2. PetsMart
Pets are now part of the family.
Discussion Slide
4
• Attitudes have changed.
• New animal care products.
• New animal care services.
• Prices are secondary.
Why the Change?
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
6. Competitors
• Identify major competitors.
• Identify communication strategies
and tactics of each competitor.
Sources of information
•Secondary data
•Other people
•Primary research
7. 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?
8. 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?
9. Customers
Three Types of Customers
• Current company customers
• The competitors’ customers
• Potential customers who currently
do not purchase the product but
may become interested
10. 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.
11. Product Positioning Strategies
Attributes
Competitors
Use or application
Price/quality
Product user
Product class
Cultural symbol
F I G U R E 4 . 3
13. Promotions Opportunity Analysis
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.
14. Factors Impacting Relationship
Between Promotions and Sales
• The goal of the promotion
• Threshold effects
• Carryover effects
• Wear-out effects
• Decay effects
• Random events
15. F I G U R E 4. 5
A Sale-Response Function Curve Combined with the
Downward Response Curve and Marginal Analysis
18. • 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
19. 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%
20. 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
$0.0
$50.0
$250.0
$200.0
$150.0
$100.0
$300.0
ExpendituresinBillions
21. F I G U R E 4 . 10
Advertising Expenditures by Media
Internet, 6.5%
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%
22. 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
23. 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 3.1% $ 58.5
Impala
Source: “Top 10 Auto Brands,” www.adage.com, accessed October 1, 2008
$ 18.8
24. 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
25. Promotions Opportunity Analysis
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.
26. Promotions Opportunity Analysis
Step 5
Match Tactics with Strategies
Tactics support the communication strategies.
Examples of tactics would include:
• Specific advertisements
• Personal selling enticements for sales reps
• Sales promotions
• Special product packages and labels
• Price changes
• Trade discounts to retailers
27. Advantages of Marketing Segmentation
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
28. 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.
29. Methods of Segmenting Consumer Markets
• Demographics
• Psychographics
• Generations
• Geographic
• Geodemographics
• Benefits
• Usage
F I G U R E 4 . 13
31. Radio Ad Directed to Children
Click on speaker to play ad.
An advertisement by
Junior Fitness Academy
targeted to children.
32. 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
33. 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
34. Table 4 . 1
Characteristics of Generation Segments
36. Geodemographic Segmentation
• Combines
• Demographic census data
• Geographic information
• Psychographic information
• PRIZM
• 62 market segments
• Southside City
• Towns and Gowns
37. • 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
39. • 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