sales promo, bcg, branding

8/7/2019 Sales promo, bcg, branding

http://slidepdf.com/reader/full/sales-promo-bcg-branding 1/36

ADVERTISING



DEFINITION

³Advertising is any paid form of non-personal

presentation & promotion of ideas, goods & services

by an identified sponsor.´

± American marketing association



Objectives

Maximize the demand for goods & services

Improves sales & profits

Reduces marketing cost

Creates awareness

Improves creativity, arts, entertainment & music



Benefits: company1. Induce Trial :

2. Intensify Usage

3. Sustain Preference :

4. Changes habits:

5. Builds line acceptance

6. Introduce New Products



Advertising Budget Advertising budget is planning for certain activities

with amount allocated to each within the specified

period

Within the financial capabilities of the company

Details of allocation of funds



1. Fixed Guidelines

Use of mathematical formula to determine

advertising appropriation

Percentage of sales approach:

Unit of Sales approach

Using advertising expenses of competitors



a. Percentage of Sales method Predetermined percentage to sales volume figure and the

advertising appropriation appears automatically.

Based on industry average or the company¶s spending

over the last 3 years

Disadvantage:

Too simple, does not give attention to specific advertising needs

of the firm

Average industry norms



b. Unit of Sales method

Specific amount is allocated to the advertising

budget for each unit produced

Disadvantages:

The target markets needs, company¶s needs are not met

Dynamics of a marketing situation are not assessed and

budgeted

Eg: automobile manufacturers, consumer durables



c. Competitors Expenditure Method

Based on competitors activity, budgeting

is done

Some companies end up spending more

than the competitors



2. The Task Method

Based on a rational approach rather than

estimation

Scientific budget method

Determines the type and quantity of advertising

Obj: increase mkt share by 5 %

Task : adv : where, whom, when, medium



3. Subjective Budgeting Method1. Arbitary methods

2. Affordable method

3. Go-for-broke method

4. Profit Planning method



Allocation Of Advertising Budget

Involves allocation of the determined size of the

budget based on the following parameters: Media

Product

Sales territories



Sales Promotion



Purpose� SP

± stimulate short term

demand ± Encourage brand

switching

± Induce trial

± Promote price

orientation ± obtain immediate

results

� Advertising

± Cultivate long term

demand ± Encourage brand

loyalty

± Encourage repeat purchase

± Promote image



SP is of two types ( IMP)� Trade

� Consumer



Consumer promotion : Objective� Stimulate purchase

� Induce trial : mature product categories vs

innovative pdts

� Stimulate larger purchase : Big B

� Introduce new brands

� Disrupt competition

� Reward loyal customers



Forms of consumer promotion

� Coupons ± Adv : hit price sensitive consumers, encourage brand

switching, stimulate repeat purchase, trade up

consumers ± Dis: huge admin costs

� Price-offs : whose profits are shrugged

� Premiums

± Free premium ± Self liquidating premium ( loyal customers )

� Advertising Specialties



� Contests

� Free samples

± Instore, door 2 door, mail , newspaper, on

package, mobile

� Free gifts

� Rebates : money back form the

manufacturer

� Frequency programs



Trade promotion : objective� Obtain initial distribution

� Increase order size: liquidating heavy

inventories

� Encourage cooperation for sp of consumer

markets

� Increase store traffic



Forms of trade promotion

� Incentive :

± Push money ± targeted to sales people

± Merchandise

± Slotting fees : shelf space fees

± Bill back allowance : in store displays

� Training Programs

� Cooperative advertising



Branding



Brands

� Per Philip Kotler,

A name, term, sign, symbol, or design

intended to distinguish the goods and services of one seller from another and to

differentiate them from those of

competitors



Functions of a Brand ( IMP)Functions of a Brand ( IMP)

Reducing perceived risk

Status and prestige

LoyaltyMark et segmentation

Coherent mark eting and promotional efforts

New product introductions

Premium pricing

Repeat purchases

Reducing search costs

Reducing perceived risk

Status and prestige

LoyaltyMark et segmentation

Coherent mark eting and promotional efforts

New product introductions

Premium pricing

Repeat purchases

Reducing search costs



Brand Sponsor

Decisions

Brand Name Decisions

Brand Strategy

Brand

Repositioning

Branding Decisions Brand / No Brand

1. Individual

2. Blanket Family

3. Separate FAMILY

4. Co ± Individual Names

1. Line Extension

2. Brand Extension

3. Multi Brands

4. New Brands

5. Co Brands

6. Brand Rejuvenation

7. Brand Proliferation

1. Repositioning

2. No Repositioning



©2003 Prentice Hall, Inc.

Brand NamesBrand Names

1. Individual names ± No link to Co. name

If pdt. Fails it doesn't hamper the reputation of the company

Hll ± Rin, Surf, Wheel

2. Blanket Family Names- Campbell soups, Heinz Sauce Adv. ± low expenditure in adv. / establishing a brand

3. Separate Family brand for all pdts.

Diff. names = f( application of pdt.)

Mead Jhonson ± Wt. reducing ± Nutriment

- Wt. gaining ± Mctreal

4. Co. Trade Name + Pdt Name ± Kellogs Rasins,Kellogs Corn Flakes

Colgate Toothpaste, Colgate Tooth Brush



1. Line Extensions

2. Brand Extensions



Forms of Brand Extension ( IMP)

1. Extending Brand to diff . form of same

pdt.

- Colgate Tooth Paste / Tooth Powder

- Vim ± BAR / Powder

-M

edicine ± Syrup/ Tablet



2. Product ± Brand Line Extension

variants of the same pdt. with the same

brand name



3. Reaching out to a NEW Pdt. Category

Fair Glow ± Soap & Cream

Clinic All clear Shampoo + Oil



Issues in Brand Extension ( IMP)

Value Proposition is getting enhanced

Parachute ± Oil + Gel ????

Synergy among Pdts.

Adv- Adv + Distribution

Avoid B Extension for New / Revolutionary Pdt

Nirma ± Failed Premium Soaps ± VFM

Upward / Downward Brand Extension

Dis ± loss in brand value



Developing Sub Brands

Gillete ± all markets (full mkt coverage)




3. Brand Rejuvenation3. Brand Rejuvenation

Process of revitalizing an ailing brandProcess of revitalizing an ailing brand

Acquisition of existing brands & relaunch Acquisition of existing brands & relaunch

with modificationswith modifications Hll acquired Kwality IceHll acquired Kwality Ice--cream in 1995cream in 1995




4. Multi Branding4. Multi Branding

New brand names in existing product

category

Hll ± Detergent Category

Rin, Wheel, Surf

Obj.- increase market share

- Niche marketing




5. Co Branding5. Co Branding

2 of more co. combine brands for

greater exposure

Hero Honda recommending MRF

Tyres



Organizational Buying : Model

� Buyer grid Model

± Problem recognition

± Product Specification

± Supplier search

± Proposal solicitation

± Supplier selection

± order routine specification

± Performance review

sales promo, bcg, branding

Documents