Marketing Communication Budgets PDF

Tests to Determine if a Particular Market Segment Is Viable The individuals or businesses within the segment are homogeneous. 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 t...

Tests to Determine if a Particular Market Segment Is Viable The individuals or businesses within the segment are homogeneous. 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. Copyright ©2016 Pearson Education Limited 4-8  Usage Segmentation Usage or purchase history Create clusters Target specific clusters Create marketing programs for each cluster Measure growth and migration Copyright ©2016 Pearson Education Limited 4-24 FIGURE 4.5 Methods of Segmenting B-to-B Markets Industry (NAICS/SIC codes) Size of business Geographic location Product usage Customer value Copyright ©2016 Pearson Education Limited 4-25  Product Positioning Is the perception created in the consumer’s mind regarding the nature of the company and its products relative to the competition? Positioning is created by factors such as product quality, price, distribution, image, and marketing communications. Copyright ©2016 Pearson Education Limited 4-27 FIGURE 4.6 Product Positioning Approaches Product Attributes Competitors Use or application Price/quality Product user Product class Cultural symbol Copyright ©2016 Pearson Education Limited 4-28 Elements of Positioning Never completely fixed Applies to business-to-business also International positioning important Critical component of image and brand management Copyright ©2016 Pearson Education Limited 4-29 FIGURE 4.7 Communication Objectives  Develop brand awareness  Increase category demand  Change customer beliefs and attitudes  Enhance purchase actions  Encourage repeat purchases  Build customer traffic  Enhance firm image  Increase market share  Increase sales  Reinforce purchase decisions Copyright ©2016 Pearson Education Limited 4-31 FIGURE 4. 10 Methods of Determining Marketing Communication Budgets Percentage of sales Meet-the-competition “What we can afford” Objective and task Payout planning Quantitative models Copyright ©2016 Pearson Education Limited 4-32 Types of Budgets Percentage of Sales Sales of current year, or next year Simple Tends to work in the opposite direction Does not meet special needs Meet the competition Seeks to prevent market share loss Highly competitive markets Dollars may not be spent efficiently Copyright ©2016 Pearson Education Limited 4-33 Types of Budgets What we can afford Set after all other items budgeted Do not view marketing as important Objective and task Budgets determined by objectives Best method of budgeting Used by 50% of firms Copyright ©2016 Pearson Education Limited 4-35