marketing stratergies promotional opurtunities

7/30/2019 marketing stratergies promotional opurtunities

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Promotions Opportunity

Analysis

Chapter 4


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Promotions Opportunity Analysis

Must accomplish two objectives:

1. Determine which promotional objectivesexist for the company.

2. Identify the characteristics of each targetmarket, to better understand how to reach

that target audience.


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Discussion Question

Make a list of five consumer products orservices that are segmented on the basis ofgender but are sold to both genders. Are

there any differences in the product orservices attributes? Are there differences inhow they are marketed? What are thosedifferences? Do you think that using a

different marketing approach has worked?


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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.


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Communication Market Analysis

Step1

Competitive analysis

Opportunity analysis

Target market analysis

Customer analysis

Positioning analysis


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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.


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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


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4-9

Restaurant ChainsU.S. Market Share vs. Media Ad Spending

Rank Brand Market Share Media AdSpend (Mil)

Cost PerShare Pt. (Mil)

1 McDonalds 7.7% $ 727.7 $ 93.9

2 Burger King 2.4% $ 268.8 $ 113.2

3 Wendys 2.3% $ 374.7 $161.5

4 Subway 2.2% $ 325.2 $150.1

5 Taco Bell 1.9% $ 231.7 $125.1

Source: Top 10 Restaurant Chains, www.adage.com, accessed October 1, 2008
http://www.adage.com/http://www.adage.com/


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Automotive BrandsU.S. Market Share vs. Media Ad Spending

Rank Brand MarketShare

Media AdSpend (Mil)

Cost PerShare Pt. (Mil)

1 Toyota Camry 5.4% $ 65.6 $ 12.1

2 Honda Accord 4.6% $ 114.3 $ 24.8

3 Honda Civic 3.9% $ 112.0 $ 28.7

4 Nissan Altima 3.2% $ 132.1 $ 41.2

5 Chevrolet Impala 3.1% $ 58.5 $ 18.8

Source: Top 10 Auto Brands, www.adage.com, accessed October 1, 2008
http://www.adage.com/http://www.adage.com/


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11.3%

4.1% 5.2%7.2%

52.6%

19.6%

30.1%

8.8%

21.2%

5.3%

11.9%

22.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Television Radio Magazine Newspaper TelephoneMarketing

Direct Mail

Marketing Methodology/Media

%o

fTotalM

arketingBudget

Business-to-Business Consumer

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


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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


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Factors Impacting Relationship

Between Promotions and Sales

The goal of the promotion

Threshold effects

Carryover effects Wear-out effects

Decay effects

Random events


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Sales-Response Curve


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Carryover effectsare important in

advertising productssuch as boats.


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F I G U R E 4 . 6

A Decay Effects Model


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Preparing the Communication

Strategy - Step 4

Communication strategies are broad, long-term guidelines for the marketingcommunications program.

The communication strategy should be linkedto opportunities and threats identified in thecommunication market analysis.

The strategy should fit with the firmspositioning (image, message, theme,etc.)


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Coordination - Step5

Matching what you plan to do , with what is actuallyavailable 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


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Segmentation and Promotion

Segmentation helps to clarify marketingobjectives geared towards specific targetmarkets critical to address in a promotions

opportunity analysis. This allows for more precise communications

budgeting.

This also helps link the firms strategies and

tactics to a specific target group.


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Determining Viable Segments

The segment is different from the populationas a whole and distinct from other marketsegments.

The segment is large enough to be financiallyviable to target with a separate marketingcampaign. Examples?

The individuals or businesses within thesegment are homogeneous.


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Segmentation Variables

Demographics

Psychographics - click

Geographic

Benefits Sought

Usage

Geodemographic Segmentation

Combines census demographic data withpsychographic and geographic information

Generations - see page 106, table 4.1 -click


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VALS 2

Psychographic Segmentation

Innovatorssuccessful, sophisticated upscale products.

Thinkerseducated, conservative, practical durability, value.

Achieversgoal-oriented, conservative, career, and family

Experiencersyoung, enthusiastic, impulsive, fashion, social

Believersconservative, conventional, traditional

Striverstrendy, fun-loving, peers important

Makersself-sufficient, respect authority, not materialistic

Survivorssafety, security, focus on needs, price Click to go back


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Generation Segmentation

marketing stratergies promotional opurtunities

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