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MARKETINGMANAGEMENT-I

Lecture 8- Promotion

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Promotion addresses:

To whom should marketing messages bedirected (inside or outside the company)?

How can marketing managers most effectively

and efficiently inform the target market about theproduct?

How should the manager persuade them?

What message should be delivered?

How much should the firm spend to deliver it? In what media, or with what promotional tools?

How should the manager assess whether thepromotional strategy has been effective?

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Mass Selling

Personal Selling

Sales Promotion

Different

methods of

promotionAdvertising Publicity

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Promotional Mix

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Examples of Promotional Mix

Advertising: print ads (newspapers &

magazines), radio, television, billboard, direct

mail, brochures and catalogs, signs, in-store

displays, posters, motion pictures, Web pages,banner ads, and e-mails.

Personal Selling: sales presentation, salesmeetings, sales training and incentive

programs for intermediary salespeople, and

telemarketing.

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Examples of Promotional Mix

Sales promotion: Coupons, sweepstakes,

contests, product samples, rebates, tie-ins,

self-liquidating premiums, trade shows, trade-

ins, and exhibitions.

Public Relations: Newspaper and magazine

articles/reports, TV and radio presentations,charitable contributions, speeches, issue

advertising, and seminars.

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Promotional Mix Decisions Depend

on:

Available Budget

Promotional Message

Complexity of product or service

Market size & location Distribution

Product life cycle

Competition Government regulations

Ethical issues

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Contests

Coupons

Aisle displays Samples

Trade shows

Point-of-purchase

materials Banners & streamers

Frequent buyer

programs

Sponsored events

Price deals

Promotion allowances

Sales constests

Calendars & gifts

Trade shows

Meetings

Catalogs

Merchandising aids

Videos

Aimed at wholesalers or

retailers

Contests & Bonuses

Meetings Portfolios & Displays

Sales aids

Training materials

Aimed at companys own

sales force

Aimed at consumers orusers

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Sales Promotion Tries to SparkImmediate Interest

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Which Method to Use Dependson Promotion Objectives

Informing

Persuading

Reminding

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Promotion Objectives Adoption Process AIDA Model

Informing

Awareness

Interest

Attention

Interest

Persuading

Evaluation

Trial Desire

Reminding

Decision

Confirmation Action

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Promotion Objectives Relate to theAdoption Process and AIDA Model

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Noise

Source

Receiver

Encoding

Message

channel

Decoding

Feedback

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The Traditional Communication

Process

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Decision Sequence forDeveloping the Promotion Mix

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Strategic Circumstances & the RelativeImportance of Advertising & Personal

Selling as Promotional Tools

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Comparing the Merits of thePromotion Mix Elements

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Guerilla Marketing

Is low cost.

Attracts attention because it is innovative

Is less cluttered.

May not reach to many people.

If the tactics are too outrageous, they may

offend some people.

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Pulling Demand Pulls the Productthrough the Channel

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This new

idea is good

Our brand is

best

Our brand is

better, really

Lets tell

those who

still want ourproduct

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Promotion Varies Across PLC