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