3. 1)Competition Analysis

4. The purpose of Five-Forces Analysis The five forces are environmental forces that impact on a company’s ability to compete in a given market. The purpose of five-forces analysis is to diagnose the principal competitive pressures in a market and assess how strong and important each one is.

5. Threat of Substitute Products Threat of New Entrants Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Bargaining Power of Suppliers Porter’s Five Forces Model of Competition Porter’s Five Forces Model of Competition

6. 2)Market analysis Customer Technology Competition Company

7. 3)Customer Analysis

8. Customer Analysis Who Where When What How

9. Customer Analysis Consumers Business to Business

10. Customer Analysis Consumers –End use customers –Brand loyalty –Repurchase

11. Customer Analysis Business to Business requires special considerations –derived demand –purchaser is often NOT the user

12. Customer Analysis Where are my customers? –Invoice data –Warranty cards

13. Customer Analysis When Do My Customers Buy? –Demand variation –Changing customer buying patterns

14. Customer Analysis What Do My Customers Want? Recording sales by price range, size and color Competitive information from independent research firms

15. Customer Analysis How Do My Customers Buy? –Recognition of problem –Search for alternatives and info –Buyer’s mental evaluation of alternatives –Purchase –Postpurchase behavior

16. 4)Positioning Analysis

17. Step2

18. STEP-3

19. STEP-4

20. STEP-5

21. 21 Objectives of MARCOM MEANING & PURPOSE:- Understand the process of marcom objective setting and the requirements for good objectives. Describe the hierarchy-of-effects model and its relevance for setting marcom objectives. Understand the role of sales as a marcom objective and the logic of vaguely right versus precisely wrong thinking. Understand the nature and importance of marcom budgeting.

22. 22 Setting Marcom Objectives Goals that the various marcom elements aspire to individually or collectively achieve during a scope of time such as a business quarter or in a financial year.

23. 23 Marcom Objectives TO Facilitate the successful introduction of new brands. To Build sales of existing brands by increasing the frequency of use, the variety of use, or the quantity purchased. To Inform the trade and consumers about brand improvements.

24. 24 Marcom Objectives To Create brand awareness To Enhance a brand’s image To Generate sales leads To Stimulate point-of-purchase sales TO Increase customer loyalty

25. 25 Marcom Objectives TO Improve corporate relations with special interest groups TO Ofset bad publicity about a brand or generate good publicity To Counter competitors’ communication efforts To Provide customers with reasons for buying immediately instead of delaying a purchase

26. 26 Requirements for Setting Suitable Marcom Objectives Include a precise statement of who, what, and when Be quantitative and measurable Specify the amount of change Be realistic Be internally consistent Be clear and put it in writing

27. 27 Marcom Objectives in Terms of Sales Presales Objectives: communication objectives that attempt to increase the target audience’s brand awareness, enhance their attitudes toward the brand, shift their preferences from the competitors’ brand and so on. Sales Objectives: means the marcom objective literally is to increase sales by a particular amount.

35. 35 Point-of-Purchase Advertising Point-of-purchase;store environment A final opportunity to affect consumer behavior Many product-and-brand choice decisions are made at this time “Shoppers are explorers. They are on a safari, hunting for bargains, new products and different items to add excitement to their everyday lives…”

36. 36 Point-of-Purchase Materials Permanent P-O-P Temporary and Semipermanent P-O-P In-Store Media displays intended for six months or more displays intended for fewer than six months

37. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–37 Marcom Objectives and IMC Tools Marcom Objective Marcom Tool Facilitate the successful introduction of new brands Brand naming and packaging, advertising, sales promotions, word-of-mouth buzz generation, and point-of-purchase (P-O-P) displays Build sales of existing brands by increasing the frequency of use, the variety of uses, or the quantity purchased Advertising and sales promotions Inform the trade (wholesalers, agents or brokers, and retailers) and consumers about brand improvements Personal selling and trade-oriented advertising Create brand awareness Advertising, packaging, and P-O-P messages). Enhance a brand’s image Brand naming and packaging, advertising, event sponsorship, cause-oriented marketing, and marketing-oriented public relations Generate sales leads Advertising

38. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–38 Marcom Objectives and Tools (cont’d) Marcom Objective Marcom Tool Persuade the trade to handle the manufacturer’s brands Trade-oriented advertising and personal selling Stimulate point-of-purchase sales Brand naming and packaging, P-O-P messages, and external store signage Increase customer loyalty Advertising and sales promotions Improve corporate relations with special interest groups Marketing-oriented PR Offset bad publicity about a brand or generate good publicity Marketing-oriented PR Counter competitors’ communications efforts Advertising and sales promotions Provide customers with reasons for buying immediately instead of delaying a purchase Advertising and sales promotions

39. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–39 Marcom Objectives in Terms of Sales Objectives of Presales Communication –To increase the target audience’s brand awareness –To enhance the target ir attitudes toward the brand –To shift their preferences from the competitors’ brand Sales Objectives –The marcom objective literally is to increase sales by a particular amount.

40. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–40 The Hierarchy of Marcom Effects Advancing Consumers from Unawareness to Awareness –Advertising is the most effective and efficient method for quickly creating brand awareness. Creating an Expectation –Product benefits from buying and experiencing a brand Encouraging Trial Purchases –Free samples, coupons, major price discounts and rebate offers encourage trial behaviors

41. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–41 The Hierarchy of Marcom Effects (cont’d) Forming Beliefs and Attitudes –Beliefs form the basis for developing an overall attitude toward the brand. –Beliefs and attitudes are mutually reinforcing Reinforcing Beliefs and Attitudes –Marcom serves to reinforce consumer beliefs and attitudes based on product usage experience Accomplishing Brand Loyalty –Brands that continue to satisfy expectations foster brand-loyalty which reduces price sensitivity

42. Factors affecting budgeting Competition Campain objectives Product life cycle Market size Availability of Funds Media plan

43. Budgeting Methods

44. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–44 Budgeting Methods 1)Percentage-of-Sales Budgeting –Brand advertising budget is a fixed percentage of past (e.g., last year’s) or anticipated (e.g., next year’s) sales volume. 2)Objective-and-Task Budgeting –Advertising decision makers specify what role they expect advertising (or some other marcom element) to play for a brand and then set the budget accordingly.

45. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–45 (cont’d) 3)Competitive Parity Method Budgeting –Setting the marcom budget to match or exceed what competitors are doing –Share of Market (SOM) –Share of Voice (SOV)

46. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–46 (cont’d) 4)The Affordability Method –Spending on advertising only those funds that remain after budgeting for everything else. –Relegating marcom to a position of comparative insignificance (vis-à-vis other investment options) –Marcom are implicitly considered relatively unimportant to a brand’s present success –Challenge is to demonstrate that marcom do produce results

47. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 6–47 Marcom Budgeting Budgeting in Theory –The best (optimal) level of any investment is the level that maximizes profits Marginal revenue = Marginal cost, MR=MC Marginal Cost =Change in total cost =  TC Change in quantityQ Marginal Revenue =Change in total revenue =  TR Change in quantityQ –Advertisers should increase their advertising investment as long as it is profitable to do so