Hierarchy of management that covers different levels of management
promotion chapter
1. 19-1
Promotion
When a company develops a new product, changes
an old one or wants increase sales of an existing
product or service, it must transmit its selling
messages to potential customers.
“ Promotion includes all the tools in the marketing mix
whose major role is persuasive communication.”
“ Promotion consists of those activities that are
designed to bring a company's goods and services to
the favourable attention of customers.”
3. 19-3
Developing Effective
Communication
1. Identify the Target
Audience
2. Determine the
communication Objectives
3. Design the Message
4. Select the communication
channel
5. Establish Marketing
Communication Budget
6. Execute The Message
4. 19-4
1. Identify the Target Audience
( Audience Analysis)
The communication process start with a clear target
audience
Target audience can be current users, deciders,
influencers, individuals, groups, potential customers
etc.
The target audience analysis is a critical influence on
the communicators decision on what to say? When
to say? And to whom to say it?
5. 19-5
1. Identify the Target Audience
( Audience Analysis)
Audience analysis also includes the image analysis
which assess the current image of the company, its
product, and its competitors.
Audience analysis helpful for the organization to
determine the communication objectives, design the
message, select the media, set the communication
budget and to select the appropriate promotional
tool.
7. 19-7
3. Designing a Message
Message content:
Rational appeals
Emotional appeals
Moral appeals
Message structure:
Draw conclusion or not
One versus two-sided argument
Strongest argument first or last
Message format:
Sight, sound, colour, and texture
9. 19-9
5. Establish The Communication Budget
Affordable
method
Percentage-of-sales
method
Competitive-parity
method
Objective-and-task
method
What management thinks
the company can afford
The budget as a percentage
of forecasted sales
Setting the budget to
match competition spending
1. Defining specific objectives
2. Determining tasks needed
3. Estimating costs of tasks
4. Adding total costs
10. 19-10
Promotion Mix
“The basic tools used to accomplish an
organization's communication objectives are
often referred to as promotional mix.”
Communicates the message about the product,
service and the company, and different
dimensions to inform, persuade and retain the
class of customers that it targets.
12. Advertising
Any paid form of non-personal communication of
ideas or products in the "prime media": i.e.
television, newspapers, magazines, billboard
posters, radio, cinema etc.
Advertising is intended to persuade and to inform.
The two basic aspects of advertising are:
The message.
The medium.
13. Personnel Selling
Personal selling is oral communication with potential buyers of a
product with the intention of making a sale. Personal selling
mainly focuses on developing a relationship with the potential
buyer. Personal selling is one of the oldest forms of promotion.
It involves the use of a sales force to support a push strategy
(encouraging intermediaries to buy the product) or a pull
strategy (where the role of the sales force may be limited to
supporting retailers and providing after-sales service).
Personnel Selling involves selling through a person-to-person
communication process. In an Integrated Marketing
Communications program, personnel selling is a partner with,
not a substitute for, the other promotional mix elements.
14. Public Relations
PR involves a variety of programs designed to
promote or protect a company’s image or its
individual products.
PR is usually unsponsored and unpaid. It acts
synergistically along with advertising.
It can be a very important component of the
entire communications mix of the company
15. Sales Promotion
Where advertising gives a reason to buy, Sales
Promotion gives an incentive to buy.
Internal reasons:
Top management is more conducive to
spending on promotions
Line managers under greater pressure to
achieve targets
Justification of expenditure is easy
16. Direct mail is a way of advertising in which advertisers
mail printed ads, letters or other solicitations to large
groups of consumers.
Direct mail use to advertise new products or to
distribute coupons.
Direct mail is a type of advertising medium in which
messages are sent to target customers through the
mail.
Direct mail often use the terms "direct mail," "direct
marketing," and "mail order"
Direct Mail
17. Interactive/Internet Marketing
Interactive media allows for a back and forth flow of information,
whereby users can participate in and modify the form and
content of the information they receive in real time.
Interactive media allows user to perform a variety of functions
such as receive and alter information and images, make
enquiries, respond to questions and make purchases.
The interactive medium that is having the greatest impact on
marketing is the Internet.
The Internet is changing the ways companies design and
implement their business and marketing strategies.
The Internet is a multi faceted promotional tool.
It can be termed as an advertising tool or also as a marketing tool
that can be used to execute all the elements of the promotional
mix.
18. ROLE / AIMS AND TASKS OF
PROMOTION
INFORMATION PERSUADING REMINDING
19-18
19. 19-19
Factors Influencing Promotional Mix
Product Related Factors
Amount and complexity of product information.
Products stage in the life cycle.
Push and pull strategies
Consumer related Factors
Size and characteristics of the target market
Availability of funds
Type of buying decision
20. 19-20
Advertising
“ Advertising is paid non-personal
communication from an identified sponsor
using mass media to persuade or influence
an audience”
21. 19-21
Advertising
Advertising has six elements
Advertising is a paid form of communication.
Sponsor is identified
Tries to persuade or influence the consumer to do
something.
Message is conveyed through many different kinds
of mass media
Advertising reaches a large audience
It is a non -personal
22. 19-22
Types of Advertising
1. On the Basis of Geographical Spread
National Advertising
Local Advertising
Global Advertising
23. 19-23
Type of Advertising
2. On the Basis of Target Advertising
Consumer Advertising
Industrial Advertising
Trade Advertising
Professional Advertising
3. Public Service Advertisements
4. Institutional Advertising/Corporate
Advertising
24. 19-24
Type of Advertising
5. Brand Advertising
6. Political Advertising
7. Directory Advertisement
8. Direct Response Advertising
9. Financial Advertising
10. Primary Demand Advertising
11. Selective Advertising
25. 19-25
Publicity
“ Refers to the generation of news about a person, product or
service that appears in broadcast or print media”
“Non- Personal not paid stimulation of demand of the products
or services by planting commercially significant news or
editorial comment in the print media or by obtaining a
favourable presentation if it upon radio, and television.
26. 19-26
The Power of Publicity
“Why publicity is much more powerful than advertising or sales
promotion- or even other forms of promotion?”
Publicity is highly credible.
Publicity information is perceived as endorsed by the medium
in which it appears.
It has news value
High frequency of exposure.
27. 19-27
Public Relations
“ The management function which evaluates public attitudes,
identifies the policies and procedures of an organization with
the public interest and executes a programme of action to earn
public understanding and acceptance.”
28. 19-28
Sales Promotion
“ A Direct Inducement that offers an extra value or incentive for
the product to the sales force, distributors, or the ultimate
consumer with the primary objective of creating an immediate
sale.”
Sales promotion consists of short-term incentives to encourage
the purchase or sales of a product or service.
The idea behind sales promotion is to generate immediate sales.
29. 19-29
Types of the Sales Promotion
Consumer oriented sales promotion
Trade oriented sales promotion.
31. 19-31
Direct Marketing Defined
“Direct Marketing is the use of Consumer – direct channels
to reach and deliver goods and services to customers with
out using marketing middlemen.”
“A system of Marketing by which organisations
communicate directly with customers to generate a response
or transaction.”
32. 19-32
Catalog Selling
Direct Selling Direct Action Advertising
Direct Mail
Telemarketing
TV Selling
Catalog Selling
TV Selling
Direct Mail
Direct Action AdvertisingDirect Selling
Direct Marketing Defined
“The total of activities by which the seller directs efforts to a
target audience using one or more media for the purpose of
soliciting a response by phone, mail, or personal visit from a
prospective customer.”
33. 19-33
The Internet
“The Internet is a worldwide means of
exchanging information and communicating
through a series of interconnected computers”
36. 19-36
“Oral Presentation in conversation with
one or more prospective purchaser for
the purpose of making sales”
Personal selling consists of contracting
prospective buyers of a product
personally”
Personal Selling