1. What’s Happening? Toyota recall and their new publicity campaign: http://wcbstv.com/consumer/toyota.recall.dealerships.2.1453416.html http://wcbstv.com/consumer/toyota.recall.dealerships.2.1453416.html Touch screen innovation: http://www.ted.com/talks/jeff_han_demos_his_breakthrough_tou chscreen.html http://www.ted.com/talks/jeff_han_demos_his_breakthrough_tou chscreen.html Real time ads – Street view http://mashable.com/2010/01/12/real-time-ads-street-view/

2. Promotions Opportunity Analysis Chapter 4

3. Video: Meredith Corporation A good video for bridging Chapter three and Chapter 4 The purpose of showing this video is to point out the importance of market research in identifying and creating promotional and communication material. Questions for Discussion: 1. What are the main variables that Meredith's marketing team has focused on to segment markets? 2. How does Meredith's management team use its variety of products to build relationships through direct marketing with the right customers?

4. Promotions Opportunity Analysis Must accomplish two objectives: 1. Determine which promotional objectives exist for the company. 2. Identify the characteristics of each target market, to better understand how to reach that target audience.

5. Discussion Question Make a list of five consumer products or services that are segmented on the basis of gender but are sold to both genders. Are there any differences in the product or services attributes? Are there differences in how they are marketed? What are those differences? Do you think that using a different marketing approach has worked?

6. Steps in Promotions Opportunity Analysis 1. Communication market analysis. 2. Establish communication objectives. 3. Create a communications budget. 4. Prepare a promotional strategy. 5. Coordination of the promo. tools Each of these have multiple components.

7. Communication Market Analysis Step1 Competitive analysis Opportunity analysis Target market analysis Customer analysis Positioning analysis

8. What’s Happening? o http://scoop.intel.com/2010/01/intel-infoscape-all-the- buzz-at-ces.php - 7-foot touch screen http://scoop.intel.com/2010/01/intel-infoscape-all-the- buzz-at-ces.php o Nike sustainability initiative - http://www.fastcompany.com/blog/ariel-schwartz/sustainability/nike- launches-greenxchange-corporate-idea- sharing?partner=homepage_newsletter http://www.fastcompany.com/blog/ariel-schwartz/sustainability/nike- launches-greenxchange-corporate-idea- sharing?partner=homepage_newsletter o sustainability consortium - a conglomeration of non- profits, companies, and educational institutions working to develop methodologies, tools and strategies to make supply networks more transparent. sustainability consortium

9. Steps in Promotions Opportunity Analysis 1. Communication market analysis. 2. Establish communication objectives. 3. Create a communications budget. 4. Prepare a promotional strategy. 5. Coordination of the promo. tools Each of these have multiple components.

10. Establishing Communication Objectives - Step2 What are some communication objectives that a firm may wish to pursue? __________

11. Communication Budgets - Step 3 Budgets based on communication objectives marketing objectives Budgets vary from consumer to B-to-B markets Unrealistic assumption to assume direct relationship between advertising sales and market share

12. 4-12 Restaurant Chains U.S. Market Share vs. Media Ad Spending RankBrand Market Share Media Ad Spend (Mil) Cost Per Share Pt. (Mil) 1McDonald’s7.7% $ 727.7 $ 93.9 2 Burger King 2.4% $ 268.8 $ 113.2 3Wendy’s2.3% $ 374.7 $161.5 4Subway2.2% $ 325.2 $150.1 5 Taco Bell 1.9% $ 231.7 $125.1 Source: “Top 10 Restaurant Chains,” www.adage.com, accessed October 1, 2008www.adage.com

13. Automotive Brands U.S. Market Share vs. Media Ad Spending RankBrand 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, 2008www.adage.com

14. F I G U R E 4. 4 An comparative example: Communication Spending for Consumers and B-to-B

15. Creating a Communications Budget - Step 3 Most common methods used include: Percentage of sales Affordable method Competitive-Parity method Objective and task method Payout Planning

16. Factors Impacting Relationship Between Promotions and Sales The goal of the promotion Threshold effects Carryover effects Wear-out effects Decay effects Random events

17. Sales-Response Curve

18. Carryover effects are important in advertising products such as boats.

19. F I G U R E 4. 6 A Decay Effects Model

20. Preparing the Communication Strategy - Step 4 Communication strategies are broad, long- term guidelines for the marketing communications program. The communication strategy should be linked to opportunities and threats identified in the communication market analysis. The strategy should fit with the firms positioning (image, message, theme,etc.)

21. Coordination - Step5 Matching what you plan to do, with what is actually available to support the communication. Examples include: specific ads sales promotions - contests, coupons, etc holiday events/anniversary events enticements from sales reps price changes special product packaging for brand extensions

22. Segmentation and Promotion Segmentation helps to clarify marketing objectives geared towards specific target markets – critical to address in a promotions opportunity analysis. This allows for more precise communications budgeting. This also helps link the firm’s strategies and tactics to a specific target group.

23. Determining Viable Segments The segment is different from the population as a whole and distinct from other market segments. The segment is large enough to be financially viable to target with a separate marketing campaign. Examples? The individuals or businesses within the segment are homogeneous.

24. Segmentation Variables Demographics Psychographics - clickclick Geographic Benefits Sought Usage Geodemographic Segmentation Combines census demographic data with psychographic and geographic information Generations - see page 106, table 4.1 -clickclick

25. 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 Click to go back Click

26. Generation Segmentation