Promotions Opportunity Analysis

Chapter 4
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Chapter Objectives
1. 2. What activities are involved in completing a promotions opportunity analysis? How should a companys marketing team evaluate the relationship between a companys promotional efforts and those of the competition? What are the characteristics of the major consumer market segments? How can a company identify and reach key business-to-business market segments? How can IMC programs and promotions be expanded to the international level?

3.
4. 5.

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C.A.R.E.S.S How to get and keep customers

Customer life time value LTV Acquisition-Promise Retention Deliver Expansion Wow! Staff Skills Staff Satisfaction

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With NEW PROMOTIONAL OPPORTUNITIES FOUND the firms overall IMC message can be structured to fit various target markets

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Promotion opportunity Analysis

The process marketers use to identify target audiences for the companys goods and services and the communication strategies needed to reach these audiences OBJECTIVES 1. Determine which promotional opportunities exist for the company 2. Identify characteristics of each target audience for effective message delivery
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CENTAURUS PROMOTION

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Promotions Opportunity Analysis

1. Conduct communication market analysis 2. Establish objectives 3. Create a budget 4. Prepare a promotional strategy 5. 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
Identify
Major competitors Communication strategies of major competitors

Sources of information
Secondary data Other people Primary research

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Is this NOISE?

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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
Created by factors such as
In mind of consumers Relative to competition

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 Refer to MCD case Step Two

Develop brand awareness. Increase category demand(determine category memebership) Change beliefs or attitudes. Enhance purchase actions. Encourage repeat purchases. Build customer traffic. Enhance firm image. Increase market share. Increase sales.
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Factors Impacting Relationship Between Promotions and Sales

Goal of promotion Threshold effects Carryover effects Wear out effects Decay effects

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Create Communications Budget

Step Three
Percentage of sales Meet-the-competition What we can afford Objective and task

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Traditional Marketing Budgets

Advertising 41.1%

Consumer promotions 27.9%

Trade promotions 27.5%

Other 3.3%
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 The coffee retailer, based in Seattle, takes an unconventional approach to marketing, choosing parties and other in-person encounters over big national advertising campaigns Starbucks spends far less on advertising than other large retailers and consumer-products companies
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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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Or

The STARBUCKS Way

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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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The Travel Attach is the Middle Easts premier luxury travel specialist

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