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Chapter 13

Product promotion

A.Promotion

Promotion is a technique that is designed to sell a product. There are two common values obtained from any promotional activities:

1. Communicating information on producers and their products to potential buyers and

2. create a more satisfying exchange; trying to make the product more attractive, so that both buyers and sellers get more out of the exchange.

In a free market system, companies use promotional methods to convey information about the company and its products to consumers. The goal is to influence purchase decisions. From the standpoint of information, the promotion aims to make four points:

1. Make potential customers aware of the product

2. Make them knowledgeable about the product

3. Persuade them to like products

4. Persuade them to buy the product

in addition to providing information about a product, the successful promotion create exchanges that satisfy the needs of both parties, the customer and seller: The buyer gets an excellent product, and sellers receive more revenue.

B.Promotion goals

The ultimate objective of any promotion is a increase sales. In addition, the sales force can use the campaign to convey information, promote products, increase value-added products, and controlling the volume of sales

C. Promotion strategy

There are 2 types of promotional strategies:

Pull strategy: Promotion strategies designed to directly attract customers who would ask for products from retailers

Push strategy: promotional strategy designed to encourage wholesalers and / or retailers to market products to consumers.

D. Promotion mix

As we discussed in Chapter 10, there are four types of promotional tools: advertising, personal selling, sales promotion, and publicity and public relations. The best combination of these tools are called the promotion mix depends on many factors

In deciding whether to use the promotional mix right - a combination of tools best promotion (such as advertising, direct sales, sales promotion, and publicity and public relations) - a marketer must think of the goods or services offered, audience characteristics and decision making process of buyers, and the budget mix promotion.

Consumer Buying Process and Promotion Mix

1. First of all buyers should recognize the need to make a purchase. at this stage, salespeople must be convinced that the buyer realizes the truth of their products. So advertising and publicity, which is able to reach a lot of people very quickly, it is very important

2. Buyers also want to learn more about the products available. advertising and direct sales is very important at this stage because both can be used to educate customers

3. Buyers evaluate and compare competing products. Direct sales can be very important at this point. sale representative can demonstrate the quality and performance of their products to be directly compared with competitors' products

4. Buyers specify a particular product and buy it. sales promotion be an effective tool at this stage because it can stimulate consumers to make purchases. Direct sales can also help to bring the product to a location convenient purchasing

5. Buyers evaluate the product after buying it. Advertisement, or even a private sale, sometimes used after the sale to remind consumers that has made a wise purchase

E. Advertising Promotion

Advertisement is not directly paid communication, used by a particular sponsor to inform the audience about a product. Advertisers can choose one of three strategies, namely: Advertisement persuasive, comparative advertising and reminder advertising.

Persuasive Advertising : Trying to influence consumers to buy the company's products and not the products of competitors. This approach ussualy emphasizes quality. Advertise Goodyear tires Eagle # 1 NASCAR streets by emphasizing the all-season traction, responsive to turning movement and kesamaanya with racing tires Goodyear Eagles used in the Daytona 500.

Comperative Advertising: two or more products directly compared, the goal is to take over a competitor's business. In Pepsi One ad, for example ferry passengers sitting next to each other, while it was unattended cans of Coca-Cola and Pepsi Cans One they slide back and forth between the two men as the ship rocked in his journey. the message conveyed is that because of the two passengers were not able to distinguish the taste between the two brands, why not switch to Pepsi on course

Reminder Advertising: helps keep the name of the product to remain in the public mind. Atari continue to advertise the home video games despite the market attention has shifted to new competitors like nintendo and sega

Advertising Media

consumers tend to ignore the pile of advertising messages that bombard them. sales force must know who their customers are, what media to use what message would appeal to them, and bagaunaba how to get their attention. marketing personnel then use a variety of advertising media that specific communication tools to convey the message the seller to potential customers.

The most common advertising media: Television, newspaper, post mail, radio Advertisement, magazine, outdoor Advertisement, Internet advertising, virtual advertising.

Television

by combining visualization, sound and motion, withdraw the senses television viewers. in addition, information about the demographics of the viewers would specific program allows advertisers to direct ads to target audiences.

Newspaper

Newspaper covers about 10 percent of all ad spending. because each local market has at least one daily newspaper; Newspaper gives excellent coverage. every day, they can reach more than 200 million adults in the United States.

Post Mail

Post mail advertising gets about 18 percent of all advertising costs. Post mail includes print advertising that are sent directly to the consumer's home or place of business. Post mail enables companies to select their audience and specialized message. Although many people who throw junk mail, advertising can predict in advance how the recipients who will take them seriously

Radio

about 8 percent of all financing radio ads, including advertising. more than 227 million people or 96 percent of all people aged 12 years and older in the United States to listen to the radio every day, and radio advertising are not so expensive. A small company in the western city of 100,000 people only paid about $ 20 for a local radio throughout the duration of 30 seconds

Magazine

about 8 percent of all financing including magazine advertising. large variations in the magazine presents the share of high-level pasa ready viewfinder. The magazine also provides plenty of room for complete product information to advertisers. Junga magazine allows reproduuksi photography perfect work of art. because its magazine durable and can be given to others, magazine ads will continue in view of people.

Outdoor Advertisement

such as billboards, posters and advertisements on buses, taxis, trains. Cover about 1 percent of all ads, these ads are not too expensive, face fewer competitors in getting the attention of customers, and can constantly be seen by people. Outdoor advertising is considered less attractive than other media is more dazzling. However, new technology has made outdoor advertising to be more creative and led to increased spending on this type of advertising that is up to 8 percent per year

Internet Advertising

Advertisement Media are recently popular is the Internet. Big names such as 3M Corp. and MCI commmunication, along with thousands of other lesser-known companies have placed their ads on the Internet. Although advertising on the Internet is still in the growth stage and provide great potential, many marketers realize that they should also have the limitations. The reason in particular that consumers do not want to come to a variety of electronic pages for viewing on hundreds of products

Virtual Advertising

internet advertising method that is even more recently, so-called virtual advertising, using digital implant on the brand or product into a live or tape-view programming, so as to give the impression that the prpduk is part of the show

F.Direct Sales

Private Sales

a seller face to face with potential customers to determine their needs and offer them the seller's product

Tasks in a private sale include: processing the message (received orders and regulates the handling and delivery), creative sales (give buyers information and woo buyers to buy), sales missionaries (promoting the company and its products)

Sales people take six steps in a private sale:

1. Prospecting and assessing qualifications

2. Presentations and demonstrations

3. handle rejection

4. Closing

5. Conduct follow-up

Types of sales promotion and distinguish between publicity and public relations

Sales promotion is a short-term promotional activities designed to stimulate consumers to buy or stimulate the cooperation of the members of the trade. The most notorious forms of promotion, namely 1) the certificate granting discounts for consumers, called a coupon, 2) point-of-purchase to attract customers when running 3) free samples and prizes as incentives shopping, 4) predium (gift) to buyers of certain products, 5) trade show where companies hire outlets to display and demonstrate their products, 6) contests to entice customers, distributors, and sales representatives to increase sales

Publicity is a promotional tool that provides information about a company or product to be spread by the mass m