Session 5 - Promotion Opportunity Analysis

1. Session 5 Ali Raza Merchant IMC CoursePromotions Opportunity Analysis IMC 2011 by ARM

2. Determine which promotional opportunities exist for the company Identify the characteristics of each target audience so a coherent advertising and marketing communications message reaches them Topic Objectives IMC 2011 by ARM

3. 5 Steps in Developing Promotions Opportunity Analysis IMC 2011 by ARM

4. IMC 2011 by ARM The 5 Steps Promotion Opportunity Analysis Conduct Communication Market Analysis Establish Communication Objectives Match Tactics with Strategies Create Communications Budget Prepare Promotional Strategies

6. Saturated and intense markets

8. Promotional M/L

9. Annual Reports

11. Competition Cust

16. Strategies provide the long-term direction for all marketing activitiesPrimary Market of Dew – Teenagers and Young Adults Communication efforts use slogans like “Do the Dew” to “Been there done that” Action oriented commercials featuring high risk activities – Indian ads with Salman Khan Overall theme of Dew communications programs all other activities – (Brand World)

17. IMC 2011 by ARM Matching Tactics with Strategies Ads based on the major theme Bonuses or Prizes for Sales Reps Tactics are the things companies do to support overall promotional objectives For e.g. Kellogg company seeks to enhance sales of cereals for holidays like Halloween or OlpersRamadhan Packaging Sales Promotions (Posters, POP, displays etc) Special Product Packaging or labeling Price Changes like discounts, limited period offers Coupons, special containers, Contests, Purchase bonuses

18. Market Segmentation IMC 2011 by ARM

19. IMC 2011 by ARM Market Segmentation based on Demographics Segmentation based on Gender Brands for Males or Females Can be highly effective if the other gender is also taken care of like BMW motorcycles Market Segmentation Market Segment is a group of individual consumers with distinct characteristics Helps in identifying specific purchasing groups based on needs, attitudes and interests Segmentation based on Age Defining customer types as children, tweens, teens, young adults, middle aged, senior citizens Segmentation based on Income Spending is normally directed at 3 Categories: 1. Necessities 2. Sundries 3. Luxuries Segmentation based on Ethnic Heritage Language, Geographical linkage, Race etc. For e.g. TapalMezban for Sindh, TapalTez Dum for Punjab

20. IMC 2011 by ARM Market Segmentation based on Psychographics For e.g. Nokia cell phones were earlier categorized as follows: Entry Level Live Category Music Phones E-Series for Business Users N-Series for Multimedia Users Psychographics Unlike Demographics, where it is difficult to explain why people buy particular brands Psychographics emerge from a pattern of responses that reveal a person’s attitude, interest and opinions (AIO) In Pakistan we use SEC Classifications such as: A1, A2, A, B1, B2, C, D These are research based classifications which study place of dwelling, education, income, ownership of durables and consumption habits

21. IMC 2011 by ARM Market Segmentation based on Generations & Geographic Area Generation Based Segmentation The concept behind this is that common experiences and events create bonds between people beyond those merely on age Thus you can estimate their share in population and common preference like music, dressing habits, food preferences, celebrity associations etc Harley Davidson fans, Beatles fans, Wrangler Jeans are examples Geographic Segmentation Works mainly for businesses that want to operate in limited Geographical Area Mostly seen with retailers who limit themselves within a territory Results in wastage of advertising as messages are mass but are meant for a certain type of customer Gourmet Bakery & Yummy Ice Cream - Lahore, Bundu Khan – Karachi, are examples

22. IMC 2011 by ARM Market Segmentation based on Benefit & Usage Benefit Based Segmentation Focuses on the advantage consumers receive by using a product or a brand IPOD and IPhone were such products, when launched. It has been used successfully in the fitness market for regular exercisers. Mostly includes younger, upwardly mobile and career oriented people Usage Based Segmentation Is clearly based on highest usage customers who are identified through Data bases maintained either by the company itself or through independent data providing companies. Examples include Frequent Fliers on Airlines, Priority Banking Clients, Regular Hotel and Restaurant Clients with privileges