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Promotion management

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Promotion management

  1. 1. PROMOTION MANAGEMENT UNIT - III
  2. 2. DEFINITION OF PROMOTION : “ The promotion mix consists of the specific blend of advertising, sales promotion, public relations, personal selling & direct marketing tools that a company uses to pursue its advertising & marketing objectives” - Philip Kotler PROMOTION MIX : Combination of various promotional tools used to create, maintain and increase demand.
  3. 3. PROMOTION BLEND : Promotion includes 3 types of sales activities: • Mass impersonal selling methods [advertising] • Face to face or personal selling [ sales manship] • Activities other than personal selling and advertising such as pop [point –of- purchase] display, shows, exhibitions, demonstration etc…
  4. 4. TWO TYPES OF PROMOTION BLENDS : i. PULL BLEND : ii. PUSH BLEND : MANUFACTURER MANUFACTURER WHOLE SALER WHOLE SALER RETAILER RETAILER CONSUMER CONSUMER
  5. 5. OBJECTIVES OF PROMOTION : • To communicate • To convince • To compete in the market FACTORS EFFECTING PROMOTION MIX : 1. 2. 3. 4. 5. 6. 7. Nature of the product Nature of the market Stage of PLC [product life cycle] Availability of funds Nature of techniques of promotion Promotional strategy Readiness of buyer
  6. 6. KINDS OF PROMOTION : 1. Informative promotion – e.g: medicines 2. Persuasive promotion – e.g: kinder joy 3. Reminder promotion - e.g: offer ends on… , polio 4. Buyer behaviour modification promotion – e.g: idea, odonil
  7. 7. ELEMENTS OF PROMOTION : I. ADVERTISING: DEFINITION: Acc. To American marketing association [AMA] “ Any paid form of non – personal presentation and promotion of goods & services or ideas by an identified sponsor ’’ OBJECTIVES OF ADVERTISING : • • • • • To make an immediate sale To built primary demand To introduce price deal To inform about a product availability To build brand recognition or brand insistence
  8. 8. • To help sales men by building an awareness of a product among retailers • To create a reputation for services reliability or research strength. • To increase market share • To modify existing product appeals & buying motives • To inform about new product features • To increase the frequency of use of a product • To increase the number or quality of retail outlets • To built overall company image • To effect immediate buying action • To reach new areas or new segments of population within existing areas • To develop overseas market
  9. 9. KINDS/ TYPES OF ADVERTISING : 1. 2. 3. 4. 5. 6. 7. 8.     9. 10. Product advertising Institutional advertising Primary demand advertising Selective / competitive advertising Comparative advertising Shortage advertising Co – operative advertisement Commercial advertising Industrial advertising Trade advertising Professional advertising Farm advertising Non – commercial advertising Direct – action advertising
  10. 10. ADVERTISING BUDGET : I. METHODS : [SELECTION]         Market share approach Arbitrary allocation % of sales method Task and objective method Competitive / comparison method Funds available method Incremental method Fixed sum per unit method II. EVALUATING MEDIA ALTERNATIVES:  Cost per contact  Duplication  Market selectivity
  11. 11. III. MEDIA SCHEDULING IV. DETERMINATION TH SIZE AND TIMING OF ADVERTISING MESSAGES V. MESSAGE DECISIONS VI. a)   MEASURING EFFECTIVENESS Pre – test : Readability test Eye – movement analysis b)    Post – test : Recall test Recognition test Concurrent test
  12. 12. VII. KEYING THE ADVERTISEMENT VIII. FOLLOW – UP SYSTEM IN ADVERTISEMENTS II. SALES PROMOTION: Sales promotion originated from Latin word “promo verse’’ to move forward. DEFINITION : “ Sales promotion in a specific sense refers to those sales activities that supplement both personal selling and advertising and co – ordinate them and help to make them effective such as displays, shows and expositions, demonstrations and other non- recurrent selling efforts not in ordinary routine ’’ .
  13. 13. FUNCTIONS OF SALES PROMOTION : • • • • Low unit cost Effective sales support Increased speed of product acceptance Better control METHODS [ LEVEL OF SALES PROMOTION] 1.      Sales promotion at dealers level [retail] Advertising material Store demonstration Special displays and shows Dealer contest Dealer premium
  14. 14. 2.        Sales promotion scheme at the consumer levels Coupons Price of offers Samples Money refund offer Trading stamps Buy back allowances Trading in premium 3. Sales promotion at salesman levels
  15. 15. III. PERSONAL SELLING : MEANING : Personal selling is a process of informing customers and persuading them to purchase products through personal communication in an exchange situation IMPORTANCE : • • • • • • To introduce the product To enable the customer decisions to buy To create demand To create new wants To conduct effective selling at low cost To collect the information from the markets
  16. 16. ** IMP : STEPS IN PERSONAL SELLING : 1. 2. 3. 4. 5. 6. Prospecting The sales approach Presentation & demonstration Overcoming objections Closing the sale Follow – up KINDS OF SALESMAN SHIP : 1. 2. 3. 4. Creative salesman ship Competitive salesman ship Staple Exporters
  17. 17. BENEFITS OF PERSONAL SELLING : • To consumers • To businessman • To society IV. PUBLICITY : • Organising events • Sponsorships • Trade shows, exhibitions, industrial exhibitions etc… V. PUBLIC RELATIONS : • Press and media • Lobbying • Government and people • Banks • Environmentalist
  18. 18. IMPORTANT Q’S : 1. Explain the role of promotion in marketing mix ? 2. What is personal selling & list out the steps in personal selling ? 3. Explain briefly the tools of sales promotion ? 4. What is advertising and explain the process of preparation of advertising budget ? [steps]

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