MGT-519 STRATEGIC MARKETING AAMER SIDDIQI 1. LECTURE 25 2.

MGT-519 STRATEGIC MARKETING

AAMER SIDDIQI

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LECTURE 25

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RECAP

• PLC• Stages of PLC• Introduction• Growth• Maturity• Decline• Variation in life span• Importance of PLC

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PROMOTION• Promotion is the method used

to spread the word about theproduct or service to customers,stakeholders and the broader public.

• Once the target market isidentified, you’ll have a goodidea of the best way to reach them, but most businesses use a mix of advertising, personal selling, referrals, sales promotion and public relations to promote their products or services.

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PROMOTION INFORMS

• Promotion informs consumers about the rest of the marketing mix. Without it, consumers do not know about the product, the price, or the place.

• Promotion is more than just advertising • Includes several activities. • Crucial when selling in a mass market or • Have a brand name.

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OBJECTIVES OF PROMOTION• Promotion refers to raising customer awareness of a product

or brand, generating sales, and creating brand loyalty. • Promotion is also found in the specification of promotional

plan. • A promotional mix specifies how much attention to pay to

each of the five subcategories• And how much money to budget for each. • Fundamentally, there are three basic objectives of

promotion. These are:1. To present information to consumers as well as others.2. To increase demand.3. To differentiate a product.

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OTHER BROAD OBJECTIVES

• A promotional plan can have a wide range of objectives, including:

• sales increases, • new product acceptance, • creation of brand equity, • positioning, • competitive retaliations, or • creation of a corporate image.

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PROMOTIONAL MIX• Promotional Mix includes:

Advertisements: They can take different forms, e.g. on TV, in newspapers.Promotion: e.g. Money off coupons.Personal selling: Sending out sales representatives to talk directly to the consumers.Public relations: Involves making the public aware of the company, e.g. creating publicity in the media.

• Includes all of the tools available to the marketer for 'marketing communications'.

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ELEMENTS OF THE PROMOTIONS MIX• As with the marketing mix, marketing communications has its own

'promotions mix’, where different aspects of the promotions mix can be integrated to deliver a unique campaign

• The elements of the promotions mix are:– Personal Selling.– Sales Promotion.– Public Relations.– Advertising– Direct Mail– Trade Fairs and Exhibitions– Sponsorship.

• Elements of the promotions mix are integrated to form a coherent campaign in relation to the strategy developed using STP.

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PERSONAL SELLING• Personal Selling is an effective way to manage personal

customer relationships. • The sales person acts on behalf of the organisation. • They tend to be well trained in the approaches and

techniques of personal selling. • Personal selling is highly persuasive and is often used in

markets where personal choice figures strongly in the purchase, e.g. cosmetics.

• The use of celebrity endorsements within marketing communications can be seen as a way of introducing subtle personal selling –

• You want to be like the celebrity so you ‘sell’ yourself the benefits of the product they are endorsing!

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STAGES OF SELLING• Depending on the circumstances, a sales transaction can include

one, some or all of the following stages.• Prospecting and qualifying – identifying qualified prospects ie:

those that are likely to want or need your product or service and can afford to pay for it.

• Pre-approach – undertaking research about prospects to assist in the actual selling process.

• Approach – making actual contact with the prospect in person, by phone or in writing.

• Presentation and demonstration – presenting and demonstrating the features and benefits of your product or service in order to convince the prospect that their want or need can be satisfied.

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STAGES OF SELLING (CONT’D)

• Handling objections – demonstrating the product or service value to overcome real or perceived objections or misunderstandings that are impeding the purchase decision.

• Closing – bringing the selling process to a successful conclusion by either asking for the order or responding to a positive decision from the prospect.

• Follow-up – proactive or reactive contact with the purchaser to establish their satisfaction level and to address any problems that may exist

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PLANNING PERSONAL SALES

• In planning the selling element of your marketing strategy you will need to consider the following:

• The size and structure of your sales team• Recruiting, training, motivating and evaluating individuals and

the team as a whole• The remuneration structure• The location/territory to be serviced• Management and communication systems

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SELLING SERVICES

• Selling is a particularly important element if you are marketing services

• The purchaser of a professional service is in fact buying the capabilities of the seller.

• So he or she would be closely evaluating the behaviour and characteristics of your sales person, your business, its reputation, facilities and appearance

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SALES PROMOTION• Sales promotion relates to short term incentives or activities

that encourage the purchase or sale of a product or service. • Sales promotions initiatives are often referred to as “below

the line” activities• Sales promotions tend to be thought of as being all

promotions apart from advertising, personal selling, and public relations.

• Others include couponing, money-off promotions, competitions, free accessories – such as free blades with a new razor – introductory offers such as buy digital TV and get free installation

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SALES PROMOTION ACTIVITIES• Sales promotion activities can be targeted toward final buyers

(consumer promotions), business customers (business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales force promotions).

• Here are some typical sales promotion activities:• Consumer promotions

– Point of purchase display material– In-store demonstrations, samplings and celebrity appearances– Competitions, coupons, sweepstakes and games– On-pack offers, multi-packs and bonuses– Loyalty reward programs

• Sales Force Promotions– Commissions– Sales competitions with prizes or awards

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SALES PROMOTION ACTIVITIES (CONT’D)• Business promotions

– Seminars and workshops– Conference presentations– Trade show displays– Telemarketing and direct mail campaigns– Newsletters– Event sponsorship– Capability documents

• Trade promotions– Reward incentives linked to purchases or sales– Reseller staff incentives– Competitions– Corporate entertainment– Bonus stock

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PUBLIC RELATIONS

• “The deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation (or individual) and its (or their) publics”

• Put more simply, public relations is about building good relations with the stakeholders (public) of your business by obtaining favourable publicity, building a good corporate image and handling or heading off unfavourable rumours, stories and events.

• By building good relationships with your stakeholders, particularly customers, you can generate positive word of mouth and referrals from satisfied customers.

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PUBLIC RELATIONS• Public Relations is• 'deliberate, • planned and • sustained effort to establish and maintain mutual understanding between an organisation and

its public • PR can be split into 2 forms1. Proactive 2. Reactive

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• Proactive – communications designed to build understanding– Pro-active campaigns are long-term attempts to build on core values

of the organisation

• Reactive – communications designed to counter misunderstanding.– the result of the need to counter an event that has resulted in

negative views about the organisation,

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FORMS OF PUBLIC RELATIONS

• Stakeholders are the various groups in a society which can influence or pressure your business’s decision making and have an impact on its marketing performance.

• Operationally, stakeholders really refer to those groups that your business is or should be, communicating with

• These groups include: • Clients/customers• Staff• Shareholders• Strategic partners• Media• Government• Local community• Financial institutions

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STAKEHOLDERS

SUMMARY• Promotion• Objectives of Promotion• Promotional Mix• Elements of Promotional mix• Personal selling• Stages of Personal selling• Planning personal sales• Selling of services• Sales promotion• Sales promotion activities• Public relations

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THANKYOU

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