Promotions Opportunity Analysis

Chapter 4
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Chapter Objectives
1. 2. What activities are involved in completing a promotions opportunity analysis? How should a companys marketing team evaluate the relationship between a companys promotional efforts and those of the competition? What are the characteristics of the major consumer market segments? How can a company identify and reach key business-to-business market segments? How can IMC programs and promotions be expanded to the international level?

3.
4. 5.

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PetsMart
Pets are now part of the family.
Attitudes have changed. New animal care products. New animal care services. Prices are secondary.

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

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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 Analysis Step One

Competitors Opportunities Target markets Customers Product positioning

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Competitors
Identify
Major competitors Communication strategies of major competitors

Sources of information
Secondary data Other people Primary research

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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
Created by factors such as
In mind of consumers Relative to competition

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 Objectives Step 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 Strategies Step 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 Strategies Step 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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B-to-B Segmentation
NAICS/SIC code Size of business Geographic location Product usage Customer value
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GIMC
Borderless marketing plan Think global but act local Local partnerships Segmentation strategies Market communication analysis Communication objectives

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