MGT 2306MARKETING MANAGEMENT

Lesson 10B

LESSON 10B OBJECTIVES

• Describe the elements of the promotional mix

- Sales Promotions

- Public Relations / Publicity

SALES PROMOTION

SALES PROMOTION

• A Short-term incentive to encourage sale or trial. It is a short-term strategy that encourages consumers to buy now!

• Example:competitions2 for 1 dealsprice specialspremiums etc. Free

coles

law with

a

snack pack

WHY SALES PROMOTION?

• The need to increase current sales• Companies face more competition• Competing brands offer less differentiation• Advertising inefficiency due to rising costs,

clutter, and legal constraints• Consumers have become more deal-

oriented – no promotion, no purchase!

MAJOR SALES PROMOTION TOOLS

Samples Coupons Cash refunds

Price packs

Premiums

Advertising

specialties

Patronage rewards

Point-of-purchase displays

Demonstrations Contests Sweepsta

kes Games

SAMPLES

Samples offer a free trial from the pack

Coupons are certificates that give buyers a saving when they purchase specific products

Coupons

CASH REFUNDS

Are similar to coupons except that the price reduction occurs after the purchase

They offer consumers savings off the regular price of a product

Price Packs

PREMIUMS

Are goods offered either for free or at low price

Are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers

Advertising specialties

PREMIUMS AND ADVERTISING SPECIALTIES

• they mean the same; the only difference is the image it projects. (perbezaan hanya terdapat dalam imej)

• All premiums and specialties have the name of the sponsor on it.

• By using the premium, you are indirectly helping the organization advertise itself through you.

PATRONAGE REWARDS

Customers become ‘Members’ of the company through subscriptions & get ‘points’ or invites to special sales, events or functions where membership is given special treatment or rewarded with premiums or offers

A company representative ‘SHOWS’ how a product works by demonstrating ‘live’ or on a recorded media for repeated playback.

Example: Chef Wan and Maggi products, Chef Ismail (Iron Chef)

Demonstrations

POINT-OF-PURCHASE

PROMOTIONSInclude displays and demonstrations that take place at the point of sales

Require an entry by a consumer. It gives consumers the chance to win something.

Contests

CONTESTSWEEPSTAKES

Require consumers to submit their names for a drawing

Present consumers with something that may or may not help them win a prize

Games

SALES CONTESTS

Are effective in motivating salespeople or dealers to increase performance over a given period

Are effective to reach many customers not reached with the regular sales force

Conventions

PRO’S AND CONS’

√ May be targeted at trade or consumers√ Makes use of variety of formats√ Attracts attention, offers strong purchase

incentives, dramatizes offers and boosts sagging sales

√ Stimulates quick responseX Short-livedX Not effective in building long-term brand

preferences.

PUBLIC RELATIONS

Public relations involves 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 relations is used to promote product, people, ideas, and activities

SAMPLES OF PUBLICITY

LET’S WATCH THIS PR CLIP..

Press relations (akhbar hubungan) or press agency (agensi perhubungan) involves the creation and placing of newsworthy information to attract attention to a person, product, or service

Product publicity involves publicizing specific products

Public affairs (hal ehwal awam) involves building and maintaining national or local community relations

Lobbying (lobi) involves building and maintaining relations with legislators and government officials to influence legislation and regulation

Investor relations (perhubungan pelabur) involves maintaining relationships with shareholders and others in the financial community

Development (Pembangunan) involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support

PUBLIC RELATIONS OBJECTIVES

SAVE OUR SHARKS

PUBLIC RELATIONS IS…..

• Lower cost than advertising (tidak perlu belanja banyak wang)

• Stronger impact on public awareness than advertising. (kesan kuat)

MAJOR PUBLIC RELATIONS TOOLS

News(Berita)

Speeches(Ceramah)

Special events(Acara Istimewa)

Written materials(Bahan cetakan)

Audiovisual materials

Corporate identity materials

Public service activities

(Perkhidmatan awam)

Buzz marketing

Social networking Mobile tour marketing Internet

PRO’S AND CONS’

√ Highly credible

√ Many forms : stories, features, events, sponsorships

√ More far-reaching than other promotional mixes

√ Dramatizes company and its benefits

X Often the most underused element in the promotional mix