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.

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Promotions Opportunity Analysis Step 1

Conduct a Communication Market Analysis

Competitive analysis Opportunity analysis Target market analysis Customer analysis Positioning analysis

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Competitive Analysis
Identifies major competitors. Identifies communication strategies and tactics of each competitor.

Sources of information
Secondary data Other people Primary research

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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?

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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?

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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.

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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.

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Promotions Opportunity Analysis Step 2

Establish 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 promotion Threshold effects Carryover effects Decay effects Random events

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Promotions Opportunity Analysis Step 3 Create a Communications Budget

Methods of Determining the Marketing Communications Budget

Percentage of sales Meet-the-competition What we can afford Objective and task Payout planning Quantitative models
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Promotions Opportunity Analysis Step 4 Prepare a Communication Strategy

Communication strategies are broad, longterm guidelines for the marketing communications program. Should be linked to opportunities and threats identified by the communication market analysis. Should fit with the companys overall message, image and themes.
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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.

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