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5-1

Greeting Cards

Concerning your last greeting cardpurchase:

What brand of greeting cards did youpurchase?

How many cards did you purchase?

Where did you purchase the card? For what occasion do you make the

purchase?

General questions concerning

greeting cards: How many cards do you purchase peryear?

Name five brands of greeting cards. Do you use virtual cards? Can you recall any advertisements for

greeting cards?

Discussion Slide

5

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5-2

The Marketing Plan

Promotion Opportunity AnalysisFive Steps1) Conduct a communications marketing analysis.2) Establish objectives.

3) Create a budget.4) Prepare a promotional strategy.5) Match tactics with strategy.

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Promotions Opportunity Analysis

Step 1Conduct a Communication Market Analysis

Competitive analysisCompetitive analysis

Opportunity analysisOpportunity analysis

Target market analysisTarget market analysis

Customer analysisCustomer analysis

Positioning analysisPositioning analysis

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5-4

Competitive Analysis

Identifies major competitors.Identifies major competitors.

Identifies communication strategiesIdentifies communication strategiesand tactics of each competitor.and tactics of each competitor.

Sources of information

Secondary data

Other peoplePrimary research

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Opportunity Analysis

Are there customers that the competition isAre there customers that the competition isignoring?ignoring?

Which markets are heavily saturated?Which markets are heavily saturated? Are the benefits of our products being clearlyAre the benefits of our products being clearly

articulated?articulated?

Are there opportunities to build relationships usingAre there opportunities to build relationships usinga slightly different marketing approach?a slightly different marketing approach?

Are there opportunities that are not beingAre there opportunities that are not beingpursued?pursued?

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5-6

Target Market Analysis

What benefits does each target marketwant from the product?

How can each target market be reached?

What appeal works best for each targetmarket?

What needs of the target market are notbeing met by a competing firm?

What is the demographic andpsychographic makeup of each targetmarket?

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5-7

Customer Analysis

Current company customers.

The competitors customers. Potential customers who currently

do not purchase the product butmay become interested.

Three Types of Customers

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Position Analysis

Is the perception created in theconsumers mind regarding the nature of

the company and its products relative tothe competition.

Positioning is created by factors such asproduct quality, prices, distribution, image

and marketing communications.

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Promotions Opportunity Analysis

Step 2Establish 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

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F I G U R E 5. 4

Components of a Corporate Image

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Factors Impacting Relationship

Between Promotions and Sales

The goal of the promotionThe goal of the promotion

Threshold effectsThreshold effects Carryover effectsCarryover effects

Decay effectsDecay effects

Random eventsRandom events

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Methods of Determining the Marketing Communications Budget

Percentage of salesPercentage of sales

MeetMeet--thethe--competitioncompetition

WhatWhat we can affordcan afford

Objective and taskObjective and task

Payout planningPayout planning

Quantitative modelsQuantitative models

Promotions Opportunity Analysis

Step 3Create a Communications Budget

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Source: Juliana Koranteng and Normandy Madden, Ranking of the Top Global Ad Markets,Advertising Age International, (May 2000), pp. 17-20.

F I G U R E 5 . 6

Global Advertising Expenditures

$13

.3

$33.2

$21.6$15.8

$11.1$8.3 $6.9 $5.

$5.3 $5.0

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

United

States

Japan Germany U.K. France Italy razil Spain

anada Australia

Total AdvertisingExpenditures

$438

$263$238 $249

$167

$122

$52

$123

$157

$240

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

United

States

Japan Germany U.K. France Italy razil Spain

anada Australia

AverageExpenditure per apita

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5-14

0 5 10 15 0 25 30 35 40 45 50

M

P

P

V

P

Percentage of otal Communications Budget

-to-B Consumer

T A B L E 5 . 1Comp rison ofB-to-B and Consumer CommunicationsE penditures

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Trade PromotionsTrade Promotions

50%50%

Consumer PromotionsConsumer Promotions

24%24%

AdvertisingAdvertising

26%26%

Marketing Budgets

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Database of Advertising E penditures

Http://www.adage.com/dataplace/lna/index.html

Some questions to explore:1. Who are the top ten national advertisers?2. Who are the top advertisers for the different media

such as maga ines, newspapers, outdoor, network Tand national spot radio?

3. Who are the top advertisers in the different productcategories such as fast-food burger restaurants, softdrinks, airlines and hair care products?

INTEGRATED LEARNING EXPERIENCESTOP

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Top Ten National Advertisers

General Motors $ 2.940 billion Proctor & Gamble $ 2.650

billion

Phillip Morris $ 2.049 billion Daimler Chrysler $ 1.646 billion Sears, Roebuck & Co. $ 1.578 billion Ford Motor Co. $ 1.520 billion AT & T Corp. $ 1.427 billion Walt Disney Co. $ 1.358 billion PepsiCo $ 1.263 billion Diageo $ 1.205 billion

Source: Advertising Age at http://www.adage.com/cgi-bin/adage.cgi

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Fast-Food Burger Restaurants

Market Share vs Advertising Expenditure

McDonalds 43.1% $ 627.3 Burger King 21.9% $ 403.7 Wendys 12.2% $ 217.8 Hardees 5.6% $ 48.1 Jack-in-the-Box 4.0% $ 63.5

Restaurant Market Share Expenditure(Thousands)

Source: Advertising Age

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Promotions Opportunity Analysis

Step 4

Prepare a Communication Strategy

Communication strategies are broad,

long-term guidelines for the marketingcommunications program. Should be linked to opportunities andthreats identified by the communication

market analysis.Should fit with the companys overallmessage, image and themes.

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Promotions Opportunity Analysis

Step 5

Match Tactics with Strategies

Specific advertisements.Personal selling enticements for sales reps.Sales promotions such as coupons, premiums,sweepstakes, and contests.Special product packages and labels.Price changes.Trade discounts to retailers.

Tactics support the communication strategies.

Examples of tactics would include:

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Advantages to Segmenting Markets

Helps identify company strengths andweaknesses.

Identifies the best set of customers.

Clarifies marketing objectives associated withspecific target markets.

Allows for more precise communicationsbudgeting.

Links firms strategies and tactics to a specifictarget group

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Tests to determine if a particular market

segment is viable

The individuals or businesses within thesegment are homogenous

The market segment is different from thepopulation as a whole and distinct from othermarket segments.

The market segment is large enough to be

financially viable to target with a separatemarketing campaign.

The market segment must be reachablethrough some type of media or marketingcommunications method.

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Demographics Psychographics Generations Geographic Geodemographics Benefits Usage

F I G U R E 5 . 7

Methods of Segmenting ConsumerMarkets

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A NailCaresadvertisementtargeted tofemales.

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Claritas: North America and Europe

Http://www.claritas.com

PRIZM and Micro ision lifestyle groups from your ip code

Http://www.dellvader.claritas.com/YAWYL/Default.wjsp

INTEGRATED LEARNING EXPERIENCESTOP

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Goods and Services

MessagesMarketSegment

F I G U R E 5 . 9

Choosing a Market Segment

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NAICS/SIC code

Type of business Si e of business Geographic location Product usage

Purchase decision process Customer value

F I G U R E 5 . 10

Methods of Segmenting B-to-B Markets

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A business-to-businessadvertisement based onthe product usage

segmentation strategy.

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The North American Industry Classification System (NAICS)

Http://www.industrialwhoswho.com/company/naics.cgi

Standard Industrial Classification (SIC)

The Industrial Whos Who Web Site

Http://www.industrialwhoswho.com

Http://www.industrialwhoswho.com/company/sic.cgi

INTEGRATED LEARNING EXPERIENCESTOP

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Understand the international marketUnderstand the international market

A borderless marketing planA borderless marketing plan

Thinking global but act localThinking global but act local

Local partnershipsLocal partnerships

Communication segmentation strategiesCommunication segmentation strategies

Market communication analysisMarket communication analysis Solid communication objectivesSolid communication objectives

F I G U R E 5 . 11Successful Global Integrated Marketing

Communications Tactics

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Building Your IMC Campaign

Prepare the following components ofPrepare the following components ofthe communications market analysisthe communications market analysis Competitive analysisCompetitive analysis

Opportunity analysisOpportunity analysis

Target market analysisTarget market analysis

Customer analysisCustomer analysis

Market segmentation strategyMarket segmentation strategy

IMC objectivesIMC objectives

IMC budgetIMC budget

Building Your IMC Campaign