Promotion

Definition

• Promotion Specific combination of promotional methods

• Promotion represents all of the communications that a marketer may use in the marketplace

• Promotion involves disseminating information about a product, product line, brand, or company

Aspects of a promotional mix

• Advertising

• Personal Selling

• Sales Promotions

• Public relations - Publicity

• Sponsorship

• Direct Marketing

Division Of Sales promotion

• Above the line

• below the line

• Through the line

Above the line

• advertising through media– TV– Cinema– Radio– Print– Banners

• search engines

Below the line• Price promotion • Frequent user/loyalty

incentives • Point-of-sale displays • Money refunds • Coupons • Gift with purchases, also

gifts certificates • Competitions and prizes

Through the line

Techniques of Sales promotion

• Consumer sales promotion techniques

• Trade sales promotion techniques

Consumer sales promotion

techniques• Price deal• Loyal Reward Program• Cents-off deal• Price-pack deal• Coupon• Free-standing insert • On-shelf couponing• On-line couponing• Mobile couponing• Online interactive promotion game• Rebates• Contests/sweepstakes/games• Point-of-sale displays

Trade sales promotion techniques

• Trade allowances• Buying & Buy-Back Allowances• Merchandising Allowances• Scan-Back Allowances• Free Merchandise• Cooperative Advertising• Spiffs & Push Money• Sales Contests• Trade Show exhibits

Sales Promotion

Positives• Supports brand image• Stimulates demand• Focuses customers’ attention

Negatives• Can destroy pricing levels if

overused• Can cause loss of market share

What is Advertising?

• Any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, televisions or radio by an identified sponsor.

- Kotler• Advertising is mass, paid for communication

which is used to transmit information, develop attitudes and induce some form of response from the audience.

Characteristics of Advertising• Non personal form of communication aimed at a

target audience.• Used by commercial and by not for profit

organizations.• Most advertising is concerned ultimately with

selling.• It is a major element in the promotional mix.• Silent still forceful• Sponsor is identified• Paid communication• Message is addressed to diversified audience

Objectives

• An advertising objective is a specific communication task to be achieved with a specific target audience during specified period of time.

• Like all objectives they should be SMART.• In essence the main advertising objectives are:

- To Inform: to provide information about a product

- To Persuade: to persuade people to buy

- To Remind: to remind people about a mature product

SMART Criteria

• Specific - the objective should state exactly what is to be achieved.

• Measurable - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved

• Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business.

• Relevant - objectives should be relevant to the people responsible for achieving them

• Time Bound - objectives should be set with a time-frame in mind. These deadlines also need to be realistic.

Inform, Persuade, Remind

Inform• To provide

information• Used specifically

with a new or complex product.

• Print media is superior to TV for this type of advertising.

E.g.

Insurance

Financial Products

New Electrical Goods

Persuade• To persuade

customers to buy a particular brand

• Stress the distinctive features of the brand.

• Minimal Information.

E.g.

Perfumes

Cars

Coca cola

Remind• To remind customers

about a product they might other overlook.

• Advertising a mature product.

E.g.

Colgate

Kit-Kat

Sunsilk

Summary of Objectives

• To create awareness• To inform• To remind customers• To reassure

customers• To support the sales

force – personal selling

• To persuade • To promote Ideas/

Attitudes/ Causes

• To increase market share

• To differentiate from rivals

• To build brand loyalty• To change attitudes• To support activities in

the distribution chain

Advantages• Creating awareness• Increase sales• Brand identity & Brand image• Communicate a change• Increase the buzz value• Increase loyalty• Offers planned and controlled messages• Contact and influence masses• Deliver specific message to specific target

segment• Same message with varience• It reaches to all…e.g. premium• Helps to presale goods and pulls the

buyers to retailers• Generates interest and provides

knowledge as well

A word of caution – Disadvantages

Even good advertising can not overcome problems caused by Poor productInefficient serviceUncompetitive pricing

Less effective than personal selling and sales promotion

Less flexible than personal communication (no media to answer the query)

Cant evaluate the message effectiveness and the response

Unable to reach the prospect, so the cost of repetition increases

Many times lack credibility and worthiness

Types of Advertising – based on objectives

• Informative - Provides information• Persuasive - To encourage brand switching• Reminder - To remind about a mature product• Reinforcement - To reassure• Pioneering - To introduce new product• Competitive - To point out differential advantages• Defensive - To reduce damage caused by

campaign of a direct competitor.

InteractiveAdvertising

InteractiveAdvertising

Public ServiceAdvertising

Public ServiceAdvertising

InstitutionalAdvertising

InstitutionalAdvertising

Business-to-Business

Advertising

Business-to-Business

Advertising

Brand Advertising

Brand Advertising

Retail or LocalAdvertising

Retail or LocalAdvertising

PoliticalAdvertising

PoliticalAdvertising

Direct-ResponseAdvertising

Direct-ResponseAdvertising

DirectoryAdvertising

DirectoryAdvertising

Types of Advertising – Based on Business Type

AIDA

Advertising should seek to:

A- increase Awareness

I- create Interest

D- develop a Desire

A- encourage customers to buy - action

• Advertising seeks to move potential buyers through these stages.

5 Ms of Advertising

• MISSION- Objectives• MONEY- to pay for the Campaign• MESSAGE- to be Delivered • MEDIA- choice of advertising Media• MEASURE- Measuring the impact

Determining the Budget - Money

• The advertising budget will be set in terms of one of:

- what can be afforded

- A given percentage of sales

- Comparison with rivals

- Objective and Task- whatever is needed to achieve objective

Developing an Advertising Campaign - Message

• Set the advertising objectives.• Define target market.• Determine the advertising budget.• Determine the key advertising message.• Decide which media to use.• Plan campaign timing.• Evaluate the results of the campaign.

Factors in the choice of media

• Marketing mix• Relative cost• Target audience• Impact of the media• Competition• Legal constraints

• Permanence of the media

• Nature of the product• Size and spread of the

market• Advertising budget• Message to be conveyed

Main Advertising Media

• Television• Cinema• Radio• Outdoors (billboards)• Internet• Print media- news papers and magazines

Television

Advantages• Large audience• Low cost per exposure• high impact-color,

sound and movement• Can target specific

groups

Disadvantages• Very high overall cost• Limited prime time

space• Short lived• May not be watched-

visual wallpapers• Convey only a limited

message

Radio

Advantages• Relatively

inexpensive• target specific

segment• Relatively mobile• Local

Disadvantages• Limited impact• No vision• Short life

News Paper

Advantages• Target specific

segments• Widely read• Short lead time• Frequent publication• Inexpensive compared

to television• Color printing adds to

impact• Local regional national

papers available

Disadvantages

• Low impact• May get lost in the rest

of the paper• Not every group reads a

paper• High costs especially

for national news paper

Magazine

Advantages• Useful for targeting

specific group• Good reproduction-

high quality gloss images

• Long life-read at leisure• Can be linked to

features• All consumers interests

catered for

Disadvantages• Can be expensive• Long read time• Some magazines are only

published monthly.• Moderate impact• Slow impact due to long life• Magazines with limited

readership are not suitable for mass marketing

Cinema

Advantages• Captive audience• High impact• Can be specifically

targeted• Local audience• Visual, sound,

movement

Disadvantages• Limited audience• Mainly young

audience• Short lived message• May only be seen

once.

Out door-Bill boards

Advantages• Repeatedly seen• 24/7 coverage• Target particular area• Local media• May encourage

impulse buying if close to shops

Disadvantages• Message must be

simple and short• Can not target

socioeconomic groups• Rarely attract full

attention • Short lived• May be seen as traffic

hazard• Difficult to measure

effectiveness

Advertising on transport

Advantages• Low cost• Target specific areas• Captive audience• Reaches wide diverse

audience

Disadvantages• Harder to target by

socioeconomic class• Quick results unlikely• Difficult to measure

effectiveness• Rarely gains reader’s

full attention• Space for only a short

message

Internet advertising

• Cheap • Easy to set up• Easily updated• Number of hits can be

monitored-useful measure of effectiveness

• Problems of connecting

• Limited audience• Technical problems• Banner adverts not

very effective• Search engine listing

can be costly (e.g. click fraud)

Public Relations

– Public Relations– Public Relations Department

Functions Include:• Press relations• Product publicity• Corporate communication• Lobbying – Advocacy • Counseling

Public Relations

• Marketing Public Relations (MPR)– Publicity vs. MPR– MPR assists in the following tasks:

• Assisting in the launch of new products• Assisting in repositioning a mature product• Building interest in a product category• Influencing specific target groups• Defending products that have

encountered public problems• Building the corporate image in a way

that reflects favorably on its products

Public Relations

– Establishing the Marketing Objectives• MPR can:

– Build awareness– Build creditability– Hold down promotional cost

– Choosing message and vehicle– Implement the plan and evaluate the result

The successful salesperson cares first for the customer, second for the products.

Sales Force Sales Force ManagementManagement

PERSONAL SELLINGPERSONAL SELLING

Most ancient method of marketing.It is person-to-person selling.It involves Home selling and Direct selling.It is also called door-to-door selling.

PERSONAL SELLING is the means of face to face Communication to persuade the customers to buy any product or services.

It mainly involves Home Selling and Direct selling.

Contd..Contd..

HOME SELLING:It takes place at the customer’s home.It is always one-to-one.

DIRECT SELLING:-It can take place at the customer’s home or workplace.It can be for a group.

Activities involved in Activities involved in personal selling…personal selling…

Identifying potential customers.Matching consumer needs with product attributes.Persuading customers to buy.Satisfying after purchase.

PERSONAL SELLING PERSONAL SELLING PROCESSPROCESS

1. Prospecting2. Qualifying3. Approaching customers4. Sales Presentation5. Handling Objections6. Closing the sale7. Following up the sales

OBJECTIVES OFOBJECTIVES OF PERSONAL PERSONAL SELLING…SELLING…

Search new customersObtain sales volumeSecure market shareProvide technical advice to customersCollect and report market information Assist with training of sales personal

IMPORTANCE OFIMPORTANCE OF PERSONAL PERSONAL SELLINGSELLING……

Pin-points Prospects

Meet objections

Close encounter of the product

Time saving