1. What’s Happening? http://www.youtube.com/watch?v=m3hBE6dtOBI

2. Promotion Opportunity Analysis
Chapter 4

3. Promotions 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.

4. IMC Planning Process
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.

5. Steps in Developing a Promotions Opportunity Analysis
Conduct a communication market analysis
Establish communications objectives
Create a communications budget
Theses steps are usually studied together, rather than sequentially.

6. Communication Market Analysis
Step 1
Communication Market Analysis

7. Promotions Opportunity Analysis
Step 1:
Conduct a Communication Market Analysis
There are three areas in this analysis:
Competitors Analysis
Opportunities Analysis
Target Market Analysis

8. Promotions Opportunity Analysis
Competitors Analysis:
Direct competitors
Indirect competitors
Market leaders
Identify communication strategies and tactics of each competitor through primary and secondary research.
Sources of Information include:
Advertisements
Websites
Customers
Annual reports

9. Promotions 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?

10. Promotions Opportunity Analysis
Target Market Analysis:
Before we consider the larger issue of a market it is wise to consider the “customer”
Current customers
Former customers
Potential customers
Competitors’ customers

11. Promotions 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?

12. Market Segmentation
The process of identifying specific purchasing groups based on their needs, attitudes and interests.
Advantages of Segmentation:
Identify company strengths and weaknesses
Locate opportunities within markets
Match firm’s expertise with most lucrative markets
Focus budget on specific segment

13. What’s Happening? http://www.youtube.com/watch?v=0FXf-8jDzs8
Guinness Commercial:

14. Discussion Slide
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?

15. Demographics F I G U R E 4 . 4 Methods of Segmenting Consumer Markets
Psychographics
Generations
Geographic
Geodemographics
Benefits
Usage

16. Generation Segmentation

17. F I G U R E 4 . 6 Industry Size of Business Geographic location
Methods of Segmenting Business Markets
Industry
Size of Business
Geographic location
Product usage
Customer value

18. Determining 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.

19. TELUS uses ethic marketing to reach the multicultural Canadian market

20. Establish communication objectives
Step 2
Establish communication objectives

21. Promotions Opportunity Analysis
Step 2:
Establish Communication Objectives
Criteria for Defining Objectives:
Specific Target Audience
Specific Tasks
Specific Changes
Specific Time
Copyright Pearson Canada Inc.

22. Promotions Opportunity Analysis
Broad categories of objectives may include:
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

23. Create a Communications budget
Step 3
Create a Communications budget

24. Promotions Opportunity Analysis
Step 3:
Establishing a Communications Budget
Budgets are 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.

25. Factors Impacting Relationship Between Promotions and Sales
The objective of the communication
Threshold effects
Carryover effects
Wear-out effects
Decay effects
Random events

26. F I G U R E
A Sale-Response Function Curve Combined with the Downward Response Curve and Marginal Analysis

27. Carryover 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.

28. F I G U R E
A Decay Effects Model

29. F I G U R E 4 . 9 Percentage of sales Meet-the-competition
Methods of Determining Marketing Communication Budgets
Percentage of sales
Meet-the-competition
“What we can afford”
Objective and task
Payout planning