Transcript Promotion Opportunity Analysis

Promotion Opportunity
Analysis
CHAPTER 4
Promotions Opportunity Analysis
Promotions Opportunity Analysis:
The process marketers use to identify target
audiences for an organization’s message and the
communications strategies needed to reach these
audiences.
IMC Planning Process
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.
Steps in Developing a Promotions Opportunity
Analysis
o Conduct a communication market analysis
o Establish communications objectives
o Create a communications budget
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Theses steps are usually studied together, rather than
sequentially.
Step 1
COMMUNICATION MARKET
ANALYSIS
Promotions Opportunity Analysis
Step 1:
o Conduct a Communication Market Analysis
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There are three areas in this analysis:
Competitors Analysis
Opportunities Analysis
Target Market Analysis
Promotions Opportunity Analysis
Competitors Analysis:
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Direct competitors
Indirect competitors
Market leaders
Identify communication strategies and tactics of each competitor
through primary and secondary research.
o Sources of Information include:
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Advertisements
Websites
Customers
Annual reports
Promotions Opportunity Analysis
Opportunity Analysis:
o Must ask a series of questions:
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Are there customers that the competition is ignoring?
Which markets are heavily saturated?
Are the benefits of our goods and services being clearly
articulated?
Are there opportunities to build relationships using a slightly
different marketing approach?
Are there opportunities that are not being pursued?
Promotions Opportunity Analysis
Target Market Analysis:
o Before we consider the larger issue of a market it is wise to
consider the “customer”
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Current customers
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http://www.youtube.com/watch?v=hINpvlYlIGM&feature=relate
d
Former customers
Potential customers
Competitors’ customers
Promotions Opportunity Analysis
Target Market Analysis:
o Things to consider include:
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What benefits does each target market want from the product?
How can each target market be reached?
What appeal works best for each target market?
What needs of the target market are not being met by a
competing firm?
What is the demographic and psychographic makeup of each
target market?
Market Segmentation
o The process of identifying specific purchasing groups
based on their needs, attitudes and interests.
Advantages of Segmentation:
o Identify company strengths and weaknesses
o Locate opportunities within markets
o Match firm’s expertise with most lucrative markets
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Focus budget on specific segment
What’s Happening!
 http://www.huffingtonpost.ca/2013/01/21/samsung-
blackberry-ad_n_2522213.html
 http://www.youtube.com/watch?v=4ckGeOrUkAs
Discussion Slide
o 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?
FIGURE
4.4
Methods of Segmenting Consumer Markets
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Demographics
Psychographics
Generations
Geographic
Geodemographics
Benefits
Usage
Generation Segmentation
FIGURE
4.6
Methods of Segmenting Business Markets
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Industry
Size of Business
Geographic location
Product usage
Customer value
Determining Viable Market 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.
TELUS uses ethic
marketing to reach the
multicultural Canadian
market
Step 2
ESTABLISH COMMUNICATION
OBJECTIVES
Promotions Opportunity Analysis
Step 2:
o Establish Communication Objectives
Criteria for Defining Objectives:
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Specific Target Audience
Specific Tasks
Specific Changes
Specific Time
Copyright 2013 Pearson Canada Inc.
Promotions Opportunity Analysis
Broad categories of objectives may include:
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Develop brand awareness
Increase good/service category demand
Change customer beliefs or attitudes
Enhance purchase actions
Encourage repeat purchases
Build customer traffic
Enhance firm image
Increase market share
Increase sales
Reinforce purchase decisions
Step 3
C R E A T E A C O M M U N I C A T I O NS
BUDGET
Promotions Opportunity Analysis
Step 3:
o Establishing a Communications Budget
o Budgets are based on
o communication objectives
o marketing objectives
o Budgets vary from consumer to B-to-B markets
o Unrealistic assumption to assume direct relationship
between advertising and sales.
Factors Impacting Relationship Between
Promotions and Sales
o The objective of the communication
o Threshold effects
o Carryover effects
o Wear-out effects
o Decay effects
o Random events
FIGURE
4. 7
A Sale-Response Function Curve Combined with the Downward
Response Curve and Marginal Analysis
Carryover effects are
important in advertising
products such as boats.
FIGURE
4.8
A Decay Effects Model
FIGURE
4.9
Methods of Determining Marketing Communication Budgets
o Percentage of sales
o Meet-the-competition
o “What we can afford”
o Objective and task
o Payout planning
o Quantitative models
Payout Planning Example