Top Banner
Promotion Decision Promotion Decision
37
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Promotion Decision

Promotion DecisionPromotion Decision

Page 2: Promotion 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.”

Page 3: Promotion Decision

19-3

The Communications ProcessThe Communications Process

Page 4: Promotion Decision

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

Page 5: Promotion Decision

19-5

Developing Effective Developing Effective CommunicationCommunication

1. Identify the Target Audience

Page 6: Promotion Decision

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?

Page 7: Promotion Decision

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.

Page 8: Promotion Decision

19-8

Developing Effective Developing Effective CommunicationCommunication

1. Identify the Target Audience

2. Determine the communication Objectives

Page 9: Promotion Decision

19-9

2. Determining the Communication 2. Determining the Communication ObjectivesObjectives

Page 10: Promotion Decision

19-10

Developing Effective Developing Effective CommunicationCommunication

1. Identify the Target Audience

2. Determine the communication Objectives

3. Design the Message

Page 11: Promotion Decision

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

Page 12: Promotion Decision

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

Page 13: Promotion Decision

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

Page 14: Promotion Decision

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

Page 15: Promotion Decision

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

Page 16: Promotion Decision

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

Page 17: Promotion Decision

19-17

Promotion MixPromotion Mix

“The basic tools used to accomplish an organization's communication objectives are often referred to as promotional mix.”

Page 18: Promotion Decision

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

Page 19: Promotion Decision

19-19

AdvertisingAdvertising

“ Advertising is paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience”

Page 20: Promotion Decision

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

Page 21: Promotion Decision

19-21

Types of AdvertisingTypes of Advertising

1. On the Basis of Geographical Spread National Advertising Local Advertising Global Advertising

Page 22: Promotion Decision

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

Page 23: Promotion Decision

19-23

Type of AdvertisingType of Advertising

5. Brand Advertising6. Political Advertising7. Directory Advertisement8. Direct Response Advertising9. Financial Advertising10. Primary Demand Advertising11. Selective Advertising

Page 24: Promotion Decision

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.

Page 25: Promotion Decision

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.

Page 26: Promotion Decision

19-26

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.”

Page 27: Promotion Decision

19-27

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.

Page 28: Promotion Decision

19-28

Types of the Sales PromotionTypes of the Sales Promotion

Consumer oriented sales promotion Trade oriented sales promotion.

Page 29: Promotion Decision

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

Page 30: Promotion Decision

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.”

Page 31: Promotion Decision

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.”

Page 32: Promotion Decision

19-32

The InternetThe InternetThe InternetThe Internet

“The Internet is a worldwide means of exchanging information and communicating through a series of interconnected computers”

Page 33: Promotion Decision

19-33

Internet ParticipantsInternet Participants

InternetInternet

InternetInternet

ReceiversReceivers

UsersUsers

ShoppersShoppers

CustomersCustomers

SendersSenders

AdvertisersAdvertisers

SponsorsSponsors

e-CommerceMerchants

e-CommerceMerchants

Page 34: Promotion Decision

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:

Page 35: Promotion Decision

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

Page 36: Promotion Decision

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

Page 37: Promotion 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