Introduction of advertisement
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This document discusses various aspects of promotion, including definitions, objectives, and tools. It defines promotion as "Coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea". The key tools of promotion discussed are advertising, sales promotion, public relations, and personal selling. Advertising is defined as a "paid form of nonpersonal communication". Sales promotion includes tactics to stimulate short-term sales like coupons, samples, and contests. Public relations is designed to influence attitudes through unpaid communications. Personal selling involves direct, face-to-face interactions with customers.
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Introduction of advertisement
- 1. Promotion “Coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea”. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 1
- 2. 1 Promotion Pontiac Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. 2
- 3. 1 Promotional Strategy A plan for the optimal use of the elements of promotion: Advertising Public Relations Personal Selling Sales Promotion 3
- 4. 1 The Role of Promotion Overall Overall Marketing Marketing Objectives Objectives Marketing Mix Marketing Mix •• Product Product •• Distribution Distribution •• Promotion Promotion •• Price Price Target Market Target Market Chap. 14 Marketing 7e Lamb Hair McDaniel ©2004 South-Western/Thomson Learning Promotional Mix Promotional Mix ••Advertising Advertising ••Public Relations Public Relations ••Personal Selling Personal Selling ••Sales Promotion Sales Promotion Promotion Plan Promotion Plan 4
- 5. 2 Promotional Mix Combination of promotion tools used to reach the target market and fulfill the organization’s overall goals. Advertising Public Relations Personal Selling Sales Promotion Direct Marketing Interactive Marketing 5
- 6. Advertising • “Paid form of nonpersonal communication about an organisation ,product ,service or idea by an identified sponsor.” Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 6
- 7. The Nature of Advertising • advertising is distinguished from other forms of promotion as follows • it has a verbal and/or visual message • the sponsor of the message is identified • delivery is through recognizable media • there is payment by the advertiser to the media for carrying the message • advertisers are increasingly being able to reach specific audiences with tailor-made messages Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 7
- 8. Advertising Advantages Disadvantages ● Reach large number of people ● Total cost is high ● Low cost per contact ● Can be microtargeted Brand building ● 8
- 9. Advertising to Target Audiences • advertising can be classified by the target audience to which it is directed • consumer advertising generally appears in mass media and is directed to end consumers: may be product or institutional in nature • business-to-business advertising is often called trade advertising and is directed to a business market Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 9
- 10. What is Being Advertised? • product advertising is designed to promote the sale of a specific product or service: • may be direct-action, quick-response direct-action • may be indirect-action over a longer time • institutional advertising promotes the firm or tries to create a positive image: • may promote customer service • or send a public service message Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 10
- 11. What are the Objectives? • primary-demand advertising is intended to stimulate use of a category of products • selective-demand advertising is intended to encourage purchase of a particular brand or the products and services of a specific firm Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 11
- 12. Comparative Advertising • Selective-demand advertising • Involves comparing a product to its competing brand • May be: • Direct, naming competitors outright • Less direct, alluding to competitors (e.g., “leading brand”, “Brand X”) but not naming them Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 12
- 13. Co-operative Advertising • co-operative advertising involves the sharing of the cost of advertising by two or more sponsors: • a manufacturer and retailers (vertical), or vertical • a group of retailers (horizontal) (horizontal Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 13
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- 37. Sales Promotion • Demand-stimulating devices designed to supplement advertising and facilitate personal selling. • Sales promotions include such things as coupons, in-store displays, premiums, trade shows, in-store demonstrations, and contests. • The target for these activities may be middlemen, end users, or the producer’s own salesforce. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 37
- 38. Types of Sales Promotion • Trade promotions, directed to members of the distribution channel. • Consumer promotions, aimed at consumers. • Consumers got 3.3 billion coupons for packaged goods alone in 1996. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 38
- 39. Consumer - Promotion Tools Short-Term Incentives to Encourage Purchase or Sales of a Product or Service. ConsumerConsumerPromotion Tools Promotion Entice Consumers to Objectives Entice Consumers to Advertising Samples Advertising Try a New Product Try a New Product Lure Customers Away Lure Customers Away From Competitors’ Products From Competitors’ Products Get Consumers to “Load Up’ Get Consumers to “Load Up’ on a Mature Product on a Mature Product Hold & Reward Loyal Hold & Reward Loyal Customers Customers Consumer Relationship Consumer Relationship Building Building Samples Coupons Coupons Cash Refunds Cash Refunds Price Packs Price Packs Premiums Premiums Specialties Specialties Patronage Patronage Rewards Rewards Contests Contests Sweepstakes Sweepstakes Games Games Point-of-Purchase Point-of-Purchase Displays Displays Copyright © 2001 McGraw-Hill Ryerson Limited
- 40. Trade -- Promotion Tools Trade Promotion Tools Short-Term Incentives That are Directed to Retailers and Wholesalers. Trade-Promotion Objectives Trade-Promotion Tools Persuade Retailers or Persuade Retailers or Wholesalers to Carry a Brand Wholesalers to Carry a Brand Price-Offs Price-Offs Premiums Premiums Give a Brand Shelf Space Give a Brand Shelf Space Allowances Allowances Promote a Brand in Promote a Brand in Advertising Advertising Buy-Back Buy-Back Guarantees Guarantees Patronage Displays Rewards Push a Brand to Consumers Push a Brand to Consumers Free Goods Free Goods Contests Contests Copyright © 2001 McGraw-Hill Ryerson Limited Discounts Discounts Push Money Push Money Specialty Specialty Advertising Advertising Items Items
- 41. Business -- Promotion Tools Business Promotion Tools Short-Term Incentives That are Directed to Industrial Customers. BusinessPromotion Objectives Generate Business Leads Business-Promotion Tools Generate Business Leads Conventions Conventions Stimulate Purchases Stimulate Purchases Trade Shows Trade Shows Reward Customers Reward Customers Sales Contests Sales Contests Motivate Salespeople Motivate Salespeople Copyright © 2001 McGraw-Hill Ryerson Limited
- 42. Advantages of Sales Promotion • It can produce short-term results. • Competitors are using sales promotions. • Sales promotions are attractive to price-conscious consumers. • Can enhance/facilitate retail salesmanship which is often of low quality. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 42
- 43. Key Reasons for Sales Promotion • Stimulating end-user demand. • Sampling program for new/improved product • Improving the marketing performance of middlemen and salespeople. • Sell more, win a holiday trip. • Supplementing advertising and facilitating personal selling. • Displays, promotional giveaways Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 43
- 44. Public Relations • A tool designed to influence favourably attitudes towards an organization, its products and policies. • Public relations is often overlooked by management because of: • Organization structure; not in marketing. • Inadequate definitions; loosely defined. • Unrecognized benefits; many nonbelievers. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 44
- 45. Major Public Relations Tools Major Public Relations Tools Public Public Service Service Activities Activities Web Site Web Site News News Corporate Corporate Identity Identity Materials Materials Audiovisual Audiovisual Materials Materials Speeches Speeches Written Written Materials Materials Copyright © 2001 McGraw-Hill Ryerson Limited Special Special Events Events
- 46. Publicity Publicity is a form of public relations that includes any communication about an organization or its products that is presented by the media but is not paid for by the organization. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 46
- 47. Strengths of Publicity • Can announce new products, recognize employees, report good results, breakthroughs. • Key Benefits: • Lower cost than advertising or personal selling. • Increased readership; advertising ignored often. • More information. • Timeliness. Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 47
- 48. Weaknesses of Publicity Some loss of control over message. • Limited exposure; only happens once. • Not free; preparation costs. • Copyright © 2001 McGraw-Hill Ryerson Limited 20 - 48
Editor's Notes
- On Line The Olympics How is the International Olympic Committee using its Web site to communicate its marketing message to a youthful audience? Is the site geared to the demographic of young, extreme sports fans that seemed to be the hallmark of the 2002 Winter Games in Salt Lake City?