Promotions Opportunity

Analysis

Chapter 4

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Chapter Overview

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• Promotions opportunity analysis process

• Promotional efforts• Consumer market segments• B-to-B segmentation programs

1)Conduct a communications marketing analysis.

2)Establish communications objectives.

3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis

Five Steps

1)Conduct a communications marketing analysis.

2)Establish objectives.3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis

Step One

Communication Market AnalysisStep One

• Competitors• Opportunities• Target markets• Customers• Product positioning

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Competitors

Sources of info:

• Secondary data• Other people• Primary research

• Major competitors• Communication

strategies of major competitors

Identify:

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Opportunities

• Ignored Customers• Saturated Markets• Benefits not articulated

clearly• Marketing approach• Brand positioning

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Target Markets

• Benefits sought.• Methods of reaching markets.• Appeals to each market.• Needs not being met.• Demographic and psychographic

profile of each market.

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Customers

Three Types• Current company customers• Customers of competitors• Potential customers who have

not purchased product.

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Product Positioning

• Perception In mind of consumers Relative to competition

• Created by factors such as Product quality Prices Distribution Image Marketing

communications

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Positioning Strategies

• Attributes• Competitors• Use or application• Price/Quality• Product user• Product class• Cultural symbol

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1)Conduct a communications marketing analysis.

2)Establish Communication objectives.

3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis

Step Two

Establish Communication ObjectivesStep Two

• Develop brand awareness.• Increase category demand.• Change beliefs or attitudes.• Enhance purchase actions.• Encourage repeat purchases.• Build customer traffic.• Enhance firm image.• Increase market share.• Increase sales.

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Factors Impacting Relationship Between Promotions and Sales

• Goal of promotion• Threshold effects• Carryover effects• Wear out effects• Decay effects• Random events

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Sales-Response Curve

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A Decay Effects Model

1)Conduct a communications marketing analysis.

2)Establish objectives.3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis Step Three

Create Communications Budget

Step Three

• Percentage of sales• Meet-the-competition• What we can afford• Objective and task• Quantitative models

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Promotion Budgets

Consumer Promotions

28%

Other

Trade Promotions

28%

Advertising 41%

Outdoor, 2.6%

Radio, 7.4%

Cable TV, 11.2%

Syndicated TV, 2.8%

Spot TV, 11.5%

Network TV, 18.1%

Newspaper, 19.9%

Magazine, 19.9%

Internet, 6.5%

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Advertising Expenditures by Media

1)Conduct a communications marketing analysis.

2)Establish objectives.3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis

Step Four

Create Communications StrategiesStep Four

• Broad, long-term guidelines.• Link to opportunities and

threats.• Fit with overall company

message, image, and themes.

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1)Conduct a communications marketing analysis.

2)Establish objectives.3)Create a budget.4)Create communications

strategy.5)Match tactics with strategy.

Promotion Opportunity Analysis

Step Five

Match Tactics with StrategiesStep Five

• Tactics support strategies• Examples of tactics

Specific advertisements Personal selling enticements Sales promotions Trade promotions Price of products Package design and labeling

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Market Segmentation

• Group with distinct characteristics. Homogeneous within

• Differs from other segments and population. Heterogeneous across

• Consumer segments• Business segments

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Advantages to Segmenting Markets

• Helps identify company strengths and weaknesses.• Identifies the best set of customers.•Clarifies marketing objectives associated with specific target markets.•Allows for more precise communications budgeting.•Links firm’s strategies and tactics to a specific target group

Consumer Segments

• Demographics• Psychographics• Generations• Geographic• Geodemographics• Benefit• Usage

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Geodemographic Segmentation

• Combines Demographic census data Geographic information Psychographic information

• PRIZM 62 market segments

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• NAICS/SIC code• Size of business• Geographic

location• Product usage• Customer value

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B-to-B Segmentation

The North American Industry Classification System (NAICS)

Http://www.industrialwhoswho.com/company/naics.cgi

Standard Industrial Classification (SIC)

The Industrial Who’s Who Web Site

Http://www.industrialwhoswho.com

Http://www.industrialwhoswho.com/company/sic.cgi

Information Sources

Determine a Market Segment Viability

•The individuals or businesses within the segment are homogenous

• The market segment is different from the population as a whole and distinct from other market segments.

•The market segment is large enough to be financially viable to target with a separate marketing campaign.

•The market segment must be reachable through some type of media or marketing communications method.

GIMC(Global Integrated Marketing Communications)

• Borderless marketing plan• Think global – but act local• Local partnerships• Segmentation strategies• Market communication

analysis• Communication objectives

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