marketing stratergies promotional opurtunities
TRANSCRIPT
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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
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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
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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