mgt-2306-chapter 9
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Marketing Management
MGT 2306Lesson 9
Session 9 Objectives
• Definition of Promotion• List and explain the elements of the
Promotional Mix?• Introduce & describe the functions of:- Advertising Sales Promotion
The definition of Promotion
• Activities that support the furtherance of a cause, venture, or aim. (Aktiviti-aktiviti yang menyokong penerusan punca, usaha, atau matlamat.)
• In the case of promotion in the context of marketing, it is the “publici-zation of a product, organization, or venture to increase sales or public awareness.”
What is a promotional mix?
• The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing and sales promotion.
What are the elements of the promotional mix?
ADVERTISINGSALES PROMOTION
DIRECT SELLINGPUBLICITY/ PUBLIC RELATIONS
PERSONAL SELLING
Advertising (Pengiklanan)
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising tools (media/Channels)
• Broadcast Media (media penyiaran) - TV, Radio, Internet Streaming• Print Media (media cetak) - Newspapers, Magazines, Brochures• Indoor/Outdoor Media (media
dalaman/luaran)– Billboards, Bus Panels, Buntings, Moving
Placards, Kiosks
Setting Advertising Objectives
Objectives are classified by primary purpose:• Inform (memaklumkan)• Persuade (memujuk)• Remind (mengingati)
Objectives Defined
Informative advertising is used when introducing a new product category; the objective is to build primary demandComparative advertising directly or indirectly compares the brand with one or more other brandsPersuasive advertising is important with increased competition to build selective demandReminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product
Samples of Advertisements..
Product life-cycle stage• New products require larger budgets• Mature brands require lower budgetsMarket share• Building or taking market share requires larger
budgets• Markets with heavy competition or high
advertising clutter require larger budgets• Undifferentiated brands require larger budgets
Factors to consider when setting the advertising budget
Creating the advertising message
Advertisements need to breakthrough the clutter:• To Gain attention• To Communicate wellAdvertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers
Message Strategy
A Message strategy is the general message that willbe communicated to consumers
It has to identify consumer benefits
The creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign
Creating the appeal in the advertising messageCharacteristics of the appeals include:• Meaningful (bermakna)• Believable (senang dipercayai)• Distinctive (tersendiri)
Message Execution in Advertising
• Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest.
• The creative team must find the best approach, style, tone, words, and format (pendekatan, gaya, nada, perkataan dan format) for executing the message.
Creative Advertising Examples
Approaches to advertising messages
Slice of life Lifestyle Fantasy
Mood or image Musical Personality symbol
Technical expertise
Scientific evidence
Testimonial or endorsement
• Slice of Life : Properties, Expensive Yatches, Planes, Cars• Lifestyle : Magazine Subscriptions, Clothes, Shoes Handbags, Smartphones• Fantasy : Cereals, Drinks (Ribena)• Mood/Image : Hari Raya adverts• Musical : Jingles• Personality Symbols : Makes use of artists to promote• Technical Expertise : Mr Brasso, Ridsect• Scientific Evidence : Colgate, Sensodyne• Testimonial /Endorsement : Smoking / Drunk Driving
Selecting the advertising media
Reach (liputan) is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time
Frequency (keseringan) is a measure of how many times the average person in the target market is exposed to the message
Impact (kesan) is the qualitative value of a message exposure through a given medium
√ Reaches large, geographically dispersed audiences
√ Low cost per exposure√ Consumers perceive advertised goods as
more legitimateX ImpersonalX one-way communication
Advantages & Disadvantages of Advertising
Sales Promotion
Sales promotion
• Short-term incentive to encourage sale or trial – short-term strategy - buy now!
• for example:– competitions– 2 for 1 deals– price specials– premiums etc.
Free co
leslaw with a
snack pack
Why Sales Promotion
• To increase current sales• Companies face more competition• Competing brands offer less differentiation• Advertising inefficiency due to rising costs,
clutter, and legal constraints• Consumers have become more deal-
oriented
Major Sales Promotion Tools
Samples Coupons Cash refunds Price packs
Premiums Advertising specialties
Patronage rewards
Point-of-purchase displays
Demonstrations Contests Sweepstakes Games
Samples
Samples offer a free trial from the pack
Coupons are certificates that give buyers a saving when they purchase specific products
Coupons
Cash Refunds
Are similar to coupons except that the price reduction occurs after the purchase
They offer consumers savings off the regular price of a product
Price Packs
Premiums
Are goods offered either for free or at low price
Are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers
Advertising specialties
Point-of-purchase promotions
Include displays and demonstrations that take place at the point of sales
Require an entry by a consumer. It gives consumers the chance to win something.
Contests
ContestSweepstakes
Require consumers to submit their names for a drawing
Present consumers with something that may or may not help them win a prize
Games
Sales Contests
Are effective in motivating salespeople or dealers to increase performance over a given period
Are effective to reach many customers not reached with the regular sales force
Conventions
Pro’s and Cons’√ May be targeted at trade or consumers√ Makes use of variety of formats√ Attracts attention, offers strong purchase
incentives, dramatizes offers and boosts sagging sales
√ Stimulates quick responseX Short-livedX Not effective in building long-term brand
preferences.