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Baines, (2008) also pointed out there are two approaches in targeting segment, undifferentiated approach and differentiated targeting approach. In undifferentiated approach, there is no delineation between market segments, the market could be viewed as one mass market with one marketing strategy for the entire market. The differentiated approach suggested there are several attractive market with differentiations to the organisation, each segment need a differentiated marketing strategy to fit its our characteristics.
After the market is segmented, determined by the size and attractiveness, and selected the specific target markets, the final step of STP process is to position the organisation within the targeted markets. According to Kolter, (2008) the Positioning means how the products and services can be differentiated from another, and how it attract consumers to buy it. The positioning includes two fundamental elements, the physical attributes, which means the functionality and capability of the organisation or products or services. The second element is the communication tools of the brand, how consumers perceive the brand relative to other competitors in the market.
2.3 The literature review of Marketing communication
Although P&G use the product differentiation strategy, they need effective marketing communication.
Research on integrated marketing communication in the early 1980s had begun, American Association of Advertising gives the definition of IMC one of the first: “ IMC is a marketing communications plan concept, fully understand the requirements for the development of integrated used when planning a variety of means of communication to add value- such as general advertising, direct reflection of the advertising, sales promotion and public relations, and combination of providing good consistency of information and to maximize the impact of communication.”
However Tom Duncan and Sandra Moriarty believes that: “IMC is a marketing methods in the new era, it is the company to focus to establish consumer with other stakeholders. It maintain and develop good relationships. They establish a kind of communication-based marketing model, which emphasizes control of all communications that may affect the brand value of information.”(Duncan,T, Moriarty,S,1988)
Marketing communication referred to the activities of companies trying to inform, persuade and remind to its customers the information of new products or services directly or indirectly. (Kimmel, A.J. 2005) The four main purpose of marketing communication including to category demand, build upbrand popularity, deliver brand attitude and intent purchasing.(Varey, R.J. 2002) According to Fill(2009), there are five component inside involved in the marketing communication mix: Advertising, Sales Promotion, Direct Marketing, Public Relation and Personal Selling.
Figure1. Marketing communication components (Fill 2009)
Advertising use the message or image delivered to the viewer, reader or listener, to deliver the product culture, function, usage and other related information to the public. It is the fastest approach to promote the demand of the targeted products, or establish the brand recognition. (Baines, Fill and Page, 2008) The advertising normally been passed through various media and channels such as TV, magazine, outdoor advertising, mail, radio, Internet and hand-outs. The advertisement is costly, however, as the delivery of advertisement would require the overhead expenditure, and especially in the TV and magazine and radio, which might through a third party to process. But the advertisement due could delivery the image and sense of the product more efficiently than other methods, comparing to the investment, it is still suit for the companies who targeted a large scale of market.(Fill, C. 2009)
And in these all communication ways, the Internet communication is a successful way in today. Many people could see the P&G advertisement from the Internet.
Sales Promotion is the activities to stimulate the demand of customer in a short period, normally through the price discount, or price compensation to offer more added value to customers. The scale of sale promotion activities are easy to be control, and do not need too much investment comparing to the advertisement, however, it is still efficient on encourage customers to purchase the products in a short time period during and after the promotion activity. (Fill, C. 2009)
Personal Selling is 'different from other forms of communication in that the transmitted messages represent mainly dyadic communications’. (Fill, C. 2009) It require the face to face communication between the sales agents and the end-user customers, and it could efficiently and quickly build up the brand awareness and trust of a group targeted customers. And the direct communication could delivery the information of the products and services more precisely. (Peter and Donnelly, 2005)
Direct Marketing is the method that the company communicate directly with individual customer, in order to carry out a fast reaction to the customers query and requirement. (Fill, C. 2009) The only difference between direct marketing and personal selling is that the direct marketing do not require the face to face communication, however, it is also as efficient as personal selling on build up the brand awareness and trust among customers. (Varey, R.J. 2002)
Public Relation is the management activities of the company launched in the public, in the purpose of represent the company's general attitudes, believes, culture, policies, mission, and interests. The Public activities usually will be reported by media, and it have the same function as the advertisement, but it is going to deliver the overall information for the company, to build up the reputation among public.(Fill, C. 2009)
In summary, the IMC is based on a unified enterprise value-oriented consumer as the core
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