Integrated Marketing Communication

Lecturer Md Shahedur Rahman Promotions Opportunity Analysis

IntroductionIndividual customers and businesses receive a countless of promotional materials everyday. Marketing contacts do not happen by accident. Beyond the world of advertising and personal selling, successful marketing efforts occur because someone identified an opportunity to make a quality contact with a customer.IMC is a program designed to help find the places to make those contacts, and to present the customer with a well-defined message spoken in a clear voice by a firm.

Promotional Opportunity AnalysisIt is the process marketers use to identify target audiences for a companys goods and services and the communication strategies need to reach these audiences.

Communication to each group requires distinct and somewhat customized approach.

An effective promotional analysis identifies the approach or appeal that is best suited to each set of customers.Objectives of POAA promotions opportunity analysis must achieve 2 objectives:

Determine which promotional opportunities exist for the company

Identify the characteristics of each target audience, to better understand how to reach that target market

Steps in Promotions Opportunity AnalysisThere are 5 distinct steps

Conduct a communication market analysis

Establish communication objectives

Create a communication budget

Prepare promotional strategies

Match tactics with strategiesCommunication Market AnalysisOrganizations strengths and weaknesses in the area of marketing communication Combining that information with an analysis of the opportunities and threats present in the firms external environment.Managerial approach called SWOT analysisWe need to carefully examine 5 areas:CompetitorsTarget MarketsOpportunitiesCustomersProduct PositioningCompetitorsDiscover who the competition is, and what they are doing in the areas of advertising and communication.Marketing tactics, and how they are attacking the marketplace.Potential customers see, hear and read about the competition.Compile a list of all domestic and foreign competitors, and find out what statements they are making about themselves using secondary data:AdvertisementsPromotional MaterialsAnnual ReportsProspectusWebsite

CompetitorsThe we need to find out what other people say about the competition.Sources of information may includeTrade journalsNews articles and press releasesPrimary researchGo check out competitors outlets, experiencing it first handTalk to their employeesTalk to other channel members, like wholesalers, distributors and agents.

OpportunitiesLook for opportunities by examining all the available data and information about the market.Are there customers that the competition is ignoring, or not serving?Which markets are saturated, and have intense competition?Are the benefits of our goods and services being clearly spoken to the different customer market segments?Are there opportunities to build relationships with customers using a slightly different marketing approach?Are there opportunities not being pursued, or is our brand positioned in a cluster of other companies in such a way that it cannot stand out?

Target MarketsFirms actually need to understand the needs of various consumer and business groups.

Firstly, it establishes what benefit customers are seekingThen determines the various ways in which the customers can be reached.The marketer needs to ask questions directed at smaller groups.This would help divide the overall market into smaller market segments, for whom advertising campaigns can then be designed.

CustomersThere are 3 types of customers that need studying:Current company customersCompetitions customersPotential new customers

CustomersNeed to understand how people in each group think, why they buy, when they buy, where they buy, and how they evaluate a product after purchase

Creating effective advertisements and marketing communications requires knowing everything that goes on in the minds of customers.

13Product PositioningPerception created in the consumers mind regarding the nature of a company and its products relative to the competition

It is important to make sure the position being promoted is consistent with current views by the various constituencies, and is also consistent with various elements of the IMC program.

Product PositioningThere are seven possible positioning strategies are based on:AttributesCompetitorsUse or applicationPrice-quality relationshipProduct userProduct classCultural symbol

Establishing Marketing Communication Objectives2nd step of a Promotional Opportunity Analysis.Objectives for the marketing communication are identified.Communication objectives help account execs and advertising creatives to design effective messages.

Establishing Marketing Communication ObjectivesA communications plan is usually geared towards a single objectives, but it is possible for a program to accomplish multiple goals.

What are the communication objectives that a firm may wish to pursue?____________________________________________________________________________

Common Communication ObjectivesDevelop brand awarenessIncrease category demandChange customer beliefs or attitudesEnhance purchase actionsEncourage repeat purchasesBuild customer trafficEnhance firm imageIncrease market shareIncrease salesReinforce purchase decisionsExamples?Establishing a Communications BudgetBudgets are based on communication objectives as well as marketing objectives.The communication budgets differ between consumer markets and B2B markets.Managers are often under the impression that there is a direct relationship between expenditures in advertising communications and subsequent sales revenues.

Establishing a Communications BudgetFactors that influence the relationship between expenditures on promotions and sales include:

Goal of the promotion knowledge, liking, preference, convictionThreshold effects it takes time for sales to take offCarryover effects Coca Cola!Wear-out effects becomes old and boring to outright annoyingDecay effects with time, people forget out of sight, out of mindRandom events 9/11

Types of BudgetPercentage of Sales MethodMeet-the-Competition MethodWhat We Can Afford MethodObjective and Task MethodPayout PlanningQuantitative Models

Types of BudgetPercentage of Sales MethodSales from the previous year Anticipated sales for the next yearMeet-the-Competition MethodMatching the competition spendingMay not spent efficientlyNot how much is pent, but rather how well the money is allocatedWhat We Can Afford MethodAfter allocating all the budget management think whatever they can affordNormally if the management have no idea about importance of marketingSmaller companies with limited finance always go with this approach

Types of BudgetObjective and Task MethodPrepare all the objectives and calculate the cost of accomplishing each objectivesThough its time consuming but can be effective Payout PlanningRatio of advertising to sales/market share.Companies start by spending more, then slowly narrow it down, once people get over the threshold levelQuantitative ModelsComputer simulations may be developed to model the relationship between advertising with sales and profitsThese are far from perfect.

Budgeting ExpendituresA budget is finalized when the company has specified how funds will be spent on each of the major communications toolsMedia advertising 25%Trade promotions 50%Consumer promotions 25%These figures vary by industry.Consumer products spend more on trade promotionsServices spend more money on media advertisingPreparing Promotional StrategiesStrategies are sweeping guidelines They provide long-term direction for all marketing initiatives.

Coca Cola Open HappinessCastrol Its More than Just Oil Its Liquid EngineeringNike Just Do ItTag Heuer What Are You Made Of?Nokia Connecting People

Matching Tactics with StrategiesTactics are activities performed to support strategies.They include promotional campaigns designed around themes based on strategic objectives.Methods used in tactical campaignsAdvertisements based on the major theme or a sub-themePersonal selling enticements bonuses and prizes for sales repsSales promotionsSpecial product packaging and labelingPrice changesOther enticements in line with strategies may include coupons, gift certificates, bonus packs, special containers, contests and prizes, etc.Marketing SegmentationSegmentation is essential in completing a POAIdentify company strengths and weaknesses, along with opportunities in the marketplaceWorks towards the goal of matching what the firm does best, with the most profitable set of customersClarifies marketing objectives associated with individual target marketsFocuses budgeting expenditures or consumer groups and business segments more preciselyLinks company strategies and tactics to select groups of customers

Marketing Segmentation4 things that are considered before considering a segment a viable target for marketing communication:Similar: Individuals or businesses within the segment should be homogeneous.Differentiable: The segment should differ from the population as a whole.Number: The segment should be large enoughReachable: It should be reachable through some type of mediaMarketing SegmentationMethods of segmenting consumer marketsDemographicsPsychographicsGenerationsGeographicGeodemographicBenefitsUsageMarket Segmentation by Consumer GroupsSegments based on DemographicsGenderAgeIncomeEthnic GroupsPsychographics attitudes, interests and opinions (AIO), VALS2 typologySegments based on GenerationsSegmentation by Geographic AreaGeodemographic Segmentation census data with psychographic infoBenefit Segmentation winners, dieters, self-improversUsage Segmentation heavy, casual, occasional, light user

Business to Business SegmentationBy IndustryBy SizeBy Geographic LocationBy Product UsageBy Customer Value