Transcript Steps in Promotions Opportunity Analysis

Promotions Opportunity
Analysis
Chapter 4
Promotions Opportunity Analysis
Must accomplish two objectives:
1. Determine which promotional objectives
exist for the company.
2. Identify the characteristics of each target
market, to better understand how to reach
that target audience.
Discussion Question
 Make a list of five consumer products or
services that are segmented on the basis of
gender but are sold to both genders. Are
there any differences in the product or
services attributes? Are there differences in
how they are marketed? What are those
differences? Do you think that using a
different marketing approach has worked?
Steps in Promotions Opportunity
Analysis
1.
2.
3.
4.
5.
Communication market analysis.
Establish communication objectives.
Create a communications budget.
Prepare a promotional strategy.
Coordination of the promo. tools
 Each of these have multiple components.
Communication Market Analysis
Step1
 Competitive analysis
 Opportunity analysis
 Target market analysis
 Customer analysis
 Positioning analysis
Establishing Communication
Objectives - Step2
What are some communication objectives that a
firm may wish to pursue?
 __________
 __________
 __________
 __________
 __________
Creating a Communications
Budget - Step 3
Most common methods used include:
 Percentage of sales
 Affordable method
 Competitive-Parity method
 Objective and task method
 Payout Planning
FIGURE
4. 4
% of Total Marketing Budget
Communication Spending for Consumers
and B-to-B
60.0%
52.6%
50.0%
40.0%
30.1%
30.0%
20.0%
22.6%
19.6%
21.2%
11.3%
10.0%
11.9%
8.8%
4.1%
5.2% 5.3%
Radio
Magazine
7.2%
0.0%
Television
Newspaper
Telephone
Marketing
Marketing Methodology/Media
Business-to-Business
Consumer
Direct Mail
Sales-Response Curve
Carryover effects
are important in
advertising products
such as boats.
FIGURE
4.6
A Decay Effects Model
Preparing the Communication
Strategy - Step 4
 Communication strategies are broad, long-
term guidelines for the marketing
communications program.
 The communication strategy should be linked
to opportunities and threats identified in the
communication market analysis.
 The strategy should fit with the firms
positioning (image, message, theme,etc.)
Coordination - Step5
 Matching what you plan to do , with what is
actually available to support the
communication.
Examples include:
 specific ads
 sales promotions - contests, loyalty cards
 enticements from sales reps
 price changes
Segmentation and Promotion
 Segmentation helps to clarify marketing
objectives geared towards specific target
markets.
 This allows for more precise communications
budgeting.
 This also helps link the firm’s strategies and
tactics to a specific target group.
Determining Viable Segments
 The segment is different from the population
as a whole and distinct from other market
segments.
 The segment is large enough to be financially
viable to target with a separate marketing
campaign. Examples?
 The individuals or businesses within the
segment are homogeneous.
Segmentation Variables
 Demographics
 Psychographics - click
 Geographic
 Benefits Sought
 Usage
 Geodemographic Segmentation
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Combines census demographic data with
psychographic and geographic information
 Generations - see page 115, table 4.10 -click
VALS 2
Psychographic Segmentation
 Innovators – successful, sophisticated – upscale products.
 Thinkers – educated, conservative, practical – durability, value.
 Achievers – goal-oriented, conservative, career, and family
 Experiencers – young, enthusiastic, impulsive, fashion, social
 Believers – conservative, conventional, traditional
 Strivers – trendy, fun-loving, peers important
 Makers – self-sufficient, respect authority, not
materialistic
 Survivors – safety, security, focus on needs, price - click
Generation Segmentation
 Generation Y (18-24) – Clothes, automobiles, college big ticket
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items. Spend heavily on TVs, stereos, and personal appearance.
Generation X (25-34) – Food, housing, transportation, and
personal services primary emphasis.
Younger Boomers (35-44) – 60% own home. Mortgage, home
furnishings, home renovations major purchases. Spend remaining
disposable income on pets, toys, playground equipment, and large
recreational vehicles.
Older Boomers (45-54) – Priorities are upgrading homes,
education and independence of children, luxury items, exotic
vacations, insurance, and investments.
Empty Nesters (55-64) – 80% own homes. Mortgage, new
furniture, new automobiles, personal indulges.
Seniors (65+) – Fixed incomes. Drugs, health insurance, and
health care major expenditures.