adbms promotion tools.ppt

7/29/2019 adbms promotion tools.ppt

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PromotionalTools for

Marketing


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Marketing Communications Mix

The specific mix of advertising,personal selling, sales

promotion, and public relations a

company uses to pursue its

advertising and marketing

objectives.


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PromotionThe function of informing,

persuading, and influencing a purchasedecision.

Integrated marketing

communications (IMC)Coordination ofall promotional activitiesmedia advertising,

direct mail, personal selling, sales promotion,

and public relationsto produce a unified

customer-focused message.


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THE PROMOTIONAL MIX

Promotional mixCombination of personal and

nonpersonal selling techniques designed to

achieve promotional objectives.

Personal sellingInterpersonal promotionalprocess involving a sellers face-to-face

presentation to a prospective buyer.

Nonpersonal selling Advertising, sales

promotion, direct marketing, and public

relations.


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The main tasks of promotion

are:- to inform,

- to persuade,- and to remind

(prospective) customers.


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The Role of Promotion in Marketing

- Promotion is intended to make a product

more attractive to prospective customers

- Through promotion a company strives to

increase its products sales volume at any

given price; that is, the firm seeks to shift

its demand curveto the right

- A firm also hopes that promotion will affect

the demand elasticityfor its product; theintent is to make the demand more

inelastic when price increases and more

elastic when price decreases


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Advertising

Personal Selling

Public Relation

Sales Promotion

Direct Marketing

The promotionalmix

Mass

Mass

Customised

Mass

Customised


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ADVERTISING

Advertising Paid nonpersonal communicationdelivered through various media and designed

to inform, persuade, or remind members of a

particular audience.

Types of Advertising

Product advertising, institutional advertising,cause advertising


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9

Advertising Functions

Informing

Persuading

Reminding

Adding Value

Assisting Other Company Efforts


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10


Informing

Makes consumers aware, educates

them about the features andbenefits, and facilitates the creation

of positive brand images

Facilitates the introduction of newbrands and increases demand for

existing brands

3


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11


Persuading

Persuades customers to try

advertised products and

services

11


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12


Reminding

Keeps a companys brand fresh

in the consumers memory

Influences brand switching

12


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13


Adding Value

Three basic ways by whichcompanies can add value

innovating

improving quality

altering consumer perceptions13


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20

Budgeting Considerations

in Practice

What is the Ad objective?

How much are competitors

spending?

How much money is available?


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Advertising Advantages

Disadvantages Advantages

The widest range

The greatest influence Different time of broadcasting

Short but long-lasting


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Advertising Advantages

Diaadvantages Disadvantages

Very expensive

Time consuming in production Easy to forget

Short existence Lack of interest


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SALES PROMOTIONSales promotion Non personal

marketing activities other than

advertising, personal selling, and

public relations that stimulate

consumer purchasing and dealereffectiveness.


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Objective: Bolster/complementother promotional mix elementsduring a specific time period

Targeted toward:Sales force

Wholesalers and retailersConsumers

Sales Promotion


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Rebates,

Contests, games & sweepstakes

Product sampling, demonstrations

Coupons, refunds

Sales Promotion

Methods for Consumers


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Classifying Types of Sales

Promotions

Promotional Pricing - Price reductions

Free goods Tied offers ,Money off next

purchase

Non Promotional Pricing- Contests

,Free gifts, Guarantees and added

services Sampling-- Most effective in the early

stages of a new product launch


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rade-Oriented Promotions

Sales promotion geared to marketing

intermediaries rather than to consumers.

Encourage retailers in several ways:

To stock new products. To continue carrying existing ones.

To promote both new and existing products

effectively to consumers.


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Point-of-purchase (POP) advertising

Displays or demonstrations thatpromote products when and where

consumers buy them, such as in retailstores.

Promote goods and services attrade

shows.


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Sales Promotion, Pro and Con

Advantages:

Motivation method for specialefforts

Short-term sales increase

Defined target audience


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Sales Promotion, Pro and Con

Disadvantages:

Only short-term

Hidden costs

Confusion

Price cutting -Brand image

Postponement effect


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Personal Selling Defined

Personal selling refers to personalcommunication with a an audience

through paid personnel of an

organization or its agents in

such a way that the audience

perceives the communicators

organization as being the source

of the message.


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PERSONAL SELLING

Usually used under four conditions: Customers are relatively few in

number and geographicallyconcentrated.

The product is technically

complex, involves trade-ins, andrequires special handling.


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The product carries a relatively

high price.

It moves through direct-

distribution channels.

Example: Selling to the government

or military.


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Sales Tasks

All involve assisting customers in some way.

Order Processing

Identifying customer needs, pointing out

merchandise tomeet them, and processing the order.

Creative Selling

Promoting a good or service whose benefitsare not readily apparent


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nalysis of alternatives.

Missionary SellingRepresentative promotes goodwill for a

company or

provides technical or operational assistance to

the customer.

TelemarketingPersonal selling conducted by telephone;

regulated by the


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Industrial

Revolution

Post-Industrial

Revolution

War and

Depression

Modern

Era

1800s 1900s 2000s

Evolution of Personal SellingSelling function

became morestructured

selling door to

door . . .

Business

organizations

employed salespeople

Selling function

became more

professional

As we begin the 21st

century, sellingcontinues to develop,

becoming more professional and more

relational


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Transaction-Focused

Short term thinking

Making the sale has priorityover most other

considerations Interaction between buyer

and seller is competitive

Salesperson is self-interestoriented


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Long term thinking

Developing the relationshiptakes priority over getting

the sale Interaction between buyer

and seller is collaborative.

Salesperson is customer-oriented

Relationship-Focused


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Classification of

Personal Selling Approaches

Stimulus ResponseSelling

Mental States Selling

Need Satisfaction

Selling Problem Solving

Selling


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Stimulus Response Selling

Salesperson

Provides

Stimuli

BuyerResponses

Sought

Continue

ProcessuntilPurchase

Decision


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Action

Attention

Desire

MentalStates

Selling

Interest

Conviction


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Need Satisfaction Selling

Uncover

andConfirmBuyerNeeds

Present

OfferingtoSatisfyBuyerNeeds

ContinueSelling

untilPurchaseDecision


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Problem Solving Selling

DefineProblem

GenerateAltern

ativeSolutions

ContinueSelling

untilPurchase

Decision

EvaluateAlternative

Solutions


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The Sales Process: An

Overview

Developing

Customer

Relationships

Initiating

CustomerRelations

hips

Enhancing

Custome

rRelation

ships

SellingFoundations

SellingStrategy

The Sales Process: Selling


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The Sales Process: Selling

FoundationsIn order to be successful in todays global businessenvironment, salespeople must have a solidrelationship building foundation. They must:

Possess Excellent Communication

Skills

Understand Buyer Behaviour

Behave Ethically

Be Trustworthy


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Direct marketing


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Direct marketing definition

An interactive system of marketingwhich uses one or more

advertising media to effect a

measurable response at any

location, forming a basis for

creating and further developingan ongoing relationship between

an organisation and its

customers.

Di t k ti t h i


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Direct marketing techniques

Direct mail - material distributed via

the postal service to a recipientshome or business to promote a

product/service.

Direct response advertising -standard broadcast and print media

designed to generate a direct

response, e.g an order or personalvisit.


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Mail order - the purchase of products

featured in advertising or selected

from a catalogue.

Teleshopping - home based shopping.

Telemarketing - a direct personal, verbal

approach via some kind of written or visualmethod.


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Direct mail - the advantages

Targeting - for example using the post

code, targeted campaigns can bedeveloped using geographical /

demographical criteria.

Personalisation - large numbers ofpersonalised mailings can be undertaken

regularly.

Response rates can be high.

Flexibility of creative scope.

Can hold attention of reader/recipient.


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Limitations of telemarketing

Operational issues - requires

systems that can cope with

volumes of inbound calls.

Regulatory issues regarding for

example unsolicited mail and coldcalling.


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Objectives of direct marketing

Direct ordering.

Providing information.

Visit generation.

Trial generation.


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Public Relations

Public relations Public organizationscommunications and relationships with its

various audience.

Helps a firm establish awareness of goods

and services and builds a positive image of

them.


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Publicity

Publicity Stimulation of demand for a good,

service, place, idea, person, or

organization by disseminating news or

obtaining favorable unpaid mediapresentations.

Good publicity can promote a firms

positive image

Negative publicity can cause problems.


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Product Life Cycle and Promotion Introduction Stage Promotion is

aimed at innovators and earlyadopters. Marketing communicationsseeks to build product awareness and

to educate potential consumers aboutthe product. Publicity, Advertising,sales promotion Target- To Inform

Growth Stage

Promotion is aimed at a broaderaudience.

Personal selling advertising

Target To persuade


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Product Life Cycle and Promotion

Maturity Stage

Promotion emphasizes productdifferentiation. Reminder advertising,reminder direct mail, sales promotion,limited personal sellingTarget To remind

Decline Stage

Not much promotion is done


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Factors that influence the use of promotionaltools

Target AudiencePrroduct Life Cycle

ProductCharectoristics

Channel Decesion

The Promotional mix

AdvertisingPublic

\Relations

Direct M

arketingPersonal

SellingSales

Promotion

Th i d i i


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Slide 18-42

The promotion decision process

Setting the Promotional


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59

Setting the Promotional

Budget and Mix

Promotion Mix Strategies

Push strategy: trade promotions and

personal selling efforts push theproduct through the distributionchannels.

Pull strategy: producers useadvertising and consumer salespromotions to generate strong

consumer demand for products.


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