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8/7/2019 Presentation MM4

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Marketing Management-IV

Mrs Gopika Kumar


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Promotion


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Promotion MixMarketing Communication Mix

Marketing communication are the meansby which firms attempt to inform,persuade and remind consumers directlyor indirectly about the products andbrands that they sell.

It consists of a specific blend of adv,sales promotion, personal selling & directMarketing.


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Objectives ofPromotion Create awareness

Stimulate Demand

Encourage Product Trial

Identify Prospects

Retain Loyal customers

Facilitate reseller support

Combat Competitive Promotional efforts

Reduce Sales fluctuations


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Marketing Communications

Mix

Advertising

Sales Promotion Events/Experiences

Public Relations and Publicity

Personal Selling Direct and Interactive Marketing


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The Communication ProcessThe Communication Process

Advertising Sales

Promotion

Public

Relations

Personal

Selling

Direct

Marketing

Print and

broadcast ads

Contests,

games,sweepstakes,

lotteries

News Sales

presentation

Catalogs

Packaging-

outer

Premiums and

gifts

Speeches Sales

meetings

Mailings

Packaginginserts

Sampling Seminars Incentiveprograms

Telemarketing

Motion

pictures

Fairs and

trade shows

Annual

reports

Samples Electronic

shopping


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Selecting Promotion Mix

Elements1. Type ofProduct Market

2. Buyer Readiness Stage

3. Product Life cycle Stage


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Integrated Marketing

Communication (IMC)Managing and Coordinating the entirecommunication process calls forintegrated marketing communication.

Marketing communication planning whichrecognizes the added value of acomprehensive plan that evaluates the

strategic roles of a variety ofcommunications discipline and combinesthese to provide clarity and maximumimpact.


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How Communication Works?


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Developing Effective

Communication


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Promotion Mix


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Advertising


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AdvertisingAdvertising is any paid formof non personal presentation

and promotion of ideas, goodsor services by an identifiedsponsor.


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The Five Ms of Advertising

Developing and Managing an

Advertising Program


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Advertising Program

1. Advertising objectives at different

stages in Hierarchy of Effects Informative advertising

Persuasive advertising

Reminder advertising

Reinforcement advertising


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Advertising Program

2.Deciding on the Advertising Budget

Five factors to consider when setting theadvertising budget:

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability


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Advertising Program

3. Choosing the AdvertisingMessage Message generation

Message evaluationand selection

Messages on:

Desirability

Exclusiveness

Believability

Message execution

Rationalpositioning

Emotionalpositioning

Social responsibilityreview


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Advertising Program4.Decide on Media & Measuring

Effectiveness-Decide on most effective media

To Increase audience awareness:

Reach: The no. of different persons or households exposedto a particular media schedule at least once during aspecified time period.

Frequency: The number of times within the specified time

period that an average person or household is exposedto the message

Impact: The qualitative value of an exposure though agiven medium.


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Effectiveness

-Choosing Media Type

Newspapers

TelevisionDirect Mail

Radio

Magazines

Outdoor

Yellow Pages

Newsletters


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Medium Advantages Limitations

Newspapers Flexibility; timeliness; good

local market coverage; broad

acceptance; high believability

Short life; poor reproduction

quality; small passalong

audience

Television Combines sight, sound, and

motion; appealing to the

senses; high attention; high

reach

High absolute cost; high

clutter; fleeting exposure;

less audience selectivity

Direct mail Audience selectivity;flexibility; no ad competition

within the same medium;

personalization

Relatively high cost; junkmail image


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Effectiveness

-Choosing Media Vehicle Allocating the Budget

Audience size measures:

Circulation

Audience Effective audience


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Effectiveness-Decide on Media Timing

-Decide on Geographical Allocation

-Evaluating Advertising Effectiveness

Communication Effect Research CopyTesting

Consumer Feedback Portfolio Test

LaboratoryTest

Sales Effect Research


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Sales Promotion


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Sales PromotionDesigned to stimulate quicker orgreater purchase of particularproduct or service by consumers or

the trade.Why Sales Promotion?

1.Effective Sales Tool

2.Competition3.Consumers are Price Oriented

4.Decreasing Advertising efficiency


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Process of Sales Promotion1. Establishing Objectives

2. Select the Tools

Consumer Promotion tools

Trade Promotion tools

Business and Sales force Promotion tools

3. Developing the Program

Size, Condition, Duration, distribution Vehicle,Timing, Total Budget.

4. Pretesting. Implementing, Controlling andevaluating the Program


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Consumer Promotion ToolsSamples: Offer of a free amount of a product or service delivered door to

door, sent in the mail, picked up in a store, attached to another product, or

featured in an advertising offer.

Coupons: Certificates entitling the bearer to a stated saving on the purchase

of a specific product: mailed, enclosed in other products or attached tothem, or inserted in magazines and newspaper ads.

Cash Refund Offers (rebates): Provide a price reduction after purchase rather

than at the retail shop: consumer sends a specified proof of purchase to

the manufacturer who refunds part of the purchase price by mail.

Price Packs (cents-off deals): Offers to consumers of savings off the regular

price of a product, flagged on the label or package. A reduced-price packis

a single package sold at a reduced price (such as two for the price of one).

A banded packis two related products banded together (such as a

toothbrush and toothpaste).


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Trade Promotion ToolsPrice-Off(off-invoice or off-list): A straight discount off the list price on each

case purchased during a stated time period.

Allowance: An amount offered in return for the retailers agreeing to feature

the manufacturers products in some way. An advertising allowance

compensates retailers for advertising the manufacturers product. A display

allowance compensates them for carrying a special product display.

Free Goods: Offers of extra cases of merchandise to intermediaries who buy

a certain quantity or who feature a certain flavor or size.


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Business and Sales force Promotion

ToolsTrade Shows and Conventions: Industry associations organize annual trade

shows and conventions. Business marketers may spend as much as 35

percent of their annual promotion budget on trade shows. Over 5,600 trade

shows take place every year, drawing approximately 80 million attendees.

Trade show attendance can range from a few thousand people to over

70,000 for large shows held by the restaurant or hotel-motel industries.

Participating vendors expect several benefits, including generating new

sales leads, maintaining customer contacts, introducing new products,

meeting new customers, selling more to present customers, and educating

customers with publications, videos, and other audiovisual materials.

Sales Contests: A sales contest aims at inducing the sales force or dealers

to increase their sales results over a stated period, with prizes (money,trips, gifts, or points) going to those who succeed.


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Other Communication MixElements


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Other Communication Mix

ElementsEvents and Experiences

Marketers sponsor events to enhance acorporate image

Public RelationsIt involves a variety of programs designed topromote or protect a companys image or itsindividual products.

Tools:Publications/Events/Sponsorships/News/Speeches/Public Service Activities/Identity Media


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Other Communication Mix

ElementsDirect Marketing

No Middlemen

Tools:DirectMails/Catalogs/Telemarketing/Interactive TV/Kiosks/Websites/Mobiles etc.

Personal Selling

Salesman for Direct Marketing


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Communication Issues


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Does Promotion Increase

Prices?

Does Promotion CreateNeeds?


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Does Promotion Encourage

Materialism?

Should Potentially HarmfulProducts be Promoted?

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