Rural marketing module 5

MODULE 5

Promotion Strategy Promotion is the process of marketing communication to inform, persuade, remind and influence consumers or users in favor of your product or service.

ELEMENTS OF RETAIL PROMOTIONAL MIX

Advertising Public Relations Personal selling Sales promotion

ADVERTISING

Advertising is paid, non-personal communication transmitted through out-of-store mass media by an identified sponsor.4 aspects of this definition merit clarification:

Paid form Non-personal presentation Out-of-store mass media Identified sponsor

OBJECTIVES

Lifting short-term sales Increasing customer traffic Developing and/or reinforcing a retail image Informing customers about goods and

services and/or company attributes Easing the job for sales personnel Developing demand for private brands

ADVANTAGES

A large audience is attracted. The cost per viewer, reader,or listener are

low. A number of alternative media are available. The retailer has control over message

content, graphics, timing, and size. In print media, a message can be studied

and restudied by the target market.

CONTD:

Editorial content often surrounds an ad. Self-service or reduced-service operations

are possible since a customer becomes aware of a retailer and its offerings before shopping.

DISADVANTAGES

Standardized messages lack flexibility Some media require large investments Media may reach large geographic areas,

and for retailers, this may be wasteful. Some media require a long lead time for

placing ads. Some media have a high throwaway rate.

TYPES OF ADVERTISING

Content method Payment method

CONTENT METHOD

Pioneer messages Competitive message Reminder message Institutional message

MANNER OF PAYMENT

Full payment by retailer Cooperative advertising

Vertical horizontal

PUBLIC RELATIONS

Public relations entails any communication that fosters a favorable image for the retailer among its publics. it may be Non personal or personal, paid or non paid

and sponsor controlled or non controlled.

OBJECTIVES

Increase awareness of the retailer and its strategy mix.

Maintain or improve the company image. Show the retailer as a contributor to the

community’s quality of life. Demonstrate innovativeness. Present a favorable message in a highly

believable manner. Minimize total promotion costs.

ADVANTAGES

An image can be presented or enhanced. A more credible source presents the

message. There are no costs for message time or

space. A mass audience is addressed. Carryover effects are possible. People pay more attention to news stories

than to clearly identified ads.

DISADVANTAGES

Some retailers do not believe in spending any funds on image-related communication.

There is little retailer control over a publicity message and its timing, placement, and coverage by a given medium.

It may be more suitable for short-run, rather than long-run, planning.

Although there are no media costs for publicity, there are costs for a public relations staff, planning activities, and the activities themselves.

PERSONAL SELLING

Personal selling is the art of convincing the prospects to buy the given products or services. It is the wit act of persuasion. It is the ability to handle the people to dandle the products. It is the ability to convert human needs into wants.

OBJECTIVES

Persuade customers to buy. Stimulate sales of impulse items or product

related to customers’ basic purchases. Complete customer transactions. Feed back information to company decision

makers. Provide proper levels of customer service. Improve and maintain customer satisfaction. Create awareness of the items also marketed

through web.

ADVANTAGES

A salesperson can adapt a message to the needs of the individual customer.

A salesperson can be flexible in offering ways to address customer needs.

The attention span of the customer is higher than with advertising.

There is less waste; most people who walk into a store are potential customers.

Customers respond more often to personal selling than to ads.

Immediate feedback is provided.

DISADVANTAGES

Only a limited number of customers can be handled at a given time.

The costs of interacting with each customer can be high.

Customers are not initially lured into a store through personal selling

Self-service may be discouraged. Some customers may view salespeople as

unhelpful and as too aggressive.

SALES PROMOTION

Sales promotion encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness.

OBJECTIVES

Increasing short-term sales volume. Maintaining customer loyalty. Emphasizing novelty. Complementing other promotion tools.

ADVANTAGES

It often has eye-catching appeal. Themes and tools can be distinctive. The consumer may receive something of

value, such as coupons or free merchandise. It helps draw customer traffic and maintain

loyalty to the retailer. Impulse purchases are increased. Customers can have fun, particularly with

promotion tools such as contests and demonstrations.

DISADVANTAGES

It may be hard to terminate certain promotions without adverse customer reactions.

The retailer’s image may be hurt if trite promotions are used.

Frivolous selling points may be stressed rather than the retailer’s product assortment, prices, customer services, and other factors.

Many sales promotions have only short-term effects.

It should be used mostly as a supplement to other promotional forms.

PLANNING A RURAL PROMOTIONAL STRATEGY

Determining promotional objectives Establishing an overall promotional

budget Selecting the promotional mix Implementing the promotional mix Reviewing and revising the promotional

plan

APPROPRIATE MEDIA

Media Selection 1.The financial allocation for advertising. 2.The nature of the product and the demand for

it. 3. The type of prospects, their location and

other characteristics. 4. The nature of competition and the extent of

coverage required. 5. Cost of media, co-operation and promotional

aids offered by media, media circulation.

CHARACTERISTICS OF IMPORTANT MEDIA 1. Mural Advertising 2. Press Advertising 3. Film Advertising 4. Radio Advertisement 5. Television Advertisement 6. Transit Advertising 7. Direct Mail

RURAL SPECIFIC MEDIA

1. Music CD’s 2. Puppetry 3. Folk Theater 4. Interpersonal Media 5. Group Meeting 6. House-to-House Campaign 7. Field Demonstrations: 8. AV Vans 9 Wall Paintings

CONSTRAINTS IN RURAL COMMUNICATION

1. Low Literacy Rate 2. Low Spending Capacity 3. Joint Families and Strong Kinship Ties 4. Linguistic and Socio-cultural Differences 5. Unique Media Habits 6. Situation Based Leisure Time Activities 7. Expensive Communication 8. Poor Infrastructure 9. Lack of Research Data 10. Selective Attention

DISTRIBUTION CHANNEL

Distribution channel performs various tasks necessary to promote sales of products and services to the ultimate customers.

Selling Assorting Financing Storage Sorting Grading Transportation Market Information Risk-taking

CHANNEL STRUCTURES

CHANNEL TYPES

METHODS OF DISTRIBUTION

1. Stockist’s Van / Company Owned Vehicles

2. Hired Vehicles 3. Working by Independent Stockist 4. Selling Through Bullock Cart / Camel

/ Boat 5. Appointment of Primary Dealers 6. Using Urban Wholesalers

PROBLEMS OF RURAL DITRIBUTION

1. Transportation Problems:) 2. Warehousing Problems:) 3. Communication Problems: 4. Non-Availability of Dealers: 5. Greater Dependence on Dealers 6. Higher Cost and Administrative

Problems 7. Poor Viability of Retail Outlets

RURAL RETAILER BEHAVIOUR

Seasonal Pattern: 1. Transfer of Capital 2. Credit Pattern 3. Purchasing Cycle

THANK YOU………….