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Sales promotion

Types of consumer and trade promotion.

Short term incentives to encourage the

purchase or sale of a product or service

Sample-a small amt of product offered to

customers for trail

Coupons-certificate that gives buyers asaving when they purchase a specified

product,

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Promotion tools

Cash refund offer-offer to refund part of thepurchase price of a product to consumer who sendproof of purchase.

Premium-good offered either free or at low cost as

an incentive to buy a product. Advertising specialty- useful article imprinted with

advertisers name given as a gift.

Patronage reward cash or other award for the

regular use of a certain company's product orservices.

Contest sweepstakes- promotional events that giveconsumers a chance to win cash trips or goods

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Trade promotion tools

Discount-a straight reduction in price on

purchases during a stated period of time.

Allowance-promotional money paid by

manufacturer to retailers in return for an

agreement to feature the manufacturers

products in some way.

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Direct marketing

Direct communications with carefully targeted individualconsumers

Forms of direct marketing-

Personnel selling .

Telephone marketingusing the phone to sell directlyto customers.

Direct mail mktg-sending an offer ,announcement,reminder to a person at an address

(fax,e-mail,voicemail) Direct response television mktg-direct mktg via t..v,

including telev ads or infomercials and home shoppingchannels

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..

kiosk mktg-place info and ordering

machines (stores airports other locations)

Catalog mktg -direct mktg thru print video

or electronic catalogs that are mailed to

select customers made available in stores

or presented online

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INTEGR TED M RKETING COMMUNIC TION

The concept under which a company

carefully integrates and coordinates its

many communications channels to deliver

a clear consistent and compellingmessage about the orgn and its products.

Carefully blended mix of promotion tools

For consistent ,clear, and compelling

company and product messages

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..

To communicate effectively marketers

need to understand how communication

works

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.

.MediaMedia

Sender Encoding

Feedback Response

Decoding ReceiverMessage

Noise

Sender Encoding

Feedback Response

Decoding ReceiverMessage

Noise

Elements in Communication Process

Senders fieldof experience

Receivers fieldof experience

Communication involves nineelements

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..

..

THE MARKETING COMMUNICATIONS MIX

Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Definition:

Any paid from of nonpersonal presentation andpromotion of ideas, goods, or services by anidentified sponsor.

The specific tools involved:

Printing, Broad cast, Outdoor, etc.,.

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.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Advantages:

Reach MassesLow cost per exposureBeyond this it says sellers size, Popularity, Success.

Allows to Dramatize ProductsTo build long term Image for a product.Can trigger Quick Sales

Short comings:Cannot be directly Persuasive as company sales people

One way communicationcan be very costly

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.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Definition:

Personal presentation by the firms sales force forthe purpose of making sales and building customerrelationships.


Sales Presentations, Trade shows,Incentive programs, etc.,.

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Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Advantages:Most effective in building buyers preferences,convictions and actions.Observe needs and make Quick adjustments.Allows all kinds of relationships

Gains more attention

Disadvantages:

Harder to changeCostly

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.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Advantages:

Attract consumer attentionBoost Sagging salesInvites Quick response

Disadvantages:

Effects are often short livedNot effecvtive as Advertising or personal selling in

building Long term Brand preference.

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.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Definition:

Building good relations with the companys variouspublics by obtaning favourable publicity, building upa good corporate image, and handling or heading off

unfavourable rumors, stories and events.

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.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Definition:

Direct connections with carefully targeted individualconsumers to both obtain an immediate responseand cultivate lasting customer relationships.


Telephone, mail, fax, e-mail, the internet, kiosks,etc.,.

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Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

Highly Targeted Mktg

Non Public

Immediate & customised

Interactive

Builds One-to-one Customer relationships

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COMMUNICATION MEDIA

Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

People can communicate through both

Traditional media:

News papers, Radio, Television, Telephone, etc.,.

Newer Media Forms:

Fax machines, pagers, cellular phones,computers, etc.,.

These new technologies lead more companies tomove from mass communication to more targetedcommunication and one-to-one dialogue.

THE MKTG.

COMM. MIX

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.

Several past decades

Companies preferred the art of mass marketing.

selling highly standardizedproducts tomass customers

developed effective mass media advertisingtechniques

Invested $M in mass media , reaching million ofcustomer with a single ad.(Greatest shareof their promotion Budget)

And Now

Marketing managers face some new marketingCommunication realities.

INTEGRATED MARKETING COMMUNICATIONSINTEGRATED MARKETING COMMUNICATIONS

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.THE CHANGING COMMUNICATIONS ENVIRONMENT

Mass markets are fragmented

Marketers are shifting to focused MarketingProgramsto build closer relationshipswith theCustomer in more narrowly defined Micro markets.


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NEED FOR INTEGRATED MARKETING COMMUNICATIONS

The messages delivered via different promotionalapproaches become part of a single message about the

company.

IfMass Adv. Say one thingPrice Promotionsends Different signalProduct Labelcreate still another messageCompany sales literature- altogether differentCompanys Website - out of Sync with every thing

Conflicting messages from them can resultin Confused Company Images and Brand Positions.


Advertising

Personal selling

Sales promotion

Public relations

Direct-Mkting

THE MKTG.

COMM. MIX

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Designing Message

Message Content

The Communicator has to figure out an appeal ortheme that will produce the desired response.

There are three types of Appeals

Rational Appeal

Emotional Appeal

Morale Appeal

Select which appeal will produce the desired response.

MessageContent

MessageStructure

MessageFormat

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The Marketing communicator must

Decide what response he sought.

Know where the TA now stands and to whatstage it needs to move.

Determining the Communication Objective

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Buyer DecisionProcess

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Choosing Media

Personal

Non-Personal

Major MediaAtmosphereEvents

Major Media

PrintMedia

BroadcastMedia

DisplayMedia

OnlineMedia

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Designing Message

Ideally the Message should

Get Attention

Hold Interest

Arouse Desire

Obtain Action

Decide

What to say(Message Content)

How to say (Message Structure and Format)

AIDA Model

MessageContent

MessageStructure

MessageFormat

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sss

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O t D Ad t

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Out door Advtg.Out Door Advtg.

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Personal

selling

Sales force management includes

designing sales force strategy-

recruiting, selecting, training,

supervising, compensating and

evaluating the firms sales people

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Selling process

Prospecting and qualifying- preapproach-

approach- presentation and

demonstration handling objections-

closing-follow up

Documents

47960841 Promotion Ppt