Clow04 Basic

transcript

Promotions Opportunity

Analysis

Chapter 4

Chapter Objectives1. What activities are involved in

completing a promotions opportunity analysis?

2. How should a company’s marketing team evaluate the relationship between a company’s promotional efforts and those of the competition?

3. What are the characteristics of the major consumer market segments?

4. How can a company identify and reach key business-to-business market segments?

5. How can IMC programs and promotions be expanded to the international level?

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• Attitudes have changed.Attitudes have changed.• New animal care New animal care products.products.• New animal care New animal care services.services.• Prices are secondary.Prices are secondary.

Chapter Overview

Promotions opportunity analysis process

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

Promotions Opportunity Analysis

• Conduct communication market analysis

• Establish objectives• Create a budget• Prepare a promotional strategy• Match tactics with the strategy

Communication Market AnalysisStep One

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

CompetitorsSources of information

• Secondary data• Other people• Primary research

• Major competitors• Communication

strategies of major competitors

Identify

Opportunities• Ignored customers.• Saturated markets.• Benefits not articulated

clearly.• Marketing approach.• Brand positioning.

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

psychographic profile of each market.

CustomersThree Types

• Current company customers• Customers of competitors• Potential customers who

have not purchased product.

Product Positioning

• Perception In mind of consumers Relative to competition

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

Positioning Strategies

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

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.

Factors Impacting Relationship Between Promotions and Sales

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

Create Communications Budget

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

Marketing Budgets

• Advertising – 41.1%

• Consumer promotions – 27.9%

• Trade promotions – 27.5%

• Other – 3.3%

Create Communications StrategiesStep Four

• Broad, long-term guidelines.• Link to opportunities and threats.• Fit with overall company

message, image, and themes.

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

Market Segmentation

• Group with distinct characteristics.

• Differs from other segments and population.

• Consumer segments• Business segments

Consumer Segments

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

Geodemographic Segmentation

• Combines Demographic census data Geographic information Psychographic

information• PRIZM

62 market segments

• NAICS/SIC code• Size of business• Geographic

location• Product usage• Customer value

B-to-B Segmentation

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

analysis• Communication objectives

Clow04 Basic

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