On October 23rd, 2014, we updated our
By continuing to use LinkedIn’s SlideShare service, you agree to the revised terms, so please take a few minutes to review them.
DRIVERS OF SP. IN MARKETPLACE Consumer Behavior: Consumer better educated, low brand loyalty & Selective
Festivals, major events in sports still draw a huge crowd. Indians are still price conscious
Cont… Market Share: Brand switching, the name of the game. Parity Products: Differentiation strategy in a world of ‘me too’ product. Power Retailer : The place where it all happens. Consumers directly in touch with them.
TYPES OF PROMOTION CONSUMER PROMOTION TRADE PROMOTION
CONSUMER PROMOTION Price Deals: E.g. “More for Less”, 50% Off, Buy One Get One Free offer. Coupons: E.g. VLCC coupons for discount Contests: E.g. Answer a simple question and win a Color TV Sweepstakes: E.g. Name is selected for query Form for lucky draw Premiums: E.g. Buy Pepsodent & collect G.I Joes; Sampling: E.g. Consumer sample new product for free
TRADE PROMOTION Point of Purchase(POP): E.g. Banners, Danglers & Posters at the retails outlet. Dealer/Retailer Kit: All the information about the product that the retailer should know. Contests & sweepstakes: Specials offers to the retailer so that he pushes that brand Trade shows & Exhibits: E.g. Auto Expo at Chennai trade center Trade Incentive: The more ‘cut’ is given to the retailer, the more he pushes your product.
PROMOTION STRATEGIES 3 Broad objectives:
Stimulate demand by consumers
Improve marketing performance of resellers
To supplement and coordinate advertising, personal selling & public relations activities.
PROMOTION STRATEGIES Help in creating & sustaining brand value. Managing brand image Cut into brand loyalty of other brands. Promotion to be more brand focused. Co-branding, a key tool
DIFFERENCE BETWEEN ADVERTISING Creates an image over time Relies on Emotional appeals Adds Intangible value to the product/Service Contributes Moderately to short term profitability SALES PROMOTION Creates immediate action Relies on Rational appeal Adds Tangible value to the product/service Contributes Greatly to short term profitability