Greeting Cards

5
Discussion Slide

Concerning your last greeting card purchase:

    What brand of greeting cards did you purchase? How many cards did you purchase? Where did you purchase the card? For what occasion do 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?
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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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FIGURE

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-theMeet-the-competition What we can afford Objective and task Payout planning Quantitative models
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FIGURE

5.6

Global Advertising Expenditures

$160.0 $13 .3

$500 $450 $400 $438

$140.0

$120.0

$350
$100.0

$300 $250 $200 $150

$33.2 $21.6

$263 $238

$80.0

$249

$240 $167 $122 $52 $123

$60.0

$157

$40.0

$100
$15.8 $6.9 $5.

$20.0

$11.1

$8.3

$5.3

$5.0

$50 $0

$0.0

United States

Japan Germany

U.K.

France

Italy

razil

Spain

anada Australia

U nited States

Japan G ermany

U .K.

France

Italy

razil

Spain

anada Australia

Total Advertising Expenditures

Average E xpenditure per apita

Source: Juliana Koranteng and Normandy Madden, Ranking of the Top Global Ad Markets, Advertising Age International, (May 2000), pp. 17-20. 5-13

TAB LE

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Comp rison of B-to-B and Consumer Communications E penditures

V P P

M 0 5 10 15 0 25 30 35 40 45 50

Percentage of otal Com m unications Budget -to-B Consumer

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Marketing Budgets
Advertising 26%

Consumer Promotions 24%

Trade Promotions 50%

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STOP

INTEGRATED LEARNING EXPERIENCE

Database of Advertising E penditures

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 maga ines, newspapers, outdoor, network T 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?
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Top Ten National Advertisers

 General Motors  Proctor & Gamble billion  Phillip Morris  Daimler Chrysler  Sears, Roebuck & Co.  Ford Motor Co.  AT & T Corp.  Walt Disney Co.  PepsiCo  Diageo

$ 2.940 billion $ 2.650 $ 2.049 $ 1.646 $ 1.578 $ 1.520 $ 1.427 $ 1.358 $ 1.263 $ 1.205 billion billion billion billion billion billion billion billion

Source: Advertising Age at http://www.adage.com/cgi-bin/adage.cgi

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Fast-Food Burger Restaurants Market Share vs Advertising Expenditure Restaurant

    

Market Share 43.1% 21.9% 12.2% 5.6% 4.0%

Expenditure
(Thousands)

McDonalds Burger King Wendys Hardees Jack-in-the-Box

$ 627.3 $ 403.7 $ 217.8 $ 48.1 $ 63.5

Source: Advertising Age

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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 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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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 firms strategies and tactics to a specific target group

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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.
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FIGURE

5.7

Methods of Segmenting Consumer Markets

Demographics Psychographics Generations Geographic Geodemographics Benefits Usage

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A NailCares advertisement targeted to females.

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STOP

INTEGRATED LEARNING EXPERIENCE

Claritas: North America and Europe Http://www.claritas.com PRIZM and Micro ision lifestyle groups from your ip code Http://www.dellvader.claritas.com/YAWYL/Default.wjsp

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FIGURE

5.9

Choosing a Market Segment

Goods and Services

Market Segment

Messages

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FIGURE

5.10

Methods of Segmenting B-to-B Markets

NAICS/SIC code Type of business Si e of business Geographic location Product usage Purchase decision process Customer value

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A business-to-business advertisement based on the product usage segmentation strategy.

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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 Whos Who Web Site Http://www.industrialwhoswho.com

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FIGURE

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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

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Building Your IMC Campaign 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

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