promotion

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The best advertising is done by satisfied customers. Kotler on Marketing Kotler on Marketing

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Page 1: Promotion

The best advertising

is done by satisfied

customers.

Kotler on MarketingKotler on Marketing

Page 2: Promotion

Promotion

I. Developing and Managing and Advertising

Program – Advertising is any form of non-personal

presentation and promotion of ideas, goods, or

services by an identified sponsor. The major

decisions in developing an advertising programme:

Page 3: Promotion

Five M’s : 

Mission – What are the advertising objectives?

Money – How much can be spent?

Message – What message should be sent?

Media – What media should be used?

Measurement – How should the results be evaluated?

Page 4: Promotion

 

 Setting the Advertising Objective – whether the aim is

to inform, persuade, remind or reinforce. Advertising Objective :  

-   Is a specific communication task and achievement level

to be accomplished with a specific audience in a specific

period of time 

-  The advertising objective should emerge from a

thorough analysis of the current marketing situation.

Page 5: Promotion

Deciding on the Advertising Budget – five factors to consider include stage in the product life cycle, market share and consumer base, competition and clutter, advertising frequency, and product substitutability.

  Budget Methods :           i.      Affordable method         ii.      Percentage of sales method        iii.      Competitive parity method        iv.      Objective & Task method           -  Determine Objective

           - Determine Tasks

        - Estimate the cost of performing these tasks.

Page 6: Promotion

Choosing the Advertising Message. 

i) Message Generation & Evaluation 

ii) Creative Development & Execution - focus on one

core selling proposition and aim for desirability,

exclusiveness and believability. 

impact depends not only on what is said but how it is

said (positioning). Creative people must also find a

style, tone and format for executing the message). 

iii) Social-Responsibility Review – make sure the creative

advertising does not overstep social and legal norms.

Page 7: Promotion

Media Selection is finding the most cost effective media to deliver the desired number and type of exposures to the target audience

Deciding on the Media  Deciding on reach (number of people exposed at least

once within a specified time period), frequency (total number of times they are reached within a specified time period) and impact (qualitative value). The

relationship among reach, frequency and impact is seen in determining the total number of exposures, and the weighted number of exposures.                     

Page 8: Promotion

Choosing among major media types. Consider :

target audience media habits, product and message

characteristic, and cost.

Alternative Advertising Options :

Place Advertising (Billboards, Public Spaces)

Product Placement

Point – of – Purchase

Evaluating Alternative Media

Page 9: Promotion

Selecting Specific Media Vehicles – using the

cost -per - thousand criterion. 

Deciding on the Media Timing and Allocation –

macroscheduling (according to seasonal or

business trends) and microscheduling (allocating

advertising expenditures within a short period to

obtain the maximum impact) 

  National v. spot buying.

Page 10: Promotion

Evaluating Advertising Effectiveness 

i. Communication-Effect Research – pretesting

and postesting methods 

ii. Sales-Effect Research – historical approach,

experimental design

Page 11: Promotion

II. Sales promotion – consists of a diverse collection

of incentive tools, mostly short term, designed to

stimulate quicker and / or greater purchase of

particular products/services by consumers or the

trade.

                  i.  The rapid growth of sales promotion                ii.  The purpose of sales promotion

Page 12: Promotion

Major decisions in sales promotion

a. Establishing the sales-promotion objective. b. Selecting the Sales - Promotion Tools (Consumer-

promotion, trade-promotion, and/or business- and sales force promotion tools).

 c. Developing the sales - promotion program (make decisions on the size of the incentive, conditions for participation, duration of the promotion, distribution vehicle, timing and the total sales-promotion budget).

d. Pre-testing, Implementing and controlling and evaluating the sales- romotion program.  Sales data, consumer surveys, and experiments.

Page 13: Promotion

 

III. Public Relations – involves a variety of programs

designed to promote and/or protect a company’s image

or its individual products.

The five activities of public relations include: press

relations, product publicity, corporate communications,

lobbying, and counseling.

Page 14: Promotion

   Major decisions in marketing public relations (MPR) 

i. Establishing the Marketing Objectives (build

awareness, build credibility, stimulate the sales force

and dealers, and hold down promotion costs). ii. Choosing the PR Message and Vehicles. iii. Implementing the MPR Plan and Evaluating the Results  

Exposures, awareness / comprehension / attitude

change, sales-and-profit contribution