Promotions

Opportunity Analysis

Chapter 4

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 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

 PetsMart

Pets are now part of the family.

• Attitudes have changed.
• New animal care products.
• New animal care services.
• Prices are secondary.

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 Chapter Overview

 Promotions opportunity analysis process

 Promotional efforts
 Consumer market segments
 B-to-B segmentation programs

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Promotions Opportunity Analysis

• Conduct communication market

analysis
• Establish objectives
• Create a budget
• Prepare a promotional strategy
• Match tactics with the strategy

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Communication Market Analysis
Step One

• Competitors
• Opportunities
• Target markets
• Customers
• Product positioning

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 Competitors
Sources of
Identify information

• Major competitors • Secondary data

• Communication • Other people
strategies of major • Primary research
competitors

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 Opportunities
• Ignored customers.
• Saturated markets.
• Benefits not articulated clearly.
• Marketing approach.
• Brand positioning.

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 Target Markets
• Benefits sought.
• Methods of reaching markets.
• Appeals to each market.
• Needs not being met.
• Demographic and psychographic
profile of each market.

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 Customers
Three Types

• Current company customers

• Customers of competitors
• Potential customers who have
not purchased product.

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Product Positioning
• Perception
 In mind of consumers
 Relative to competition
• Created by factors such as
 Product quality
 Prices
 Distribution
 Image
 Marketing communications

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Positioning Strategies
• Attributes
• Competitors
• Use or application
• Price/Quality
• Product user
• Product class
• Cultural symbol

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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

Factors Impacting Relationship
Between Promotions and Sales

• Goal of promotion
• Threshold effects
• Carryover effects
• Wear out effects
• Decay effects
• Random events

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Create Communications Budget
Step Three

• Percentage of sales
• Meet-the-competition
• What we can afford
• Objective and task
• Payout planning
• Quantitative models

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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

Create Communications Strategies
Step Four

• Broad, long-term guidelines.

• Link to opportunities and threats.
• Fit with overall company
message, image, and themes.

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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

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Market Segmentation

• Group with distinct characteristics.

• Differs from other segments and
population.
• Consumer segments
• Business segments

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Consumer Segments
• Demographics
• Psychographics
• Generations
• Geographic
• Geodemographics
• Benefit
• Usage

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Geodemographic Segmentation

• Combines
 Demographic census data
 Geographic information
 Psychographic information
• PRIZM
 62 market segments

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B-to-B Segmentation

• NAICS/SIC code
• Size of business
• Geographic location
• Product usage
• Customer value

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 GIMC

• Borderless marketing plan

• Think global – but act local
• Local partnerships
• Segmentation strategies
• Market communication analysis
• Communication objectives

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