Promotion by khahson

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									Promotion
Two basic strategies of Promotion:


Push strategy using sales force to push the product through the channels, the producer promotes the product to
wholesalers, the wholesalers promote to the retailers, and the retailers promote to the final consumers.


Pull strategy spending a lot on advertising and consumer promotion to build up consumer demand; if successful,
consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask
the producers.


Communication media


1.      Personal communication channels, through which people communicate directly with each other.


i.     Face to face


ii.    Person to audience


iii.    Over telephone


iv.     Through mail


v.     Through internet chat


2.      Nonpersonal communication channels, media that carry messages without personal contact or feedback.


i.     Print media (newspapers, magazines)


ii.    Broadcast media (radio, television)


iii.    Display media (signs, posters)


iv.     Online media (online services, Websites)


Marketing communication mix or Promotional mix


It is a blend of


A. Advertising


B. Personal selling


C. Sales promotion


D. Direct Marketing and
E. Public relations tools


That a company uses to communicate with its customers.


A range is better than only one.


A) Advertising:


―Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor‖


Advertising objectives (AIDA) are as follows:


1.    Informative advertising


a.    To communicate information


b.    To create awareness


c.    In Early stage of PLC or on modification


2.    Persuasive advertising


a.    To create a desire for a product and to stimulate actual purchase


b.    In growth stage of PLC


3.    Reminder advertising


a.    Reinforcing knowledge and


b.    Reminding of benefits


c.    In Maturity stage of PLC


Advertising media


Ø Above the line (Press, Radio, TV, Cinema)


Ø Below the line (Direct mail, Exhibition, Package design, Merchandizing)


Advantages (Vs. Personal selling):


ü Mass communication


ü Expressive advertisement


ü Standardization and legitimacy
ü Seller is able to repeat a message many times


Disadvantages (Vs. Personal selling)


ü Costly


ü One way communication


ü Impersonal


ü Not so persuasive


B) Personal Selling (face to face via sales force):


― Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
i.e. paid form of personal communication‖


Sales force structures:


1.    Salary only


2.    Salary with bonus


3.    Commission only


C) Sales Promotion:


―Marketing activities other than personal, selling & advertising that stimulates customer purchasing‖


― Short-term incentives to encourage the purchase or sale of a product or service‖.


Major tools are:


1.    Samples


2.    Coupons


3.    Rebates


4.    Premiums (buy 2 get 1 free)


5.    Contests, sweepstakes, and games


6.    Free gifts


Objectives of sales promotion:
-      To increase in sales revenue


-      To launch a new product


-      To attract new customers


-      To attract resellers to stock


-      To clear out old stock


-      Counteraction for competitors


D) Direct Marketing: (one to one marketing)


―Direct connections with carefully targeted individual consumers to obtain and immediate response and cultivate
lasting customer relationships‖


It is the use of mail, telephone, fax, email, internet and other tools to communicate directly with specific consumers.


Characteristics of Direct marketing:


ü Non public


ü Immediate and customized


ü Interactive


Forms of direct marketing:


1.     Face to face selling


2.     Telephone marketing


i.    Outbound calls


ii.   Inbound calls (toll free numbers)


3.     Catalog marketing


4.     Direct mail marketing


e) Public relations:


―Building good relations with the company’s various publics by obtaining favorable publicity, and building up a good
corporate image‖


Publicity is non-paid, non-personal communication dealing mass audience.
Planning a Promotion campaign:


-    Identify the target audience


-    Specify the promotional message


-    Select media


-    Schedule media


-    Set the promotional budget


-    Evaluate promotional effectiveness


Branding:


Expenditures on promotion gives rise to brands.


A Brand is a name, term, sign, symbol or design intended to identify the product of a seller to differentiate it from
those of competitors.


Reasons for branding:


-    Product differentiation


-    Conveying lot of information quickly and concisely


-    Advertisement needs a brand name.


-    The more similar a product is to competing goods; the more branding is necessary.


-    It facilitates self selection.


-    It reduces price sensitivity.


-    Brand loyalty gives control over marketing strategy.


-    Other products (i.e. new flavors/sizes) can be introduced into brand name/range. (Brand extension)


-    Eases personal selling


-    Eases market segmentation


Brand strategies:


-    Brand extension
-     Multi branding (different names for similar nature goods serving similar consumer habits)


Product—————-Names—————-Brands in each name


-     Family branding


Relationship Marketing: (Keeping customers; not getting customers)


Sale is not end of process; but start of relationship.


It is easy, cheaper and profitable to retain old customers than to make new customers because:


-     Old are valuable


-     Old have trust in company


-     Old are satisfied.


Key account management: (Key Customer Database)


-     Like relationship marketing but more specific


-    It refers to how an organization manages its relationship with those customers identified as key to the
organization in achieving its objectives.


-     Factors used to identify a key account:


§ Historic value of purchases


§ Expected future purchases


§ Other competitive factors


o Status within the marketplace


o Personal relationship of people


o To prevent a competitor getting a hold in market


-     Extra services given to key account


§ Time


§ Finance


§ Procedure
§ Hospitality


Auditing Customer satisfaction: (why customers are not satisfied ? )


-    Customer satisfaction surveys


-    Work won and lost


-    Changes in market shares


-    Revenue from newly released products


-    Rude and unhelpful staff


-    A policy is to encourage customers to complain( 96% do not)


Technology Development – Interactive marketing:


Interactive marketing in instant communication and responses between promoter and customers. It may be called
sometimes as Computerized Personal Selling e.g.


-    DRTV (Direct Response Television)


-    Interactive Internet websites


-    Interactive Kiosk

								
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