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PromotionsOpportunity Analysis

Chapter 4

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Chapter Objectives1. What activities are involved in completing a

promotions opportunity analysis?2. How should a companys marketing team

evaluate the relationship between a

companys promotional efforts and those ofthe 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?

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C.A.R.E.S.SHow to get and keepcustomers

Customerlife time value LTV

Acquisition-Promise

RetentionDeliver Expansion Wow!

Staff Skills

Staff Satisfaction

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With NEW PROMOTIONAL

OPPORTUNITIES FOUND the firmsoverall IMC message can be structuredto fit various target markets

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Promotion opportunity Analysis

The process marketers use to identifytarget audiences for the companysgoods and services and thecommunication strategies needed to

reach these audiencesOBJECTIVES

1. Determine which promotional

opportunities exist for the company2. 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 marketanalysis

2. Establish objectives3. 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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CompetitorsSources of

information

Secondary data

Other people

Primary research

Major competitors

Communicationstrategies of major

competitors

Identify

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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 psychographicprofile of each market.

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CustomersThree 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 factorssuch 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 ObjectivesRefer to MCD case

Step Two Develop brand awareness. Increase category

demand(determine categorymemebership) 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 RelationshipBetween 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 otherin-person encounters over big nationaladvertising campaigns

Starbucks spends far less on

advertising than other large retailersand 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 MiddleEasts premier luxury travel

specialist

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