Promotions Opportunity Analysis

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Promotions Opportunity Analysis

• Chapter 4

2
Chapter Overview

• Promotions opportunity analysis process
• Promotional efforts
• Consumer market segments
• B-to-B segmentation programs

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Promotion Opportunity Analysis Five Steps
1) Conduct a communications marketing
analysis. 2) Establish communications
objectives. 3) Create a budget. 4) Create
communications strategy. 5) Match tactics with
strategy.
4
Promotion Opportunity Analysis Step One
1) Conduct a communications marketing
analysis. 2) Establish objectives. 3) Create a
budget. 4) Create communications
strategy. 5) Match tactics with strategy.
5
Communication Market AnalysisStep One

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

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Competitors
Sources of info
Identify

• Secondary data
• Other people
• Primary research

• Major competitors
• Communication strategies of major competitors

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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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Promotion Opportunity Analysis Step Two
1) Conduct a communications marketing
analysis. 2) Establish Communication
objectives. 3) Create a budget. 4) Create
communications strategy. 5) Match tactics with
strategy.
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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
4-16
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Promotion Opportunity Analysis Step Three
1) Conduct a communications marketing
analysis. 2) Establish objectives. 3) Create a
budget. 4) Create communications
strategy. 5) Match tactics with strategy.
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Create Communications BudgetStep Three

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

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Promotion Budgets
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Advertising Expenditures by Media
4-20
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Promotion Opportunity Analysis Step Four
1) Conduct a communications marketing
analysis. 2) Establish objectives. 3) Create a
budget. 4) Create communications
strategy. 5) Match tactics with strategy.
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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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Promotion Opportunity Analysis Step Five
1) Conduct a communications marketing
analysis. 2) Establish objectives. 3) Create a
budget. 4) Create communications
strategy. 5) Match tactics with strategy.
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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 firms strategies and tactics to a specific
  target group

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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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B-to-B Segmentation

• NAICS/SIC code
• Size of business
• Geographic location
• Product usage
• Customer value

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Information Sources
The North American Industry Classification System
(NAICS)
Http//www.industrialwhoswho.com/company/naics.cgi

Standard Industrial Classification (SIC)
Http//www.industrialwhoswho.com/company/sic.cgi
The Industrial Whos Who Web Site
Http//www.industrialwhoswho.com
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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.

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GIMC(Global Integrated Marketing Communications)

• Borderless marketing plan
• Think global but act local
• Local partnerships
• Segmentation strategies
• Market communication analysis
• Communication objectives