Lecture 9 Promotion of products and services
•Download as PPTX, PDF•
0 likes•231 views
Promotion mix
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Lecture 9 Promotion of products and services
Similar to Lecture 9 Promotion of products and services (20)
More from International Balkan University
More from International Balkan University (20)
Recently uploaded
Recently uploaded (20)
Lecture 9 Promotion of products and services
- 2. What is a Promotion? Communication with consumers in order to buildawareness and interest in products and services! Informing, persuading& reminding consumers about the company's products and services! Measures & activities to encourage and increase sales!
- 3. Interesting facts about Promotion If you want to see all the TV commercials that are presented on all televisionsin the world in one year, you have to live 35 centuries! Every 60-year-old man has seen about 2,000,000 TV commercials in his life! The average person is exposed to about 5,000 ads / day!
- 4. Marketing Mix & Promotion Mix Product Price Advertising Place Promotion Public Relations Personal Selling Sales Promotion Direct Marketing
- 5. 1) Advertising Any PAID, NONPERSONAL presentation and promotion of goods and services by an IDENTIFIED sponsor!
- 6. 1) Advertising Characteristics: Nonpersonal communication One-way communication Paid messages Well-known sponsor Huge audience Mass-media: TV, radio, newspaper, magazines, Internet, cinema
- 8. 1) Advertising Advantages: Huge audience (geo) Low unit price/ exposure Many time can be repeated Artful use of visuals, print, sound, color Impersonal, no feedback Disadvantages: Absolute high costs
- 9. 1) Advertising Aims: INFORM Primary demand New product REMIND Mature products PERSUADE Selective demand When competition is strong!
- 10. 1) Advertising Message: Short, clear, original, creative Presented by: celebrity, an expert, ordinary person Easy to remember, recognize
- 11. 1) Advertising Message: Most visible part of an ad! 1 2 3
- 12. 1) Advertising Message: Most invisible triangle of an ad! 3 5 12 11 2 1 7 14 20 19 10 4 8 16 24 23 15 6 13 18 22 21 17 9 A B C
- 13. 2) Public Relations (PR) UNPAID form of public information (+ / -) about a person, event, place, activity, work through the mass media. Third party included! Building good relations with the company’s various public by obtaining favorable publicity, building up a good corporate image and handling unfavorable rumors, stories and events. Building POSITIVE IMAGE!
- 14. 2) Public Relations (PR) Characteristics: Unpaid promotion Third party involved! Great reliability! Uncontrolled messages Mass -media Press release, sponsorship, special events, lobbying, promotion by 3rd party!
- 15. 2) Public Relations (PR)
- 16. 2) Public Relations (PR) Press release, news Tools: Sponsorship Lobbying Talk show Lectures, speeches Special events Product Placement (movie)
- 17. 2) Public Relations (PR) Advantages: Less expensive than ads More credible than ads Bad publicity Disadvantages: No control over messages
- 18. 3) Personal Selling Direct persuasion of consumers to buy the product! Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
- 19. 3) Personal Selling Characteristics: Direct contact Two-way communication Product demonstration Quick response, adjustments Long term relations Product presentation, trade shows, well-trained salesperson
- 20. 3) Personal Selling Advantages: Two-way communication Persuasion possibility Long term relations Most expensive Disadvantages: Limited number of customers Well trained salespersons
- 21. 3) Personal Selling RULE: 10 : 3 : 1
- 22. 4) Sales Promotion SHORT TERM& TEMPORARY promotion in the form of rewards that stimulate fast sales!
- 23. 4) Sales Promotion Characteristics: Short-term incentive Limited period, ”Buy it now!” New products trial Off season sales Consumer attraction Discounts, free samples, coupons, rebates, displays, price packs, premiums, BOGOF
- 24. 4) Sales Promotion Advantages: Attracting Attention New products / New markets Quick sales On a long run, it can damage the image of product Disadvantages: High costs
- 25. 4) Sales Promotion Rebates (cash-refunds) Happy hour, Open day Free samples, Premiums Price packs Ad specialties Patronage rewards Place of Purchase displays Contests, sweepstakes, games Coupons
- 26. 4) Sales Promotion Coupons Rebates (cash-refunds) Certificate for savings when buying “Proof of purchase” after buying
- 27. 4) Sales Promotion Premiums Free samples, BOGOF Gift in, on the pack, or by mail Sample of the product
- 28. 4) Sales Promotion Price packs (cents off deals) Ad specialties On the package, +quantity Company’s promotion products
- 29. 4) Sales Promotion Patronage rewards PoP displays For regular use – miles, gift card, discounts at the checkout Promotional signs, “shelf takers”
- 30. 4) Sales Promotion Contests Sweepstakes To submit an entry – a jingle, guess, suggestion Pure Luck!
- 31. 4) Sales Promotion WIN FREE Contests Sweepstakes BOGOF Free Samples SAVE Coupons Rebates
- 32. 5) Direct and Online Marketing DIRECT SALES without intermediaries! Direct connection with carefully targeted individual consumers to obtain direct response and cultivate customer relationship One-to-One Marketing
- 33. 5) Direct and Online Marketing Characteristics: Immediate response Dialogue One to one marketing Kiosk, Catalogue, Telemarketing, Direct mail, Mobile phone, Podcast, Interactive TV Personalized communication Interactive communication
- 34. 5) Direct and Online Marketing Advantages (buyers): 24/7 open virtual shops Comfortable purchase Wealth of products Low costs Internet irritation Disadvantages: Advantages (sellers): Flexibility Junk, spam, privacy
- 35. 5) Direct and Online Marketing TOOLS: Catalogue marketing Kiosk marketing Interactive TV (Top Shop) Telemarketing (out +inbound) Website marketing Direct response by radio Social platforms marketing
- 36. EXERCISE: 1) PoP displays are part of: a) Sales promotion, b) Personal selling, c)Direct Marketing d) Advertising 2) Certificate you present to get discount on the price when buying is: a) Rebate, b) Discount, c) Coupon, d) Promotion price 3) When you’re getting a reward without knowledge, based on pure luck, it is: a) Rebate, b) Contest, c) Game, d) Sweepstake 4) Kiosk marketing as well as vending machines are part of: a) Advertising, b) Direct marketing, c) Sales Promotion, d) Personal selling 5) The rule 10:3:1 is a feature of: a) Advertising, b) Direct marketing, c) Sales Promotion, d) Personal selling
- 37. EXERCISE SOLVED: 1) PoP displays are part of: a) Sales promotion, b) Personal selling, c)Direct Marketing d) Advertising 2) Certificate you present to get discount on the price when buying is: a) Rebate, b) Discount, c) Coupon, d) Promotion price 3) When you’re getting a reward without knowledge, based on pure luck, it is: a) Rebate, b) Contest, c) Game, d) Sweepstake 4) Kiosk marketing as well as vending machines are part of: a) Advertising, b) Direct marketing, c) Sales Promotion, d) Personal selling 5) The rule 10:3:1 is a feature of: a) Advertising, b) Direct marketing, c) Sales Promotion, d) Personal selling
- 38. Homework Be creative! You are the marketing director of Tinex. For the upcoming New Year holidays, apply: a) all Sales promotion tools & b) all Direct marketing tools
Editor's Notes
- https://courses.lumenlearning.com/boundless-business/chapter/pricing-methods/ https://courses.lumenlearning.com/boundless-business/chapter/pricing-methods/ Value –based pricing (Value-optimized pricing) – is a business strategy that sets prices on the value, perceived or estimated to the customer rather then on the cost of the product, market price, competition or historical prices. The goal of the value-based pricing is to align a price with the value delivered. Customers who receive high levels of value will pay a higher price than customers who receive lower level of value. Ex. For economic prices – those of soups, vegetables, fruits, salt, sugar, pepper, spaghetti, etc. For extra (premium) price – those of Swarovski, Hilton, Crown Plaza, etc. Price skimming – a price strategy in which a marketer sets a relatively high price for goods/services and then lower the prices over time. Price skimming allows the firm to cover the costs quickly before the competition steps in and lowers the market price. The objective is to capture more customers. Ex. New movie, new CD…Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. Price skimming is sometimes referred to as riding down the demand curve. The objective of a price skimming strategy is to capture the consumer surplus. If this is done successfully, then theoretically no customer will pay less for the product than the maximum they are willing to pay. In practice, it is almost impossible for a firm to capture all of this surplus. Penetration price – is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price to attract new customers. The objective is to make customers to switch to the new brand because of the lower price. This strategy is most associated with an objective to increase market share or sales volume rather than to make profit in the short run. Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term. Premium Pricing Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market. It is used to maximize profit in areas where customers are happy to pay more, where there are no substitutes for the product, where there are barriers to entering the market, or when the seller cannot save on costs by producing at a high volume. It is also called image pricing or prestige pricing.