Post on 20-Jan-2015
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Chapter Eleven
Reported By:
Mina F. Aureus
What is promotion
Promotion means a series of actions implemented by a company in order to motivate and cultivate buys’ interests, to intensify their buying desires, to mine potential demands, and to create sales volume, by means of transmitting messages related products and channels to target consumers.
Chapter 13 Promotion Mix
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Promotion mix
Promotion mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing tools a company uses to pursue its advertising and marketing objectives.
Chapter 11 Promotion Mix
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Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.
Strategy Selected Depends
on:
Type of Product-Market &
Product Life-Cycle
Stage
Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.
Promotion Mix Strategies
Chapter 11 Promotion Mix
Push StrategyPush Strategy
Pull StrategyPull Strategy
PromotionPromotion
DistributionDistribution
Retail StoreRetail Store
CustomerCustomer
PromotionPromotion
5
Chapter 13 Promotion Mix
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Factors Influencing the Promotion Mix
Promotion budget available Stage in the product life cycle Nature of market situation Target of the promotion
Chapter 13 Promotion Mix
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Marketing Communication Mix or Promotion Mix
Chapter 11 Promotion Mix
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What is advertising
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising
Chapter 11 Advertising
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Mission: What are the ad objectives?Money: How much can be spent?Message: What message should be sent?Media: What media should be used?Measurement: How should the result be evaluated?
Sometimes we call this “five Ms”.
Five major decisions in developing an advertising program
Chapter 11 Advertising
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Product advertising – Attempts to sell a product.
Institutional (corporate) advertising – Attempts to enhance an organization’s image and reputation.
Advocacy advertising – Attempts to change public opinion in an area where there is controversy.
Some types of advertising:Chapter 11 Advertising
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Personal selling=Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.
Personal selling
Chapter 11 Personal Selling
For example, ads run by the teachers’ union against vouchers or the coal industry ads encouraging the use of coal by power plants. Some claim that this may not be advertising.
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More specific communication aimed at one or more persons.Effective at building buyers preferences, convictions and actions. Cost per person is high, most expensive promotional tool. Greater impact on consumers Provides immediate feedback Allows marketers to adjust message quickly to improve communication. Buyer feels a great need to listen and respond. Long term commitment is needed to develop a sales force.
Chapter 11 Personal Selling
Steps in Personal Selling
Prospect/QualifyProspect/QualifyProspect/QualifyProspect/Qualify
PreapproachPreapproachPreapproachPreapproach
ApproachApproachApproachApproach
PresentatioPresentationn
PresentatioPresentationn
ObjectionsObjectionsObjectionsObjections
CloseCloseCloseClose
Follow-upFollow-upFollow-upFollow-up
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What is Sales Promotion ?
Sales Promotion is a Mass Communication Technique
That Offers Short-Term Incentives to Encourage
Purchase or Sales of a Product or Service.
Offers Reasons to Buy Now.
Chapter 11 Sales Promotion
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Difference between sales promotion and advertising
Advertising offers a reason to buy.
Sales promotion offers an incentive to buy.
Sales promotion
Chapter 11 Sales Promotion
SampleSample
CouponsCoupons
Cash RefundsCash Refunds
Price PacksPrice Packs
PremiumsPremiums
Advertising Specialties
Advertising Specialties
Trial amount of a productTrial amount of a product
Savings when purchasing specified products
Savings when purchasing specified products
Refund of part of the purchase priceRefund of part of the purchase price
Reduced prices marked on the label or package
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Articles imprinted with an advertiser’s name given as gifts
Some examples of sales promotions
Patronage RewardsPatronage Rewards
Point-of-PurchasePoint-of-Purchase
ContestsContests
SweepstakesSweepstakes
GameGame
Cash or other rewards for the use of a certain product
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Presents consumers with something every time they buy
Some examples of sales promotions
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(1)What is public?
Any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.
(2)What is public relation?
Public relations- building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Public Relation
Chapter 11 Public Relationship
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News
Speeches
Special Events
Written MaterialsAudiovisual
Materials
Corporate Identity
Materials
Public Service
Activities
Web Site
Major Public Relations Tools
Chapter 11 Public Relationship
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Direct marketing - direct communications with carefully targeted individual consumers to obtain an immediate response, and cultivate lasting customer relationships.
Direct marketing
Chapter 11 Direct Marketing
Many forms: Telephone marketing, direct mail, online marketing, etc.;
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More specific communication aimed at one or more persons.Effective at building buyers preferences, convictions and actions. Cost per person is high, most expensive promotional tool. Greater impact on consumers Provides immediate feedback Allows marketers to adjust message quickly to improve communication. Buyer feels a great need to listen and respond. Long term commitment is needed to develop a sales force.
Chapter 11 Personal Selling