capítulo 4 clow y baack

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall 4-1

4 Chapter Four

Promotions Opportunity

Analysis


PetsMart

Discussion Slide

4 Pets are now part of the family.

• Attitudes have changed.

• New animal care products.

• New animal care services.

• Prices are secondary.

Why the Change?


Chapter Overview

1. Promotions opportunity

analysis process

2. Promotional efforts

3. Consumer market segments

4. B-to-B segmentation

programs

Promotions Opportunity

Analysis 4


1) Conduct communications marketing analysis.

2) Establish communication objectives.

3) Create communications budget.

4) Prepare promotional strategies.

5) Match tactics with strategies.

F I G U R E 4 . 1

Steps in a Promotion Opportunity Analysis


Promotions Opportunity Analysis

Step 1

Conduct a Communication Market Analysis

• Competitors

• Opportunities

• Target markets

• Customers

• Product positioning


Competitors

• Identify major competitors.

• Identify communication strategies

and tactics of each competitor.

Sources of information

•Secondary data

•Other people

•Primary research


Opportunities

• Are there customers that the competition is

ignoring?

• Which markets are heavily saturated?

• Are the benefits of our products being

clearly articulated?

• Are there opportunities to build

relationships using a slightly different

marketing approach?

• Are there opportunities that are not being

pursued?


Target Markets

• What benefits does each target market want from the product?

• How can each target market be reached?

• What appeal works best for each target market?

• What needs of the target market are not being met by a competing firm?

• What is the demographic and psychographic makeup of each target market?


Customers

• Current company customers

• The competitors’ customers

• Potential customers who currently

do not purchase the product but

may become interested

Three Types of Customers


Product Positioning

• Is the perception created in the

consumer’s mind regarding the nature of

the company and its products relative to

the competition?

• Positioning is created by factors such as

product quality, prices, distribution, image,

and marketing communications.


Attributes

Competitors

Use or application

Price/quality

Product user

Product class

Cultural symbol

F I G U R E 4 . 3

Product Positioning Strategies



Step 2

Establish Communication Objectives

• Develop brand awareness

• Increase good/service category demand

• Change customer beliefs or attitudes

• Enhance purchase actions

• Encourage repeat purchases

• Build customer traffic

• Enhance firm image

• Increase market share

• Increase sales

• Reinforce purchase decisions



Step 3

Establish a Communications Budget

• Budgets based on • communication objectives

• marketing objectives

• Budgets vary from consumer to B-to-B markets

• Unrealistic assumption to assume direct relationship between advertising and sales.


Factors Impacting Relationship

Between Promotions and Sales

• The goal of the promotion

• Threshold effects

• Carryover effects

• Wear-out effects

• Decay effects

• Random events


F I G U R E 4. 5 A Sale-Response Function Curve Combined with the

Downward Response Curve and Marginal Analysis


Carryover effects are

important in advertising

products such as boats.


F I G U R E 4 . 6

A Decay Effects Model


• Percentage of sales

• Meet-the-competition

• “What we can afford”

• Objective and task

• Payout planning

• Quantitative models

F I G U R E 4 . 7

Methods of Determining Marketing Communication Budgets


F I G U R E 4 . 8

Breakdown of Marketing Expenditures

Consumer

promotions,

27.9%

Advertising,

41.1%

Trade

promotions,

27.5%

Other, 3.3%


F I G U R E 4 . 9

Advertising Expenditures in Top 10 Countries

$6.4 $9.0 $11.1 $18.3 $9.5

$38.0

$6.4 $6.7$18.4

$263.7

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F I G U R E 4 . 10

Advertising Expenditures by Media

Outdoor, 2.6%

Radio, 7.4%

Cable TV, 11.2%

Syndicated TV,

2.8%

Spot TV, 11.5%

Network TV,

18.1%

Newspaper,

19.9%

Magazine, 19.9%

Internet, 6.5%


Restaurant Chains U.S. Market Share vs Media Ad Spending

(Thousands)

Rank Brand Market Share Media Ad

Spend (Mil)

Cost Per

Share Pt. (Mil)

1 McDonald’s 7.7% $ 727.7 $ 93.9

2 Burger King 2.4% $ 268.8 $ 113.2

3 Wendy’s 2.3% $ 374.7 $161.5

4 Subway 2.2% $ 325.2 $150.1

5 Taco Bell 1.9% $ 231.7 $125.1

Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008

http://www.adage.com/


Automotive Brands U.S. Market Share vs Media Ad Spending

(Thousands)

Rank Brand Market

Share

Media Ad

Spend (Mil)

Cost Per

Share Pt. (Mil)

1 Toyota Camry 5.4% $ 65.6 $ 12.1

2 Honda Accord 4.6% $ 114.3 $ 24.8

3 Honda Civic 3.9% $ 112.0 $ 28.7

4 Nissan Altima 3.2% $ 132.1 $ 41.2

5 Chevrolet

Impala

3.1% $ 58.5 $ 18.8

Source: “Top 10 Auto Brands,” www.adage.com, accessed October 1, 2008



Shampoos/Conditioners U.S. Market Share vs Media Ad Spending

(Thousands)

Rank Brand Market

Share

Media Ad

Spend (Mil)

Cost Per

Share Pt. (Mil)

1 Pantene 19.3% $ 175.8 $ 9.1

2 Suave 7.3% $ 16.1 $ 2.2

3 Clairol Herbal

Essence 5.7% $ 22.6 $ 3.9

4 L’Oreal 5.1% $ 38.9 $ 7.6

5 Head &

Shoulders 4.9% $ 52.5 $ 10.7

Source: “Top 10 Shampoos/Conditioners,” www.adage.com, accessed October 1, 2008




Step 4

Prepare Communication Strategies

• Communication strategies are broad,

long-term guidelines for the marketing

communications program.

• Should be linked to opportunities and

threats identified by the communication

market analysis.

•Should fit with the company’s overall

message, image, and themes.



Step 5

Match Tactics with Strategies

• Specific advertisements

• Personal selling enticements for sales reps

• Sales promotions

• Special product packages and labels

• Price changes

• Trade discounts to retailers

Tactics support the communication strategies.

Examples of tactics would include:


Identify company strengths and weaknesses

Locate opportunities

Match firm’s expertise with most lucrative markets

Focus budget on specific segment

F I G U R E 4 . 12

Advantages of Marketing Segmentation


Tests to Determine if a Particular Market

Segment Is Viable

The individuals or businesses within the segment are

homogeneous.

The market segment is different from the population as

a whole and distinct from other market segments.

The market segment is large enough to be financially

viable to target with a separate marketing campaign.

The market segment must be reachable through some

type of media or marketing communications method.


• Demographics

• Psychographics

• Generations

• Geographic

• Geodemographics

• Benefits

• Usage

F I G U R E 4 . 13

Methods of Segmenting Consumer Markets


A Nail Cares

advertisement

targeted to

females.


Radio Ad Directed to Children

Click on speaker to play ad.

An advertisement by

Junior Fitness Academy

targeted to children.


VALS 2 Psychographic Segmentation

• Innovators – successful, sophisticated – upscale products.

• Thinkers – educated, conservative, practical – durability, value.

• Achievers – goal-oriented, conservative, career, and family

• Experiencers – young, enthusiastic, impulsive, fashion, social

• Believers – conservative, conventional, traditional

• Strivers – trendy, fun-loving, peers important

• Makers – self-sufficient, respect authority, not materialistic

• Survivors – safety, security, focus on needs, price


Psychographics and Technology Psychographic Segmentation

• New Enthusiasts – cutting edge, eager, high

incomes/education

• Hopefuls – cutting edge, lack financial means

• Faithful – not eager, but not averse

• Oldliners – not interested in new technologies

• Independents – higher incomes, but do not value new

technology

• Surfers – ambivalent about new technology, cynical about

business


Table 4 . 1

Characteristics of Generation Segments


Ad targeted to seniors.


Geodemographic Segmentation

• Combines

• Demographic census data

• Geographic information

• Psychographic information

• PRIZM

• 62 market segments

• Southside City

• Towns and Gowns


• Industry (NAICS/SIC codes)

• Size of business

• Geographic location

• Product usage

• Customer value

F I G U R E 4 . 14

Methods of Segmenting B-to-B Markets


A business-to-business

advertisement based on

the product usage

segmentation strategy.


• Understand the international market

• A borderless marketing plan

• Thinking globally but acting locally

• Local partnerships

• Communication segmentation strategies

• Market communication analysis

• Solid communication objectives

F I G U R E 4 . 1 5 Successful Globally Integrated Marketing

Communications Tactics

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