1. 5 Promotions Opportunity Analysis Chapter Overview
Promotions opportunity analysis process.
Promotional efforts.
Consumer market segments.
B-to-B segmentation programs.

2. The Marketing Plan Promotion Opportunity Analysis
(marketers identify target audience)
Five Steps
Conduct a communication market analysis.
Establish objectives.
Create a budget.
Prepare a promotional strategy.
Match tactics with strategy.
IMC is developed after the marketing plan
Next slides explain the steps

3. Target market analysis Customer analysis Positioning analysis
Promotions Opportunity Analysis Step 1 Conduct a CommunicationsMarket Analysis
Competitive analysis
Opportunity analysis
Target market analysis
Customer analysis
Positioning analysis
See next OHs

4. Sources of information
Competitive Analysis
Identifies major competitors.
Identifies communication strategies and tactics of each competitor.
Sources of information
Secondary data
Other people
Primary research

5. Opportunity Analysis (reveals communication opportunities that can be exploited)
Are there customers that the competition is ignoring?
Which markets are heavily saturated?
Are the benefits of our products being clearly articulated?
Are there opportunities to build relationships using a slightly different marketing approach?
Are there opportunities that are not being pursued?

6. Target Market Analysis
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?
Consider business and consumer markets

7. Customer Analysis Current company customers.
Three Types of Customers
Current company customers.
The competitors’ customers.
Potential customers who currently do not purchase the product but may become interested.
How do customers view our ads and marketing communications and our company?

8. Positioning Analysis
Positioning is the perception created in the consumers mind regarding the nature of the company and its products relative to the competition.
Positioning is created by factors such as product quality, prices, distribution, image and marketing communications.
Determine how we are currently positioned and how we want to be positioned

9. Product Positioning Strategies
Attributes
Competitors
Use or application
Price/quality
Product user
Product class
Cultural symbol

10. Promotions Opportunity Analysis Step 2 Establish Communication Objectives
Possible Objectives:
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
A good objective is specific, measurable and obtainable – are these?

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Promotions Opportunity Analysis Step 3
Establish a Communications Budget
Budgets based on
communication objectives
marketing objectives
Budgets vary from consumer to B-to-B markets
Unrealistic assumption to assume direct relationship between advertising and sales.
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12. 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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F I G U R E
A Decay Effects Model
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F I G U R E
Methods of Determining Marketing Communication Budgets
Percentage of sales
Meet-the-competition
“What we can afford”
Objective and task
Payout planning
Quantitative models
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15. Promotions Opportunity Analysis Step 4 Prepare a Promotional Strategy
Communication strategies are broad, long-term guidelines for the marketing communications program.
Should be linked to opportunities and threats identified by the communication market analysis.
Should fit with the company’s overall message, image and themes.
e.g., theme of Mountain Dew promotion
e.g., an opportunity to provide a easy to apply, fast working, safe stain remover

16. Promotions Opportunity Analysis Step 5 Match Tactics with Strategies
Tactics support the communication strategies.
Examples of tactics would include:
Specific advertisements.
Personal selling enticements for sales reps.
Sales promotions such as coupons, premiums, sweepstakes, and contests.
Special product packages and labels.
Price changes.
Trade discounts to retailers.

17. Advantages to Segmenting Markets
Market segmentation – dividing the marketing into smaller homogeneous groups
Helps identify company strengths and weaknesses.
Identifies the best set of customers.
Clarifies marketing objectives associated with specific target markets.
Allows for more precise communications budgeting.
Links firm’s strategies and tactics to a specific target group

18. Tests to Determine if a Particular Market Segment Is Viable
The individuals or businesses within the segment are homogeneous.
The market segment is different from the population as a whole and distinct from other market segments (heterogeneous).
The market segment is large enough to be financially viable to target with a separate marketing campaign (substantial).
The market segment must be reachable through some type of media or marketing communications method (operational).

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F I G U R E
Methods of Segmenting Consumer Markets
Demographics
Psychographics
Generations
Geographic
Geodemographics
Benefits
Usage
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20. VALS 2 Psychographic 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
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21. Psychographics and Technology Psychographic Segmentation
New Enthusiasts – cutting edge, eager, high incomes/education
Hopefuls – cutting edge, lack financial means
Faithful – not eager, but not averse
Oldliners – not interested in new technologies
Independents – higher incomes, but do not value new technology
Surfers – ambivalent about new technology, cynical about business
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22. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Table
Characteristics of Generation Segments
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23. Geodemographic Segmentation
Combines
Demographic census data
Geographic information
Psychographic information
PRIZM
62 market segments
Southside City
Towns and Gowns
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24. F I G U R E 5 . 11 NAICS/SIC code Type of business Size of business
Methods of Segmenting B-to-B Markets
NAICS/SIC code
Type of business
Size of business
Geographic location
Product usage
Purchase decision process
Customer value
NAICS - North American Industry Classification system is replacing SIC (Standard Industrial Classification system). – Divides the economy into 20 broad sectors (construction, wholesale trade etc.) which are further stratified.
Type of Bus – retail, govt, wholesale, manuf.
Usage - Single day seminars vs conferences for hotels
Decision process – straight rebuy, modified rebuy, new task