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PromotionalTools for
Marketing
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Marketing Communications Mix
The specific mix of advertising,personal selling, sales
promotion, and public relations a
company uses to pursue its
advertising and marketing
objectives.
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PromotionThe function of informing,
persuading, and influencing a purchasedecision.
Integrated marketing
communications (IMC)Coordination ofall promotional activitiesmedia advertising,
direct mail, personal selling, sales promotion,
and public relationsto produce a unified
customer-focused message.
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THE PROMOTIONAL MIX
Promotional mixCombination of personal and
nonpersonal selling techniques designed to
achieve promotional objectives.
Personal sellingInterpersonal promotionalprocess involving a sellers face-to-face
presentation to a prospective buyer.
Nonpersonal selling Advertising, sales
promotion, direct marketing, and public
relations.
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The main tasks of promotion
are:- to inform,
- to persuade,- and to remind
(prospective) customers.
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The Role of Promotion in Marketing
- Promotion is intended to make a product
more attractive to prospective customers
- Through promotion a company strives to
increase its products sales volume at any
given price; that is, the firm seeks to shift
its demand curveto the right
- A firm also hopes that promotion will affect
the demand elasticityfor its product; theintent is to make the demand more
inelastic when price increases and more
elastic when price decreases
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Advertising
Personal Selling
Public Relation
Sales Promotion
Direct Marketing
The promotionalmix
Mass
Mass
Customised
Mass
Customised
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ADVERTISING
Advertising Paid nonpersonal communicationdelivered through various media and designed
to inform, persuade, or remind members of a
particular audience.
Types of Advertising
Product advertising, institutional advertising,cause advertising
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Advertising Functions
Informing
Persuading
Reminding
Adding Value
Assisting Other Company Efforts
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Advertising Functions
Informing
Makes consumers aware, educates
them about the features andbenefits, and facilitates the creation
of positive brand images
Facilitates the introduction of newbrands and increases demand for
existing brands
3
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Advertising Functions
Persuading
Persuades customers to try
advertised products and
services
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Advertising Functions
Reminding
Keeps a companys brand fresh
in the consumers memory
Influences brand switching
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Advertising Functions
Adding Value
Three basic ways by whichcompanies can add value
innovating
improving quality
altering consumer perceptions13
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Budgeting Considerations
in Practice
What is the Ad objective?
How much are competitors
spending?
How much money is available?
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Advertising Advantages
Disadvantages Advantages
The widest range
The greatest influence Different time of broadcasting
Short but long-lasting
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Advertising Advantages
Diaadvantages Disadvantages
Very expensive
Time consuming in production Easy to forget
Short existence Lack of interest
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SALES PROMOTIONSales promotion Non personal
marketing activities other than
advertising, personal selling, and
public relations that stimulate
consumer purchasing and dealereffectiveness.
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Objective: Bolster/complementother promotional mix elementsduring a specific time period
Targeted toward:Sales force
Wholesalers and retailersConsumers
Sales Promotion
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Rebates,
Contests, games & sweepstakes
Product sampling, demonstrations
Coupons, refunds
Sales Promotion
Methods for Consumers
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Classifying Types of Sales
Promotions
Promotional Pricing - Price reductions
Free goods Tied offers ,Money off next
purchase
Non Promotional Pricing- Contests
,Free gifts, Guarantees and added
services Sampling-- Most effective in the early
stages of a new product launch
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rade-Oriented Promotions
Sales promotion geared to marketing
intermediaries rather than to consumers.
Encourage retailers in several ways:
To stock new products. To continue carrying existing ones.
To promote both new and existing products
effectively to consumers.
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Point-of-purchase (POP) advertising
Displays or demonstrations thatpromote products when and where
consumers buy them, such as in retailstores.
Promote goods and services attrade
shows.
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Sales Promotion, Pro and Con
Advantages:
Motivation method for specialefforts
Short-term sales increase
Defined target audience
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Sales Promotion, Pro and Con
Disadvantages:
Only short-term
Hidden costs
Confusion
Price cutting -Brand image
Postponement effect
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Personal Selling Defined
Personal selling refers to personalcommunication with a an audience
through paid personnel of an
organization or its agents in
such a way that the audience
perceives the communicators
organization as being the source
of the message.
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PERSONAL SELLING
Usually used under four conditions: Customers are relatively few in
number and geographicallyconcentrated.
The product is technically
complex, involves trade-ins, andrequires special handling.
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The product carries a relatively
high price.
It moves through direct-
distribution channels.
Example: Selling to the government
or military.
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Sales Tasks
All involve assisting customers in some way.
Order Processing
Identifying customer needs, pointing out
merchandise tomeet them, and processing the order.
Creative Selling
Promoting a good or service whose benefitsare not readily apparent
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nalysis of alternatives.
Missionary SellingRepresentative promotes goodwill for a
company or
provides technical or operational assistance to
the customer.
TelemarketingPersonal selling conducted by telephone;
regulated by the
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Industrial
Revolution
Post-Industrial
Revolution
War and
Depression
Modern
Era
1800s 1900s 2000s
Evolution of Personal SellingSelling function
became morestructured
selling door to
door . . .
Business
organizations
employed salespeople
Selling function
became more
professional
As we begin the 21st
century, sellingcontinues to develop,
becoming more professional and more
relational
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Transaction-Focused
Short term thinking
Making the sale has priorityover most other
considerations Interaction between buyer
and seller is competitive
Salesperson is self-interestoriented
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Long term thinking
Developing the relationshiptakes priority over getting
the sale Interaction between buyer
and seller is collaborative.
Salesperson is customer-oriented
Relationship-Focused
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Classification of
Personal Selling Approaches
Stimulus ResponseSelling
Mental States Selling
Need Satisfaction
Selling Problem Solving
Selling
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Stimulus Response Selling
Salesperson
Provides
Stimuli
BuyerResponses
Sought
Continue
ProcessuntilPurchase
Decision
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Action
Attention
Desire
MentalStates
Selling
Interest
Conviction
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Need Satisfaction Selling
Uncover
andConfirmBuyerNeeds
Present
OfferingtoSatisfyBuyerNeeds
ContinueSelling
untilPurchaseDecision
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Problem Solving Selling
DefineProblem
GenerateAltern
ativeSolutions
ContinueSelling
untilPurchase
Decision
EvaluateAlternative
Solutions
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The Sales Process: An
Overview
Developing
Customer
Relationships
Initiating
CustomerRelations
hips
Enhancing
Custome
rRelation
ships
SellingFoundations
SellingStrategy
The Sales Process: Selling
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The Sales Process: Selling
FoundationsIn order to be successful in todays global businessenvironment, salespeople must have a solidrelationship building foundation. They must:
Possess Excellent Communication
Skills
Understand Buyer Behaviour
Behave Ethically
Be Trustworthy
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Direct marketing
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Direct marketing definition
An interactive system of marketingwhich uses one or more
advertising media to effect a
measurable response at any
location, forming a basis for
creating and further developingan ongoing relationship between
an organisation and its
customers.
Di t k ti t h i
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Direct marketing techniques
Direct mail - material distributed via
the postal service to a recipientshome or business to promote a
product/service.
Direct response advertising -standard broadcast and print media
designed to generate a direct
response, e.g an order or personalvisit.
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Mail order - the purchase of products
featured in advertising or selected
from a catalogue.
Teleshopping - home based shopping.
Telemarketing - a direct personal, verbal
approach via some kind of written or visualmethod.
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Direct mail - the advantages
Targeting - for example using the post
code, targeted campaigns can bedeveloped using geographical /
demographical criteria.
Personalisation - large numbers ofpersonalised mailings can be undertaken
regularly.
Response rates can be high.
Flexibility of creative scope.
Can hold attention of reader/recipient.
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Limitations of telemarketing
Operational issues - requires
systems that can cope with
volumes of inbound calls.
Regulatory issues regarding for
example unsolicited mail and coldcalling.
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Objectives of direct marketing
Direct ordering.
Providing information.
Visit generation.
Trial generation.
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Public Relations
Public relations Public organizationscommunications and relationships with its
various audience.
Helps a firm establish awareness of goods
and services and builds a positive image of
them.
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Publicity
Publicity Stimulation of demand for a good,
service, place, idea, person, or
organization by disseminating news or
obtaining favorable unpaid mediapresentations.
Good publicity can promote a firms
positive image
Negative publicity can cause problems.
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Product Life Cycle and Promotion Introduction Stage Promotion is
aimed at innovators and earlyadopters. Marketing communicationsseeks to build product awareness and
to educate potential consumers aboutthe product. Publicity, Advertising,sales promotion Target- To Inform
Growth Stage
Promotion is aimed at a broaderaudience.
Personal selling advertising
Target To persuade
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Product Life Cycle and Promotion
Maturity Stage
Promotion emphasizes productdifferentiation. Reminder advertising,reminder direct mail, sales promotion,limited personal sellingTarget To remind
Decline Stage
Not much promotion is done
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Factors that influence the use of promotionaltools
Target AudiencePrroduct Life Cycle
ProductCharectoristics
Channel Decesion
The Promotional mix
AdvertisingPublic
\Relations
Direct M
arketingPersonal
SellingSales
Promotion
Th i d i i
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Slide 18-42
The promotion decision process
Setting the Promotional
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Setting the Promotional
Budget and Mix
Promotion Mix Strategies
Push strategy: trade promotions and
personal selling efforts push theproduct through the distributionchannels.
Pull strategy: producers useadvertising and consumer salespromotions to generate strong
consumer demand for products.
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Online Marketing