25 Keys To Sales & Marketing 4

This is the ppt translation of the forth & final part of 25 keys to sales & marketing, an audio portable MBA course, which has been developed by New York Times publishing, with the contribution of some of the best known business academicians and practitioners of the contemporary world. This is only a reproduced graphical version of the same with no commercial motive. It has been developed for better self learning and for assistance to the large community of several business practitioners & students, who are in constant pursuit for quality stuff on-line.

- SaurabhTo find more stuff on business & marketing, visit –

www.saurabhpassion.blogspot.com

Key - 19

Advertising as a promotional tool

ADVERTISINGAdvertising is powerful

&

Can create a strong, long term impact on the consumer.

TYPES OF ADVERTISING

INFORMATIVE PERSUASIVE REMINDER

COMPARATIVE

NON-COMPARATIVE

ONE SIDED TWO SIDED

1 2 3 4

TYPES OF ADVERTISING & THEIR GOALS

INFORMATIVE PERSUASIVE REMINDER

COMPARATIVE

NON-COMPARATIVE

ONE SIDED TWO SIDED

GOAL – 1

To alert the consumers about a new product or service.

Goal – 2

Information about the product or service, so that its need & want is created.

This type of Advertising is important after the product or service has been purchased with a goal to stay in the minds of customers.

TYPES OF ADVERTISING & THEIR GOALS

INFORMATIVE PERSUASIVE REMINDER

COMPARATIVE

NON-COMPARATIVE

ONE SIDED TWO SIDED

Goal of persuasive advertising is to influence purchase.

Market competitor is mentioned for comparison in attributes.

Market competitor is not mentioned in the advertising. Well suited for market leaders.

Only favorable attributes are mentioned about a product or service.

Such advertising mentions product limitations on unimportant attributes. Builds credibility.

ADVERTISING PITFALLS

Excessive Advertising

Celebrity Endorsement

Exaggeration in Ads

Can lead to wear out of campaign

Causes (-)ve impression & cause annoyance due to excessive repetition.

Celebrities often sell a multitude of products. Consumer attributes his link with brand as a function of money, rather than a real liking for the merchandise.

Their image may become controversial, hence making their endorsement useless or even fatal some times.

Incongruence/misfit between Celebrity & the product.

Temptation to exaggerate the characteristics & performance of a product /service in advertising is taken as false and puffery content; & isn’t acknowledged through purchase.

Key - 20

DISTRIBUTION as an

EFFECTIVE COMPONENT

of

MARKETING STRATEGY

Availability of product / service –

A key to success in the market.Distribution is an important strategic element of marketing mix.

Company can adapt the distribution strategy through intensity of its distribution channel coverage. Exclusive distribution Selective distribution Intensive distribution

• Company by its choice, limits the number of whole sellers & retailers in an area – to only high quality locations.

• Creates image of exclusivity.

• Customer has to make an effort to obtain the product & feels a sense of accomplishment after the buying process.

• Moderate number

of whole sellers &

retailers

• Combining good channel control with reasonable profits and sales.

• Goal is to have

widespread market coverage.

• Appropriate for less expensive items.

• Plan is to cause

impulse purchase – i.e. place the product in front of consumer so that a purchase happens.

2 TYPES OF DISTRIBUTION CHANNELS

Direct Channel Indirect Channel

• No Intermediaries between producer & consumer• Appropriate for those companies that are keen to control entire work from production to purchase; and when target market is small and is already in focus.

•Often it makes less sense to do so because self distribution involves specialized skills in many diverse areas such as whole selling & retailing apart from manufacturing.

• Involves Intermediaries between producer & consumer such as whole sellers, jobbers and retailers.

• Appropriate for those companies, who wish to expand their market reach, give up their distribution functions and accept that they have relinquished channel control.

Key - 21

HOW TO EFFECTIVELY INTEGRATE

THE 4Ps OF

MARKETING?

Target customer

Product

Price

Place

Promotion