promotional mix
Post on 18-Jul-2015
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Promotion is one of the four elements of marketing mix (product, price, promotion, place).
It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision
Above the line promotion: Promotion in mass media. TV, radio, newspapers, internet, mobile phones.
Below the line promotion: All other promotion.sponsorship, product placement, testimonials, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows
The specification of five elements creates
a promotional mix or promotional plan. These
elements are personal selling, advertising, sales
promotion, direct marketing, and publicity
A promotional mix specifies how much attention to
pay to each of the five subcategories, and how
much money to budget for each.
A promotional plan can have a wide range of
objectives,
sales increases, new product acceptance, creation
of brand equity, positioning, competitive advantage,
or creation of a corporate image.
Fundamentally, there are three basic objectives of
promotion.
To present information to consumers as well as
others
To increase demand
To differentiate a product.
FACTORS INFLUENCING PROMOTION MIX.
Nature of the product.
Marketing strategy.(push or pull).
Buyer readiness stage.
Product life cycle stage.
SALES PROMOTION.
Sales promotion is one of the four aspects
of promotional mix.
Media and non-media marketing communication
are employed for a pre-determined, limited time to
increase consumer demand, stimulate market
demand or improve product availability.
Collectively comprises the tools used to promote
sales in a specific territory and time.
They are short-term in nature, and are designed
stimulate quick sales.
Sales promotions can be directed at either
the customer, sales staff, or distribution channel
members (such as retailers).
Sales promotions targeted at the consumer are
called consumer sales promotions.
Sales promotions targeted at retailers
and wholesalers are called trade sales
promotions.
OBJECTIVES AND TYPES OF SALES
PROMOTION.
Generate consumer interest(which finally reach to
trial).
Methods- coupons, discount sales, free
samples,contests,demonsrations(in-store).
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Generate enquiry from the target customer group.
Methods- gifts, mail-in
coupons,catalougue,brochures.
Hotels,asian paints,
Build consumer traffic.
Methods-special events, festival sales, annual
sales.
Big-bazzar Wednesday bazzar, year end sale.
Motivate customers to repeat purchase.
Methods-on pack coupons, continuity promotions,
loyalty cards.
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Increasing rates of purchase or usage.
Methods-multi pack, special rate for more than one,
new usage situations.
Other methods.
Price deal: A temporary reduction in the price, such
as happy hour. Free-standing insert (FSI): A coupon
booklet is inserted into the local newspaper for
delivery.
On-shelf couponing: Coupons are present at the
shelf where the product is available.
Checkout dispensers: On checkout the customer is
given a coupon based on products purchased.
On-line couponing: Coupons are available online.
Consumers print them out and take them to the
store.
Mobile couponing: Coupons are available on a
mobile phone. Consumers show the offer on a
mobile phone to a salesperson for redemption.
Online interactive promotion game: Consumers
play an interactive game associated with the
promoted product. Interactive Internet Ad for tomato
ketchup.
Point of displays.
TRADE PROMOTION.
Trade allowances: short term incentive offered to induce
a retailer to stock up on a product.
Dealer loader: An incentive given to induce a retailer to
purchase and display a product.
Trade contest: A contest to reward retailers that sell the
most product.
Point-of-purchase displays: Used to create the urge of
"impulse" buying and selling your product on the spot.
Training programs: dealer employees are trained in
selling the product.
Push money: also known as "spliffs". An extra
commission paid to retail employees to push products.
DISADVANTAGES OF SALES PROMOTION.
Increased price sensitivity.
Quality image may be affected.
Merchandising support.
Dealers will take up undue advantage.
Short term sales orientation.
ADVERTISEMENT.
It is any paid form of nonpersonal presentation of
ideas,goods,or services by an identified sponsor.
It should be based on target market and buyer
motives.
Five “M”s in advertising.
Mission-objectives
Money-budget
Media-what media
Message-what message
Measurement-evaluation
SETTING THE OBJECTIVES(MISSION.)
It should follow with the decisions of target market
and brand positioning.
Objectives can be classified according to their aim.
Informative.
Aims to create brand awareness and knowledge of
new products or new features of existing products.
Persuasive.
Aims to create liking,preference,conviction,and
purchase of a product.
Reminder.
Repeat purchase of products and services.
Re- inforcement
Convince current purchasers that they made the
right decision.
DECIDING ON THE ADVERTISEMENT
BUDGET.(MONEY)
How much a firm should spend on advertising its
brand?
Percent of sales.
Sales decides advertisement budget.
Plc stages denies this method.
Based on affordability.
If something left after the entire expenses, it will be
allocated for the advertisement.
Based on competitive parity.
Follow the crowd method.
Some firms may well utilize the situation.
Difference in the firm size is another problem.
Based on the objective and task.
Most proactive approach.
Decides the objective, plan the task, understand
cost and then decide the budget.
FACTORS AFFECTING BUDGET DECISIONS.
Stage in the plc.
Market share and consumer base.
Competition and.
Advertising frequency.
Products substitutability.
DEVELOPING THE CAMPAIGN(MESSAGE).
Message generation and evaluation.
What the ad says?
Evaluating the various messages and choosing
one.
Creative development and execution.
How the ad says?
How it can be executed?
Legal and social issues.
DECIDING ON MEDIA(MEDIA)
Deciding on reach, frequency and impact.
Media selection-is finding the most cost effective
media to deliver the desired number and type of
exposures to the target audience.
Exposures-specified advertising objective and its
response from the target audience.
Reach-the number of different persons or
households exposed to a particular media schedule
at least once during a specified time period.
Frequency-the number of times within the specified
time period that an average person or household
exposed to the message.
Impact-the qualitative value of an exposure through
a given medium.
(automobile advertisement impact will be higher in
automobile magazines than in fashion magazines.)
If the reach, frequency and impact is high the
advertisement will have an effectiveness but the
budget will be high.
Reach-introducing products.
Frequency-if the competition ifs high
DECIDING ON MEDIA TYPES.
Each media will differ in their power of
reach,frequency,and impact.
Media planners should find out the right mix of
media for reach,frequency,and impact.
Target audience media habits-
youth,elders,rich,middleclass,geographical
differences.
Product characteristics-high-tech products requires
audio-video visualization, paints
Message characteristics-timeliness and information
content will influence media choice.
Limited period offer –radio,t.v,newspaper.
Product placement in movies and t.v shows.
Point of displays.
Ads can be anywhere, even in toilets where a
customer spends some time.
SELECTING SPECIFIC MEDIA VEHICLE.
Circulation.
Audience-readership.
Effective audience
Effective ad-exposed audience.
DECIDING ON MEDIA TIMING AND ALLOCATION.
Macro scheduling.
Micro scheduling.
Buyer turnover.
Purchase frequency.
Forgetting rate.
Continuity.
Concentration.
Flighting.
Pulsing.
EVALUATING ADVERTISING EFFECTIVENESS.
The potential effect on awareness,knowledge,or
preference. also to measure the ad’s sales effect.
Brand awareness, knowledge about the brand,
preference for the brand, sales effect
Communication-effect research.
Consumer – feedback method
What is the main message that you get from this ad?
What do you think they want you to know,believ,or do?
How likely is that this ad will influence you to undertake
the decision?
What works well and what works poorly?
How does the make you feel?
Portfolio tests-ask customers to view or listen to a
portfolio of advertisements, then they are asked to
recall the ads and the content.
Laboratory test-measure physiological reactions of
the customer.
Attention getting power can be identified but not
beliefs,attitudes,or intentions.
Sales effect research.
Historical method- comparison with the old data.
Experimental-consumer panel are created and their
purchase behavior linked with a particular ad.
In-store tests.
MANAGING THE DISTRIBUTION FUNCTION.
Marketing channels are sets of independent
organizations involved in the process of making a
product or service available for the customer.
Role and functions of middlemen.
Information.
Price-stability.
Promotion.
financing.
Title.
Type and nature of middlemen.
Merchant middlemen.
Take titles of the product and resell them.
Retailers,wholesalers,dealers.
Agents.
Title and risk will not be shared, they will help the firm in identifying potential customers.
Commission based on their work.
Facilitors.
Independent business units, without holding the title of the product.
Service charges can be collected.
Railway tickets and western union money transfer in muthoott.
MAJOR DISTRIBUTION ALTERNATIVES.
Intensive distribution.
All the possible outlets that can be distributed the
product.
Soft drinks and candy.
Easy availability.
Selective distribution.
Some selective outlets for the distribution.
Good relationship with the channel members.
Optimum market coverage, good control, less cost.
Consumer durables.
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