
the distribution channels.
