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MGT 2306
MARKETING MANAGEMENT
Lesson 10B
LESSON 10B OBJECTIVES
• Describe the elements of the promotional mix
- Sales Promotions
- Public Relations / Publicity
SALES PROMOTION
SALES PROMOTION
• A Short-term incentive to encourage sale or
trial. It is a short-term strategy that
encourages consumers to buy now!
• Example:
competitions
2 for 1 deals
price specials
premiums etc.
WHY SALES PROMOTION?
• The need to increase current sales
• Companies face more competition
• Competing brands offer less differentiation
• Advertising inefficiency due to rising costs,
clutter, and legal constraints
• Consumers have become more deal-
oriented – no promotion, no purchase!
MAJOR SALES PROMOTION
TOOLS
Samples Coupons
Cash
refunds
Price packs
Premiums
Advertising
specialties
Patronage
rewards
Point-of-
purchase
displays
Demonstrat
ions
Contests
Sweepstake
s
Games
SAMPLES
Samples offer a free trial
from the pack
Coupons are certificates that
give buyers a saving when they
purchase specific products
Coupons
CASH REFUNDS
Are similar to coupons except
that the price reduction occurs
after the purchase
They offer consumers savings
off the regular price of a
product
Price Packs
PREMIUMS
Are goods offered either for
free or at low price
Are useful articles imprinted
with the advertiser’s name,
logo, or message that are given
as gifts to consumers
Advertising
specialties
PREMIUMS AND ADVERTISING
SPECIALTIES
• they mean the same; the only difference is the
image it projects. (perbezaan hanya terdapat
dalam imej)
• All premiums and specialties have the name of
the sponsor on it.
• By using the premium, you are indirectly helping
the organization advertise itself through you.
PATRONAGE
REWARDS
Customers become
‘Members’ of the
company through
subscriptions & get
‘points’ or invites to
special sales, events or
functions where
membership is given
special treatment or
rewarded with
premiums or offers
A company
representative ‘SHOWS’
how a product works by
demonstrating ‘live’ or
on a recorded media for
repeated playback.
Example: Chef Wan and
Maggi products, Chef
Ismail (Iron Chef)
Demonstrations
POINT-OF-
PURCHASE
PROMOTIONS
Include displays and
demonstrations that take
place at the point of sales
Require an entry by a
consumer. It gives consumers
the chance to win something.
Contests
CONTEST
SWEEPSTAKES
Require consumers to submit
their names for a drawing
Present consumers with
something that may or may not
help them win a prize
Games
SALES
CONTESTS
Are effective in motivating
salespeople or dealers to
increase performance over
a given period
Are effective to reach many
customers not reached with the
regular sales force
Conventions
PRO’S AND CONS’
√ May be targeted at trade or consumers
√ Makes use of variety of formats
√ Attracts attention, offers strong purchase
incentives, dramatizes offers and boosts
sagging sales
√ Stimulates quick response
X Short-lived
X Not effective in building long-term brand
preferences.
PUBLIC RELATIONS
Public relations involves building good
relations with the company’s various publics
by obtaining favorable publicity, building up a
good corporate image, and handling or
heading off unfavorable rumors, stories, and
events
Public relations is used to promote product,
people, ideas, and activities
SAMPLES OF PUBLICITY
LET’S WATCH THIS PR CLIP..
Press relations (akhbar hubungan) or press agency
(agensi perhubungan) involves the creation and
placing of newsworthy information to attract attention
to a person, product, or service
Product publicity involves publicizing specific
products
Public affairs (hal ehwal awam) involves building and
maintaining national or local community relations
Lobbying (lobi) involves building and maintaining
relations with legislators and government officials to
influence legislation and regulation
Investor relations (perhubungan pelabur) involves
maintaining relationships with shareholders and
others in the financial community
Development (Pembangunan) involves public
relations with donors or members of nonprofit
organizations to gain financial or volunteer support
PUBLIC RELATIONS OBJECTIVES
SAVE OUR SHARKS
PUBLIC RELATIONS
IS…..
• Lower cost than advertising (tidak perlu
belanja banyak wang)
• Stronger impact on public awareness than
advertising. (kesan kuat)
MAJOR PUBLIC RELATIONS TOOLS
News
(Berita)
Speeches
(Ceramah)
Special events
(Acara Istimewa)
Written materials
(Bahan cetakan)
Audiovisual
materials
Corporate
identity materials
Public service
activities
(Perkhidmatan
awam)
Buzz marketing
Social networking
Mobile tour
marketing Internet
PRO’S AND CONS’
√ Highly credible
√ Many forms : stories, features, events,
sponsorships
√ More far-reaching than other promotional mixes
√ Dramatizes company and its benefits
X Often the most underused element in the
promotional mix

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MGT2306-MARKETING-MANAGEMENT LESSON 10B

  • 2. LESSON 10B OBJECTIVES • Describe the elements of the promotional mix - Sales Promotions - Public Relations / Publicity
  • 4. SALES PROMOTION • A Short-term incentive to encourage sale or trial. It is a short-term strategy that encourages consumers to buy now! • Example: competitions 2 for 1 deals price specials premiums etc.
  • 5.
  • 6.
  • 7. WHY SALES PROMOTION? • The need to increase current sales • Companies face more competition • Competing brands offer less differentiation • Advertising inefficiency due to rising costs, clutter, and legal constraints • Consumers have become more deal- oriented – no promotion, no purchase!
  • 8. MAJOR SALES PROMOTION TOOLS Samples Coupons Cash refunds Price packs Premiums Advertising specialties Patronage rewards Point-of- purchase displays Demonstrat ions Contests Sweepstake s Games
  • 9. SAMPLES Samples offer a free trial from the pack Coupons are certificates that give buyers a saving when they purchase specific products Coupons
  • 10. CASH REFUNDS Are similar to coupons except that the price reduction occurs after the purchase They offer consumers savings off the regular price of a product Price Packs
  • 11. PREMIUMS Are goods offered either for free or at low price Are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers Advertising specialties
  • 12. PREMIUMS AND ADVERTISING SPECIALTIES • they mean the same; the only difference is the image it projects. (perbezaan hanya terdapat dalam imej) • All premiums and specialties have the name of the sponsor on it. • By using the premium, you are indirectly helping the organization advertise itself through you.
  • 13. PATRONAGE REWARDS Customers become ‘Members’ of the company through subscriptions & get ‘points’ or invites to special sales, events or functions where membership is given special treatment or rewarded with premiums or offers A company representative ‘SHOWS’ how a product works by demonstrating ‘live’ or on a recorded media for repeated playback. Example: Chef Wan and Maggi products, Chef Ismail (Iron Chef) Demonstrations
  • 14.
  • 15. POINT-OF- PURCHASE PROMOTIONS Include displays and demonstrations that take place at the point of sales Require an entry by a consumer. It gives consumers the chance to win something. Contests
  • 16. CONTEST SWEEPSTAKES Require consumers to submit their names for a drawing Present consumers with something that may or may not help them win a prize Games
  • 17. SALES CONTESTS Are effective in motivating salespeople or dealers to increase performance over a given period Are effective to reach many customers not reached with the regular sales force Conventions
  • 18. PRO’S AND CONS’ √ May be targeted at trade or consumers √ Makes use of variety of formats √ Attracts attention, offers strong purchase incentives, dramatizes offers and boosts sagging sales √ Stimulates quick response X Short-lived X Not effective in building long-term brand preferences.
  • 19. PUBLIC RELATIONS Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Public relations is used to promote product, people, ideas, and activities
  • 22. Press relations (akhbar hubungan) or press agency (agensi perhubungan) involves the creation and placing of newsworthy information to attract attention to a person, product, or service Product publicity involves publicizing specific products Public affairs (hal ehwal awam) involves building and maintaining national or local community relations
  • 23. Lobbying (lobi) involves building and maintaining relations with legislators and government officials to influence legislation and regulation Investor relations (perhubungan pelabur) involves maintaining relationships with shareholders and others in the financial community Development (Pembangunan) involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support PUBLIC RELATIONS OBJECTIVES
  • 25. PUBLIC RELATIONS IS….. • Lower cost than advertising (tidak perlu belanja banyak wang) • Stronger impact on public awareness than advertising. (kesan kuat)
  • 26. MAJOR PUBLIC RELATIONS TOOLS News (Berita) Speeches (Ceramah) Special events (Acara Istimewa) Written materials (Bahan cetakan) Audiovisual materials Corporate identity materials Public service activities (Perkhidmatan awam) Buzz marketing Social networking Mobile tour marketing Internet
  • 27.
  • 28. PRO’S AND CONS’ √ Highly credible √ Many forms : stories, features, events, sponsorships √ More far-reaching than other promotional mixes √ Dramatizes company and its benefits X Often the most underused element in the promotional mix