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Session 5 - Promotion Opportunity Analysis
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IMC 2011 by ARM
Session 5
Ali Raza Merchant
IMC CoursePromotions Opportunity
Analysis
IMC 2011 by ARM
Determine which promotional opportunities exist for the company
Identify the characteristics of each target audience so a coherent advertising and marketing communications message reaches them
Topic Objectives
IMC 2011 by ARM
5 Steps in Developing Promotions Opportunity
Analysis
IMC 2011 by ARM
The 5 StepsPromotion
OpportunityAnalysis
Conduct Communication Market Analysis
Establish Communication
Objectives
Match Tactics
with Strategie
s
Create Communications Budget
Prepare Promotio
nal Strategie
s
IMC 2011 by ARM
Communication Mkt Analysis
Communication Market Analysis
Is the process of discovering the organization’s strengths and
weaknesses in the area of marketing communications
Competitive Analysis
•Adverts•Promotional M/L•Annual Reports•Websites
Opportunity Analysis
•Customers Competition is not serving•Saturated and intense markets•Opportunities of building relationships with customers thru different approach
Customer Analysis
Examine Customers by:•Current Customers•Competition Cust•Potential Customers
Positioning Analysis
•Analysis of desired brand perception•Is it in line with what we want to project
IMC 2011 by ARM
Communication Objectives
Marketing Communications Objectives
The purpose or reason of developing Communications for
the brand
Develop brand Awareness
Increase good-service category
Change customer beliefs or attitude
Enhance Purchase Actions
Encourage Repeat Purchases
Build Customer Traffic
Increase Market Share
Increase Sales
IMC 2011 by ARM
Communication Budgeting
Establishing Communicatio
n Budget•There are different budgeting methods which are based on Company Type, approach, professionalism, purposefulness etc
Percentage of Sales Method (The secure but
ineffective method)
Meet the Competition Method (At times very
wasteful like Telecom Wars)
Arbitrary Allocation (The Seths
Style)
What We Can Afford Method (In Companies
where Marketing is seen as an
expense)
Objective Task Method (This is perhaps the most extensive
and rational method)
Payout Planning Method
(Establishes ratio of Advertising to Sales
or Market share based on Nielson
ratings)
IMC 2011 by ARM
Promotional Strategies
Preparing Promotional Strategies
•Strategies are sweeping guidelines concerning the essence of the companies marketing efforts
•Strategies provide the long-term direction for all marketing activities
For e.g. communications strategy of Mountain Dew
Primary Market of Dew – Teenagers and Young Adults
Communication efforts use slogans like “Do the Dew” to
“Been there done that”
Action oriented commercials featuring high risk activities – Indian ads with Salman Khan
Overall theme of Dew communications programs all
other activities – (Brand World)
IMC 2011 by ARM
Matching Tactics with Strategies
Tactics are the things
companies do to support overall
promotional objectives
For e.g. Kellogg company seeks to enhance sales of
cereals for holidays like Halloween or
Olpers Ramadhan Packaging
Ads based on the major theme
Bonuses or Prizes for
Sales Reps
Sales Promotions
(Posters, POP, displays
etc)
Special Product
Packaging or labeling
Price Changes like
discounts, limited
period offers
Coupons, special
containers, Contests, Purchase bonuses
IMC 2011 by ARM
Market Segmentation
IMC 2011 by ARM
Market Segmentation based on Demographics
Market SegmentationMarket Segment is a group of individual
consumers with distinct
characteristics
Helps in identifying specific purchasing
groups based on needs, attitudes and
interests
Segmentation based on GenderBrands for Males or Females
Can be highly effective if the other gender is also taken care of like BMW
motorcycles
Segmentation based on AgeDefining customer types as children, tweens, teens, young adults, middle
aged, senior citizensSegmentation based on IncomeSpending is normally directed at 3
Categories:1. Necessities 2. Sundries 3.
LuxuriesSegmentation based on Ethnic Heritage
Language, Geographical linkage, Race etc.
For e.g. Tapal Mezban for Sindh, Tapal Tez Dum for Punjab
IMC 2011 by ARM
Market Segmentation based on Psychographics
Psychographics
Unlike Demographics,
where it is difficult to explain why people
buy particular brands
Psychographics emerge from a
pattern of responses that reveal a
person’s attitude, interest and opinions
(AIO)
For e.g. Nokia cell phones were earlier categorized as follows:
1. Entry Level2. Live Category3. Music Phones4. E-Series for Business Users5. N-Series for Multimedia Users
In Pakistan we use SEC Classifications such as:
A1, A2, A, B1, B2, C, D
These are research based classifications which study place of dwelling, education, income, ownership of durables and consumption habits
IMC 2011 by ARM
Market Segmentation based on Generations & Geographic Area
Generation Based Segmentation
The concept behind this is that common experiences and events create bonds between people beyond
those merely on age
Thus you can estimate their share in population and common preference like music, dressing habits,
food preferences, celebrity associations etc
Harley Davidson fans, Beatles fans, Wrangler
Jeans are examples
Geographic Segmentation
Works mainly for businesses that want to
operate in limited Geographical Area
Mostly seen with retailers who limit themselves
within a territory
Results in wastage of advertising as messages
are mass but are meant for a certain type of customer
Gourmet Bakery & Yummy Ice Cream -
Lahore, Bundu Khan – Karachi, are examples
IMC 2011 by ARM
Market Segmentation based on Benefit & Usage
Benefit Based Segmentation
Focuses on the advantage consumers receive by using
a product or a brand
IPOD and IPhone were such products, when
launched.
It has been used successfully in the fitness market for regular exercisers.
Mostly includes younger, upwardly mobile and
career oriented people
Usage Based Segmentation
Is clearly based on highest usage customers who are identified through Data
bases maintained either by the company itself or
through independent data providing companies.
Examples include Frequent Fliers on Airlines, Priority Banking Clients,
Regular Hotel and Restaurant Clients with
privileges
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