Promotion

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					          A marketing strategy specifies a target market and a related
marketing mix. It is a big picture of what a firm will do in some market. Two
interrelated parts are needed.

1. Target market- a fairly homogenous group of customers to whom a
   company wishes to appeal
2. Marketing mix- the controllable variables the company puts together to
   satisfy this target group
   Developing Marketing Mixes For Target
                 Markets
        There are many possible ways to satisfy the needs of
target customers. A product can have many different
features and quality levels. Service levels can be adjusted. The
package can be of various sizes, colors, materials. The brand
name and warranty can be changed. Various advertising
media- newspapers, magazines, radio, television, billboards-
may be used. A company’s own sales force can be used.
Different process can be charged. Price discounts may be
given, and so on. With so many possible variables, is there
any way to help organize all these decisions and simplify the
selection of marketing mixes?



                   The answer is   YES
THE
FOUR
Ps
Target Market

The target
market is not
part of the
marketing mix.
The customer
should be the
target of all
marketing
efforts. The
target market
are the specific
customers.
Product
- the good or service for
the target’s needs

The product decision
area is concerned with
developing the right
product for the target
market. This offering may
involve a physical good, a
service or a blend of
both.
Place
-The reaching
target

-Place is concerned
with all the
decisions involved
in getting the right
product to the
target market’s
place. A product
isn’t much good to
a customer if it isn’t
available when and
where it’s wanted.
Price
-Making it right

-In setting a
price, they must
consider the kind
of competition in
the target
market- and the
cost of the whole
marketing mix. It
is a must to know
current practices
as to markups,
discounts and
other terms of
sale.
Promotion
-telling and selling the
customer

It is concerned with telling
the target market about the
right product. Promotion
includes personal selling,
mass selling and sales
promotion. It is the
marketing manager’s job to
blend these methods.
Promotion
           Promotion is communicating information between seller and potential
buyer to influence attitudes and behavior. Promotion has been defined as the
coordination of all seller-initiated efforts to set up channels of information and
persuasion to sell goods and services or promote an idea. It is concerned with
telling the target market about the right product.
Promotion comes from a Latin
word     meaning     “to     move
forward.” the meaning has
narrowed so that promotion
refers     to     communication
undertaken to persuade others to
accept ideas, concepts or things.
ROLES OF PROMOTION THAT PLACES IN MARKETING


   Promotion is an important part of any marketing mix. Most
   consumers and intermediate customers can choose from many
   products.


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TYPES OF PROMOTION
    Five Major Types of Promotion
•   Advertising
•   Direct Marketing
•   Sales Promotion
•   Publicity/Public Relations
•   Personal Selling

    Promotional mix- the basic tools used to
    accomplish an organizations communication
    objectives
              Advertising
Defined as any paid form of non personal
communication about an organization,
product, service or idea by identified sponsor.
          Types of Advertising
Paid                         Non Personal
• The paid aspect reflects   • Advertising that involves
  the fact that space or       mass media that can
  time for an advertising      transmit a message to large
                               groups of individuals, often
  message generally must
                               at the same time.
  be brought.
• E.g. public service
  announcement, whose
  advertising space or
  time is donated by the
  media.
              Direct Marketing
• One of the fastest-growing sectors in which
  organizations communicate directly with target
  customers to generate a response and transaction.
• One of the major tools of direct marketing is direct-
  response advertising, whereby a product is promoted
  through an ad that encourages the consumer to
  purchase directly from the manufacturer.
• Direct- Marketing tools and techniques are also being
  used by companies that distribute their products
  through the distribution channels or have their own
  sales force.
      Sales Promotion
• Generally defined as those
  marketing activities that provide
  extra value or incentives to the
  sales force, distribution, or the
  ultimate consumer and can
  stimulate immediate sales.
       Two Major Categories of Sales
               Promotion
Consumer-Oriented Sales      Trade-Oriented Sales
Promotion                    Promotion

• Targeted to the ultimate   • Targeted toward
  user of a product or
  service and includes         marketing
  couponing, sampling,         intermediaries
  premiums, rebates,           such as
  contests, sweepstakes
  and various point-of-
                               wholesalers,
  purchase materials.          distributors and
                               retailers.
                   Publicity
• Refers to non personal communications regarding
  an organization, product , service or idea not
  directly paid for or run under identified
  sponsorship.

• An advantage of publicity over other forms is
  credibility.

• Publicity is not always under the control of an
  organization and is sometimes unfavorable.
         Public Relations
• Defined as the management function which
  evaluates public attitudes, identifies the policies
  and procedures of an individual or organization
  with the public interest , and executes a program
  of action to earn public understanding and
  acceptance.

• Many firms have begun marketing PR an integral
  part of their predetermined marketing and
  promotional process .
             Personal Selling
• A form of person-to-person communication in
  which a seller attempts to assist and persuade
  prospective buyers to purchase the company’s
  product or service to act on idea.
• It also involves more immediate and precise
  feedbacks because the impact of the sales
  presentation can generally be assessed from
  customers reaction.
 Economic Effects of Advertising

• Effects on Consumer Choice

• Effects on Competition

• Effects on Product Costs and Prices
Effects on Consumer Choice
Differentiation                    Brand Loyalty
• Whereby the products or          • Enables large national
   services or large advertisers     advertisers to gain control
   are perceived as unique or        of market , usually at the
   better than competitors.          expense of smaller brands.
Effects on Competition
Barrier to Entry                   Economies of Sales
• They argue that power in         • Large advertisers clearly
  the hands of large firms           enjoy certain competitive
  with huge advertising              advantages .
  budgets, makes it difficult to
  enter
Effects on Product Costs and Prices
• Economist James Ferguson argues that
  advertising cannot increase the cost per unit
  of quality to the consumers because if it did,
  consumers would not continue to respond
  positively to advertising.
Summarizing Economic Effects
• Advertising Equals Market Power
• Advertising Equals Information
        Public Relations



 The management function which evaluates
  public attitudes, identifies the policies and
  procedures of an organization with public
interest, and executes a program of action to
 earn public understanding and acceptance.
            Publicity

Refers to the generation of news about
   a person, product, or service that
 appears in broadcast or print media.
PR Generating Publicity
• Credibility-because public relations
  communications are not perceived in the
  same light as advertising- that is, public does
  not realize the organization either directly or
  indirectly paid for them- they tend to have
  more credibility.
• Cost-in both absolute and relative terms, the
  cost of public relations is very low, especially
  when the possible effects are considered.
• While a firm can employ public relations
  agencies and spend MILLIONS on PR.
• Lead Generation-information about
  technological innovations, medical
  breakthroughs, and the like results almost
  immediately in a multitude of inquiries. These
  inquiries may give the firm some quality sales
  leads.
• Ability to reach specific groups- because some
  products appeal only to small market
  segments, it is not feasible to engage in
  advertising and promotions to reach them. If
  the firm does not have the financial
  capabilities to engage in promotional
  expenditures , the best way to communicate
  to these groups is through public relations.
• Image building- effective public relations helps
  to develop a positive image for the
  organization. A strong image is an insurance
  against later misfortunes.
       Personal Selling

Involves selling through a person-to-
  person communications process.
      Nature of Personal Selling
• Provider Stage.             • Persuader Stage.
  Selling activities are      Selling involves an
  limited to accepting        attempt to persuade
  orders for the supplier’s   market members to buy
  available offering and      the supplier’s offerings.
  conveying it to the
  buyer.
• Prospector Stage.            • Problem-solver Stage.

  Activities include seeking     Selling involves obtaining
  out selected buyers who        the participation of
  are perceived to have a        buyer’s to identify their
  need for the offering as       problems, which can be
  well as the resources and      translated into needs,
  the authority to buy it.       and then presenting a
                                 selection from the
                                 supplier’s offerings tat
                                 corresponds with those
                                 needs and can solve
                                 those problems.
• Procreator Stage

Selling defines the buyer’s problems or needs and
their solutions through active buyer-seller
collaboration and then creates a market offering
uniquely tailored to the customer.
    Advantages of Personal Selling
• Allowing for two-way       • Tailoring the message.
  interaction. The ability     Because of the direct
  to interact with the         interaction, messages
  receiver allows the          can be tailored to the
  sender to determine          receiver. This more
  the impact of the            precise message
  message. Problems in         content lets the sender
  comprehension can be         address the consumer’s
  resolved.                    specific concerns.
• Lack of Distraction.      • Involvement in the
                              Decision Process.
  The likelihood of
                               Through consultative
  distractions is
                               selling and
  minimized and the
                               relationship
  buyer is generally
                               marketing, the seller
  paying attention to the
                               becomes more of a
  sales message.
                               partner in the buying
                               decision process,
                               acting in conjunction
                               with the buyer to
                               solve problems.
 Disadvantages of Personal Selling
• Inconsistent Messages.   • High Cost.
  Earlier we sated that      As the cost per sales
  the ability to adapt       call continues to climb,
  the message to the         the marketer may find
  receiver is distinct       mass communications a
  advantage of               more cost-effective
  personal selling. But      alternative.
  the lack of
  standardized
  message becomes a
  disadvantage.
• Poor reach.              • Potential Ethical
                             Problems.

 Personal selling cannot     Because the manager
 reach as many               does not have complete
 members of the target       control over the
 audience as other           messages the sales
 elements. Even if           people communicate
 money is no object, the     and because income
 sales force has only so     and advancement are
 many hours it can           often directly tied to
 reach in a given time.      sales, sometimes sales
                             reps tend to break the
                             rules.

				
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posted:9/24/2011
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