Greeting Cards
Concerning your last greeting card purchase:
What brand of greeting cards do you purchase? How many cards did you purchase? Where did you purchase the card? For what occasion did you make the purchase?
General questions concerning greeting cards:
How many cards do you purchase per year? Name five brands of greeting cards. Do you use virtual cards? Can you recall any advertisements for greeting cards?
Discussion Slide
Figure 3-1: Integrated Marketing Communication Plan
Promotion Analysis Brand and Firm Image Chs. 3-6 Consumer Buyer Behavior Business-to-Business Buyer Behavior
Chs. 7-10
Chs. 1-2 IMC Concept
Ethics & Social Issues
Marketing Plan
Advertising Management Advertising Media Selection Advertising Design
Trade Promotions Chs. 11-13 Consumer Promotions Personal Selling Public Relations Sponsorship Programs Database Programs Internet Marketing Evaluating Integrated Marketing
Chs. 14-17
The Marketing Plan
Promotion Opportunity Analysis
Five Steps 1) Conduct a communications marketing analysis. 2) Establish objectives. 3) Create a budget. 4) Prepare a promotional strategy. 5) Match tactics with strategy.
Promotions Opportunity Analysis Step 1
Conduct a Communication Market Analysis
Competitive
analysis Opportunity analysis Target market analysis Customer analysis Positioning analysis
Competitive Analysis
Identifies major competitors. Identifies communication strategies and tactics of each competitor.
Sources of information
•Secondary data •Other people •Primary research
Opportunity Analysis
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 Market Analysis
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?
Customer Analysis
Three Types of Customers
Current company customers. The competitors’ customers. Potential customers who currently do not purchase the product but may become interested.
Position Analysis
Is the perception created in the consumers 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.
Promotions Opportunity Analysis Step 2
Establish Communication Objectives
Develop brand awareness Increase product/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
Promotions Opportunity Analysis Step 3
Create a Communications Budget Methods of Determining the Marketing Communications Budget
Percentage
of sales “What we can afford” Meet-the-competition Objective and task
Figure 3-6 Global Advertising Expenditures
$500 $450 $400 $350 $300 $250 $200 $150 $100 $52 $50 $0
United States Japan Germany U.K. France Italy Brazil Spain Canada Australia
$438
$263 $238
$249
$240 $167 $122 $123
$157
Average Expenditure per Capita
Source: Juliana Koranteng and Normandy Madden, “Ranking of the Top Global Ad Markets,” Advertising Age International, (May 2000), pp. 17-20.
Table 3-1 Comparison of B-to-B and Consumer Communications Expenditures
Print Ads Radio Ads TV Ads PR Sales Promotions Catalogs Trade Show s Direct Mail 0 5 10 15 20 25 30 35 40 45 50
Percentage of Total Com m unications Budget B-to-B Consumer
Marketing Budgets
Advertising 26%
Consumer Promotions 24%
Trade Promotions 50%
STOP Integrated Learning Experience
Database of Advertising Expenditures
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 magazines, newspapers, outdoor, network TV and national spot radio? 3. Who are the top advertisers in the different product categories such as fast-food burger restaurants, soft drinks, airlines and hair care products?
Top Ten National Advertisers
General Motors Proctor & Gamble Phillip Morris Daimler Chrysler Sears, Roebuck & Co. Ford Motor Co. AT & T Corp. Walt Disney Co. PepsiCo Diageo
Source: Advertising Age at http://www.adage.com
$ 2.940 billion $ 2.650 billion $ 2.049 billion $ 1.646 billion $ 1.578 billion $ 1.520 billion $ 1.427 billion $ 1.358 billion $ 1.263 billion $ 1.205 billion
Fast-Food Burger Restaurants Market Share vs Advertising Expenditure
Restaurant McDonald’s Burger King Wendy’s Hardee’s Jack-in-the-Box Market Share 43.1% 21.9% 12.2% 5.6% 4.0% Expenditure
(Thousands)
$ 627.3 $ 403.7 $ 217.8 $ 48.1 $ 63.5
Source: Advertising Age at http://www.adage.com/
Promotions Opportunity Analysis Step 4 Prepare a Communication Strategy
• 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.
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 such as coupons, premiums, sweepstakes, and contests. •Special product packages and labels. •Price changes. •Trade discounts to retailers.
Advantages to Segmenting Markets
• Helps identify company strengths and weaknesses. • Identifies the best set of customers. •Clarifies marketing objectives associated with specific target markets. •Allows for more precise communications budgeting. •Links firm’s strategies and tactics to a specific target group
A Bijan advertisement targeted to females.
This business-to-business ad for Modern Maturity convinces advertisers that the magazine reaches an important market segment.
“…Talk to a person, not a birth date…Americans 50 and over are as vain about the way they look, eat as much food, and are as likely to bike or hike as those a decade younger...”
Tests to determine if a particular market segment is viable
• The individuals or businesses within the segment are homogenous • 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.
Figure 3-7 Methods of Segmenting Consumer Markets
• Demographics • Psychographics • Generations • Geographic • Geodemographics • Benefits • Usage
STOP Integrated Learning Experience
Claritas: North America and Europe
Http://www.claritas.com
PRIZM and MicroVision lifestyle groups from your zip code
Http://www.dellvader.claritas.com/YAWYL/Default.wjsp
Reaching Generation X and Y Http://www.genxpress.com
Figure 3-9 Choosing a Market Segment
Products and Services
Market Segment
Messages
Figure 3-10 Methods of Segmenting Business-to-Business Markets
• NAICS/SIC code • Type of business • Size of business • Geographic location • Product usage • Purchase decision process • Customer value
A business-to-business advertisement based on the product usage segmentation strategy.
STOP Integrated Learning Experience
The North American Industry Classification System (NAICS) Http://www.industrialwhoswho.com/company/naics.cgi Standard Industrial Classification (SIC) Http://www.industrialwhoswho.com/company/sic.cgi The Industrial Who’s Who Web Site Http://www.industrialwhoswho.com
Figure 3-11 Successful Global Integrated Marketing Communications Tactics
Understand the international market A borderless marketing plan Thinking global but act local Local partnerships Communication segmentation strategies Market communication analysis Solid communication objectives
Building Your IMC Campaign
Prepare the following components of the communications market analysis
Competitive analysis Opportunity analysis Target market analysis Customer analysis
Market segmentation strategy IMC objectives IMC budget