Successfully reported this slideshow.



Published on

Published in: Education
  • Be the first to comment


  1. 1. Promotion
  2. 2. Definition• Promotion Specific combination of promotional methods• Promotion represents all of the communications that a marketer may use in the marketplace• Promotion involves disseminating information about a product, product line, brand, or company
  3. 3. Aspects of a promotional mix• Advertising• Personal Selling• Sales Promotions• Public relations - Publicity• Sponsorship• Direct Marketing
  4. 4. Division OfSales promotion• Above the line• below the line• Through the line
  5. 5. Above the line• advertising through media – TV – Cinema – Radio – Print – Banners• search engines
  6. 6. Below the line• Price promotion• Frequent user/loyalty incentives• Point-of-sale displays• Money refunds• Coupons• Gift with purchases, also gifts certificates• Competitions and prizes
  7. 7. Through the line
  8. 8. Techniques of Sales promotion• Consumer sales promotion techniques• Trade sales promotion techniques
  9. 9. Consumer sales promotion techniques• Price deal• Loyal Reward Program• Cents-off deal• Price-pack deal• Coupon• Free-standing insert• On-shelf couponing• On-line couponing• Mobile couponing• Online interactive promotion game• Rebates• Contests/sweepstakes/games• Point-of-sale displays
  10. 10. Trade sales promotion techniques• Trade allowances• Buying & Buy-Back Allowances• Merchandising Allowances• Scan-Back Allowances• Free Merchandise• Cooperative Advertising• Spiffs & Push Money• Sales Contests• Trade Show exhibits
  11. 11. Sales PromotionPositives• Supports brand image• Stimulates demand• Focuses customers’ attentionNegatives• Can destroy pricing levels if overused• Can cause loss of market share
  12. 12. What is Advertising?• Any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, televisions or radio by an identified sponsor. - Kotler• Advertising is mass, paid for communication which is used to transmit information, develop attitudes and induce some form of response from the audience.
  13. 13. Characteristics of Advertising• Non personal form of communication aimed at a target audience.• Used by commercial and by not for profit organizations.• Most advertising is concerned ultimately with selling.• It is a major element in the promotional mix.• Silent still forceful• Sponsor is identified• Paid communication• Message is addressed to diversified audience
  14. 14. Objectives• An advertising objective is a specific communication task to be achieved with a specific target audience during specified period of time.• Like all objectives they should be SMART.• In essence the main advertising objectives are: - To Inform: to provide information about a product - To Persuade: to persuade people to buy - To Remind: to remind people about a mature product
  15. 15. SMART Criteria• Specific - the objective should state exactly what is to be achieved.• Measurable - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved• Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business.• Relevant - objectives should be relevant to the people responsible for achieving them• Time Bound - objectives should be set with a time- frame in mind. These deadlines also need to be realistic.
  16. 16. Inform, Persuade, RemindInform Persuade Remind• To provide • To persuade • To remind customers information customers to buy a about a product they• Used specifically particular brand might other overlook. with a new or • Stress the distinctive • Advertising a mature complex product. features of the brand. product.• Print media is • Minimal Information. superior to TV for this type of advertising. E.g. E.g.E.g. Perfumes ColgateInsurance Cars Kit-KatFinancial Products Coca cola SunsilkNew Electrical Goods
  17. 17. Summary of Objectives• To create awareness • To increase market• To inform share• To remind customers • To differentiate from• rivals To reassure customers • To build brand loyalty• To support the sales • To change attitudes force – personal • To support activities in selling the distribution chain• To persuade• To promote Ideas/ Attitudes/ Causes
  18. 18. Advantages• Creating awareness• Increase sales• Brand identity & Brand image• Communicate a change• Increase the buzz value• Increase loyalty• Offers planned and controlled messages• Contact and influence masses• Deliver specific message to specific target segment• Same message with varience• It reaches to all…e.g. premium• Helps to presale goods and pulls the buyers to retailers• Generates interest and provides knowledge as well
  19. 19. A word of caution – DisadvantagesEven good advertising can not overcome problems caused by Poor product Inefficient service Uncompetitive pricingLess effective than personal selling and sales promotionLess flexible than personal communication (no media to answer the query)Cant evaluate the message effectiveness and the responseUnable to reach the prospect, so the cost of repetition increasesMany times lack credibility and worthiness
  20. 20. Types of Advertising – based on objectives• Informative - Provides information• Persuasive - To encourage brand switching• Reminder - To remind about a mature product• Reinforcement - To reassure• Pioneering - To introduce new product• Competitive - To point out differential advantages• Defensive - To reduce damage caused by campaign of a direct competitor.
  21. 21. Types of Advertising – Based on Business Type Interactive Interactive Brand Brand Advertising Advertising Advertising AdvertisingPublic ServicePublic Service Retail or Local Retail or Local Advertising Advertising Advertising Advertising Institutional Institutional Advertising Political Political Advertising Advertising Advertising Business-to- Business-to- Business Business Directory Directory Advertising Advertising Advertising Advertising Direct-Response Direct-Response Advertising Advertising
  22. 22. AIDAAdvertising should seek to:A- increase AwarenessI- create InterestD- develop a DesireA- encourage customers to buy - action• Advertising seeks to move potential buyers through these stages.
  23. 23. 5 Ms of Advertising• MISSION- Objectives• MONEY- to pay for the Campaign• MESSAGE- to be Delivered• MEDIA- choice of advertising Media• MEASURE- Measuring the impact
  24. 24. Determining the Budget - Money• The advertising budget will be set in terms of one of: - what can be afforded - A given percentage of sales - Comparison with rivals - Objective and Task- whatever is needed to achieve objective
  25. 25. Developing an Advertising Campaign - Message• Set the advertising objectives.• Define target market.• Determine the advertising budget.• Determine the key advertising message.• Decide which media to use.• Plan campaign timing.• Evaluate the results of the campaign.
  26. 26. Factors in the choice of media• Marketing mix • Permanence of the• Relative cost media• Target audience • Nature of the product• Impact of the media • Size and spread of the• market Competition• • Advertising budget Legal constraints • Message to be conveyed
  27. 27. Main Advertising Media• Television• Cinema• Radio• Outdoors (billboards)• Internet• Print media- news papers and magazines
  28. 28. Television Advantages Disadvantages• Large audience • Very high overall cost• Low cost per exposure • Limited prime time• high impact-color, space sound and movement • Short lived• Can target specific • May not be watched- groups visual wallpapers • Convey only a limited message
  29. 29. RadioAdvantages Disadvantages• Relatively • Limited impact inexpensive • No vision• target specific • Short life segment• Relatively mobile• Local
  30. 30. News PaperAdvantages Disadvantages• Target specific segments • Low impact• Widely read • May get lost in the rest• Short lead time of the paper• Frequent publication • Not every group reads a• Inexpensive compared paper to television • High costs especially• Color printing adds to for national news paper impact• Local regional national papers available
  31. 31. MagazineAdvantages Disadvantages• Useful for targeting • Can be expensive specific group • Long read time• Good reproduction- • Some magazines are only high quality gloss published monthly. images • Moderate impact• Long life-read at leisure • Slow impact due to long life• Can be linked to • Magazines with limited features readership are not suitable• All consumers interests for mass marketing catered for
  32. 32. CinemaAdvantages Disadvantages• Captive audience • Limited audience• High impact • Mainly young• Can be specifically audience targeted • Short lived message• Local audience • May only be seen• Visual, sound, once. movement
  33. 33. Out door-Bill boardsAdvantages Disadvantages• Repeatedly seen • Message must be• 24/7 coverage simple and short• Target particular area • Can not target• Local media socioeconomic groups• May encourage • Rarely attract full attention impulse buying if close to shops • Short lived • May be seen as traffic hazard • Difficult to measure effectiveness
  34. 34. Advertising on transportAdvantages Disadvantages• Low cost • Harder to target by• Target specific areas socioeconomic class• Captive audience • Quick results unlikely• Reaches wide diverse • Difficult to measure audience effectiveness • Rarely gains reader’s full attention • Space for only a short message
  35. 35. Internet advertising• Cheap • Problems of• Easy to set up connecting• Easily updated • Limited audience• Number of hits can be • Technical problems monitored-useful • Banner adverts not measure of very effective effectiveness • Search engine listing can be costly (e.g. click fraud)
  36. 36. Public Relations– Public Relations– Public Relations Department Functions Include: • Press relations • Product publicity • Corporate communication • Lobbying – Advocacy • Counseling
  37. 37. Public Relations• Marketing Public Relations (MPR) – Publicity vs. MPR – MPR assists in the following tasks: • Assisting in the launch of new products • Assisting in repositioning a mature product • Building interest in a product category • Influencing specific target groups • Defending products that have encountered public problems • Building the corporate image in a way that reflects favorably on its products
  38. 38. Public Relations– Establishing the Marketing Objectives • MPR can: – Build awareness – Build creditability – Hold down promotional cost– Choosing message and vehicle– Implement the plan and evaluate the result
  39. 39. Sales ForceManagement The successful salesperson cares first for the customer, second for the products.
  40. 40. PERSONAL SELLINGMost ancient method ofmarketing.It is person-to-person selling.It involves Home selling andDirect selling.It is also called door-to-doorselling.
  41. 41. PERSONAL SELLING is the meansof face to face Communication topersuade the customers to buy anyproduct or services. It mainly involves Home Selling andDirect selling.
  42. 42. Contd..HOME SELLING:It takes place at the customer’s home.It is always one-to-one.DIRECT SELLING:-It can take place at the customer’shome or workplace.It can be for a group.
  43. 43. Activities involved inpersonal selling… Identifying potential customers. Matching consumer needs with product attributes. Persuading customers to buy. Satisfying after purchase .
  44. 44. PERSONAL SELLING PROCESS1. Prospecting2. Qualifying3. Approaching customers4. Sales Presentation5. Handling Objections6. Closing the sale7. Following up the sales
  45. 45. OBJECTIVES OF PERSONALSELLING… Search new customers Obtain sales volume Secure market share Provide technical advice to customers Collect and report market information Assist with training of sales personal
  46. 46. IMPORTANCE OF PERSONALSELLING … Pin-points Prospects Meet objections Close encounter of the product Time saving