Promotions Opportunity

Analysis

Chapter 4

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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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PetsMart

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Pets are now part of the family.Pets are now part of the family.

• 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

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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

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Communication Market AnalysisStep One

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

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CompetitorsSources of information

• 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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CustomersThree 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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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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Create Communications Budget

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

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Marketing Budgets

• Advertising – 41.1%

• Consumer promotions – 27.9%

• Trade promotions – 27.5%

• Other – 3.3%

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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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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.

• Differs from other segments and population.

• Consumer segments• Business segments

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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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• NAICS/SIC code• Size of business• Geographic

location• Product usage• Customer value

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B-to-B Segmentation

GIMC

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

analysis• Communication objectives

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