promotion decision
TRANSCRIPT
Promotion DecisionPromotion Decision
19-2
PromotionPromotion
When a company develops a new product, changes an old one or wants increase sales of an existing product or service, it must transmit its selling messages to potential customers.
“ Promotion includes all the tools in the marketing mix whose major role is persuasive communication.”
“ Promotion consists of those activities that are designed to bring a company's goods and services to the favourable attention of customers.”
19-3
The Communications ProcessThe Communications Process
19-4
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
3. Design the Message
4. Select the communication channel
5. Establish Marketing Communication Budget
6. Execute The Message
19-5
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
19-6
1. Identify the Target Audience1. Identify the Target Audience( Audience Analysis)( Audience Analysis)
The communication process start with a clear target audience
Target audience can be current users, deciders, influencers, individuals, groups, potential customers etc.
The target audience analysis is a critical influence on the communicators decision on what to say? When to say? And to whom to say it?
19-7
1. Identify the Target Audience1. Identify the Target Audience( Audience Analysis)( Audience Analysis)
Audience analysis also includes the image analysis which assess the current image of the company, its product, and its competitors.
Audience analysis helpful for the organization to determine the communication objectives, design the message, select the media, set the communication budget and to select the appropriate promotional tool.
19-8
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
19-9
2. Determining the Communication 2. Determining the Communication ObjectivesObjectives
19-10
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
3. Design the Message
19-11
3. Designing a Message3. Designing a Message
Message content:Rational appealsEmotional appealsMoral appeals
Message structure:Draw conclusion or notOne versus two-sided argumentStrongest argument first or last
Message format:Sight, sound, colour, and texture
19-12
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
3. Design the Message
4. Select the communication channel
19-13
Personal ChannelsPersonal ChannelsPersonal ChannelsPersonal Channels
4. Select the Communications 4. Select the Communications ChannelsChannels
Non-personal Channels
Non-personal Channels
Personal Selling
Word of Mouth
Print Media
Broadcast Media
19-14
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
3. Design the Message
4. Select the communication channel
5. Establish Marketing Communication Budget
19-15
5. Establish The Communication Budget5. Establish The Communication Budget
Affordablemethod
Percentage-of-salesmethod
Competitive-paritymethod
Objective-and-taskmethod
What management thinksthe company can afford
The budget as a percentageof forecasted sales
Setting the budget tomatch competition spending
1. Defining specific objectives2. Determining tasks needed3. Estimating costs of tasks4. Adding total costs
19-16
Developing Effective Developing Effective CommunicationCommunication
1. Identify the Target Audience
2. Determine the communication Objectives
3. Design the Message
4. Select the communication channel
5. Establish Marketing Communication Budget
6. Execute The Message
19-17
Promotion MixPromotion Mix
“The basic tools used to accomplish an organization's communication objectives are often referred to as promotional mix.”
19-18
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
Personal SellingPersonal Selling
AdvertisingAdvertising
Direct MarketingDirect Marketing
Interactive/Internet Marketing
Interactive/Internet Marketing
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
Basic Elements of the Promotional MixBasic Elements of the Promotional Mix
19-19
AdvertisingAdvertising
“ Advertising is paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience”
19-20
AdvertisingAdvertising
Advertising has six elements Advertising is a paid form of communication. Sponsor is identified Tries to persuade or influence the consumer
to do something. Message is conveyed through many different
kinds of mass media Advertising reaches a large audience It is a non -personal
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Types of AdvertisingTypes of Advertising
1. On the Basis of Geographical Spread National Advertising Local Advertising Global Advertising
19-22
Type of AdvertisingType of Advertising
2. On the Basis of Target Advertising Consumer Advertising Industrial Advertising Trade Advertising Professional Advertising3. Public Service Advertisements4. Institutional Advertising/Corporate
Advertising
19-23
Type of AdvertisingType of Advertising
5. Brand Advertising6. Political Advertising7. Directory Advertisement8. Direct Response Advertising9. Financial Advertising10. Primary Demand Advertising11. Selective Advertising
19-24
PublicityPublicity
“ Refers to the generation of news about a person, product or service that appears in broadcast or print media”
“Non- Personal not paid stimulation of demand of the products or services by planting commercially significant news or editorial comment in the print media or by obtaining a favourable presentation if it upon radio, and television.
19-25
The Power of PublicityThe Power of Publicity
“Why publicity is much more powerful than advertising or sales promotion- or even other forms of promotion?”
Publicity is highly credible. Publicity information is perceived as endorsed by the
medium in which it appears. It has news value High frequency of exposure.
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Public RelationsPublic Relations
“ The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest and executes a programme of action to earn public understanding and acceptance.”
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Sales PromotionSales Promotion
“ A Direct Inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”
Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.
The idea behind sales promotion is to generate immediate sales.
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Types of the Sales PromotionTypes of the Sales Promotion
Consumer oriented sales promotion Trade oriented sales promotion.
19-29
• Consumer-oriented
• [For end-users]
Trade-oriented [For resellers]
Sales Promotion ToolsSales Promotion Tools
EventsEvents
Loyalty ProgramsLoyalty Programs
Bonus Packs Bonus Packs
Refunds/Rebates Refunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiums
SamplesSamples
CouponsCoupons
CoopAdvertising
CoopAdvertising
TradeShowsTradeShows
TrainingProgramsTraining
Programs
POP DisplaysPOP Displays
TradeAllowances
19-30
Direct Marketing DefinedDirect Marketing Defined
“Direct Marketing is the use of Consumer – direct channels to reach and deliver goods and services to customers with
out using marketing middlemen.”
“Direct Marketing is the use of Consumer – direct channels to reach and deliver goods and services to customers with
out using marketing middlemen.”
“A system of Marketing by which organisations communicate directly with customers to generate a response
or transaction.”
“A system of Marketing by which organisations communicate directly with customers to generate a response
or transaction.”
19-31
Catalog SellingCatalog Selling
Direct SellingDirect Selling Direct Action AdvertisingDirect Action Advertising
Direct MailDirect MailTelemarketingTelemarketing
TV SellingTV SellingCatalog SellingCatalog Selling TV SellingTV Selling
Direct MailDirect Mail
Direct Action AdvertisingDirect Action AdvertisingDirect SellingDirect Selling
Direct Marketing DefinedDirect Marketing Defined
“The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a
prospective customer.”
“The total of activities by which the seller directs efforts to a target audience using one or more media for the purpose of soliciting a response by phone, mail, or personal visit from a
prospective customer.”
19-32
The InternetThe InternetThe InternetThe Internet
“The Internet is a worldwide means of exchanging information and communicating through a series of interconnected computers”
19-33
Internet ParticipantsInternet Participants
InternetInternet
InternetInternet
ReceiversReceivers
UsersUsers
ShoppersShoppers
CustomersCustomers
SendersSenders
AdvertisersAdvertisers
SponsorsSponsors
e-CommerceMerchants
e-CommerceMerchants
19-34
BannersBanners
SponsorshipsSponsorships
Pop-ups/Pop-ups/
Push Technologies
Push Technologies
LinksLinks
InterstitialsInterstitials
BannersBanners
SponsorshipsSponsorships
InterstitialsInterstitials
Push Technologies
Push Technologies
Integrating the Internet--AdvertisingIntegrating the Internet--Advertising
Internet Advertising
Has a Variety of Forms:
Internet Advertising
Has a Variety of Forms:
19-35
““Oral Presentation in conversation with Oral Presentation in conversation with one or more prospective purchaser for one or more prospective purchaser for the purpose of making sales”the purpose of making sales”
““Oral Presentation in conversation with Oral Presentation in conversation with one or more prospective purchaser for one or more prospective purchaser for the purpose of making sales”the purpose of making sales”
Personal selling consists of contracting Personal selling consists of contracting prospective buyers of a product prospective buyers of a product personally”personally”
Personal selling consists of contracting Personal selling consists of contracting prospective buyers of a product prospective buyers of a product personally”personally”
Personal Selling
19-36
Factors Influencing Promotional MixFactors Influencing Promotional Mix
Product Related Factors Amount and complexity of product
information. Products stage in the life cycle. Product type and unit price. Consumer related Factors Size and characteristics of the target market Type of buying decision
19-37
Factors Influencing Promotional MixFactors Influencing Promotional Mix
Firm related Factors Pricing strategy Budget Company Personnel Marketing channel Situation Related Factors Visibility of the firm Competitors action