Promoting Products Ch:3 for MBA


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Promoting Products

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Promoting Products Ch:3 for MBA

  1. 1. Promoting Products
  2. 2. What Is Promotion? Aspect of the marketing mix concerned with the most effective techniques for selling a product
  3. 3. Information and Exchange Values <ul><li>Promotions seek to accomplish four goals: </li></ul><ul><ul><li>Make potential customers aware of products </li></ul></ul><ul><ul><li>Make them knowledgeable about products </li></ul></ul><ul><ul><li>Persuade them to like products </li></ul></ul><ul><ul><li>Persuade them to purchase products </li></ul></ul>
  4. 4. Promotional Objectives <ul><li>Communicating Information </li></ul><ul><li>Positioning Products </li></ul><ul><ul><li>Positioning is the process of establishing an identifiable brand image in the minds of consumers </li></ul></ul><ul><li>Adding Value </li></ul><ul><li>Increasing Sales Volume </li></ul>
  5. 5. Promotional Strategies <ul><li>Pull strategy appeals directly to consumers who will demand the product form retailers </li></ul><ul><li>Push strategy encourages wholesalers or retailers to market products to consumers </li></ul>
  6. 6. The Promotional Mix <ul><li>Types of promotional tools: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Personal Selling </li></ul></ul><ul><ul><li>Sales Promotions </li></ul></ul><ul><ul><li>Publicity </li></ul></ul><ul><ul><li>Public Relations </li></ul></ul><ul><ul><li>Word of Mouth </li></ul></ul>
  7. 7. What Is Advertising? Promotional tool consisting of paid, nonpersonal communication used by an identified sponsor to inform an audience about a product
  8. 8. Advertising Strategies <ul><li>Persuasive advertising seeks to influence consumers to buy a company’s products rather than its rivals’ </li></ul><ul><li>Comparative advertising indirectly compares two or more products </li></ul><ul><li>Competitive advertising directly compares two or more products </li></ul><ul><li>Reminder advertising helps to keep the product name in the consumer’s mind </li></ul>
  9. 9. Advertising Strategies <ul><li>Generic (Primary) Demand Advertising promotes a generic product category rather than a particular brand </li></ul><ul><li>Selective (Secondary) Demand Advertising promotes selective brands </li></ul><ul><li>Product Advertising promotes a product or a group of products </li></ul><ul><li>Institutional Advertising promotes an organization rather than a specific product </li></ul>
  10. 10. What Is Advertising Media? Variety of communication devices for carrying a seller’s message to potential customers
  11. 11. Advertising Media <ul><ul><li>Television </li></ul></ul><ul><ul><li>Newspapers </li></ul></ul><ul><ul><li>Direct Mail </li></ul></ul><ul><ul><li>Radio </li></ul></ul><ul><ul><li>Magazines </li></ul></ul><ul><ul><li>Outdoor Advertising </li></ul></ul><ul><ul><li>Internet Advertising </li></ul></ul>
  12. 12. What Is an Advertising Campaign? Arrangement of ads in selected media to reach targeted audiences
  13. 13. What Is an Advertising Agency? Independent company that provides some or all of a client firm’s advertising needs
  14. 14. What Is Personal Selling? Promotional tool in which a salesperson communicates one-on-one with potential customers
  15. 15. What Is Telemarketing? Use of telephone solicitations to conduct the personal selling process
  16. 16. Personal Selling Situations <ul><li>Retail selling is selling a consumer product for the buyer’s personal or household use </li></ul><ul><li>Industrial selling is selling products to other businesses, either for the purpose of manufacturing other products or for resale </li></ul>
  17. 17. Types of Personal Sellers <ul><li>Inside Order Taker </li></ul><ul><li>Outside Order Taker </li></ul><ul><li>Delivery Sales Person </li></ul><ul><li>Inside Seller </li></ul><ul><li>Outside Seller </li></ul><ul><li>Sales Engineer </li></ul><ul><li>Sales Consultant </li></ul>
  18. 18. What Is a Sales Promotion? Short-term promotional activity designed to stimulate consumer buying or cooperation from distributors, sales agents or other members of the trade
  19. 19. Types of Sales Promotions <ul><li>Coupons are certificates entitling bearers to savings off regular prices </li></ul><ul><li>Point-of-Purchase (POP) displays are used to grab customers’ attention as they move through stores </li></ul><ul><li>Premiums are gifts given to consumers in return for buying a specified product </li></ul><ul><li>Trade shows are sponsored by industries for members and customers </li></ul><ul><li>Discount is a temporary price reduction </li></ul><ul><li>Patronage rewards are given on sustained usage of a product </li></ul>
  20. 20. What Is Publicity? Promotional tool in which information about a company or product is transmitted by general mass media Publicity is free Publicity can be good or bad
  21. 21. What Is Public Relations? Company-influenced publicity directed at building goodwill with the public or dealing with unfavorable events
  22. 22. Word of Mouth <ul><li>Any communication about an organization, its products, or policies thru the personal interaction of people in a society. </li></ul>