Promotional Plan (Strategic Marketing )

8/13/2019 Promotional Plan (Strategic Marketing )

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We are Going to Present

THE PROMOTIONAL PLAN


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Planning the communications programme

In developing the communications programme, the marketing planner needs totake account of eight areas:

1. The nature of the target audience(s)

2. The short and long term communications objective(s)

3. The message that are to be used4. The communication channels that will carry the message

5. The budget

6. The promotions mix

7. How the elements of the promotion mix are to be integrated and how, in turn,

the promotion mix is to be integrated with the marketing mix8. How the results of the campaign are to be measured


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Stage 1:Deciding upon the target audience

The starting point in the planning of any communications programme involves a

detailed information of the target audience.

The planner needs to think initially about the ways in which the market might

possibly categorized and how the message need to be tailored to fit the needs of

each of the target group.

Basis for categorization of audiences:

Current or potential users

Their role in the buying process

Their level of knowledge

Their level of loyalty


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Stage 2: Setting the communications objectives

Now the planner needs to identify the objectives of communications:

The planner might be aiming to put something into the consumers mind, change

the consumer attitude or encourage the consumer to behave in a particular way.


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Steps towards purchase: The communication tools:

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Publicity; Simple descriptive

advertising

Advertorials; Sponsorship

Informative advertisements to

encourage product comparisons; the

development of brand image; direct

marketing

Point of sales display; money offoffers

Direct marketing


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Stage 3: Developing the message

This task involves deciding upon four issues:

1. What to say (the content)

2. How to say it logically (the structure)

3. How to say it emotionally or symbolically (the format)

4. Who should say it (the source)

In deciding upon what to say the planner is faced with the number of choices:

Rational appeal

To realize the customers that by buying this product you will gain this distinct and

tangible benefit.


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Cont..Positive emotional appeal:

The planner sets out to associate the product with an especially favorable

image.

Examples:

The ways in which cars, perfumes and expensive watches are advertised.

Negative emotional appealIt includes fear, shame, and guilt.

examples:

How the advertisers of toothpastes typically play upon these sorts of

emotions by emphasizing bad breath or fear of tooth decay.

The Source:

The credibility and memorability is influenced either positively or

negatively by the source of the message. It is for this reason that many

campaigns features celebrities who are selected for their credibility,

trustworthiness or general likability.


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Stage 4: Selecting the communication channelsNow the planner needs to select the channels through which contact and

communication can be made in the most effective way.

These channels fall into one of two categories personal influence channels

and non personal influence channels.

Personal influence channels can be sub divided into:

Advocate channels

Expert channels

Social channels

Advocate channels:

Consisting primarily of the sales force and others who employed by the

company.

Expert channels:

Which consist of those whose views are seen to be independent and

respected.


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Cont

Social channels:

Made up of neighbors, friends, business associates

and reference groups.

Non-personal influence channels:

It includes mass media, such as, newspapers,

television, magazines, the cinema and posters,

which have the advantage of reaching large numberof people. In doing so, they lack any personal

element, with the result that the message is more

easily ignored and misinterpreted.


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Stage 5

Setting the Budget

Although there are various ways in ehich the

communication budget might be set, the most

common of these are :

1. Affordable Approach

2. Competitive approach

3. Percentage of sales

4. Objective and Task Techniques


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Stage 6 and 7Deciding upon and Integrating the elements of

the Promotion Mix In deciding upon which promotional tools should be

used, the marketing planner needs to take account of

8 elements:

1. The degree of control that is needed in terms of howthe message is delivered.

2. The financial resources that are available

3. The credibility f each of the tools in the eyes of thecustomer


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4. The size of target market and their geographic

spread.

5. The nature of the product and marketwhether it is an industrial or consumer product.

6. Push and Pull strategy

7. The stage reached by the product life cycle8. the buyer readiness stage. Advertising and

publicity are generally the most effective tools

for raising levels of buyer awareness in the earlystages and are most cost effective than personal

selling or sales promotion.


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However as levels of awareness and readiness

increases so personal selling takes on a more

direct and valuable role. Closing the sale alsoachieved most effectively by personal selling

and sale promotions while advertising then

begins to increase in importance again at there-ordering stage.


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Stage 8

Measuring the ResultAn important part of any marketing activity is the measurement

of the result that have been achieved. In the case of

communication, this can be done using two dimensions

1. Qualitative Measure

2. Quantitative Measure


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Awareness

Interest

Evaluation

Trial

Adoption


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Advertising Objectives

Broad Objectives

1. To enhance organizational effectiveness

2. To generate greater profits

3. To improve our competitive position

Specific Objectives (quantitative)

4. To increase sales from X to Y

5. To raise the level of awareness of a givenproduct from P to Q


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6. To generate N enquiries/ coupon responses

Sub- objectives (qualitative)

7. To convey information

8. To create desire;9. To improve the image of product X or brand Y

10.To mitigate the effect of a premium price


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Advertising Strategies

Clear idea of audience

Investment in advertising

Law of diminishing returns


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Deciding the Advertising Spend

Kotler and other authors show evidence that

there are only 5 methods

1. Affordable Approach

2. Competitive parity

3&4. percentage of sales or profit

5. Objective and task


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Affordable Approach

Weakness

1. Discourage the development of long term

planning of advertisement

2. Short- term advertising opportunities are

likely to b overloaded


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Competitive Parity

Two ways1. Set exactly or nearly exactly to the

expenditure of the competitor.

2. Or by ratio of share of market and share ofadvertising.

Two justification

1. Collective wisdom of industry2. Aggressive action in minimized


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Percentage of sales and profit

Two weakness

1. Circular reasoning is employed as sales act todetermine advertising, rather then the other

way round.2. To limited scope for long term advertising.

3. There is no facility for engaging in counter

cyclical advertising.4. There is no logical figure which should be

employed.


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Objective and task

Cost of achieving the advertising objectivesteps

1. Establish the advertising objective

2. Select the media and determine number ofinsertions needed to achieve objective.

3. Calculate the cost of the media programs

4. Examine the relationship between cost and

objective.5. Revise the goal and methods to a level the

company can afford.


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Important factors to be considered

Degree of Empathy

Way to be Paid

A flat fee

A retainer

Through Commission received from Medi


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Evaluation and Control of Advertising

plan

Pre-Tracking

PostTracking

Continuous Tracking

Advertising can be tested by

Communication effectivenessSales Effectiveness


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Sales Promotion

It is a specific activity in which we offer our productsand services to customers with a specific time frame

Cost-benefit analysis is high than advertising,Example. Incentives schemes

Evaluating/audit activities of sales promotion

It should cover following parameters

Effectiveness

Variations in context to competitors

Total cost

Individual results


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Sales Promotion.

How it helps the dealers or distributors?

What sales promotion do actually?

Boost sales of product line

But remember one thing.

Real benefit of good sales promotion?


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Sales Promotion Trend


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Sales Promotion Strategies

Sales Promotions as a push and pull strategy


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Sales Promotion Tactics

Consumer incentives Price markdown;prices reduced by giving coupons in magazines, door

to door. Examples discounts on restaurants, dinner, meal coupons

Premium offers; in sense of quantity of same products or by offeringsmall gifts. Example kurkuray, Nido,

Banded Packs; example, with tooth paste tooth brush in low price Free sampling; NESCAFE , Vivo in COMSATS,

Prize competitions,example, Bundu khan, Jazz, Telenor, Warid

Personality Promotions; example, Cricket bats with sign, win a chanceto meet ABC actor by buying XYZ product.

In-store demonstration; example Expo Lahore, supermalls different

pharmaceuticals, electronics companies offer this Special displays: POS to attract the customers

Self liquidating premiums, offer with core products, for example cakemanufacturer offer cake slicer in low prices.


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Sales Promotion Tactics.

Sales force incentives

Objectives

Sales volume

Sale of specific products

High profit products

To reduce inventory

Gain new customers

Re-active old customers

Decrease credit sales

Ultimate goal is to increase market share & profit


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Exhibitions

Widely used in industrial, commercial andconsumer goods

Companies need therefore to take decision as to; Aim to be achieved

Which exhibition need to be show

Size of the stand

Location of stand

Layout and facilities of stand

Staffing


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Exhibitions..

Choice criteria would include;

Nature of exhibition

Number of peoples would attend

Costs

Competitors showing

Timing

Opportunities


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Packaging

It is one of the lowest cost and highestleverage area of marketing activity

Expensive but gain large business

Checklist for packaging development

Protection of contents

Consumer convenience Trade appeal

Consumer sales appeal


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Influence of packaging Taste

Value

Consumption

Character merchandising

It greatly enhance the sale of item for exampleprince biscuits, Disney characters are goodexample of this tactics

Some companies developed their own characteri.e Leopard courier


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Sponsorship

This tactic is increasing

Sponsorship can contribute sales promotion in

following aspects; Inspiring sales force

Giving boost to the trade

Providing a mean of offering greater hospitalityExamples, Telenor, Coca-Cola, Warid Telecom and

Bank Alfalah,


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Public Relations Or Marketing?

Eight basic publics for PR:

The community at large

Employees

Customers

Suppliers

The money market

Distributors

Potential employees

Opinion leaders


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PR strategy Needs to be Based on Decisions in

Three Areas

The extent & frequency of communications with public.

The degree of importance attached to the

communications in terms of their ability to helporganization.

The effectiveness of those communications is achieving

objective.


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PR Evaluation & Control

Taking stock of the situation before & after the

implementation of PR Campaign.

Post-Campaign survey.

Measure the amount of media coverage in terms of the

amount of space gained in newspapers.

OR

The amount of listening time gained through television orradio.


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Planning Personal Selling

Important part of the firms income.

A extensive& continuouslymonitored aspect.

Identifying sales force effectiveness by

Auditing Sales force.


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There might be further improvements neededafter Audit.

Relative size of the sales force;

Reward system and level of earnings;

Rate of sales force turnover; Sales per sales person;

Sales force support system;

Relative level of training;

Recruitment system; Control systems;

Relative images of sales forces.


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Planning Personal Selling....

Sales Strategy

A sales strategy can be based on your business

and marketing plans. It looks at how you will

deliver objectives set out in your marketing plan,

as well as how you have chosen to segment yourtarget market.

For example : Dawn Bread.


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Hard Selling

Hard sell strategies are aggressive and usually put a

high amount of pressure on the customer. This is

especially important for consumers who are ready to

buy and arent looking to still shop.

For Eg :


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Soft Selling

Soft selling focuses on the relationship-

building aspect of sales. You dont put

psychological pressure on potential buyers.

Instead, you find passive ways to show themthat you have the solutions they need.

For Eg : Generations the Game Shop


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Planning Personal Selling....Sales Force

The division of a business that is responsible for selling productsor services. Persons responsible for selling products or servicesvia direct contact to the customer.

Sales Force compensation

A sale force compensation plan can mean the differencebetween a company's success and failure. Sales are the lifebloodof any company, and the sales force is the engine behind sales. Acompany must pay close attention to the compensation plan ituses to compensate its sales force.


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Methods of remuneration:

1. Basic pay for standard hours

2. Additional hours rewards

3. Commission

4. Bonuses

5. Performance related pay

6. Profits related pay7. Payment by results

8. Piece rate reward systems


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Promotional Plan (Strategic Marketing )

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