This document discusses various promotion strategies and elements of the promotional mix. It covers topics like the definition of promotion, forms of promotion such as advertising, personal selling, and public relations. It also discusses factors to consider when developing a promotional strategy, like the target market, product nature, and promotional budget. Evaluation methods for measuring the effectiveness of promotional campaigns are also mentioned.

1. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Promotion Strategies
Chapter 9

2. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
What is a promotion?
 Promotion is the element in an
organisation’s marketing mix that
serves to inform, persuade and remind
the market about the organisation
and/or its products.
9-1

3. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
The promotional mix
 Personal selling: the presentation of a product
to a prospective customer by a firm’s sales
executive.
 Advertising: paid, non-personal mass
communication, in which the sponsor is
clearly identified.
9-2

4. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
The promotional mix (cont.)
 Sales promotion: demand-stimulating activity
designed to supplement advertising and co-
ordinate personal selling.
 Publicity: a non-paid form of advertising that
uses mass communication to stimulate
demand.
9-3

5. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
The Promotional Mix
 Public relations: a planned communication
effort by an organisation to contribute to
generally favourable attitudes and opinions
toward an organisation and its products.
9-4

6. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Choosing the right form
of promotion
 Marketers need to consider:
• The target market.
• The nature of the product.
• The stage of the product’s life cycle.
• Money available for the promotion.
9-5

7. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Reaching the target
market
 Marketers need to identify whom they are
trying to influence.
 Determine customer’s readiness to buy.
• Awareness
• Knowledge
• Liking
• Preference
• Conviction
• Purchase
9-6

8. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Nature of the product
 Unit value of the product.
 Amount of product customisation.
 Amount of pre-sale and post-sale service
required.
9-7

9. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Push vs pull strategy
 Push Strategy
• Producer creates demand for product.
• Aims promotional activity to channel member(s)
• Each channel member promotes to next channel
member
• Demand ‘pushed’ down distribution channel.
• Consumer influenced by retailer’s advertising.
9-8

10. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Push vs pull strategy
(cont.)
 Pull Strategy
• Producer creates demand for product
• Aims promotional activity directly at the
consumer
• Consumer demands product from retailer
• Demand ‘pulled’ up the distribution
channel.
9-9

11. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Push vs pull strategy
(cont.)
Producer Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
PUSH STRATEGY
PULL STRATEGY
Product flow Promotion effort
9-10

12. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
The promotional budget
 Percentage of sales method
• Company may determine past or anticipated sales
and apply a percentage of sales as the
promotional budget.
 All available funds
• Company uses all available funds on the
promotional campaign .
9-11

13. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
The promotional budget
(cont.)
 Matching the competition (also known as
competitive parity).
• Promotional expenditure based on market share of
competitors, or actual expenditure if known.
 Task or objective method
• Determine what tasks or objectives the promotion
must accomplish.
• Determine what it will cost to perform the task or
meet objective.
9-12

14. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Skills of the sales person
 A good sales person requires various
attributes:
• Time management.
• Organising ability.
• Consulting skills.
• Communication skills.
• Problem-solving skills.
• Credibility (also a positive attitude).
9-13

15. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Managing the sales team
 Recruitment and selection
• Decide who the right person is for the job
and what attributes and qualifications
they should have.
 Choose the right people
• Various methods used are interview,
references, psychological and aptitude
tests, also physical examinations.
9-14

16. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Managing the sales team
(cont.)
 The induction
• A method used to familiarise a new employee
with their new working environment.
 The training
• Determine who should train new sales person.
• A training program should be developed to meet
company objectives which outline philosophy,
company and product overview.
9-15

17. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Managing the sales team
(cont.)
 Sales people need:
• Coaching
∆Spending time with a sales person to observe and assist
with their work practice, outcomes and to develop
knowledge and skills.
• Motivation
∆Managers should find out what motivates an individual.
∆These include financial and non-financial rewards.
9-16

18. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Compensation
 There are various forms of compensation:
• Straight salary.
• Straight commission.
• A third from of compensation used in
business is a combination of both methods.
This is used to motivate sales team
members with financial incentives.
9-17

19. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Types of advertising
 Consumer versus business advertising
• Emotional and rational vs informational.
 Product versus institutional advertising
• Focus on particular product or brand and
information and goodwill to company.
 Primary-demand and selective-demand
advertising
• Stimulate demand for generic or specific
brands
9-18

20. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Which media should we use?
 To Choose the right medium for a
promotional message, we need to consider
the following.
 What do we want our ads to do?
 Who are we trying to reach?
 What message do we want to
communicate?
 How much will each medium cost?
9-19

21. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Media characteristics
 Newspapers
 Television
 Radio
 Magazines
 Direct Mail
 Outdoor advertising
 Yellow pages
 Internet
9-20

22. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Did our advertising work?
 Here are some of the factors that make it
difficult to measure the sales impact of
advertising
• Ads have different objectives
• Ads can have an effect over time
• The effects of ads are difficult to measure
9-21

23. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Methods used to measure
effectiveness include
 Direct tests: these measure or predict the
sales volume stemming from an advertising
campaign
 Tabulating the number of inquiries from a
direct-response campaign
 Indirect tests: these measure something
other than actual sales (e.g. recall tests)
9-22

24. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Choosing the right
sales promotion
 What are our promotional objectives?
 Who is our target market?
 Can our product be sampled?
 What will it cost to use the right promotional
tool?
 What is the current economic condition?
9-23

25. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Managing public relations
and publicity
 P.R. can be achieved by:
• Supporting charitable projects
• Supplying volunteers or other resources
• Participating in community-service events
• Sponsorship
• Providing information to customers via
newsletters.
9-24

26. Copyright © 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
Managing public relations
and publicity (cont.)
 Publicity can be achieved by:
• structured news-release to the media
• co-ordinating personal communication with
a group
• co-ordinating one-to-one personal
communication (lobbying)
9-25