MODULE 5
Promotion Strategy
Promotion is the process of marketing
communication to inform, persuade, remind
and influence ...
ELEMENTS OF RETAIL PROMOTIONAL MIX
 Advertising
 Public Relations
 Personal selling
 Sales promotion
ADVERTISING
 Advertising is paid, non-personal
communication transmitted through out-of-store
mass media by an identified...
OBJECTIVES
 Lifting short-term sales
 Increasing customer traffic
 Developing and/or reinforcing a retail image
 Infor...
ADVANTAGES
 A large audience is attracted.
 The cost per viewer, reader,or listener are low.
 A number of alternative m...
CONTD:
 Editorial content often surrounds an ad.
 Self-service or reduced-service operations are
possible since a custom...
DISADVANTAGES
 Standardized messages lack flexibility
 Some media require large investments
 Media may reach large geog...
TYPES OF ADVERTISING
 Content method
 Payment method
CONTENT METHOD
 Pioneer messages
 Competitive message
 Reminder message
 Institutional message
MANNER OF PAYMENT
 Full payment by retailer
 Cooperative advertising
 Vertical
 horizontal
PUBLIC RELATIONS
 Public relations entails any communication
that fosters a favorable image for the
retailer among its pu...
OBJECTIVES
 Increase awareness of the retailer and its strategy
mix.
 Maintain or improve the company image.
 Show the ...
ADVANTAGES
 An image can be presented or enhanced.
 A more credible source presents the message.
 There are no costs fo...
DISADVANTAGES
 Some retailers do not believe in spending any
funds on image-related communication.
 There is little reta...
PERSONAL SELLING
 Personal selling is the art of convincing the
prospects to buy the given products or services. It
is th...
OBJECTIVES
 Persuade customers to buy.
 Stimulate sales of impulse items or product related
to customers’ basic purchase...
ADVANTAGES
 A salesperson can adapt a message to the needs
of the individual customer.
 A salesperson can be flexible in...
DISADVANTAGES
 Only a limited number of customers can be handled
at a given time.
 The costs of interacting with each cu...
SALES PROMOTION
 Sales promotion encompasses the paid
communication activities other than
advertising, public relations, ...
OBJECTIVES
 Increasing short-term sales volume.
 Maintaining customer loyalty.
 Emphasizing novelty.
 Complementing ot...
ADVANTAGES
 It often has eye-catching appeal.
 Themes and tools can be distinctive.
 The consumer may receive something...
DISADVANTAGES
 It may be hard to terminate certain promotions
without adverse customer reactions.
 The retailer’s image ...
PLANNING A RURAL PROMOTIONAL
STRATEGY
 Determining promotional objectives
 Establishing an overall promotional budget
 ...
APPROPRIATE MEDIA
 Media Selection
 1.The financial allocation for advertising.
 2.The nature of the product and the de...
CHARACTERISTICS OF IMPORTANT MEDIA
 1. Mural Advertising
 2. Press Advertising
 3. Film Advertising
 4. Radio Advertis...
RURAL SPECIFIC MEDIA
 1. Music CD’s
 2. Puppetry
 3. Folk Theater
 4. Interpersonal Media
 5. Group Meeting
 6. Hous...
CONSTRAINTS IN RURAL COMMUNICATION
 1. Low Literacy Rate
 2. Low Spending Capacity
 3. Joint Families and Strong Kinshi...
DISTRIBUTION CHANNEL
 Distribution channel performs various tasks
necessary to promote sales of products and
services to ...
 Selling
 Assorting
 Financing
 Storage
 Sorting
 Grading
 Transportation
 Market Information
 Risk-taking
CHANNEL STRUCTURES
CHANNEL TYPES
METHODS OF DISTRIBUTION
 1. Stockist’s Van / Company Owned
Vehicles
 2. Hired Vehicles
 3. Working by Independent Stock...
PROBLEMS OF RURAL DITRIBUTION
 1. Transportation Problems:)
 2. Warehousing Problems:)
 3. Communication Problems:
 4....
RURAL RETAILER BEHAVIOUR
 Seasonal Pattern:
 1. Transfer of Capital
 2. Credit Pattern
 3. Purchasing Cycle
THANK YOU………….
Rural marketing module 5
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Rural marketing module 5

  1. 1. MODULE 5 Promotion Strategy Promotion is the process of marketing communication to inform, persuade, remind and influence consumers or users in favor of your product or service.
  2. 2. ELEMENTS OF RETAIL PROMOTIONAL MIX  Advertising  Public Relations  Personal selling  Sales promotion
  3. 3. ADVERTISING  Advertising is paid, non-personal communication transmitted through out-of-store mass media by an identified sponsor.4 aspects of this definition merit clarification:  Paid form  Non-personal presentation  Out-of-store mass media  Identified sponsor
  4. 4. OBJECTIVES  Lifting short-term sales  Increasing customer traffic  Developing and/or reinforcing a retail image  Informing customers about goods and services and/or company attributes  Easing the job for sales personnel  Developing demand for private brands
  5. 5. ADVANTAGES  A large audience is attracted.  The cost per viewer, reader,or listener are low.  A number of alternative media are available.  The retailer has control over message content, graphics, timing, and size.  In print media, a message can be studied and restudied by the target market.
  6. 6. CONTD:  Editorial content often surrounds an ad.  Self-service or reduced-service operations are possible since a customer becomes aware of a retailer and its offerings before shopping.
  7. 7. DISADVANTAGES  Standardized messages lack flexibility  Some media require large investments  Media may reach large geographic areas, and for retailers, this may be wasteful.  Some media require a long lead time for placing ads.  Some media have a high throwaway rate.
  8. 8. TYPES OF ADVERTISING  Content method  Payment method
  9. 9. CONTENT METHOD  Pioneer messages  Competitive message  Reminder message  Institutional message
  10. 10. MANNER OF PAYMENT  Full payment by retailer  Cooperative advertising  Vertical  horizontal
  11. 11. PUBLIC RELATIONS  Public relations entails any communication that fosters a favorable image for the retailer among its publics. it may be Non personal or personal, paid or non paid and sponsor controlled or non controlled.
  12. 12. OBJECTIVES  Increase awareness of the retailer and its strategy mix.  Maintain or improve the company image.  Show the retailer as a contributor to the community’s quality of life.  Demonstrate innovativeness.  Present a favorable message in a highly believable manner.  Minimize total promotion costs.
  13. 13. ADVANTAGES  An image can be presented or enhanced.  A more credible source presents the message.  There are no costs for message time or space.  A mass audience is addressed.  Carryover effects are possible.  People pay more attention to news stories than to clearly identified ads.
  14. 14. DISADVANTAGES  Some retailers do not believe in spending any funds on image-related communication.  There is little retailer control over a publicity message and its timing, placement, and coverage by a given medium.  It may be more suitable for short-run, rather than long-run, planning.  Although there are no media costs for publicity, there are costs for a public relations staff, planning activities, and the activities themselves.
  15. 15. PERSONAL SELLING  Personal selling is the art of convincing the prospects to buy the given products or services. It is the wit act of persuasion. It is the ability to handle the people to dandle the products. It is the ability to convert human needs into wants.
  16. 16. OBJECTIVES  Persuade customers to buy.  Stimulate sales of impulse items or product related to customers’ basic purchases.  Complete customer transactions.  Feed back information to company decision makers.  Provide proper levels of customer service.  Improve and maintain customer satisfaction.  Create awareness of the items also marketed through web.
  17. 17. ADVANTAGES  A salesperson can adapt a message to the needs of the individual customer.  A salesperson can be flexible in offering ways to address customer needs.  The attention span of the customer is higher than with advertising.  There is less waste; most people who walk into a store are potential customers.  Customers respond more often to personal selling than to ads.  Immediate feedback is provided.
  18. 18. DISADVANTAGES  Only a limited number of customers can be handled at a given time.  The costs of interacting with each customer can be high.  Customers are not initially lured into a store through personal selling  Self-service may be discouraged.  Some customers may view salespeople as unhelpful and as too aggressive.
  19. 19. SALES PROMOTION  Sales promotion encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness.
  20. 20. OBJECTIVES  Increasing short-term sales volume.  Maintaining customer loyalty.  Emphasizing novelty.  Complementing other promotion tools.
  21. 21. ADVANTAGES  It often has eye-catching appeal.  Themes and tools can be distinctive.  The consumer may receive something of value, such as coupons or free merchandise.  It helps draw customer traffic and maintain loyalty to the retailer.  Impulse purchases are increased.  Customers can have fun, particularly with promotion tools such as contests and demonstrations.
  22. 22. DISADVANTAGES  It may be hard to terminate certain promotions without adverse customer reactions.  The retailer’s image may be hurt if trite promotions are used.  Frivolous selling points may be stressed rather than the retailer’s product assortment, prices, customer services, and other factors.  Many sales promotions have only short-term effects.  It should be used mostly as a supplement to other promotional forms.
  23. 23. PLANNING A RURAL PROMOTIONAL STRATEGY  Determining promotional objectives  Establishing an overall promotional budget  Selecting the promotional mix  Implementing the promotional mix  Reviewing and revising the promotional plan
  24. 24. APPROPRIATE MEDIA  Media Selection  1.The financial allocation for advertising.  2.The nature of the product and the demand for it.  3. The type of prospects, their location and other characteristics.  4. The nature of competition and the extent of coverage required.  5. Cost of media, co-operation and promotional aids offered by media, media circulation.
  25. 25. CHARACTERISTICS OF IMPORTANT MEDIA  1. Mural Advertising  2. Press Advertising  3. Film Advertising  4. Radio Advertisement  5. Television Advertisement  6. Transit Advertising  7. Direct Mail
  26. 26. RURAL SPECIFIC MEDIA  1. Music CD’s  2. Puppetry  3. Folk Theater  4. Interpersonal Media  5. Group Meeting  6. House-to-House Campaign  7. Field Demonstrations:  8. AV Vans  9 Wall Paintings
  27. 27. CONSTRAINTS IN RURAL COMMUNICATION  1. Low Literacy Rate  2. Low Spending Capacity  3. Joint Families and Strong Kinship Ties  4. Linguistic and Socio-cultural Differences  5. Unique Media Habits  6. Situation Based Leisure Time Activities  7. Expensive Communication  8. Poor Infrastructure  9. Lack of Research Data  10. Selective Attention
  28. 28. DISTRIBUTION CHANNEL  Distribution channel performs various tasks necessary to promote sales of products and services to the ultimate customers.
  29. 29.  Selling  Assorting  Financing  Storage  Sorting  Grading  Transportation  Market Information  Risk-taking
  30. 30. CHANNEL STRUCTURES
  31. 31. CHANNEL TYPES
  32. 32. METHODS OF DISTRIBUTION  1. Stockist’s Van / Company Owned Vehicles  2. Hired Vehicles  3. Working by Independent Stockist  4. Selling Through Bullock Cart / Camel / Boat  5. Appointment of Primary Dealers  6. Using Urban Wholesalers
  33. 33. PROBLEMS OF RURAL DITRIBUTION  1. Transportation Problems:)  2. Warehousing Problems:)  3. Communication Problems:  4. Non-Availability of Dealers:  5. Greater Dependence on Dealers  6. Higher Cost and Administrative Problems  7. Poor Viability of Retail Outlets
  34. 34. RURAL RETAILER BEHAVIOUR  Seasonal Pattern:  1. Transfer of Capital  2. Credit Pattern  3. Purchasing Cycle
  35. 35. THANK YOU………….

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