Promotions Opportunity Analysis

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Promotions Opportunity Analysis

• Chapter 4

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Promotions Opportunity Analysis

• Must accomplish two objectives
• 1. Determine which promotional objectives exist
  for the company.
• 2. Identify the characteristics of each target
  market, to better understand how to reach that
  target audience.

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Discussion Question

• Make a list of five consumer products or services
  that are segmented on the basis of gender but are
  sold to both genders. Are there any differences
  in the product or services attributes? Are there
  differences in how they are marketed? What are
  those differences? Do you think that using a
  different marketing approach has worked?

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Steps in Promotions Opportunity Analysis

• 1. Communication market analysis.
• 2. Establish communication objectives.
• 3. Create a communications budget.
• 4. Prepare a promotional strategy.
• 5. Coordination of the promo. tools
• Each of these have multiple components.

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Communication Market Analysis Step1

• Competitive analysis
• Opportunity analysis
• Target market analysis
• Customer analysis
• Positioning analysis

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Establishing Communication Objectives - Step2

• What are some communication objectives that a
  firm may wish to pursue?
• __________
• __________
• __________
• __________
• __________

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Creating a Communications Budget - Step 3

• Most common methods used include
• Percentage of sales
• Affordable method
• Competitive-Parity method
• Objective and task method
• Payout Planning

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F I G U R E 4. 4
Communication Spending for Consumers and B-to-B
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Sales-Response Curve
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Carryover effects are important in advertising
products such as boats.
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F I G U R E 4 . 6
A Decay Effects Model
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Preparing the Communication Strategy - Step 4

• Communication strategies are broad, long-term
  guidelines for the marketing communications
  program.
• The communication strategy should be linked to
  opportunities and threats identified in the
  communication market analysis.
• The strategy should fit with the firms
  positioning (image, message, theme,etc.)

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Coordination - Step5

• Matching what you plan to do , with what is
  actually available to support the communication.
• Examples include
• specific ads
• sales promotions - contests, loyalty cards
• enticements from sales reps
• price changes

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Segmentation and Promotion

• Segmentation helps to clarify marketing
  objectives geared towards specific target
  markets.
• This allows for more precise communications
  budgeting.
• This also helps link the firms strategies and
  tactics to a specific target group.

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Determining Viable Segments

• The segment is different from the population as
  a whole and distinct from other market segments.
• The segment is large enough to be financially
  viable to target with a separate marketing
  campaign. Examples?
• The individuals or businesses within the segment
  are homogeneous.

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Segmentation Variables

• Demographics
• Psychographics - click
• Geographic
• Benefits Sought
• Usage
• Geodemographic Segmentation
• Combines census demographic data with
  psychographic and geographic information
• Generations - see page 115, table 4.10 -click

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VALS 2Psychographic 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 - click

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Generation Segmentation

• Generation Y (18-24) Clothes, automobiles,
  college big ticket items. Spend heavily on TVs,
  stereos, and personal appearance.
• Generation X (25-34) Food, housing,
  transportation, and personal services primary
  emphasis.
• Younger Boomers (35-44) 60 own home. Mortgage,
  home furnishings, home renovations major
  purchases. Spend remaining disposable income on
  pets, toys, playground equipment, and large
  recreational vehicles.
• Older Boomers (45-54) Priorities are upgrading
  homes, education and independence of children,
  luxury items, exotic vacations, insurance, and
  investments.
• Empty Nesters (55-64) 80 own homes. Mortgage,
  new furniture, new automobiles, personal
  indulges.
• Seniors (65) Fixed incomes. Drugs, health
  insurance, and health care major expenditures.

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