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CAPTER-01 (INTRODUCTION)
Q. 1 WHAT IS PROMOTION?
PROMOTION IS THE PROCESS OF BRINGING A PRODUCT OR SERVICE TO THE ATTENTION OF THE ‘MARKET’. IN SPORT AND RECREATION TERMS THIS IS HOW YOU ‘SELL’ YOUR ACTIVITY,
CLUB OR EVENT TO INTERESTED PEOPLE.
FOR EXAMPLE, ADVERTISING, DIRECT MARKETING ETC.
“PROMOTION IS THE PERSUASIVE COMMUNICATION ACTIVITIES AND EFFORTS USED BY A SELLER TO INTRODUCE BUYERS TO
BUY ITS PRODUCTS”----RUSS & KIRKPATRICK
SO, MARKETING PROMOTION IS ONE OF THE EFFORTS OF THE SELLER BY WHICH THEY TRY TO INFORM, PERSUADE AND SELL
THEIR PRODUCTS TO THE CUSTOMER.
Q.2 WHAT ARE THE MAIN OBJECTIVE OF MARKETING PROMOTION?
MARKETING PROMOTION IS USEFUL FOR A VARIETY OF PURPOSES, INCLUDING TO:
• TO PRESENT INFORMATION TO CONSUMERS AS WELL AS OTHERS.
• TO REMIND ITS PRODUCTS, BRAND NAME FOR RE-SELLING PURPOSE.
• TO CHANGE CUSTOMER BELIEF ABOUT A BRAND.
• TO CHANGE ATTITUDE.
• TO INCREASE DEMAND.
• TO DIFFERENTIATE A PRODUCT.
• TO CREATE GOODWILL.
• TO CREATE BRAND LOYALTY.
• TO ATTRACT NEW MEMBERS AND RETAIN EXISTING MEMBERS.
• TO RETAIN SPONSORS, VOLUNTEERS, OFFICIALS OR SPECTATORS.
• TO GENERATE INTEREST IN AN UPCOMING EVENT, COMPETITION OR SOCIAL ACTIVITY.
• TO INCREASE SALES AND PROFIT.
Q.3 DESCRIBES SCOPE OF MARKETING PROMOTION?
• DEFINITION OF MARKETING PROMOTION: PROMOTION REFERS TO RAISING CUSTOMER AWARENESS OF A PRODUCT OR BRAND, GENERATING SALES, AND CREATING BRAND LOYALTY. FOR EXAMPLE, DIRECT MARKETING, PUBLIC RELATION ETC.
• UNDERSTANDING THE IMPORTANT ASPECT OF MARKETING PROMOTION: MUST CLEAR UNDERSTANDING ON PERSONAL SELLING, ADVERTISING, SALES PROMOTION, DIRECT MARKETING, AND PUBLICITY.
• UNDERSTANDING WHO IS THE TARGET CUSTOMER: IS IT FOR MUSS PEOPLE OR SPECIAL GROUP LIKE YOUTH/ OLDER PERSON. FOR EXAMPLE, “WATER PURIFIER” IS IT FOR MASS PEOPLE OR HEALTH SENSIBLE PEOPLE.
• UNDERSTANDING DIFFERENT TYPES OF MARKETING PROMOTION: MARKETING PROMOTION LIKE DISCOUNTS (I.E., COUPONS), FREE ITEMS, OR A CONTEST. UNDERSTANDING WHICH METHOD IS MORE APPROPRIATE TO INCREASE THE SALES OF A GIVEN PRODUCT.
• UNDERSTANDING DIFFERENT TYPES OF MEDIA: PROMOTION CAN BE DONE BY DIFFERENT MEDIA, NAMELY PRINT MEDIA WHICH INCLUDES NEWSPAPER AND MAGAZINES, ELECTRONIC MEDIA WHICH INCLUDES RADIO AND TELEVISION, DIGITAL MEDIA WHICH INCLUDES INTERNET, SOCIAL NETWORKING AND SOCIAL MEDIA SITES AND LASTLY OUTDOOR MEDIA WHICH INCLUDES BANNER ADS.
• UNDERSTANDING INTEGRATED MARKETING COMMUNICATION: HERE SEVERAL TOOLS USED FOR MARKETING PROMOTION. FOR EXAMPLE, ADVERTISEMENT, PERSONAL SELLING& PROMOTION. USED FOR INSURANCE BUSINESS.
Q.4 DESCRIBES THE IMPORTANCE ROLE OF MARKETING PROMOTION?A. ECONOMIC
IMPORTANCE:
• TO CREATE DEMAND
• TO INCREASE SALES
• TO INCREASE PROFIT
• TO MAINTAIN ELASTICITY OF DEMAND
• TO CREATE BRAND LOYALTY
• TO REDUCE PRODUCTION COST
• TO IMPROVE PRODUCT
B. SOCIAL IMPORTANCE:
• EMPLOYMENT
• ESTABLISHING IMAGE
• PRESENTATION OF PRODUCT INFORMATION
• TO DEVELOP STANDARD OF LIVING
• TO CREATE SOCIAL AWARENESS
Q.5 WHAT IS PROMOTIONAL MIX?
ADVERTISING: ADVERTISING IS ANY PAID FORM OF NON-PERSONAL COMMUNICATION OF IDEAS OR PRODUCTS IN THE "PRIME MEDIA": I.E. TELEVISION, NEWSPAPERS, MAGAZINES, BILLBOARD POSTERS, RADIO, CINEMA ETC. ADVERTISING IS INTENDED TO PERSUADE AND TO INFORM.
THE TWO BASIC ASPECTS OF ADVERTISING ARE THE MESSAGE (WHAT YOU WANT YOUR COMMUNICATION TO SAY) AND THE MEDIUM (HOW YOU GET YOUR MESSAGE ACROSS)
DIRECT MARKETING: DIRECT MARKETING CREATES A DIRECT RELATIONSHIP BETWEEN THE CUSTOMER AND THE BUSINESS ON AN INDIVIDUAL BASIS.
PERSONAL SELLING : PERSONAL SELLING REFERS TO ORAL COMMUNICATION WITH POTENTIAL BUYERS OF A PRODUCT WITH THE INTENTION OF MAKING A SALE. THE PERSONAL SELLING MAY FOCUS INITIALLY ON DEVELOPING A RELATIONSHIP WITH THE POTENTIAL BUYER, BUT WILL ALWAYS ULTIMATELY END WITH AN ATTEMPT TO "CLOSE THE SALE".
SALES PROMOTION : SALES PROMOTION REFERS TO THE PROVISION OF INCENTIVES TO CUSTOMERS OR TO THE DISTRIBUTION CHANNEL TO STIMULATE DEMAND FOR A PRODUCT.
PUBLIC RELATIONS : PUBLIC RELATIONS IS THE COMMUNICATION OF A PRODUCT, BRAND OR BUSINESS BY PLACING INFORMATION ABOUT IT IN THE MEDIA WITHOUT PAYING FOR THE TIME OR MEDIA SPACE DIRECTLY
Q.6 WHAT ARE THE FACTORS USED IN PROMOTIONAL MIX?
ANS : FACTORS SETTING THE PROMOTIONAL MIX:
THERE ARE 3 FACTORS OF SETTING PROMOTIONAL MIX:
1. TYPE OF PRODUCT MARKET
2. BUYER READINESS STAGE.
3. PRODUCT LIFE CYCLE.
1. TYPE OF PRODUCT MARKET
i) Consumer market:
It’s basically based on fulfilling consumer’s satisfaction. Here to reach a product to the consumer following steps should be taken:
a. Sales promotion
b. Advertising
c. Personal selling
d. Public relation in that order
ii) Business market:
This market is for customer who purchase product from producer and sell it to the consumer for profit. Promotional activities at this stage follow this order.
e. Personal selling.
f. Sales promotion.
g. Advertising.
h. Public relatives.
iii) Global Market:
It is a huge market because it’s function is internationally. Multinational company’s mainly tried to capture international market through following activities:
a. Advertising
b. Sales promotion
c. Personal selling
d. Public relation
Iv) Non- profit Govt. Market:
Generally Govt. organization work for public interest. Its motive is to provide service. There are other organizations which are also non-profit organization, such as; School, Hospital etc. their promotional activities are:
e. Personal selling
f. Public relation
g. Sales promotion
h. Advertisement
2.BUYER READINESS STAGE.
Awareness Comprehension Conviction Order Re-order
Fig: Cost effectiveness of different promotional tools at dif-ferent buyer readiness stage
Advertising
Slaes Promotion
Personal Selling
Pro
moti
onal C
ost
Eff
ecti
veness
This figure shows the relative cost effectiveness of four promotional tools:
A. Advertising and publicity play the most important role in the awareness building stage.
B. Customer comprehension is primarily affected by advertising and personal selling.
C. Customer conviction is influenced mostly by personal selling.
D. Closing sales/ordering is influenced mostly by personal selling and sales promotion
E. Re-order also affected mostly by personal selling and sales promotion and somewhat by reminder advertising
3. PRODUCT LIFE CYCLE.
a. Introduction: At this stage a new product is introduced to the market. It is the stage of launching product.
Ex: Faire & Lovely face wash, 3G Internetb. Growth stage: At this stage product become popular gradually.
Customer talk about the product.
Ex: Meril Splash, Lifebuoy, Walton.c. Maturity: At maturity stage profit is gained. Product is known to
others all people.
Ex: LUX, Prand. Decline: At this stage products popularity start to fall gradually.
People become interested on other product.
Ex: Tibet
Q. WHAT IS PROMOTION PLANNING PROCESS?ANS: 1.MARKETING PLAN REVIEW:
*EXAMINE OVERALL MARKETING PLAN AND OBJECTIVES.
*ROLE OF ADVERTISING AND PROMOTION
*COMPETITIVE ANALYSIS
*ASSESS ENVIRONMENTAL INFLUENCE
Marketing Plan ReviewMarketing Plan Review
Situation AnalysisSituation Analysis
Communications ProcessAnalysis
Communications ProcessAnalysis
Budget DevelopmentBudget Development
Program DevelopmentProgram Development
Integration & ImplementationIntegration & Implementation
Monitoring, Evaluating, Controlling
Monitoring, Evaluating, Controlling
2. ANALYSIS OF PROMOTIONAL PROGRAMMED SITUATION:
INTERNAL ANALYSIS ASSESSES RELEVANT AREAS INVOLVING THE PRODUCT OR SERVICE OFFERING AND FIRM ITSELF. THE CAPABILITIES OF THE FIRM AND ITS ABILITY TO DEVELOP AND IMPLEMENT A SUCCESSFUL PROMOTIONAL PROGRAMMED, THE SUCCESSES AND THE FAILURE OF PAST PROGRAMMED SHOULD BE REVIEWED.
• EXTERNAL ANALYSIS FOCUSES ON FACTORS SUCH AS CHARACTERISTICS’ OF THE FIRMS CUSTOMERS, MARKET SEGMENTS, POSITIONING STRATEGIES, AND COMPETITORS. AN IMPORTANT PART OF THE EXTERNAL ANALYSIS IS A DETAILED CONSIDERATION CUSTOMERS CHARACTERISTICS’ AND BUYING PATTERNS, THEIR DECISION PROCESSES, AND FACTORS INFLUENCING THEIR PURCHASE DECISION. IT ALSO INCLUDES MARKET SEGMENTATION AND TARGET MARKETING, MARKET POSITIONING
3.Analysis of communication process: The stage of promotional planning process examines how the company can effectively communicate with consumers in its target markets. The promotional planner must think about the process consumer will go through in responding to marketing communications. The response process for product or services for which consumer decision making is characterized by a high level of interest is often different from that of low involvement or routine purchase decision. These differences will influence the promotional strategy. In brief it includes: Analyze receivers response process, analyze sources, message, channel factors, establish communications goal and objectives.4.Budget determination: After the communication objectives are determined, attention turns to the promotional budget. Two basic questions are asked at this point: what will the promotional programmers’? How will the money be allocated? Ideally, the amount a firm needs to spend on promotion should be determined by what must be done to accomplish its communication objectives. It helps to set tentative marketing communication budget and allocate tentative budget.
5. Integrate and implement marketing communication strategy: Once the strategies are set steps must be taken for implementing it. It includes: integrate promotional mix strategies, create and produce ads, purchase media time and space, design and implement direct marketing, sales promotion, and public relation program.
6. Monitoring, evaluate, and control integrated marketing communication program: The final stage is designed to provide managers with the continual feedback concerning the effectiveness of the program. Then it takes measures to control and adjust promotional strategies.
SALES PROMOTION
• SAMPLES• COUPONS• CASH REFUNDS• PRICE PACKS• PREMIUMS• ADVERTISING
SPECIALTIES
• PATRONAGE REWARDS• POINT OF PURCHASE
DISPLAYS• DEMONSTRATIONS• CONTESTS• SWEEPSTAKES• GAMES
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Major Sales Promotion Tools Consumer Promotion Tools
SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
CONSUMER PROMOTION TOOLS
PRICE PACKS OFFER CONSUMERS SAVINGS OFF THE REGULAR PRICE OF A PRODUCT
PREMIUMS ARE GOODS OFFERED EITHER FREE OR AT LOW COST TO BUY A PRODUCT
ADVERTISING SPECIALTIES ARE USEFUL ARTICLES IMPRINTED WITH THE ADVERTISER’S NAME, LOGO, OR MESSAGE THAT ARE GIVEN AS GIFTS TO CONSUMERS 16-59
SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
CONSUMER PROMOTION TOOLS
SAMPLES OFFER A TRIAL AMOUNT OF A PRODUCT
COUPONS ARE CERTIFICATES THAT GIVE BUYERS A SAVING WHEN THEY PURCHASE SPECIFIED PRODUCTS
CASH REFUNDS ARE SIMILAR TO COUPONS EXCEPT THAT THE PRICE REDUCTION OCCURS AFTER THE PURCHASE
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
CONSUMER PROMOTION TOOLS
PATRONAGE REWARDS ARE CASH OR OTHER AWARDS OFFERED FOR THE REGULAR USE OF A CERTAIN COMPANY’S PRODUCTS OR SERVICES
POINT-OF-PURCHASE PROMOTIONS INCLUDE DISPLAYS AND DEMONSTRATIONS THAT TAKE PLACE AT THE POINT OF SALES
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS CONSUMER PROMOTION TOOLS
CONTESTS, SWEEPSTAKES, AND GAMES GIVE CONSUMERS THE CHANCE TO WIN SOMETHING, SUCH AS CASH, TRIPS, OR GOODS, BY LUCK OR THROUGH EXTRA EFFORT
• CONTESTS REQUIRE AN ENTRY BY A CONSUMER
• SWEEPSTAKES REQUIRE CONSUMERS TO SUBMIT THEIR NAMES FOR A DRAWING
• GAMES PRESENT CONSUMERS WITH SOMETHING THAT MAY OR MAY NOT HELP THEM WIN A PRIZE
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS TRADE PROMOTION TOOLS
TRADE PROMOTION TOOLS PERSUADE RESELLERS TO:
• CARRY A BRAND• GIVE THE BRAND MORE SHELF SPACE• PROMOTE THE BRAND IN
ADVERTISING• PUSH THE BRAND TO CONSUMERS
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
TRADE PROMOTION TOOLS
TRADE PROMOTION TOOLS INCLUDE:• DISCOUNT• ALLOWANCE• FREE GOODS• SPECIALTY ADVERTISING
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
BUSINESS PROMOTION TOOLS
BUSINESS PROMOTION TOOLS ARE USED TO:• GENERATE LEADS• STIMULATE PURCHASES• REWARD CUSTOMERS• MOTIVATE SALESPEOPLE• CONVENTIONS AND TRADE SHOWS• SALES CONTESTS
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SALES PROMOTION
MAJOR SALES PROMOTION TOOLS
BUSINESS PROMOTION TOOLS
CONVENTIONS AND TRADE SHOWS ARE EFFECTIVE WAYS TO REACH MANY CUSTOMERS NOT REACHED WITH THE REGULAR SALES FORCE
SALES CONTESTS ARE EFFECTIVE IN MOTIVATING SALESPEOPLE OR DEALERS TO INCREASE PERFORMANCE OVER A GIVEN PERIOD
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SALES PROMOTION
DEVELOPING THE SALES PROMOTION PROGRAM
• SIZE OF THE INCENTIVE• CONDITIONS FOR PARTICIPATION• PROMOTE AND DISTRIBUTE THE
PROGRAM• LENGTH OF THE PROGRAM• EVALUATION OF THE PROGRAM
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