marketing management - promotional strategies

1. PROMOTION
C.Dharshanaa.,
Assistant Professor,
V.V.Vanniaperumal College for women,
Virudhunagar

2. promotion
The personal or impersonal process of assisting
or persuading a prospective customer to buy a
product or service or to act favorably upon the
idea that has commercial significance to the
seller.
-AMA

3. NEED FOR PROMOTION
 Stiff competition
 Widening market
 Change in customers’ taste and preference
 New technology

4. COMPONENTS OF
COMMUNICATION MIX
SOURCE ENCODING
MESSAGE
TRANSMISS
ION
RECEPTION DECODING

5. COMMUNICATION MIX
 SOURCE – ADVERTISER
Originator of message
 ENCODING – ADVERTISING COPY
Process that converts idea into a message
 MESSAGE TRANSMISSION – MEDIA
 RECEPTION – CONSUMER
Reception occurs when the message is recognized by
the receiver.
 DECODING – ACTION
Receiver’s response to the message
 FEEDBACK

6. PROMOTION MIX
 MASS IMPERSONAL SELLING
 FACE TO FACE OR PERSONAL SELLING
 OTHER ACTIVITIES (POP)
 QUESTIONS????
 Effective way to inform consumer?
 Method of marketing?
 Whom should it be directed to?
 How much marketing budget?

7. PROMOTION STRATEGY

9. PROMOTIONAL STRATEGY
PULL
 End user.
 Creating demand
 Consumer product
 Fast in promotion
 T.v, Newspaper, Radio,
sales call, samples,
coupons and contest.
 Need reinforcement
PUSH
 Middleman
 Selling the product
 Industrial product
 Slow in promotion
 Trade journals, trade
discount, dealer
contest.
 Already available.

10. OBJECTIVES OF
PROMOTION
 Provide information to prospective consumer.
 To stimulate demand
 To differentiate the product from competitor
products ( Brand loyalty)
 To stabilize sales

11. KINDS OF PROMOTION
objective
Inform
persuade
Remind
Buyer behavior
modification

12. KINDS OF PROMOTION
 INFORMATIVE PROMOTION
 PERSUASIVE PROMOTION- Stimulate
purchase and positive image.
 REMINDER PROMOTION – product reaches
maturity.
 BUYER BEHAVIOUR MODIFICATION –
repeated ad and constant personal selling

13. APPROACHES TO
PROMOTION
AIDA concept Attention Interest
Desire
Action
HEIRARCHY OF
EFFECTS
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Stages Cognitive Affective conative
Cognitive-message received and interpreted
Affective – formulation of product image
Conative – motivation and purchase

14. METHODS OF PROMOTION
PUBLIC RELATION
ADVERTISING
PERSONAL SELLING
SALES PROMOTION
PUBLICITY
DIRECT MARKETING

15. FACTORS AFFECTING
PROMOTION MIX
 NATURE OF PRODUCT
 NATURE OF MARKET
 STAGE OF PRODUCTS LIFE
 AVAILABILITY OF FUND
 NATURE OF THE TECHNIQUE
 PROMOTIONAL STRATEGY
 READINESS OF BUYER

16. SALES
PROMOTION

17. SALES PROMOTION
 Its neither an expenditure nor a luxury.
 Investment that pays rich dividend.
 Exhibitions, demonstration, display and shows-
@ point of purchase.
 Something extra (2+2=5) create a buying mood
or spark.
 Pro-active or reactive sales promotion.

18. Pro-active & Reactive
 Gain additional market
share
 Expand target market.
 Favourable consumer
experience.
 Add extra value
 Response to
competitive moves.
 Inventory piles up.
 Short term cash.
 Decision is to
discontinue the product.

19. Objectives Of Sales
Promotion
 Increase sales volume
 Speed up sales ( Slow moving goods)
 Check fluctuation in sales.
 Attract consumers, launch new product & new
trial.
 Encourage repeat purchase.
 Clearance of excessive inventories.
 Motivate dealers.
 Encourage dealers to participate in displays.

20. OBJECTIVES
 Gain advantage in shelf-space.
 Increase store traffic
 Improve relationship with dealers.
 Block competitors move
 Motivate sales force
 Supplement advertising
 Deflects customers attention from price.

21. Strengths of sales
promotion
 Positive attitude towards the product.
 Extra incentive to the customer.
 Direct inducement to take immediate action.
 Flexibility ( Introduction stage)
A) New brand.
B) Communicate a major improvement.
C) Amplify the result of the ad
D) Increase the number of retail store

22. Limitations of sales
promotion
 Temporary and short life.
 Only a Supplementary device.
 Non recurring in their use.
 Too many may adversely affect the brand
image.
 Low status to sales promotion

23. Major Decisions in
Sales Promotion
 Establishing the sales promotion objectives.
 Selecting the sales promotion tools
(Consumer, Dealer and Business promotion)
 Developing the sales promotion programme.
 Pre-testing and sales promotion programme
 Implementing and controlling the ales
promotion programme.
 Evaluating the sales promotion results

24. SALES PROMOTION
CONSUMER SALES
PROMOTION
DEALER
PROMOTION
BUSINESS
PROMOTION

25. CONSUMER SALES
PROMOTION
 SAMPLES
 COUPONS
 REBATES
 PRICE PACKS
 PREMIUMS
 PRIZES
 PATRONAGE AWARD
 FREE TRIALS
 PRODUCT WARRANTIES
 TIE-IN-PROMOTIONS
 POINT OF PURCHASE

26. DEALER PROMOTION
 Free display material at POP.
 Retail demonstrators are supplied by manufacturers.
 Trade deals and offers- to increase sales.
 Seller gives buying allowance.
 Buy back allowance- repurchase of product immediately
after another trade deal.
 Seller give free goods.
 Ad and display allowance may be given.
 Sales contest for salesman.
 Dealer loader ( Gift for an order)
 Dealer and distributor training for salesman (Knowledge &
how to use it).

27. BUSINESS PROMOTION
Exhibitions and trade fairs
Joint Promotion
Indian fashion scene
Exclusive show rooms
sponsorship

28. PERSONAL
SELLING

29. FEATURES OF PERSONAL
SELLING
 Enhance Customer confidence in the seller.
 Promotes long term business promotion.
 Human touch
 Understand each customer needs and tastes.
 Satisfy customer by modifying the product.
 Personal selling followed by personal service.
 Keep up with competition.
 Effective tool in convincing the customer.
 Time lag between ad and product introduction is
reduced.
 Better understanding of product.

30. CHANGING FACE OF
PERSONAL SELLING
VALUE SHARING
RELATION BUILDING
ROLE PLAYING
CHANGING APPROACH

31. EFFICACY OF PERSONAL
SELLING
Personal selling
with respect to
product strategy
Personal selling
& pricing
decision
Personal selling
& Distribution
Personal selling
& Product
promotion

32. MODERN CONCEPT OF
SALESMANSHIP
 High pressure salesmanship
 Salesmanship in persuasion.
 Winning the buyers confidence.
 Providing service to buyers.
 Aims at mutual benefit
 It is an education process
 Creative process

33. TYPES OF SALESMAN

34. ADVANTAGES
 Pin point prospect
 Personal interview ( assure attention and
interest)
 Adjust sales presentation on the spot.
 Effects transfer of title.
 Actual demonstration
 Two way communication

35. LIMITATIONS
 HIGH COST
 LESS ATTRACTIVE
 TIME CONSUMING
 SHORTAGE OF SALES FORCE

36. ESSENTIALS OF
EFFECTIVE SELLING
 Knowledge of your company
 Knowledge of your product
 Knowledge of competition
 Knowledge of your customer
 Knowledge of selling process
 Knowledge of self
 Day to day working

37. AIDAS
Attention
Interest desire
Action satisfaction

38. QUALITIES OF A GOOD
SALESMAN
 PHYSICAL QUALITY
 SOCIAL QUALITY
 MENTAL QUALITY
 CHARACTER QUALITY

39. SALES PROCESS
 Pre-sales preparations
 Prospecting
 Pre-approach
 Approach
 Sales presentation
 Objections
 Close
 The follow-up (post sale contact)

40. Steps in collaborative
selling
Target your
market
Contact your
prospect
Explore
customer need
collaborate
Confirm the
sales
Assure
continuing
customer
satisfaction