Promotion, Advertising, and Sales promotion

Strategies

Chapter 12

Content

Promotion strategy, advertising strategy, and sales promotion strategy.

Components of promotional strategy Developing promotion strategy, determining the

budget, and implementing it.Advertising strategy’s objectives & budgeting.Role of advertising agency.Implementing an advertising strategy.Sales promotion strategy & activities.Advantages & limitations of sales promotion

strategy.

Introduction

A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market.

Therefore, we are going to discuss the promotion, advertising, and the sales promotion strategy which is a vital part of the positioning strategy.

•Promotion strategy: consists of planning, implementing, and controlling an organization's communications to its customers and other target audiences.•Advertising strategy: any form of non personal communication concerning a product that has an impact on buyers, and should deliver a message for its audience.•Sales promotion strategy: aims at improving a company's sales by modifying your target customers purchasing behavior and patterns. It helps to boost sales and also helps a business to draw new customers while at the same time retaining older ones.

Promotion strategy

Components of promotion strategy

Components of

promotion strategy

Developing a promotion strategy

Illustrative communication objective

Com

munication objective

•Need recognition •Finding buyers •Decision to purchase •Customer retention•Evaluation of alternatives•Brand building

Deciding the role of promotion components

Specify each promotion component role and contribution in the strategy.

Decide each component's part of the budget.

Communication objectives will help in deciding the role of each component.

Determining the promotion budget

There are many factors that influence sales and promotion; so we need to consider these factors in determining the budget. Using the following methods:

Objective & task: is a cost- effective method, where management sets the tasks necessary to achieve the objectives, and then the cost is added.

Percent of sales: a method that calculates the budget as a percent of sales, but it fails to recognize the promotion efforts and results related.

Cont,,,

Competitive parity: a method that studies how much competitors spend on their strategies. Not necessarily comparable.

All you can afford: top management limit all budget decision, they specify the amount should be spent.

Budgeting in practice: it is a combination of rational, political, and expedient actions.

Integrating & implementing the promotion strategy

Characteristics of integrated marketing communications:

Should be comprehensiveUnifiedTargetedCoordinated with the all the components Emphasize reaching the designated targets

Advertising strategy

Objectives, budgeting, and creative strategy

The advertising strategy objectives are more closely linked to the purchase decision, like:

Expose communication to target audience

Create awarenessChange attitudesIncrease sales Generate profits

Cont,,,

Budgeting determination Like the previously mentioned methods of

budgeting, the objective – task method is the best one.

Creative strategy Is guided by the market target and the desired

positioning strategy for the product or brand.The creative theme seeks to effectively

communicate the intended positioning to buyers and others influencing the purchase or brand.

Provide a unifying concept that binds together the various parts of an advertising campaign.

Role of advertising agency

Develop creative designs and select media.Offer a range of services including marketing research,

sales promotion, & marketing planning.

The relationship with the advertising agency should be cooperative; the client briefs an idea about the company's concept and core business, so that its strategy would be effective.

Some agencies are compensated by a commission percent, depending on the results. However, some problems may rise where agencies work with competitors.

Implementing the advertisement strategy & measuring its effectiveness

Decide how to measure the effectiveness of the strategy before implementing it.

Assign responsibility for tracking performance(not necessarily through measuring the sales , but also through advertising research, testing the market, longitudinal studies tracking the advertising expenditures, cash register )

Assess the quality of advertising.

Sales promotion strategy

Consists of various incentives that are intended to accelerate the selling process to build sales volume.

The strategy process is similar to the design of advertising strategy.

Its scope is difficult to identify; because the activities included are included in various departments & budgets.

Sales promotion activities & targets

Activities include trade shows, specialty advertising, contests, displays, coupons, recognition programs, and free samples.

Sales promotion

target Consumer

buyers

Business buyers Value chain

Sales people

Advantages & limitations of sales promotion strategy

Some people may take advantage of the free coupons, free offers, and other incentives.

Value – added sellers may build inventories on products manufacturers' trade discounts.

Incentives & price promotional incentives need to be monitored.

MERA G. AL HORANI

Thank you for listening