Promotion for marketing plan

1. 1
Marketing
Management
Academic Session
2022-2023
Dr. Mukul Kumar Shrivastava

2. SYLLABUS
(MBDS5001)
Course Learning Outcomes
CO1: Describe the basics of marketing, the nuances of marketing
planning and apply marketing planning process.
CO2: Analyse the business environmental factors to know how it
affects a firm and apply the concepts of marketing research
CO3: Assess the need and importance of consumer and business
buying behaviour.
CO4: Apply market segmentation, targeting and positioning
concept and design Marketing Mix strategies.
CO5: Examine the concept of emerging trends and contemporary
issues in marketing and apply them for their decision making.
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3. SYLLABUS
Course Content
UNIT IV: Marketing Mix (13 lecture hours)
Products concepts, Product Classification, Business Products, Product Mix,
Product Life Cycle, An overview of marketing of services, Characteristics of
Services, Brand management and branding process.
Pricing concept, factors to consider when setting the Price, Setting Pricing
Objectives, Pricing Strategies, Price Adjustment Strategies,
Marketing Channels, Objectives of Marketing Channels, Marketing Channels
Functions, Channel Flow, Channel Levels, Determining Distribution Format,
Designing Distribution Channels, Channel Management, Channels Conflicts,
IMC, need for IMC, Communications model, developing effective
communications, Selecting the Marketing Communications Mix, Case Study
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4. SYLLABUS
Course Content
Prescribed Text Book
1.Kotler, P., & Keller, K. L. (2017). Marketing Management (14th Edition). New Delhi: Pearson
2.Kotler, P. Gary Armstrong and Agnihotri Prafulla (2017), Principles of Marketing, 17th
Edition, New Delhi, Pearson
Reference Books
1.Lamb, Hair, McDaniel, 2018, Marketing Management- MKTG, Pearson, 12th Edition
2.Etzel, Walker, Stanton, Pandit, 2013, Marketing Management14th Edition, Tata McGraw Hill
3.Saxena Rajan, Marketing Management, 2017, 5th Edition, Tata McGraw Hill,
4.Grewal, Levy, Marketing Management, 5th Edition, Tata McGraw Hill
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6. INTEGRATED MARKETING COMMUNICATION
The American Marketing Association defines IMC as “a
planning process designed to assure that all brand
contacts received by a customer or prospect for a
product, service, or organization are relevant to that
person and consistent over time.”
Integrated marketing communication (IMC) can be
defined as the process used to unify marketing
communication elements, such as public relations, social
media, audience analytics, business development
principles, and advertising, into a brand identity that
remains consistent across distinct media channels.
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7. INTEGRATED MARKETING COMMUNICATION
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8. INTEGRATED MARKETING COMMUNICATION
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10. SIGNIFICANCE OF PROMOTION
• To present information to consumers and
others
• To increase demand
• To differentiate a product
• Sales increases
• New product acceptance
• Creation of brand equity
• Positioning
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11. PROMOTIONAL COMMUNICATION PROCESS
• Communication is the process of transmitting
data, ideas, information from a source
(transmitter) to a receiver using
a communication channel. All these elements
form a communication system
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12. PROMOTIONAL COMMUNICATION PROCESS
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13. • The transmitter – is the company that want to
send a message to the target market so that it
receives a favorable answer from them:
✓Purchase of a product
✓Positive attitude
✓Image improvement
PROMOTIONAL COMMUNICATION PROCESS
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14. • Message encoding – The intended meaning of
the message, the idea the transmitter wants to
deliver in encoded in symbols, text, images,
sounds so that it's easily received by the
customer
• The message – is transmitted through a
communication channel to the receiver and has a
certain transmitted meaning.
• These perturbing factors are called
interferences or channel noise and are usually a
consequence of the message intersecting other
promotional messages
PROMOTIONAL COMMUNICATION PROCESS
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15. • Message decoding – the message is received having a
certain received meaning, that can be different from
the original emitted meaning due to the channel noise
• The understood meaning – results from decoding the
received message according to the interpretation the
receiver gives to the symbols the transmitter used to
encode the message.
Receiver – is that part of the target market where the
message is focused. It can be a person, a group or an
organization
• Feedback – is the answering reaction of the receiver
that can be a positive, negative or indifferent
PROMOTIONAL COMMUNICATION PROCESS
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16. Advertising
Direct
Marketing
Sales
Promotion
Publicity/Public
Relations
Personal Selling
PROMOTIONAL
MIX
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17. Advertising
Any paid form of nonpersonal communication
about an organization, product, service, idea
or cause by an identified sponsor.
• Advantages of advertising
– Advertiser controls the
message
– Cost effective way to
communicate with large
audiences
– Effective way to create
brand images and
symbolic appeals
– Often can be effective
way to strike responsive
chord with consumers
• Disadvantages of advertising
– High costs of producing
and running ads
– Credibility problems and
consumer skepticism
– Clutter
– Difficulty in determining
effectiveness
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18. Types of Advertising
• Newspaper
• Magazine
• Radio
• TV
• Directories
• Outdoor & Transit
• Online
• Direct mail, catalogues & leaflets
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19. Direct Marketing
A system of marketing by which
organizations communicate directly
with target customers to generate a
response and/or a transaction.
• Advantages of direct
marketing
• Changes in society have
made consumers more
receptive to direct-
marketing
• Allows marketers to be very
selective and target specific
segments of customers
• Messages can be
customized for specific
customers.
• Effectiveness easier to
measure
• Disadvantages of direct
marketing
• Lack of customer
receptivity and very low
response rates
• Clutter (too many
messages)
• Image problems –
particularly with
telemarketing
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20. Direct Marketing Methods
• Direct marketing methods
–Direct mail
–Catalogs
–Telemarketing
–Direct response ads
–Internet
–Database marketing
–Text Messaging
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21. Sales Promotion
Marketing activities that provide extra value or
incentives to the sales force, distributors, or
ultimate consumers and can stimulate
immediate sales.
• Consumer-oriented
–Targeted to the
ultimate users of a
product or service
• Coupons
• Sampling
• Premiums
• Rebates
• Contests
• POP materials
• Trade-oriented
– Targeted toward marketing
intermediaries such as
retailers, wholesalers, or
distributors
• Promotion allowances
• Merchandise allowances
• Price deals
• In Store Displays
• Sales contests
• Trade shows
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22. Premiums are sales promotions
that involve the consumer
purchasing a product in order to
receive a free gift or reward
A rebate is an amount paid by
way of reduction, return, or
refund on what has already been
paid or contributed
Promotional allowances are
reductions in the price of
products that suppliers offer
trade partners to carry out
additional promotional activity
in support of suppliers' products
Merchandising allowance. Sales
promotion incentive scheme
under which a manufacturer or
distributor reduces the
wholesale price of a good as a
compensation for a retailer's
special promotional efforts
A sales contest is a motivational program in which rewards are
offered to sales people based upon their sales and/or results.
There are three types:
Direct competition — the sales people compete against each
other and there is one winner
Team competition — there are teams which are rewarded
collectively for winning.
Goal — rewards are given for achieving goals which may be
won by more than one person
Sales Promotion
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23. Sales Promotion
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24. Sales Promotion Uses
• Introduce new products
• Get existing customers to buy more
• Attract new customers
• Combat competition
• Maintain sales in off season
• Enhance personal selling efforts
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25. Publicity
It is the movement of information to the general
public from the media
• Advantages of publicity
– Credibility
– Low cost (although not totally free)
– Often results in word-of-mouth
• Disadvantages of publicity
– Not always under control of organization
– Can be negative
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26. Publicity Vehicles
• News Releases:
– Single-page news stories sent to media who might print or
broadcast the content.
• Feature Articles:
– Larger manuscripts composed and edited for a particular
medium.
• Press Conferences:
– Meetings and presentations to invited reporters and editors.
• Special Events:
– Sponsorship of events, teams, or programs of public value.
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27. Public Relations
The management function which evaluates public
attitudes, identifies the policies and procedures of an
individual or organization with the public interest, and
executes a program of action to earn public
understanding and acceptance.
• Tools used by Public Relations
▪ Publicity
▪ Special publications
▪ Community activity participation
▪ Fund-raising
▪ Special event sponsorship
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28. Personal Selling
Direct person-to-person communication
whereby a seller attempts to assist
and/or persuade perspective buyers to
to purchase a product or service.
• Advantages of personal selling
– Direct contact between buyer
and seller allows for more
flexibility
– Can tailor sales message to
specific needs of customers
– Allows for more direct and
immediate feedback
– Sales efforts can be targeted to
specific markets and customers
who are best prospects.
• Disadvantages of personal selling
– High costs per contact
– Expensive way to reach large
audiences
– Difficult to have consistent and
uniform message delivered to
all customers
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29. Factors affecting promotion strategy
PUSH / PULL STRATEGY
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