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8/13/2019 Promotional Plan (Strategic Marketing )
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We are Going to Present
THE PROMOTIONAL PLAN
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Planning the communications programme
In developing the communications programme, the marketing planner needs totake account of eight areas:
1. The nature of the target audience(s)
2. The short and long term communications objective(s)
3. The message that are to be used4. The communication channels that will carry the message
5. The budget
6. The promotions mix
7. How the elements of the promotion mix are to be integrated and how, in turn,
the promotion mix is to be integrated with the marketing mix8. How the results of the campaign are to be measured
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Stage 1:Deciding upon the target audience
The starting point in the planning of any communications programme involves a
detailed information of the target audience.
The planner needs to think initially about the ways in which the market might
possibly categorized and how the message need to be tailored to fit the needs of
each of the target group.
Basis for categorization of audiences:
Current or potential users
Their role in the buying process
Their level of knowledge
Their level of loyalty
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Stage 2: Setting the communications objectives
Now the planner needs to identify the objectives of communications:
The planner might be aiming to put something into the consumers mind, change
the consumer attitude or encourage the consumer to behave in a particular way.
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Steps towards purchase: The communication tools:
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Publicity; Simple descriptive
advertising
Advertorials; Sponsorship
Informative advertisements to
encourage product comparisons; the
development of brand image; direct
marketing
Point of sales display; money offoffers
Direct marketing
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Stage 3: Developing the message
This task involves deciding upon four issues:
1. What to say (the content)
2. How to say it logically (the structure)
3. How to say it emotionally or symbolically (the format)
4. Who should say it (the source)
In deciding upon what to say the planner is faced with the number of choices:
Rational appeal
To realize the customers that by buying this product you will gain this distinct and
tangible benefit.
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Cont..Positive emotional appeal:
The planner sets out to associate the product with an especially favorable
image.
Examples:
The ways in which cars, perfumes and expensive watches are advertised.
Negative emotional appealIt includes fear, shame, and guilt.
examples:
How the advertisers of toothpastes typically play upon these sorts of
emotions by emphasizing bad breath or fear of tooth decay.
The Source:
The credibility and memorability is influenced either positively or
negatively by the source of the message. It is for this reason that many
campaigns features celebrities who are selected for their credibility,
trustworthiness or general likability.
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Stage 4: Selecting the communication channelsNow the planner needs to select the channels through which contact and
communication can be made in the most effective way.
These channels fall into one of two categories personal influence channels
and non personal influence channels.
Personal influence channels can be sub divided into:
Advocate channels
Expert channels
Social channels
Advocate channels:
Consisting primarily of the sales force and others who employed by the
company.
Expert channels:
Which consist of those whose views are seen to be independent and
respected.
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Cont
Social channels:
Made up of neighbors, friends, business associates
and reference groups.
Non-personal influence channels:
It includes mass media, such as, newspapers,
television, magazines, the cinema and posters,
which have the advantage of reaching large numberof people. In doing so, they lack any personal
element, with the result that the message is more
easily ignored and misinterpreted.
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Stage 5
Setting the Budget
Although there are various ways in ehich the
communication budget might be set, the most
common of these are :
1. Affordable Approach
2. Competitive approach
3. Percentage of sales
4. Objective and Task Techniques
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Stage 6 and 7Deciding upon and Integrating the elements of
the Promotion Mix In deciding upon which promotional tools should be
used, the marketing planner needs to take account of
8 elements:
1. The degree of control that is needed in terms of howthe message is delivered.
2. The financial resources that are available
3. The credibility f each of the tools in the eyes of thecustomer
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4. The size of target market and their geographic
spread.
5. The nature of the product and marketwhether it is an industrial or consumer product.
6. Push and Pull strategy
7. The stage reached by the product life cycle8. the buyer readiness stage. Advertising and
publicity are generally the most effective tools
for raising levels of buyer awareness in the earlystages and are most cost effective than personal
selling or sales promotion.
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However as levels of awareness and readiness
increases so personal selling takes on a more
direct and valuable role. Closing the sale alsoachieved most effectively by personal selling
and sale promotions while advertising then
begins to increase in importance again at there-ordering stage.
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Stage 8
Measuring the ResultAn important part of any marketing activity is the measurement
of the result that have been achieved. In the case of
communication, this can be done using two dimensions
1. Qualitative Measure
2. Quantitative Measure
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Awareness
Interest
Evaluation
Trial
Adoption
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Advertising Objectives
Broad Objectives
1. To enhance organizational effectiveness
2. To generate greater profits
3. To improve our competitive position
Specific Objectives (quantitative)
4. To increase sales from X to Y
5. To raise the level of awareness of a givenproduct from P to Q
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6. To generate N enquiries/ coupon responses
Sub- objectives (qualitative)
7. To convey information
8. To create desire;9. To improve the image of product X or brand Y
10.To mitigate the effect of a premium price
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Advertising Strategies
Clear idea of audience
Investment in advertising
Law of diminishing returns
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Deciding the Advertising Spend
Kotler and other authors show evidence that
there are only 5 methods
1. Affordable Approach
2. Competitive parity
3&4. percentage of sales or profit
5. Objective and task
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Affordable Approach
Weakness
1. Discourage the development of long term
planning of advertisement
2. Short- term advertising opportunities are
likely to b overloaded
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Competitive Parity
Two ways1. Set exactly or nearly exactly to the
expenditure of the competitor.
2. Or by ratio of share of market and share ofadvertising.
Two justification
1. Collective wisdom of industry2. Aggressive action in minimized
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Percentage of sales and profit
Two weakness
1. Circular reasoning is employed as sales act todetermine advertising, rather then the other
way round.2. To limited scope for long term advertising.
3. There is no facility for engaging in counter
cyclical advertising.4. There is no logical figure which should be
employed.
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Objective and task
Cost of achieving the advertising objectivesteps
1. Establish the advertising objective
2. Select the media and determine number ofinsertions needed to achieve objective.
3. Calculate the cost of the media programs
4. Examine the relationship between cost and
objective.5. Revise the goal and methods to a level the
company can afford.
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Important factors to be considered
Degree of Empathy
Way to be Paid
A flat fee
A retainer
Through Commission received from Medi
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Evaluation and Control of Advertising
plan
Pre-Tracking
PostTracking
Continuous Tracking
Advertising can be tested by
Communication effectivenessSales Effectiveness
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Sales Promotion
It is a specific activity in which we offer our productsand services to customers with a specific time frame
Cost-benefit analysis is high than advertising,Example. Incentives schemes
Evaluating/audit activities of sales promotion
It should cover following parameters
Effectiveness
Variations in context to competitors
Total cost
Individual results
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Sales Promotion.
How it helps the dealers or distributors?
What sales promotion do actually?
Boost sales of product line
But remember one thing.
Real benefit of good sales promotion?
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Sales Promotion Trend
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Sales Promotion Strategies
Sales Promotions as a push and pull strategy
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Sales Promotion Tactics
Consumer incentives Price markdown;prices reduced by giving coupons in magazines, door
to door. Examples discounts on restaurants, dinner, meal coupons
Premium offers; in sense of quantity of same products or by offeringsmall gifts. Example kurkuray, Nido,
Banded Packs; example, with tooth paste tooth brush in low price Free sampling; NESCAFE , Vivo in COMSATS,
Prize competitions,example, Bundu khan, Jazz, Telenor, Warid
Personality Promotions; example, Cricket bats with sign, win a chanceto meet ABC actor by buying XYZ product.
In-store demonstration; example Expo Lahore, supermalls different
pharmaceuticals, electronics companies offer this Special displays: POS to attract the customers
Self liquidating premiums, offer with core products, for example cakemanufacturer offer cake slicer in low prices.
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Sales Promotion Tactics.
Sales force incentives
Objectives
Sales volume
Sale of specific products
High profit products
To reduce inventory
Gain new customers
Re-active old customers
Decrease credit sales
Ultimate goal is to increase market share & profit
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Sales Promotion Tactics.
Exhibitions
Widely used in industrial, commercial andconsumer goods
Companies need therefore to take decision as to; Aim to be achieved
Which exhibition need to be show
Size of the stand
Location of stand
Layout and facilities of stand
Staffing
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Exhibitions..
Choice criteria would include;
Nature of exhibition
Number of peoples would attend
Costs
Competitors showing
Timing
Opportunities
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Sales Promotion Tactics.
Packaging
It is one of the lowest cost and highestleverage area of marketing activity
Expensive but gain large business
Checklist for packaging development
Protection of contents
Consumer convenience Trade appeal
Consumer sales appeal
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Sales Promotion Tactics.
Influence of packaging Taste
Value
Consumption
Character merchandising
It greatly enhance the sale of item for exampleprince biscuits, Disney characters are goodexample of this tactics
Some companies developed their own characteri.e Leopard courier
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Sales Promotion Tactics.
Sponsorship
This tactic is increasing
Sponsorship can contribute sales promotion in
following aspects; Inspiring sales force
Giving boost to the trade
Providing a mean of offering greater hospitalityExamples, Telenor, Coca-Cola, Warid Telecom and
Bank Alfalah,
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Public Relations Or Marketing?
Eight basic publics for PR:
The community at large
Employees
Customers
Suppliers
The money market
Distributors
Potential employees
Opinion leaders
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PR strategy Needs to be Based on Decisions in
Three Areas
The extent & frequency of communications with public.
The degree of importance attached to the
communications in terms of their ability to helporganization.
The effectiveness of those communications is achieving
objective.
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PR Evaluation & Control
Taking stock of the situation before & after the
implementation of PR Campaign.
Post-Campaign survey.
Measure the amount of media coverage in terms of the
amount of space gained in newspapers.
OR
The amount of listening time gained through television orradio.
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Planning Personal Selling
Important part of the firms income.
A extensive& continuouslymonitored aspect.
Identifying sales force effectiveness by
Auditing Sales force.
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There might be further improvements neededafter Audit.
Relative size of the sales force;
Reward system and level of earnings;
Rate of sales force turnover; Sales per sales person;
Sales force support system;
Relative level of training;
Recruitment system; Control systems;
Relative images of sales forces.
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Planning Personal Selling....
Sales Strategy
A sales strategy can be based on your business
and marketing plans. It looks at how you will
deliver objectives set out in your marketing plan,
as well as how you have chosen to segment yourtarget market.
For example : Dawn Bread.
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Hard Selling
Hard sell strategies are aggressive and usually put a
high amount of pressure on the customer. This is
especially important for consumers who are ready to
buy and arent looking to still shop.
For Eg :
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Soft Selling
Soft selling focuses on the relationship-
building aspect of sales. You dont put
psychological pressure on potential buyers.
Instead, you find passive ways to show themthat you have the solutions they need.
For Eg : Generations the Game Shop
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Planning Personal Selling....Sales Force
The division of a business that is responsible for selling productsor services. Persons responsible for selling products or servicesvia direct contact to the customer.
Sales Force compensation
A sale force compensation plan can mean the differencebetween a company's success and failure. Sales are the lifebloodof any company, and the sales force is the engine behind sales. Acompany must pay close attention to the compensation plan ituses to compensate its sales force.
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Methods of remuneration:
1. Basic pay for standard hours
2. Additional hours rewards
3. Commission
4. Bonuses
5. Performance related pay
6. Profits related pay7. Payment by results
8. Piece rate reward systems
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