Promotion, Advertising, and Sales Promotion Strategies

Promotion, Advertising, and Sales Promotion Strategies

Muhammad AsifSyed Abdur RehmanMuzamil AhmedChapter 12Promotion StrategyAdvertising StrategySales Promotion Strategy

Promotion StrategyInitiating and maintaining a flow of communications between a company (brand) and its market targets.

Composition of Promotion StrategyPromotionComponents PublicRelationsDirectMarketingSalesPromotionPersonalSellingAdvertisingInteractive/Internet MarketingAnnual Expenditures (billions)0$200$400$600Personal Selling Sales PromotionAdvertisingDEVELOPING THE PROMOTION STRATEGYCOMMUNICATIONOBJECTIVESROLE OF PROMOTIONCOMPONENTSPROMOTIONBUDGETPROMOTION COMPONENTSTRATEGIESCoordinationwith Product,Distribution,and PriceStrategiesAdvertisingSales PromotionPublic RelationsPersonal SellingDirect MarketingInteractive/ Internet MarketingMARKET TARGETING AND POSITIONING STRATEGIESINTEGRATE AND IMPLEMENT PROMOTION COMPONENT STRATEGIESEVALUATE EFFECTIVENESS OF PROMOTION STRATEGYILLUSTRATIVE COMMUNICATION OBJECTIVESNeed Recognition

Finding Buyers

Brand Building

Evaluation of Alternatives

Decision to Purchase

Customer Retention

DETERMINING THE PROMOTION BUDGETPercent of SalesFollow the CompetitionObjective and TaskAll You Can AffordBudgeting ApproachesPromotion Strategy IssuesExpense/Response RelationshipsAllocationImpact on Brand EquityIntegration of Promotion ComponentsEvaluating EffectivenessSyed Abdur RehmanADVERTISING STRATEGYSetting Objectives and BudgetingCreative StrategyMedia/Programming StrategyRole of the AgencyProgram Implementation and Effectiveness

ADVERTISING STRATEGYTarget AudienceAdvertising ObjectivesAdvertising BudgetCreative StrategyAdvertising Media and Programming SchedulesImplement and Evaluate Strategy EffectivenessIllustrative Advertising ObjectivesExpose communication to target audienceCreate awarenessChange attitude(s)Increase SalesGenerate profitsBudget DeterminationOBJECTIVE AND TASK METHOD HAS A STRONGER SUPPORTING LOGIC THAH THE OTHER METHODS.Media/ SchedulingCreative StrategyBudget DeterminationCREATIVE STRATEGYThe creative strategy is guided by the market target and the positioning strategy.ProductDistributionPricePromotionAdvertising(How to communicate intended positioning to buyers and others influencing the purchase.)Creative StrategyProvide a unifying concept that binds together the various parts of the advertising campaign.MEDIA / SCHEDULING DECISIONSTelevisionRadioMagazines OnlineWebsiteOutdoorFactors Influencing Media DecisionsAccess to the target audienceCost of reaching the target group(s)Favorable access to costUnfavorable access to costRole of the Advertising AgencyAdvertising AgencyTarget AudienceAdvertising ObjectivesAdvertising BudgetCreative StrategyAdvertising Media and ProgrammingEvaluate the Effectiveness of the StrategyADVERTISING STRATEGY IMPLEMENTATION AND EFFECTIVENESS Decide how to measure effectiveness before implementing the strategy. Assign responsibility for tracking performance. Assessing the quality of advertising is important. Exposure to advertising is not a very sensitive measure of effectiveness.MEASURINGADVERTISINGEFFECTIVENESSRatingServicesSales andExpense AnalysisTestMarketingControlledTestsRecallTestsSALES PROMOTION STRATEGYSALES PROMOTION consists of various incentives, mostly short term, intended to stimulate quicker and/or greater purchase of particular goods/services by end-user consumers or value chain organizations.The strategy process is similar to the design of advertising strategy.

Sales Promotion Activities and TargetsSALESPROMOTIONTARGETSConsumerBuyersSalespeopleBusinessBuyersValue ChainActivities include trade shows, contests, displays, coupons, recognition programs, and free samples.