promotion tools in business

8/7/2019 promotion tools in business

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PROMOTION TOOLS INBUSINESS MARKETINGPROMOTION TOOLS INBUSINESS MARKETING

Presenting by:ChandraShekar

Vii Sem MBS


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PROMOTION Promotion keeps the product in the minds of the customer

and helps stimulate demand for the product. Promotioninvolves ongoing advertising and publicity. The ongoingactivities of advertising, sales and public relations are oftenconsidered aspects of promotions.

The global market place consists of an increasingly complexarena of competitors within a rapidly changing environment.

Everything about your product communicates:

Price - Place - Product (including packaging)

New companies are formed on a daily basis,

How can one get people to know about their

business so that it can grow?


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ADVERTISING "A

dvertising is any paid form of non-personal presentationand promotion of ideas, goods and services through massmedia such as newspapers, magazines, television or radio byan identified sponsor".

- Philip Kotler and Armstrong

"The means of providing the most persuasive possible sellingmessage to the right prospects at the lowest possible cost".

- Institute of Practitioners in Advertising

Advertising is bringing a product (or service) to the

attention of potential and current customers.

Advertising is a form of Communication!


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Objectives

Paid non-personal communication through various media.

Objective - To inform reader, listener or viewer about

RetailerOfferingsPrices

Services

What do you want to achieve and how will youmeasure it?


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Scope and Importance

of Advertising Advertisements are important for:

products aimed at large markets products that have easily communicated features products low in price products sold through independent channel members

and/or are new.

Broadcast Ad spending is at an all time high due to heavycompetition in the:

Computer industry Telecommunications Industry Auto Industry


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BENEFITS OF ADVERTISING A

dvertisements create awareness, interest and desire forproducts and services in customers to buy them.

Advertising is cost efficient as advertisements can reach avast number of audiences simultaneously.

The message can be repeated several times It helps inboosting the sales of the company.

It supports the activities of the distribution network of thefirm by creating demand and encouraging purchase through pullstrategy.

It helps in making the job of the sales force easier, by cratingawareness among potential customers.

Advertisements also help in building a strong image of aproduct or brand, apart from increasing its sales.


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The Five Ms of

Advertising


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Identifying the target

audience Identify the Target Audience :

Marketers must gather information on thegeographic location, demographic variables (like age, sex,education, income level etc.) and consumer attitude towards

the company products and competitor products.

Local or Global audiences Mass or niche Market

For instance, an advertisement of Amrutanjan pain balm istargeted at the mass market, while the advertisement of

Mercedes Benz is targeted at a niche market of statusconscious, high income group customers.


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Selecting the right

media Who should be reached? Where are they located? Which media is appropriate? When do we run the advertising campaign?

You have a wide choice of media vehicles each with its ownadvantages and shortcomings.

Media analysis

"An investigation into the relative effectiveness and therelative costs of using the various advertising media in anadvertising campaign"


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Cont., A useful distinction can be made between published media

and visual/aural media.

Published or print media include:National daily newspapersSunday newspapersLocal and regional newspapersConsumer magazinesSpecialist magazinesTrade and professional pressInternet

Visual and aural media include:

Television (terrestrial and digital)RadioCinemaBillboards (Out door)TransportDirect mailing


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Profile of major advertising mediumsNewspapers Flexibility; timeliness; good

local market coverage; broadacceptance; high believability

Short life; poor reproductionquality;

small pass along audience

Television Combines sight, sound and

motion; appealing to the

senses; high attention; high

reach.

High absolute cost, high clutter,fleeting

exposure, less audience selectivity

Direct mail Audience selectivity, flexibility, no adcompetition within the same medium,

personalization.

Relatively high cost, junk mail image.

Radio Mass use, high geographical

and demographic selectivity;

low cost.

Audio presentations only; lower

attention than television; non

standardized rate structure;fleeting

exposure.

Magazines High geographical and

demographic selectivity;credibility and prestige; high

quality reproduction, long life;

good pass-along readership.

Long ad purchase lead time; some

wastecirculation; no guarantee of position

Outdoor Flexibility; high repeat

exposure; low cost; low

competition.

Limited audience selectivity;creative

limitation.

BroachersF

lexibility; full control; candramatize message.

Overproduction could lead to runaway

costs.


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Categories of Advertising Public Awareness Advertising Product Advertising- 3 Types Consumer Advertising Industrial Product Advertising Service Advertising Corporate Advertising Public Relation Advertising Public Service Advertising Financial Advertising

Global Advertising Internationalizing of Advertising Institutional Advertising Cause Advertising Celebrity Advertising Cause Advertising


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Public Awareness

Advertising

Public Awareness Advertising


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Celebrity Advertising


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Sales promotion

Short term incentives to encourage thepurchase or sale of a product or service.

Sales promotion include tools for consumer

promotion, trade promotion and businessand sales force promotion.

Now ,it is part of the Marketing spend of

all companies and these days SP spends inmany companies exceed that of theadvertisements spends.


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Objectives Speeding the sales process and

increasing the sales volume.

Building product awareness. Creating interest.

Providing information.

Reinforcing the brand.


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Tools of sales promotion

Consumer promotion tools

Trade promotion tools

Business promotion tools


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Consumer promotion tools

Couponcertificate that gives buyers a saving when theypurchase a specified product.

SampleA small amount of a product offer to customers for

trial.

Cash refund offer (rebate)Offer to refund the part of the purchase price of the

product to consume send a proof of purchase to themanufacturer.

Price pack (cents off - deal)Reduced price that is marked by the producer directly

on the label or package.


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Trade promotion tools

DiscountA straight reduction in price on

purchases during a stated period of time.

AllowancePromotional money paid by

manufacturers to retails in return for an

agreement to feature the manufacturersproduct in some way.


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Business promotion tools

Companies spend billions of dollars eachyear on promotion to customers.

This tool is used to generate businessleads, stimulate purchases, rewardcustomers and motivate sales people.

Many companies and trade associationsorganize the conventions and trade showsto promote their product.


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Uses of sales promotion

Immediate purchases

Increase trial

Boost consumer inventory Encourage repurchase

Encourage brand switching

Encourage brand loyalty


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Direct marketing Direct marketing

Direct marketing creates a direct relationship betweenthe customer and the business on an individual basis.

Many forms: Telephone marketing, direct mail, onlinemarketing, etc.

Four distinctive characteristics: Nonpublic Immediate Customized

Interactive

Well-suited to highly targeted marketing efforts


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Public Relationship

The planned and sustained effort to establishand maintain goodwill and mutual understandingbetween an organization and its publics.

Highly credible

Many forms: news stories, news features, eventsand sponsorships, etc.

Reaches many prospects missed via other formsof promotion


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Public relations techniques

There are many techniques available to influencepublic opinion, some of which are moreappropriate in certain circumstances than others:

Consumer

communication

Customer press releases

Trade press releases

Promotional videos

Consumer exhibitions

Competitions and

prizes

Product launch events

Celebrity endorsements

Web sites

Business

communication

Corporate identitydesign

Company and

product videos

Direct mailings

Web site

Trade exhibitions

Internal & External

communication

In-house newslettersand magazines

Intranet

Notice boards

Employee conferences

Email

Company literature

(brochures, videos etc.) Community

involvement programs

Trade, local, national

and international media

relations

Financial

communication

Financialmedia relations

Annual report

and accounts

Meetings with

stock market

analysts, fund

managers etc Shareholder

meetings

(including the

annual general

meeting)


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Personal Selling Direct communications between paid representatives and

prospects that lead to transactions, customer satisfaction,account development, and profitable relationships.

Most effective tool for building buyers preferences,convictions, and actions

Personal interaction allows for feedback and adjustments Relationship-oriented

Buyers are more attentive

Sales force represents a long-term commitment

Most expensive of the promotional tools (Paid one)


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Cont., Steps in Personal Selling Process:

- Opening a call

- Need Exploration

- Presentation

- Handling objections

- Closing the sale

- Follow-up


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Sales management

Controlling of personal contact programsdesigned to achieve the sales and profitobjectives of the firm.

Responsible of Sales Manager Achieving or exceeding the goals established

for performance in the current period

Developing the people reporting to them

The planning, organizing, and leading


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PlanningBudgetingRecruiting andselecting

Training

MotivatingCompensatingDesigning territoriesEvaluating performance

Sales

Management

Advertising Public

Relation

Personal

Selling

Sales

PromotionInternet

MarketingMix

Product Price Promotion Distribution

Positions of Personal Selling and SalesManagement in the Marketing Mix


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THE SALES

MANAGEMENT PROCESS1. The formulation of a sales program.2

. The implementation of the salesprogram.3. The evaluation and control of the

sales program.


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THE SALES MANAGEMENT

COMPETENCIES Strategic Action Competency.

Understanding the industry Understanding the organization Taking strategic actions

Coaching Competency. Providing verbal feedback Role modeling Building trust

Team-Building Competency. Designing teams properly Creating a supportive environment Managing team dynamics appropriately


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Cont.,

Self-Management Competency. Integrity and ethical conduct Managing personal drive Self-awareness and development

Global Perspective Competency. Cultural knowledge and sensitivity Global selling program

Technology Competency. Understanding the productivity potential of new

technology Implementing sales force automation (SFA) Implementing customer relationship management (CRM)


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THANK YOU FOR

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Question?

Presented by:

Chandrashekar

promotion tools in business

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