unit 8 promotion.pptx

7/25/2019 Unit 8 Promotion.pptx

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Promotion

Unit 8


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Concept of Promotion:

It is an important mix of marketing. It communicates essential

messages to potential buyers. It is any form of

communications used to inform, persuade, or remind peopleabout an organization's or individual's goods, services etc. It

tells the target customers about product, price and place.

According to Philip otler !Promotion includes all the

activities the company undertakes to communicate andpromote its products to the target market.!

After the goods have been produced, people must be

communicated about the products and persuade them for

acceptance. Promotion is an attempt to influence thempositively. Promotional elements consists or advertising,

sales promotion, personal selling, publicity and public

relations.


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Three basic objectives of promotion. These

are:

". #o present information to consumers as $ellas others

%. #o increase demand

&. #o differentiate a product.


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Objectives Marketing Communication

1.Informing:

ne of the most important ob(ectives of promotion is to inform customers

about the use, benefits, and features of the products. It includes the name and

address of the manufacturer or seller also.

%.Persuading:

nly by informing consumers about the products, they may not be influenced

to$ards the products. In order to influence them, the manufacturer or seller must

kindly persuade or appeal them to use his products.

&. Reminding:

nce the products are communicated it may not serve market for al$ays.

)onsumers may forget about the products because several competitive products

are available in the market. *o the market should repeat communication to

remind customers that a product is still avai+lable and serve as they desire.

.Re-enforcing:

-arketers usually reenforce the customers to buy products. It is a form of

psychological pressure to the customer for make purchase or re purchase of the

products. It consists motivating, heavy advertisement, publicity developing a

no$ atmosphere etc.


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ar!eting communication process and "ystem


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ar!eting communication process and "ystem

". *ources

%. )ommunication message

&. -essage encoding. -essage delivery system

/. 0ecoding

1. 2eceiver3. 4oise

+. 5eedback


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The Promotion Mix Strategy

Promotion Mix:

It is the combination of advertising publicity, public relation, sales

promotion and personal selling. It is the particular combination of

promotional tools. #hey are given belo$:

".#dvertising:

It is paid form of non personal communication. It is delivered

through mass media like radios, #elevision, ne$spapers, brochures,

posters etc. It consists of Print media67isual media6 Internet.

%.Personal selling:

It is a face to face communication bet$een the sellers and

prospective buyers. -ore money spent on personal selling.


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$. "ales promotion:

It involves marketing activities other than advertising,

publicity or personal selling that stimulate consumer purchases

and dealer effectiveness. #he forms of sales promotion include:

#rade sho$s.

0emonstrations.

)oupons 2ebates

*amples

)ontests

*ales promotion means any steps that taken for the purposeof increasing sales. It is a bridge bet$een advertising and

personal salesmanship.


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. Publicity:

It is any message concerning an organization appearing in the

mass media as a ne$s item for $hich the organization does not

pay and is not generally considered to be the source. 5or

example press conference and speeches, ne$s releases feature

articles, publication.

/. Public relation:

It is any unpaid form of presentation designed ato promotesfavorable attitudes and opinions to$ard organization, its policies

and products. It is an attempt to be a good citizen in the market.

8Public service activities

8 *ponsorship of events 8 9obbying 6 xhibits and displays.


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Push Strategy: -anufacturer ;holesaler

2etailer )ustomer

Pull Strategy: -anufacturer ;holesaler2etailer )ustomer


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Push Strategy:

#he promotion program is directed at middlemen. #he product is

pushed through the channel. #he channel members are persuaded to

order, carry and promote product to customers. #he manufacturerpromotes to $holesaler, the $holesaler promotes retailer, the

retailer promotes to customer. Personal selling and trade promotion

tools are emphasized in push strategy. #his strategy is useful $here

brand loyalty is lo$ and market share is to be protected.

Pull Strategy:

#he promotion program is directed at customers. #he customers

are persuaded to ask the product from the retailers, the retailers ask

the product from the $holesalers and $holesalers order the productfrom the manufacturers. #he product is pulled through the channel

to increase sales.


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#dvertising

Advertising:

It is paid form of non personal communication. It is deliveredthrough mass media like radios, #elevision, ne$spapers, brochures, posters

etc. It consists of Print media67isual media6 Internet.

AIDA: Attention6interest6desire6action Features:

1. Advertising involves costs

2. Advertising is impersonal !ords" sym#ols $

%. Advertising can #e various &orm consumer ' Industrial $

(. Advertising uses various media

). Advertising promotes goods" services and ideas

*. Advertising is targeted at some actions in&orm" persuade" remind

etc $


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Objectives of Advertising

Support to personal selling

Reach mass people

Attract a new market segment Promotion of new prouct

!mpro"e ealer relations

#xpan company sales

!nformation

Persuasion

Reminer

Reinforcement

Media:

$Press or print $ Auio or Raio

$ Auio%&isual

$ 'isplay

$ #lectronic (!nternet etc )


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#dvertising %udgets

It is converting the advertising plan into

monetary value. It is a plan that involves

determining the total allocation of monetary

resources for various activities involved. #he

ma(or ob(ectives of budgets are :

". 5acilitate the advertising program

%. Achievement of advertising goals

&. )ontrol tool


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#he ma(or items of expenditures in advertising

are located in different areas:

". 2esearch expenses

%. 0evelopment expenses

&. Production

. 2elease

/. Administrative cost

%udgeting #pproaches&. Top-'o(n approach

). %ottom-up approach


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#dvertising message "election

#he main focus of advertising is to design the most

communicative messages and deliver the to the target audience

in the most effective $ay. It is also the most important element

of and advertising. 5ollo$ing


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*actors affecting message design*

1. Advertising objectives = ob(ectives may be differ like

informs, persuades, reassures and reminds consumersabout products or services etc >

2. Product factor= industrial or consumer products >

3. Customer factor = male or females > messages that

appeal to the children may not appeal to teenagers. #hecopy $riter has to consider the demographic and

psychographic profile of the target audients before

$riting message.

4. Competitor factor = careful evaluate the competitor

factors before designing the message >

/. -edia 5actor


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#dvertising media selection

There are various media options available to

the advertiser. #he advertising media can begrouped in to four categories:

". Press -edia = indoor ad. media > : 4e$s paper,

-agazines, 2adios. Indoor media reach theaudience in their homes and offices.

%. ut door advertising media : #his media reach

the target audience in open spaces. 5orexample : Posters and $all paintings,

?oarding, lectric6lectronic signs, *ky

$riting, *and$ich men


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+. Direct Media: It reach customers their homesand offices through the postal or courier

systems. nvelop enclosures, post cards

@ooklets and catalogues

ift novelties = key rings, pen stands and paper$eights.

?andbills = Pamphlets >

. Display Media: ;indo$ display, xhibitionsand trade fairs, -obiles etc


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bjectives or goals of media selection*

". 2each the defined target audience

%. -atch the product distribution $ith media

coverage

&. -atch advertising ob(ective $ith media vehicle.

. )ounter the advertising of competitors

/. *tay $ithin the advertising budget

1. )irculation = number of copies of the

ne$spapers and magazines etc >

3. 2each 6 continuity 6 Impressions


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Personal Selling:

-eaning:

It is a face to face communication bet$een the sellersand prospective buyers. -ore money spent on personal

selling. It is a process of informing customers and

persuading them to purchase products through personal

communication in an exchange #rans actions. It is aoral presentation in a conversation $ith one or more

prospective customer for the purpose of making sales.

According to +illiam ,. Stanton - Personal selling is

personal communication o& in&ormation to persuade

some#ody to #y somethings.


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Natures:

Traitional metho

two way communication

!ni"iual attention for consumers

Persuasion (re,uest or appeal)


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Importance o& Personal selling:

5lexibility = changeable to meet $ith

customers >

#$o $ay communication

Persuasion = face to face interaction >

2epresents the $hole company

2eliable source of information

-inimizes $asted efforts

It results in the actuarial sales


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/#,ectives o& Personal selling:

ntrance to selling area.

#$o $ay communication.

0evelopment of relationship.

Profit making.

)onsumer facility.


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Methods: ' 0ypes

2etail selling = door to door selling>

#rade selling = selling to $hole seller and

retailer>

-issionary selling =#hey don't directly sales

product orders collection like pharmaceutical

and insurance sales person.>

0irect selling = direct to customer from

manufactures>

Industrial selling = use industrial sales person>


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Public Relations

Meaning/Nature

It is any unpaid form of presentation designed ato promotes

favorable attitudes and opinions to$ard organization, its policies andproducts. It is an attempt to be a good citizen in the market.

8Public service activities

8 *ponsorship of events

8 9obbying 6 xhibits and displays -arketing has to take care of the interest of various types of publics

such as media, government pressure groups, local people, and general

public and internal staff. Activities targeted at maintaining good relations

$ith the publics are kno$n as public elations.

According to Philip otler - Pu#lic relations involve a variety o&program designed to promote or protect a companys image or its

individual products


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Importance

@uild relationship $ith opinion leaders.

@uild direct relationship $ith customers.

@uild and maintain customer loyalty.

@uild market place excitement before product launch.

Methods 0ools $

". Press 2elations:

8Personal communication. 8 Press 2elease

8 5eature articles

8 Publication

%. Public service activities 8 *ponsorship of events

8 9obbying

8 xhibits and displays


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+bjectives of Public Relations

1. !uild mar"et place e#citement before product

launc$

2. !uild and maintain customer loyalty

3. !uild direct relations$ips %it$ consumers

4. !uild relations$ips %it$ opinion leaders.


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Sales romotion*

-eaning:

It involves marketing activities other than advertising, publicity or personal

selling that stimulate consumer purchases and dealer effectiveness. #he formsof sales promotion include:

#rade sho$s.

0emonstrations.

)oupons

2ebates

*amples

)ontests

*ales promotion means any steps that taken for the purpose of increasing

sales. It is a bridge bet$een advertising and personal salesmanship.

According to Philip otler - Sales promotion consists o& a diverse

collection o& incentive tools" mostly short term" designed to stimulate

3uic4er and or gr%ater purchase o& particular products 'survives #y

consumers or the trade


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/#,ectives

Attracting ne$ customers

-arketing of ne$ customers

#o compete

?elping middleman

#o increase selling

#o promote offseasons products


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Methods: 0ools$

Priceoff promotion

)oupons

*amples

Premiums = gift >

Prizes = contests 6 games >

Product $arranties

#rade sho$s and exhibitions

*ales contests

)redit facilities


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Relationship Marketing:

Marketers must take all possi-le eorts toretain the existing customers as well as -uilup

relationship with new customers. !t is the -est methoof retaining such customers in the company/sproucts. Actually it is the moern practice of -uilinglong term satisfying relations with key parties likecustomers0 supppliers0 an istri-utors. !t means -uil

prota-le uni,ue relationship with marketing network(customers0 employees0 suppliers0 istri-utors0retailers0 a"ertising agencies0 uni"ersity scientistsan others). !t pro"ies greater customer satisfaction

an hence retains the existing customers. Attract customers an keeping customers is

actually a i2cult task.


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3ustomer 'e"elopment Process

Susects


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!mportant ,uestions

'ene istri-ution an explain theo-5ecti"es of istri-ution .

#xplain the importance of marketingchannel an their key functions

'iscuss a-out channel ynamics.6ow hori7ontal conict arise9 Also

-riefy iscuss how channel conictcan -e manage.

'ene market logistic. #xplain its

functions

unit 8 promotion.pptx

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