PROMOTION

Concept

The element in an organization’s marketing mix

that is used to inform, persuade, and remind the

market regarding the organization and/or its

products.

Promotional Mix

A company’s total promotion mix—also called

its marketing communications mix—consists of the

specific blend of (a) advertising, (b)public relations,

(c) personal selling, (d)sales promotion, and

(e)direct-marketing tools that the company uses to

persuasively communicate customer value and

build customer relationships.

FIVE MAJOR PROMOTIONAL TOOLS

1. Advertising: Any paid form of non-personal

presentation and promotion of ideas, goods, or

services by an identified sponsor.

2. Sales promotion: Short-term incentives to

encourage the purchase or sale of a product or

service.

3. Personal selling: Personal presentation by the firm’s sales force for the purpose of making salesAnd building customer relationships.

4. Public relations (PR): Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

5. Direct marketing : Direct connections with

carefully targeted individual consumers to both

obtain an immediate response and cultivate

Lasting customer relationships.

Advertising

Any paid form of non-personal

presentation and promotion of ideas, goods, or

services by an identified sponsor.

Major Advertising Decisions1. Objectives setting

(a) Communication objectives

(b) Sales objectives

2. Budget decisions

3. Message decisions

4. Media decisions

5. Advertising evaluation

(a) Communication Impact (b) Sales and profit impact (c) Return on advertising

Types of Advertising

On the basis of objectives/ purpose advertising

can be categorized as :

1.Informative Advertising

2.Persuasive Advertising and

3.Reminder Advertising

Informative Advertising

- Communicating customer value- Building a brand and company image- Telling the market about a new product- Explaining how a product works- Suggesting new uses for a product- Informing the market of a price change- Describing available services and support

Persuasive Advertising

- Building brand preference- Encouraging switching to a brand- Changing customer perceptions of product

value- Persuading customers to purchase now- Persuading customers to receive a sales call- Convincing customers to tell others about the

brand

Reminder Advertising

- Maintaining customer relationships- Reminding consumers that the product may

be needed in the near future- Reminding consumers where to buy the

product- Keeping the brand in a customer’s mind

during off-seasons.

Sales Promotion

Short-term incentives to encourage the

purchase or sale of a product or service.

Whereas advertising offers reasons to buy a

product or service, sales promotion offers

reasons to buy now.

Major Sales Promotion Tools

Consumer promotions include a wide range of

tools—from samples, coupons, refunds,

premiums, and contests, and event

sponsorships.

Personal Selling

Personal presentations by the firm’s sales

force for the purpose of making sales and

building customer relationships.

Personal selling is one of the oldest professions in

the world. The people who do the selling

go by many names, including salespeople, sales

representatives, agents, district managers,

sales consultants, and sales engineers.

Salesperson

An individual representing a company tocustomers by performing one or more ofthe following activities: -prospecting,-communicating, -selling,- servicing,-information gathering, and -relationship building

Major Steps in Sales Force Management

1. Designing sales force strategy and structure(a) Territorial sales force structure(b) Product sales force structure(c) customer sales force structure2. Recruiting and selecting salespeople3. Training salespeople4. Compensating salespeople5. Supervising salespeople6. Evaluating salespeople

Steps in the Selling Process

The selling process consists of seven steps:1. Prospecting and qualifying, 2. Pre-approach,3. Approach, 4. Presentation and demonstration, 5. Handling objections,6. Closing, and7. Follow-up