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Promotions Opportunity Analysisc
Promotions Opportunity Analysisc
Chapter Objectives
Compare the relationship between a companys promotional effort and its competition Identify the characteristics of various consumer segments
Beyond the world of advertising and personal selling, successful marketing efforts occur because someone identified an opportunity to make a quality contact with a customer A promotions opportunity analysis is the process marketers use to identify target audiences for a company's goods and services and the communication strategies needed to reach these audiences
A Communication Market Analysis is the process of discovering the organizations strength and weaknesses in the area of marketing communication and combining that information with an analysis of the opportunities and threats present in the firm's external environment
Customers
Product positioning
Competitors
Identify
Major competitorsdomestic & foreign Communication strategies of major competitors
Sources of information
Secondary data(Advertisements, promotional materials, annual reports, prospectus for a publicly held corporation, websites) Others( trade journals, news articles, press releases ) Primary research ( visit store, meet wholesalers, distributors)
Opportunities
Customers that the competition is ignoring Saturated markets with intense competition Benefits not articulated clearly to various customer market segments
Target Markets
Recognize needs of various consumer and business groups
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Customers-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, Price, 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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***Benchmark measures
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A Sales Response Function Curve combined with the Downward Response curve and marginal analysis Sales
Diminishing returns
D o l l a r s
Threshold effects
Profits
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Types of Budget
Percentage of sales
Meet-the-competition
What we can afford
Marketing Budgets
Advertising 25% Consumer promotions 25%
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Market Segmentation
Is the process of identifying specific purchasing groups based on their needs, attitudes and interests
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Consumer Segments
Demographics(Gender, Age, Ethnic groups, Income) Psychographics Generations Geographic Geodemographics Benefit Usage
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Psychographics
Emerge from patterns of responses that reveal a person's attitudes, interests and opinions (AIO) The SRI Consulting Business Intelligence provides a classification of lifestyles using psychographic segmentation Innovators-Successful, sophisticated Thinkers-Educated, practical consumers Achievers-Goal oriented Experiencers-Young, enthusiastic Believers-Conservative, conventional consumers Strivers-Trendy, fun loving Makers-Self sufficient consumers Survivors-Safety & security
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Generation Segmentation
Generation Y (18-24)-Gadgets Generation X (25-34)-Family and children Younger Boomers (35-44)-mortgage
expenses
Seniors
(65+)-Health insurance
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Geodemographic Segmentation
Combines Demographic census data Geographic information Psychographic information
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Benefit Segmentation
Focuses on the advantages consumers receive from a product rather that the characteristics of consumers themselves
Example
Winners-Exercise to stay physically fit Dieters-Exercise to maintain weight control and physical appearance Self-improvers- Exercise to feel better and to control medical costs
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Usage Segmentation
Is based on customer usage or purchase Goal is to provide the highest level of service to a firm's best customer(internal databases, bar-code scanners, point of sale systems, data from credit, debit cards) Is designed to maximize sales to all user groups
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