ADVERTISING & PROMOTION (HNC/HND Unit 18) HO 5 (Part 1)
Tools Of The Promotional Mix:Personal Selling, Sales Promotion, Packaging & Merchandising (Part 1)
Tools of The Promotional Mix“Promotional Mix” Promotional mix is the particular combination of promotion methods (tools) that a firm uses in its promotion campaign to reach at target market
Methods of Promotion MixThere are five forms of promotion:• Personal Selling• Sales Promotion• Public Relations & Publicity• Direct Marketing• Advertising
Person-to-person communication in which a seller Personal Selling informs and educates prospective customers and attempts to influence their purchase choices• 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
Types of Salespeople• Personal Selling Tasks: – Order-getter – Order-taker – Supporting
The Selling Environment• Three Selling Environments: – Telemarketing: →Inbound →Outbound – Over-the-Counter Selling – Field Selling (Source: Hoffman et al)
The Selling Environment (2)• Over-the-Counter Selling: – Usually conducted in retail outlets – Order taker- is a salesperson who only processes the purchase that the customer has already selected – Order getter- is a salesperson who seeks to actively provide information to prospects, persuade prospective customers, and close the sales • Suggestion selling- occurs when the salesperson points out available complementary items in line with the selected item(s), in order to encourage an additional purchase (Source: Hoffman et al)
The Selling Environment (3)• Field Selling: – Involves calling on prospective customers in either their business or home locations (be order takers or order getters) – Professional Salespeople – National Account Managers-highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level – Missionary Salespeople- they do not seek to obtain a direct order from their customers, their primary goal is to persuade customers to place orders with distributors or wholesalers (Source: Hoffman et al) – Support Salespeople- help the order-oriented salespeople-but they don’t try to get orders themselves (Source: Perreault and McCarthy)
Sales Promotion• The Institute of Sales Promotion (ISP) defines sales promotion as “ a range of tactical marketing techniques, designed within a strategic marketing framework, to add value to a product or service, in order to achieve a specific sales and marketing objective”.
Principles & Approaches• Sales promotions can be targeted at resellers, consumers and sales forces• Sales promotions can add value and also increase value so as to accelerate the sales process• Growth: Short-termism, accountability, brand performance, brand expansion and competition for shelve space
Principles & Approaches (2)• Loyalty schemes aims to increase customer retention levels but there are a number of different types and/or levels of loyalty• Used appropriately sales promotion can have a strategic roles in the overall marketing communications plan
Objectives of Sales Promotions• Facilitate the introduction of new products• Obtain trial purchases• Stimulate sales force enthusiasm• Invigorate sales of a mature brand• Increase on- and off-shelf merchandising space• Neutralizing competitive advertising• Encouraging repeat purchases• Increase brand usage by loading consumers• Preempting competition by leading consumers• Reinforcing advertising
Objectives of Consumer Promotions• Trial impact: Inducing nonusers to try a brand or encouraging retrial• Franchise holding/loading: Rewarding current users for continuing to purchase the promoted brand• Image reinforcement: Involves the careful selection of the right premium object, or appropriate sweepstakes prize, to reinforce a brand’s desired image
Objectives of Trade Promotions• Introduce new or revised products• Increase distribution• Build retail inventories• Maintain shelf space• Obtain display space• Reduce excess inventory• Induce cooperative advertising• Counter competition• Sell more to final consumers
Trade Promotions• Off-invoice allowance: The most frequently used• Bill-back allowance: Retailers receive allowances for featuring the manufacturer’s brand in advertisement or for providing special displaying• Slotting allowance : The manufacturer is asked to pay the up-front fee for shelf space• Everyday low pricing (EDLP): no deal is offered
Methods & Techniques The techniques and methods are considered by given types of audience and possible goals that might be in place.• Objectives – Increase usage by current customers or encourage non-users to experiment particularly in low involvement situations
Methods & Techniques (2)• Methods – There are a wide variety of techniques and the decision to use any of them should be based on specific circumstances. By integrating its use with other promotional tools, the impact and effectiveness can be considerably improved
Methods & Techniques (3)• Benefits – On sales, profitability, customer’s perceptions, the competition and other tools in the promotion mix need to be carefully determined prior to any campaign. In addition to this, sales promotions can be used to develop customer databases for use in direct marketing activities.
Sales Promotion Activities:• Consumer: → Sampling → Branded packs → Couponing → Contests → Premiums → Cause related → Money off → Merchandising → Bonus packs → Point-of-sale → Loyalty schemes → Information
Sales Promotion Activities (2):• Trade: → Consumer promotions → Allowances → Contests and incentives → Point-of-sale material and merchandising → Sampling → Gifts and free merchandising → Information
Packaging & Merchandising• Packaging is a marketing tool that combines graphic design with marketing concepts to create an identity for the brand. An ideal package is one which brings to the customer’s mind the essence of what the brand is all about whenever and wherever it is seen. It can be effectively used to influence customer choice at the point-of-sale in terms of reducing the uncertainty and risk inherent in product choice and it acts as a tangible reminder at the point-of-sale.
Benefits of Packaging:• A communication tool to express brand values• Aesthetically pleasing• Strong visual impact• A living expression of what the brand represents• Adds value from customer’s perspective• A reminder• Provides cues to express loyalty• Creates an emotional link with the target audience
Packaging Features:• Colour: – powerful emotional signals, symbolic e.g. Cadbury’s purple is associated with luxury• Typography: – communicates the product image• Logo: - signifies the brand’s individuality and unique image, e.g. Coca-cola• Type/material: - recyclable, biodegradable, e.g. boxes, cartons, cans etc.• Shape & structure: - used to attract attention, e.g. Jif’s yellow lemon• Label or mark: - Varies with types and materials of packaging, can be printed on the package or other materials• Size: - encourage product usage, e.g. economy size pack
Merchandising:• Merchandising can defined as the range of sales promotions activities intended to ensure that products are easily available, and prominently and attractively displayed at point-of-sale. It is also used to describe the activity of making promotional products available, such as those associated with new film releases (Star Wars, The Lion King, Harry Porter), e.g. calendars, figurines, novelty items etc….