0
Promotion
“Coordination of all seller initiated efforts to
set up channels of information and
persuasion in order to sell ...
1 Promotion

Pontiac

Communication by marketers
that informs, persuades, and
reminds potential buyers of a
product in ord...
1 Promotional Strategy
A plan for the optimal use of the
elements of promotion:
Advertising
Public Relations
Personal Sell...
1 The Role of Promotion
Overall
Overall
Marketing
Marketing
Objectives
Objectives
Marketing Mix
Marketing Mix
•• Product
P...
2 Promotional Mix
Combination of promotion tools
used to reach the target market
and fulfill
the organization’s
overall go...
Advertising
• “Paid form of nonpersonal communication
about an organisation ,product ,service or
idea by an identified spo...
The Nature of Advertising
• advertising is distinguished from other
forms of promotion as follows
• it has a verbal and/or...
Advertising
Advantages

Disadvantages

●

Reach large number
of people

● Total cost is high

●

Low cost per
contact

●

...
Advertising to
Target Audiences
• advertising can be classified by the
target audience to which it is directed
• consumer ...
What is Being Advertised?
• product advertising is designed to
promote the sale of a specific product or
service:
• may be...
What are the Objectives?
• primary-demand advertising is
intended to stimulate use of a category
of products
• selective-d...
Comparative Advertising
• Selective-demand advertising
• Involves comparing a product to its
competing brand
• May be:
• D...
Co-operative Advertising
• co-operative advertising involves the
sharing of the cost of advertising by
two or more sponsor...
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Copyright © 2001 McGraw-Hill Ryerson Limited
Sales Promotion
• Demand-stimulating devices designed to
supplement advertising and facilitate
personal selling.
• Sales p...
Types of Sales Promotion
• Trade promotions, directed to
members of the distribution channel.
• Consumer promotions, aimed...
Consumer - Promotion
Tools
Short-Term Incentives to Encourage Purchase

or Sales of a Product or Service.
ConsumerConsumer...
Trade -- Promotion Tools
Trade Promotion Tools
Short-Term Incentives That are Directed to
Retailers and Wholesalers.
Trade...
Business -- Promotion Tools
Business Promotion Tools
Short-Term Incentives That are Directed to
Industrial Customers.
Busi...
Advantages of
Sales Promotion
• It can produce short-term results.
• Competitors are using sales
promotions.
• Sales promo...
Key Reasons for
Sales Promotion

• Stimulating end-user demand.
• Sampling program for new/improved
product
• Improving th...
Public Relations
• A tool designed to influence favourably
attitudes towards an organization, its
products and policies.
•...
Major Public Relations Tools
Major Public Relations Tools
Public
Public
Service
Service
Activities
Activities

Web Site
We...
Publicity
Publicity is a form of public
relations that includes any
communication about an
organization or its products th...
Strengths of Publicity
• Can announce new products, recognize
employees, report good results,
breakthroughs.
• Key Benefit...
Weaknesses of Publicity
Some loss of control over
message.
• Limited exposure; only happens
once.
• Not free; preparation ...
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Introduction of advertisement

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Introduction of advertisement

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  • On Line
    The Olympics
    How is the International Olympic Committee using its Web site to communicate its marketing message to a youthful audience? Is the site geared to the demographic of young, extreme sports fans that seemed to be the hallmark of the 2002 Winter Games in Salt Lake City?
  • Transcript of "Introduction of advertisement"

    1. 1. Promotion “Coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea”. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 1
    2. 2. 1 Promotion Pontiac Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 2
    3. 3. 1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion 3
    4. 4. 1 The Role of Promotion Overall Overall Marketing Marketing Objectives Objectives Marketing Mix Marketing Mix •• Product Product •• Distribution Distribution •• Promotion Promotion •• Price Price Target Market Target Market Chap. 14 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Promotional Mix Promotional Mix ••Advertising Advertising ••Public Relations Public Relations ••Personal Selling Personal Selling ••Sales Promotion Sales Promotion Promotion Plan Promotion Plan 4
    5. 5. 2 Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Personal Selling Sales Promotion Direct Marketing Interactive Marketing 5
    6. 6. Advertising • “Paid form of nonpersonal communication about an organisation ,product ,service or idea by an identified sponsor.” Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 6
    7. 7. The Nature of Advertising • advertising is distinguished from other forms of promotion as follows • it has a verbal and/or visual message • the sponsor of the message is identified • delivery is through recognizable media • there is payment by the advertiser to the media for carrying the message • advertisers are increasingly being able to reach specific audiences with tailor-made messages Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 7
    8. 8. Advertising Advantages Disadvantages ● Reach large number of people ● Total cost is high ● Low cost per contact ● Can be microtargeted Brand building ● 8
    9. 9. Advertising to Target Audiences • advertising can be classified by the target audience to which it is directed • consumer advertising generally appears in mass media and is directed to end consumers: may be product or institutional in nature • business-to-business advertising is often called trade advertising and is directed to a business market Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 9
    10. 10. What is Being Advertised? • product advertising is designed to promote the sale of a specific product or service: • may be direct-action, quick-response direct-action • may be indirect-action over a longer time • institutional advertising promotes the firm or tries to create a positive image: • may promote customer service • or send a public service message Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 10
    11. 11. What are the Objectives? • primary-demand advertising is intended to stimulate use of a category of products • selective-demand advertising is intended to encourage purchase of a particular brand or the products and services of a specific firm Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 11
    12. 12. Comparative Advertising • Selective-demand advertising • Involves comparing a product to its competing brand • May be: • Direct, naming competitors outright • Less direct, alluding to competitors (e.g., “leading brand”, “Brand X”) but not naming them Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 12
    13. 13. Co-operative Advertising • co-operative advertising involves the sharing of the cost of advertising by two or more sponsors: • a manufacturer and retailers (vertical), or vertical • a group of retailers (horizontal) (horizontal Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 13
    14. 14. Copyright © 2001 McGraw-Hill Ryerson Limited
    15. 15. Copyright © 2001 McGraw-Hill Ryerson Limited
    16. 16. Copyright © 2001 McGraw-Hill Ryerson Limited
    17. 17. Copyright © 2001 McGraw-Hill Ryerson Limited
    18. 18. Copyright © 2001 McGraw-Hill Ryerson Limited
    19. 19. Copyright © 2001 McGraw-Hill Ryerson Limited
    20. 20. Copyright © 2001 McGraw-Hill Ryerson Limited
    21. 21. Copyright © 2001 McGraw-Hill Ryerson Limited
    22. 22. Copyright © 2001 McGraw-Hill Ryerson Limited
    23. 23. Copyright © 2001 McGraw-Hill Ryerson Limited
    24. 24. Copyright © 2001 McGraw-Hill Ryerson Limited
    25. 25. Copyright © 2001 McGraw-Hill Ryerson Limited
    26. 26. Copyright © 2001 McGraw-Hill Ryerson Limited
    27. 27. Copyright © 2001 McGraw-Hill Ryerson Limited
    28. 28. Copyright © 2001 McGraw-Hill Ryerson Limited
    29. 29. Copyright © 2001 McGraw-Hill Ryerson Limited
    30. 30. Copyright © 2001 McGraw-Hill Ryerson Limited
    31. 31. Copyright © 2001 McGraw-Hill Ryerson Limited
    32. 32. Copyright © 2001 McGraw-Hill Ryerson Limited
    33. 33. Copyright © 2001 McGraw-Hill Ryerson Limited
    34. 34. Copyright © 2001 McGraw-Hill Ryerson Limited
    35. 35. Copyright © 2001 McGraw-Hill Ryerson Limited
    36. 36. Copyright © 2001 McGraw-Hill Ryerson Limited
    37. 37. Sales Promotion • Demand-stimulating devices designed to supplement advertising and facilitate personal selling. • Sales promotions include such things as coupons, in-store displays, premiums, trade shows, in-store demonstrations, and contests. • The target for these activities may be middlemen, end users, or the producer’s own salesforce. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 37
    38. 38. Types of Sales Promotion • Trade promotions, directed to members of the distribution channel. • Consumer promotions, aimed at consumers. • Consumers got 3.3 billion coupons for packaged goods alone in 1996. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 38
    39. 39. Consumer - Promotion Tools Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. ConsumerConsumerPromotion Tools Promotion Entice Consumers to Objectives Entice Consumers to Advertising Samples Advertising Try a New Product Try a New Product Lure Customers Away Lure Customers Away From Competitors’ Products From Competitors’ Products Get Consumers to “Load Up’ Get Consumers to “Load Up’ on a Mature Product on a Mature Product Hold & Reward Loyal Hold & Reward Loyal Customers Customers Consumer Relationship Consumer Relationship Building Building Samples Coupons Coupons Cash Refunds Cash Refunds Price Packs Price Packs Premiums Premiums Specialties Specialties Patronage Patronage Rewards Rewards Contests Contests Sweepstakes Sweepstakes Games Games Point-of-Purchase Point-of-Purchase Displays Displays Copyright © 2001 McGraw-Hill Ryerson Limited
    40. 40. Trade -- Promotion Tools Trade Promotion Tools Short-Term Incentives That are Directed to Retailers and Wholesalers. Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Persuade Retailers or Wholesalers to Carry a Brand Wholesalers to Carry a Brand Price-Offs Price-Offs Premiums Premiums Give a Brand Shelf Space Give a Brand Shelf Space Allowances Allowances Promote a Brand in Promote a Brand in Advertising Advertising Buy-Back Buy-Back Guarantees Guarantees Patronage Displays Rewards Push a Brand to Consumers Push a Brand to Consumers Free Goods Free Goods Contests Contests Copyright © 2001 McGraw-Hill Ryerson Limited Discounts Discounts Push Money Push Money Specialty Specialty Advertising Advertising Items Items
    41. 41. Business -- Promotion Tools Business Promotion Tools Short-Term Incentives That are Directed to Industrial Customers. BusinessPromotion Objectives Generate Business Leads Business-Promotion Tools Generate Business Leads Conventions Conventions Stimulate Purchases Stimulate Purchases Trade Shows Trade Shows Reward Customers Reward Customers Sales Contests Sales Contests Motivate Salespeople Motivate Salespeople Copyright © 2001 McGraw-Hill Ryerson Limited
    42. 42. Advantages of Sales Promotion • It can produce short-term results. • Competitors are using sales promotions. • Sales promotions are attractive to price-conscious consumers. • Can enhance/facilitate retail salesmanship which is often of low quality. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 42
    43. 43. Key Reasons for Sales Promotion • Stimulating end-user demand. • Sampling program for new/improved product • Improving the marketing performance of middlemen and salespeople. • Sell more, win a holiday trip. • Supplementing advertising and facilitating personal selling. • Displays, promotional giveaways Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 43
    44. 44. Public Relations • A tool designed to influence favourably attitudes towards an organization, its products and policies. • Public relations is often overlooked by management because of: • Organization structure; not in marketing. • Inadequate definitions; loosely defined. • Unrecognized benefits; many nonbelievers. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 44
    45. 45. Major Public Relations Tools Major Public Relations Tools Public Public Service Service Activities Activities Web Site Web Site News News Corporate Corporate Identity Identity Materials Materials Audiovisual Audiovisual Materials Materials Speeches Speeches Written Written Materials Materials Copyright © 2001 McGraw-Hill Ryerson Limited Special Special Events Events
    46. 46. Publicity Publicity is a form of public relations that includes any communication about an organization or its products that is presented by the media but is not paid for by the organization. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 46
    47. 47. Strengths of Publicity • Can announce new products, recognize employees, report good results, breakthroughs. • Key Benefits: • Lower cost than advertising or personal selling. • Increased readership; advertising ignored often. • More information. • Timeliness. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 47
    48. 48. Weaknesses of Publicity Some loss of control over message. • Limited exposure; only happens once. • Not free; preparation costs. • Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 48
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