1. Promotions Opportunity Analysis Chapter 4 Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-1

2. Chapter Objectives 1.What activities are involved in completing a promotions opportunity analysis? 2.How should a company’s marketing team evaluate the relationship between a company’s promotional efforts and those of the competition? 3.What are the characteristics of the major consumer market segments? 4.How can a company identify and reach key business-to-business market segments? 5.How can IMC programs and promotions be expanded to the international level? Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-2

3. PetsMart Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-3 Pets are now part of the family. Attitudes have changed. Attitudes have changed. New animal care products. New animal care products. New animal care services. New animal care services. Prices are secondary. Prices are secondary.

4. Chapter Overview Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-4  Promotions opportunity analysis process  Promotional efforts  Consumer market segments  B-to-B segmentation programs

5. Promotions Opportunity Analysis Conduct communication market analysis Establish objectives Create a budget Prepare a promotional strategy Match tactics with the strategy Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-5

6. Communication Market Analysis Step One Competitors Opportunities Target markets Customers Product positioning Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-6

7. Competitors Sources of information Secondary data Other people Primary research Major competitors Communication strategies of major competitors Identify Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-7

8. Opportunities Ignored customers. Saturated markets. Benefits not articulated clearly. Marketing approach. Brand positioning. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-8

9. Target Markets Benefits sought. Methods of reaching markets. Appeals to each market. Needs not being met. Demographic and psychographic profile of each market. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-9

10. Customers Three Types Current company customers Customers of competitors Potential customers who have not purchased product. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-10

11. Product Positioning Perception  In mind of consumers  Relative to competition Created by factors such as  Product quality  Prices  Distribution  Image  Marketing communications Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-11

12. Positioning Strategies Attributes Competitors Use or application Price/Quality Product user Product class Cultural symbol Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-12

13. Establish Communication Objectives Step Two Develop brand awareness. Increase category demand. Change beliefs or attitudes. Enhance purchase actions. Encourage repeat purchases. Build customer traffic. Enhance firm image. Increase market share. Increase sales. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-13

14. Factors Impacting Relationship Between Promotions and Sales Goal of promotion Threshold effects Carryover effects Wear out effects Decay effects Random events Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-14

15. Create Communications Budget Step Three Percentage of sales Meet-the-competition What we can afford Objective and task Payout planning Quantitative models Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-15

16. Marketing Budgets Advertising – 41.1% Consumer promotions – 27.9% Trade promotions – 27.5% Other – 3.3% Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-16

17. Create Communications Strategies Step Four Broad, long-term guidelines. Link to opportunities and threats. Fit with overall company message, image, and themes. Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-17

18. Match Tactics with Strategies Step Five Tactics support strategies Examples of tactics  Specific advertisements  Personal selling enticements  Sales promotions  Trade promotions  Price of products  Package design and labeling Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-18

19. Market Segmentation Group with distinct characteristics. Differs from other segments and population. Consumer segments Business segments Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-19

20. Consumer Segments Demographics Psychographics Generations Geographic Geodemographics Benefit Usage Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-20

21. Geodemographic Segmentation Combines  Demographic census data  Geographic information  Psychographic information PRIZM  62 market segments Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-21

22. NAICS/SIC code Size of business Geographic location Product usage Customer value Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-22 B-to-B Segmentation

23. GIMC Borderless marketing plan Think global – but act local Local partnerships Segmentation strategies Market communication analysis Communication objectives Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-23