3Promotions 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.
4IMC Planning ProcessMust 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.
5Steps in Developing a Promotions Opportunity Analysis Conduct a communication market analysisEstablish communications objectivesCreate a communications budgetTheses steps are usually studied together, rather than sequentially.
7Promotions Opportunity Analysis Step 1:Conduct a Communication Market AnalysisThere are three areas in this analysis:Competitors AnalysisOpportunities AnalysisTarget Market Analysis
8Promotions Opportunity Analysis Competitors Analysis:Direct competitorsIndirect competitorsMarket leadersIdentify communication strategies and tactics of each competitor through primary and secondary research.Sources of Information include:AdvertisementsWebsitesCustomersAnnual reports
9Promotions Opportunity Analysis Must ask a series of questions: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?
10Promotions Opportunity Analysis Target Market Analysis:Before we consider the larger issue of a market it is wise to consider the “customer”Current customersFormer customersPotential customersCompetitors’ customers
11Promotions Opportunity Analysis Target Market Analysis:Things to consider include: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?
12Market SegmentationThe process of identifying specific purchasing groups based on their needs, attitudes and interests.Advantages of Segmentation:Identify company strengths and weaknessesLocate opportunities within marketsMatch firm’s expertise with most lucrative marketsFocus budget on specific segment
14Discussion SlideMake 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?
15Demographics F I G U R E 4 . 4 Methods of Segmenting Consumer Markets PsychographicsGenerationsGeographicGeodemographicsBenefitsUsage
17F I G U R E 4 . 6 Industry Size of Business Geographic location Methods of Segmenting Business MarketsIndustrySize of BusinessGeographic locationProduct usageCustomer value
18Determining 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.
19TELUS uses ethic marketing to reach the multicultural Canadian market
20Establish communication objectives Step 2Establish communication objectives
21Promotions Opportunity Analysis Step 2:Establish Communication ObjectivesCriteria for Defining Objectives:Specific Target AudienceSpecific TasksSpecific ChangesSpecific TimeCopyright Pearson Canada Inc.
23Create a Communications budget Step 3Create a Communications budget
24Promotions Opportunity Analysis Step 3:Establishing a Communications BudgetBudgets are based oncommunication objectivesmarketing objectivesBudgets vary from consumer to B-to-B marketsUnrealistic assumption to assume direct relationship between advertising and sales.
25Factors Impacting Relationship Between Promotions and Sales The objective of the communicationThreshold effectsCarryover effectsWear-out effectsDecay effectsRandom events
26F I G U R EA Sale-Response Function Curve Combined with the Downward Response Curve and Marginal Analysis
27Carryover effects are important in advertising products such as boats. This ad by Yamaha relies on carryover effects of advertising. Boats are not purchased everyday so the hope of Yamaha is that when a consumer starts thinking about boats, he/she will remember the Yamaha brand and this ad.
29F I G U R E 4 . 9 Percentage of sales Meet-the-competition Methods of Determining Marketing Communication BudgetsPercentage of salesMeet-the-competition“What we can afford”Objective and taskPayout planning