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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. .

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Promotions Opportunity Analysis

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  1. Promotions Opportunity Analysis Chapter 4

  2. 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.

  3. 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?

  4. Steps in Promotions Opportunity Analysis 1. Communication market analysis. 2. Establish communication objectives. 3. Create a communications budget. 4. Prepare a promotional strategy. 5. Coordination of the promo. tools • Each of these have multiple components.

  5. Communication Market Analysis Step1 • Competitive analysis • Opportunity analysis • Target market analysis • Customer analysis • Positioning analysis

  6. Steps in Promotions Opportunity Analysis 1. Communication market analysis. 2. Establish communication objectives. 3. Create a communications budget. 4. Prepare a promotional strategy. 5. Coordination of the promo. tools • Each of these have multiple components.

  7. Establishing Communication Objectives - Step2 What are some communication objectives that a firm may wish to pursue? • __________ • __________ • __________ • __________ • __________

  8. Communication Budgets - Step 3 • Budgets based on • communication objectives • marketing objectives • Budgets vary from consumer to B-to-B markets • Unrealistic assumption to assume direct relationship between advertising sales and market share

  9. Restaurant ChainsU.S. Market Share vs. Media Ad Spending Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008

  10. Automotive BrandsU.S. Market Share vs. Media Ad Spending Source: “Top 10 Auto Brands,” www.adage.com, accessed October 1, 2008

  11. F I G U R E 4. 4 An comparative example: Communication Spending for Consumers and B-to-B

  12. 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

  13. Factors Impacting Relationship Between Promotions and Sales • The goal of the promotion • Threshold effects • Carryover effects • Wear-out effects • Decay effects • Random events

  14. Sales-Response Curve

  15. Carryover effects are important in advertising products such as boats.

  16. F I G U R E 4 . 6 A Decay Effects Model

  17. 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.)

  18. Coordination - Step5 • Matching what you plan to do , with what is actually available to support the communication. Examples include: • specific ads • sales promotions - contests, coupons, etc • holiday events/anniversary events • enticements from sales reps • price changes • special product packaging for brand extensions

  19. Segmentation and Promotion • Segmentation helps to clarify marketing objectives geared towards specific target markets – critical to address in a promotions opportunity analysis. • This allows for more precise communications budgeting. • This also helps link the firm’s strategies and tactics to a specific target group.

  20. 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.

  21. Segmentation Variables • Demographics • Psychographics - click • Geographic • Benefits Sought • Usage • Geodemographic Segmentation • Combines census demographic data with psychographic and geographic information • Generations - see page 106, table 4.1 -click

  22. VALS 2Psychographic 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 to go back

  23. Generation Segmentation

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