advt mgmt-4

8/3/2019 Advt Mgmt-4

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PromotionP

romotionCommunication by

marketers that informs,

persuades, and remindspotential buyers of a

product in order to

influence an opinion or

elicit a response.

Advt & sales Mgmt (MB-904)


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Promotional StrategyP

romotional StrategyA plan for the optimal use

of the elements of

promotion:AdvertisingAdvertising

Public RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionSales Promotion



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The Role of

Promotion

The Role of

Promotion

Promotional MixPromotional Mix

AdvertisingPublic RelationsPersonal SellingSales Promotion

Promotion PlanPromotion Plan

OverallOverallMarketingMarketingObjectivesObjectives

Marketing MixMarketing Mix ProductProduct

DistributionDistribution

PromotionPromotion

PriceP

rice

Target MarketTarget Market



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Differential AdvantageDifferential Advantage

Unique Features

Excellent Service

Low Prices

Rapid Delivery

High Product Quality

FeaturesFeatures

that providethat provideDifferentialDifferentialAdvantageAdvantage



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Promotional MixP

romotional Mix

Combination of promotion

tools used to reach the

target market and fulfill

the organizations

overall goals.

AdvertisingAdvertising

Public RelationsPublic RelationsPersonal SellingPersonal Selling




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Promotional MixP

romotional MixAdvertising

Elements

of thePromotional

Mix

Public Relations

Personal Selling

Sales Promotion



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Impersonal, one-way

mass communication

about a product or

organization that is

paid for by a marketer.



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Advertising MediaAdvertising MediaTraditional

Advertising MediaTraditional

Advertising MediaElectronic

Advertising MediaElectronic

Advertising Media

Television Radio Newspapers Magazines

Books Direct mail Billboards Transit cards

Internet Computer modems Fax machines



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AdvantagesAdvantages

Ability to reach large

number of people

Cost per contact is low

Can be micro-targeted

DisadvantagesDisadvantages

Total cost is high



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Public RelationsP

ublic RelationsThe marketing function that

evaluates public attitudes,

identifies areas within theorganization that the public

may be interested in, and

executes a program of action

to earn public understanding

and acceptance.



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P

ublic RelationsP

ublic Relations

Evaluates publicattitudes

Identifies areasof public interest

Executesprograms towin public

Functions ofFunctions of




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P

ublicityP

ublicity

Public information about a

company, good, or serviceappearing in the mass media

as a news item.



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SalesP

romotionSalesP

romotion

Marketing activities--other

than personal selling,advertising, and public

relations--that stimulate

consumer buying and

dealer effectiveness.



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SalesP

romotionSalesP

romotion

EndConsumers

Trade Customers

Company

Employees


TargetsTargets



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SalesP

romotionSalesP

romotionFree samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

PopularToolsPopularToolsforforConsumer SalesConsumer SalesPromotionPromotion



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P

ersonal SellingP

ersonal Selling

Planned presentation to

one or more prospective

buyers for the purpose

of making a sale.



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P

ersonal SellingP

ersonal SellingTraditional

SellingTraditional

SellingRelationship

SellingRelationship

Selling



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CommunicationCommunication

The process by which we

exchange or share

meanings through a

common set of symbols.



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Marketing CommunicationMarketing Communication

Categories ofCommunication

InterpersonalInterpersonalCommunicationCommunication

MassMassCommunicationCommunication



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The Communication ProcessThe Communication Process

As SendersAs Senders As ReceiversAs Receivers

Inform

Persuade

Remind

Develop messages

Adapt messages

Spot new

communicationopportunities



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The Sender and EncodingThe Sender and Encoding

SenderThe originator of the message in the

communication process.

Encoding

The conversion of a senders ideas

and thoughts into a message, usually

in the form of words or signs.



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The Communication ProcessThe Communication Process

Noise

SenderEncodingMessage

MessageChannel

MessageChannel

DecodingMessage

Receiver



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Characteristics ofPublic RelationsCharacteristics ofPublic Relations

Communication Mode

Communication Control

Feedback Amount

Feedback Speed

Message Flow Direction

Message ContentControlSponsor Identification

Reaching Large Audience

Message Flexibility


Usually indirect, non-personal

Moderate to low

Little

Delayed

One-way

NoNo

Usually fast

Usually no direct controlAdvt & sales Mgmt (MB-904)


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Characteristics ofCharacteristics of


Communication Mode


Feedback Amount

Feedback Speed


Message ContentControl

Sponsor Identification


Message Flexibility


Usually Indirect and non-personal

Moderate to low

Little to moderate

Varies

Mostly one-way

Yes

Yes

Fast

Same message to varied target



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Characteristics ofPersonal SellingCharacteristics ofPersonal Selling

Communication Mode


Feedback Amount

Feedback Speed


Message ContentControl

Sponsor Identification


Message Flexibility

Personal SellingPersonal Selling

Direct and face-to-face

High

Much

Immediate

Two-way

Yes

Yes

Slow

Tailored to prospect



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Goals and Tasks ofPromotionGoals and Tasks ofPromotion

InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience



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InformingInforming RemindingReminding

PersuadingPersuading

TargetAudienceTarget

Audience

PLCStagesPLCStages:Introduction

Early Growth

PLCStages:PLCStages:

Growth

Maturity

PLC

Stages:PLC

Stages:Maturity



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Informative Objective

Increase awareness

Explain how product works

Suggest new uses

Build company image



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Persuasion Objective

Encourage brand switching

Change customers perception ofproduct attributes

Influence buying decision

Persuade customers to call



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Reminder Objective

Remind customers that productmay be needed

Remind customers where to buy product

Maintain customer awareness



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The AIDA ConceptThe AIDA Concept

Model that outlines the

process for achieving

promotional goals in terms

of stages of consumer

involvement with the

message.



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The AIDA ConceptThe AIDA Concept

AAttentionttention

IInterestnterest

DDesireesire

AActionction



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AIDA and the Promotional MixAIDA and the Promotional Mix

AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionAction

AdvertisingAdvertisingVery

effectiveVery

effectiveSomewhateffective

Noteffective

PublicPublicRelationsRelations

Veryeffective

Veryeffective

Veryeffective

Noteffective

SalesSales

PromotionPromotion

Somewhat

effective

Somewhat

effective

Very

effective

Very

effective

PersonalPersonalSellingSelling

Somewhateffective

Veryeffective

Veryeffective

Somewhateffective



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Lavidge and Steiner modelLavidge and Steiner model

Awareness

Knowledge

Liking

Preference

Conviction

Action36Advt & sales Mgmt (MB-904)


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Factors Affecting theFactors Affecting the


Nature ofProduct

Stage in PLC

Target Market Factors

Type of Buying Decision

Promotion Funds

Push orPull Strategy

FactorsFactorsAffectingAffectingChoice ofChoice of




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Nature of the ProductNature of the Product

Product characteristics Business product vs. consumer product

Costs and risks

Social risk

Factors that influence promotional mixFactors that influence promotional mix



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Stage in the Product Life CycleStage in the Product Life Cycle

TimeTime

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

Sales($)

Sales($)



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Product Life Cycle and theProduct Life Cycle and the


LightAdvertising,

pre-introductionPublicity

Heavy use ofadvertising,PR for

awareness;sales

promotionfor trial

AD/PRdecreaseLimitedSales

Promotion,PersonalSelling for

distribution

Adsdecrease.

SalesPromotion,PersonalSelling

Reminder &Persuasive

Advertising,PR, Brand

loyaltyPersonalSelling for

distribution

IntroductionIntroduction GrowthGrowth

MaturityMaturity

DeclineDecline

Sales($)

Sales($)

TimeTime



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Target Market CharacteristicsTarget Market Characteristics

FOR:

Widely scattered

market

Informed buyers

Repeat buyersAdvertising

Sales Promotion

Less Personal Selling



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Type of Buying DecisionType of Buying Decision

Advertising

Sales PromotionType ofType of

Buying DecisionBuying Decisionaffectsaffects

PromotionalPromotionalMix ChoiceMix Choice

ComplexComplex

RoutineRoutine

Personal Selling

Not RoutineNot Routineor Complexor Complex

Advertising

Public Relations



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Available FundsAvailable Funds

Trade-offs with funds available

Number of people in target market

Quality of communication needed

Relative costs of promotional elements



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Push and Pull StrategiesPush and Pull Strategies

ManufacturerManufacturerpromotes topromotes towholesalerwholesaler

WholesalerWholesalerpromotes topromotes to

retailerretailer

RetailerRetailerpromotes topromotes toconsumerconsumer

ConsumerConsumerbuys frombuys from

retailerretailer

PUSH STRATEGYPUSH STRATEGY

Orders to manufacturer

ManufacturerManufacturer

promotes topromotes toconsumerconsumer

ConsumerConsumer

demandsdemandsproductproductfrom retailerfrom retailer

RetailerRetailer

demandsdemandsproductproductfrom wholesalerfrom wholesaler

WholesalerWholesaler

demandsdemandsproduct fromproduct frommanufacturermanufacturer

Orders to manufacturer

PULL STRATEGYPULL STRATEGY



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Integrated MarketingIntegrated Marketing

CommunicationsCommunications

A method of carefully

coordinating all

promotional activities to

produce a consistent,

unified message that is

customer focused.


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