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Promotion
Definition
• Promotion Specific combination
  of promotional methods
• Promotion represents all of the
  communications that a marketer
  may use in the marketplace
• Promotion involves disseminating
  information about a product,
  product line, brand, or company
Aspects of a
      promotional mix
•   Advertising
•   Personal Selling
•   Sales Promotions
•   Public relations - Publicity
•   Sponsorship
•   Direct Marketing
Division Of
Sales promotion

• Above the line
• below the line
• Through the line
Above the line
• advertising through media
  – TV
  – Cinema
  – Radio
  – Print
  – Banners
• search engines
Below the line
•   Price promotion
•   Frequent user/loyalty
    incentives
•   Point-of-sale displays
•   Money refunds
•   Coupons
•   Gift with purchases, also
    gifts certificates
•   Competitions and prizes
Through the line
Techniques of
  Sales promotion

• Consumer sales
  promotion techniques
• Trade sales promotion
  techniques
Consumer
     sales promotion
       techniques
•   Price deal
•   Loyal Reward Program
•   Cents-off deal
•   Price-pack deal
•   Coupon
•   Free-standing insert
•   On-shelf couponing
•   On-line couponing
•   Mobile couponing
•   Online interactive promotion game
•   Rebates
•   Contests/sweepstakes/games
•   Point-of-sale displays
Trade sales promotion
     techniques
•   Trade allowances
•   Buying & Buy-Back Allowances
•   Merchandising Allowances
•   Scan-Back Allowances
•   Free Merchandise
•   Cooperative Advertising
•   Spiffs & Push Money
•   Sales Contests
•   Trade Show exhibits
Sales Promotion
Positives
• Supports brand image
• Stimulates demand
• Focuses customers’ attention
Negatives
• Can destroy pricing levels if
  overused
• Can cause loss of market share
What is Advertising?
• Any paid form of non personal presentation and
  promotion of ideas, goods and services through
  mass media such as newspapers, magazines,
  televisions or radio by an identified sponsor.
                                           - Kotler
• Advertising is mass, paid for communication
  which is used to transmit information, develop
  attitudes and induce some form of response
  from the audience.
Characteristics of Advertising
• Non personal form of communication aimed at a
  target audience.
• Used by commercial and by not for profit
  organizations.
• Most advertising is concerned ultimately with
  selling.
• It is a major element in the promotional mix.
• Silent still forceful
• Sponsor is identified
• Paid communication
• Message is addressed to diversified audience
Objectives
• An     advertising    objective   is   a     specific
  communication task to be achieved with a specific
  target audience during specified period of time.
• Like all objectives they should be SMART.
• In essence the main advertising objectives are:
       - To Inform: to provide information about a
  product
   - To Persuade: to persuade people to buy
     - To Remind: to remind people about a mature
  product
SMART Criteria
• Specific - the objective should state exactly what is to
  be achieved.
• Measurable - an objective should be capable of
  measurement – so that it is possible to determine
  whether (or how far) it has been achieved
• Achievable - the objective should be realistic given the
  circumstances in which it is set and the resources
  available to the business.
• Relevant - objectives should be relevant to the people
  responsible for achieving them
• Time Bound - objectives should be set with a time-
  frame in mind. These deadlines also need to be realistic.
Inform, Persuade, Remind
Inform                      Persuade                 Remind
• To             provide    • To             persuade • To remind customers
  information                 customers to buy a about a product they
• Used       specifically     particular brand          might other overlook.
  with a new or             • Stress the distinctive • Advertising a mature
  complex product.            features of the brand.    product.
• Print     media      is   • Minimal Information.
  superior to TV for
  this      type       of
  advertising.
                            E.g.                     E.g.
E.g.
                            Perfumes                 Colgate
Insurance
                            Cars                     Kit-Kat
Financial Products
                            Coca cola                Sunsilk
New Electrical Goods
Summary of Objectives
• To create awareness    • To increase market
• To inform                share
• To remind customers    • To differentiate from
•                          rivals
  To reassure
  customers              • To build brand loyalty
• To support the sales   • To change attitudes
  force – personal       • To support activities in
  selling                  the distribution chain
• To persuade
• To promote Ideas/
  Attitudes/ Causes
Advantages
•   Creating awareness
•   Increase sales
•   Brand identity & Brand image
•   Communicate a change
•   Increase the buzz value
•   Increase loyalty
•   Offers planned and controlled messages
•   Contact and influence masses
•   Deliver specific message to specific target
    segment
•   Same message with varience
•   It reaches to all…e.g. premium
•   Helps to presale goods and pulls the
    buyers to retailers
•   Generates interest and provides
    knowledge as well
A word of caution –
                    Disadvantages
Even good advertising can not overcome problems caused by
  Poor product
  Inefficient service
  Uncompetitive pricing


Less effective than personal selling and sales promotion


Less flexible than personal communication (no media to answer the query)


Cant evaluate the message effectiveness and the response


Unable to reach the prospect, so the cost of repetition increases


Many times lack credibility and worthiness
Types of Advertising – based on
          objectives
•   Informative - Provides information
•   Persuasive - To encourage brand switching
•   Reminder - To remind about a mature product
•   Reinforcement - To reassure
•   Pioneering - To introduce new product
•   Competitive - To point out differential advantages
•   Defensive - To reduce damage caused by
                  campaign of a direct competitor.
Types of Advertising – Based on
          Business Type
         Interactive
          Interactive                       Brand
                                            Brand
         Advertising
         Advertising                      Advertising
                                          Advertising

Public Service
Public Service                                Retail or Local
                                              Retail or Local
 Advertising
 Advertising                                   Advertising
                                               Advertising

 Institutional
  Institutional
 Advertising                                     Political
                                                  Political
  Advertising
                                                Advertising
                                                Advertising
    Business-to-
    Business-to-
     Business
      Business                                  Directory
                                                Directory
    Advertising
     Advertising                               Advertising
                                               Advertising
                        Direct-Response
                        Direct-Response
                           Advertising
                           Advertising
AIDA
Advertising should seek to:

A- increase Awareness
I- create Interest
D- develop a Desire
A- encourage customers to buy - action

• Advertising seeks to move potential buyers
  through these stages.
5 Ms of Advertising

•   MISSION- Objectives
•   MONEY- to pay for the Campaign
•   MESSAGE- to be Delivered
•   MEDIA- choice of advertising Media
•   MEASURE- Measuring the impact
Determining the Budget - Money
• The advertising budget will be set in terms of
  one of:

  -   what can be afforded
  -   A given percentage of sales
  -   Comparison with rivals
  -   Objective and Task- whatever is needed to
      achieve objective
Developing an Advertising
        Campaign - Message
•   Set the advertising objectives.
•   Define target market.
•   Determine the advertising budget.
•   Determine the key advertising message.
•   Decide which media to use.
•   Plan campaign timing.
•   Evaluate the results of the campaign.
Factors in the choice of media

•   Marketing mix         • Permanence      of    the
•   Relative cost           media
•   Target audience       • Nature of the product
•   Impact of the media   • Size and spread of the
•                           market
    Competition
•                         • Advertising budget
    Legal constraints
                          • Message to be conveyed
Main Advertising Media

•   Television
•   Cinema
•   Radio
•   Outdoors (billboards)
•   Internet
•   Print media- news papers and magazines
Television

     Advantages             Disadvantages
•   Large audience          • Very high overall cost
•   Low cost per exposure   • Limited prime time
•   high impact-color,        space
    sound and movement      • Short lived
•   Can target specific     • May not be watched-
    groups                    visual wallpapers
                            • Convey only a limited
                              message
Radio

Advantages            Disadvantages
• Relatively          • Limited impact
  inexpensive         • No vision
• target specific     • Short life
  segment
• Relatively mobile
• Local
News Paper

Advantages                  Disadvantages
• Target specific
  segments                  • Low impact
• Widely read               • May get lost in the rest
• Short lead time             of the paper
• Frequent publication      • Not every group reads a
• Inexpensive compared        paper
  to television             • High costs especially
• Color printing adds to      for national news paper
  impact
• Local regional national
  papers available
Magazine

Advantages                    Disadvantages
• Useful for targeting        • Can be expensive
  specific group              • Long read time
• Good reproduction-          • Some magazines are only
  high quality gloss            published monthly.
  images                      • Moderate impact
• Long life-read at leisure   • Slow impact due to long life
• Can be linked to            • Magazines with limited
  features                      readership are not suitable
• All consumers interests       for mass marketing
  catered for
Cinema

Advantages              Disadvantages
• Captive audience      • Limited audience
• High impact           • Mainly young
• Can be specifically     audience
  targeted              • Short lived message
• Local audience        • May only be seen
• Visual, sound,          once.
  movement
Out door-Bill boards

Advantages                 Disadvantages
• Repeatedly seen          • Message must be
• 24/7 coverage              simple and short
• Target particular area   • Can not target
• Local media                socioeconomic groups
• May encourage            • Rarely attract full
                             attention
  impulse buying if
  close to shops           • Short lived
                           • May be seen as traffic
                             hazard
                           • Difficult to measure
                             effectiveness
Advertising on transport

Advantages                Disadvantages
• Low cost                • Harder to target by
• Target specific areas     socioeconomic class
• Captive audience        • Quick results unlikely
• Reaches wide diverse    • Difficult to measure
  audience                  effectiveness
                          • Rarely gains reader’s
                            full attention
                          • Space for only a short
                            message
Internet advertising

•   Cheap                   • Problems of
•   Easy to set up            connecting
•   Easily updated          • Limited audience
•   Number of hits can be   • Technical problems
    monitored-useful        • Banner adverts not
    measure of                very effective
    effectiveness           • Search engine listing
                              can be costly (e.g.
                              click fraud)
Public Relations
– Public Relations
– Public Relations Department
  Functions Include:
  •   Press relations
  •   Product publicity
  •   Corporate communication
  •   Lobbying – Advocacy
  •   Counseling
Public Relations
• Marketing Public Relations (MPR)
  – Publicity vs. MPR
  – MPR assists in the following tasks:
    • Assisting in the launch of new products
    • Assisting in repositioning a mature product
    • Building interest in a product category
    • Influencing specific target groups
    • Defending products that have
      encountered public problems
    • Building the corporate image in a way
      that reflects favorably on its products
Public Relations


– Establishing the Marketing Objectives
  • MPR can:
     – Build awareness
     – Build creditability
     – Hold down promotional cost
– Choosing message and vehicle
– Implement the plan and evaluate the result
Sales Force
Management
      The       successful
      salesperson cares
      first     for     the
      customer, second
      for the products.
PERSONAL SELLING
Most ancient method of
marketing.
It is person-to-person selling.
It involves Home selling and
Direct selling.
It is also called door-to-door
selling.
PERSONAL SELLING is the means
of face to face Communication to
persuade the customers to buy any
product or services.

 It mainly involves Home Selling and
Direct selling.
Contd..
HOME SELLING:
It takes place at the customer’s home.
It is always one-to-one.
DIRECT SELLING:-
It can take place at the customer’s
home or workplace.
It can be for a group.
Activities involved in
personal selling…
 Identifying potential
 customers.
 Matching consumer needs
 with product attributes.
 Persuading customers to buy.
 Satisfying after purchase .
PERSONAL SELLING
          PROCESS
1.   Prospecting
2.   Qualifying
3.   Approaching customers
4.   Sales Presentation
5.   Handling Objections
6.   Closing the sale
7.   Following up the sales
OBJECTIVES OF PERSONAL
SELLING…
 Search new customers
 Obtain sales volume
 Secure market share
 Provide technical advice to
 customers
 Collect and report market
 information
 Assist with training of sales
 personal
IMPORTANCE OF PERSONAL
SELLING …
 Pin-points Prospects

 Meet objections

 Close encounter of the
 product

 Time saving

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Promotion

  • 2. Definition • Promotion Specific combination of promotional methods • Promotion represents all of the communications that a marketer may use in the marketplace • Promotion involves disseminating information about a product, product line, brand, or company
  • 3. Aspects of a promotional mix • Advertising • Personal Selling • Sales Promotions • Public relations - Publicity • Sponsorship • Direct Marketing
  • 4. Division Of Sales promotion • Above the line • below the line • Through the line
  • 5. Above the line • advertising through media – TV – Cinema – Radio – Print – Banners • search engines
  • 6. Below the line • Price promotion • Frequent user/loyalty incentives • Point-of-sale displays • Money refunds • Coupons • Gift with purchases, also gifts certificates • Competitions and prizes
  • 8. Techniques of Sales promotion • Consumer sales promotion techniques • Trade sales promotion techniques
  • 9. Consumer sales promotion techniques • Price deal • Loyal Reward Program • Cents-off deal • Price-pack deal • Coupon • Free-standing insert • On-shelf couponing • On-line couponing • Mobile couponing • Online interactive promotion game • Rebates • Contests/sweepstakes/games • Point-of-sale displays
  • 10. Trade sales promotion techniques • Trade allowances • Buying & Buy-Back Allowances • Merchandising Allowances • Scan-Back Allowances • Free Merchandise • Cooperative Advertising • Spiffs & Push Money • Sales Contests • Trade Show exhibits
  • 11. Sales Promotion Positives • Supports brand image • Stimulates demand • Focuses customers’ attention Negatives • Can destroy pricing levels if overused • Can cause loss of market share
  • 12.
  • 13. What is Advertising? • Any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, televisions or radio by an identified sponsor. - Kotler • Advertising is mass, paid for communication which is used to transmit information, develop attitudes and induce some form of response from the audience.
  • 14. Characteristics of Advertising • Non personal form of communication aimed at a target audience. • Used by commercial and by not for profit organizations. • Most advertising is concerned ultimately with selling. • It is a major element in the promotional mix. • Silent still forceful • Sponsor is identified • Paid communication • Message is addressed to diversified audience
  • 15. Objectives • An advertising objective is a specific communication task to be achieved with a specific target audience during specified period of time. • Like all objectives they should be SMART. • In essence the main advertising objectives are: - To Inform: to provide information about a product - To Persuade: to persuade people to buy - To Remind: to remind people about a mature product
  • 16. SMART Criteria • Specific - the objective should state exactly what is to be achieved. • Measurable - an objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved • Achievable - the objective should be realistic given the circumstances in which it is set and the resources available to the business. • Relevant - objectives should be relevant to the people responsible for achieving them • Time Bound - objectives should be set with a time- frame in mind. These deadlines also need to be realistic.
  • 17. Inform, Persuade, Remind Inform Persuade Remind • To provide • To persuade • To remind customers information customers to buy a about a product they • Used specifically particular brand might other overlook. with a new or • Stress the distinctive • Advertising a mature complex product. features of the brand. product. • Print media is • Minimal Information. superior to TV for this type of advertising. E.g. E.g. E.g. Perfumes Colgate Insurance Cars Kit-Kat Financial Products Coca cola Sunsilk New Electrical Goods
  • 18. Summary of Objectives • To create awareness • To increase market • To inform share • To remind customers • To differentiate from • rivals To reassure customers • To build brand loyalty • To support the sales • To change attitudes force – personal • To support activities in selling the distribution chain • To persuade • To promote Ideas/ Attitudes/ Causes
  • 19. Advantages • Creating awareness • Increase sales • Brand identity & Brand image • Communicate a change • Increase the buzz value • Increase loyalty • Offers planned and controlled messages • Contact and influence masses • Deliver specific message to specific target segment • Same message with varience • It reaches to all…e.g. premium • Helps to presale goods and pulls the buyers to retailers • Generates interest and provides knowledge as well
  • 20. A word of caution – Disadvantages Even good advertising can not overcome problems caused by Poor product Inefficient service Uncompetitive pricing Less effective than personal selling and sales promotion Less flexible than personal communication (no media to answer the query) Cant evaluate the message effectiveness and the response Unable to reach the prospect, so the cost of repetition increases Many times lack credibility and worthiness
  • 21. Types of Advertising – based on objectives • Informative - Provides information • Persuasive - To encourage brand switching • Reminder - To remind about a mature product • Reinforcement - To reassure • Pioneering - To introduce new product • Competitive - To point out differential advantages • Defensive - To reduce damage caused by campaign of a direct competitor.
  • 22. Types of Advertising – Based on Business Type Interactive Interactive Brand Brand Advertising Advertising Advertising Advertising Public Service Public Service Retail or Local Retail or Local Advertising Advertising Advertising Advertising Institutional Institutional Advertising Political Political Advertising Advertising Advertising Business-to- Business-to- Business Business Directory Directory Advertising Advertising Advertising Advertising Direct-Response Direct-Response Advertising Advertising
  • 23. AIDA Advertising should seek to: A- increase Awareness I- create Interest D- develop a Desire A- encourage customers to buy - action • Advertising seeks to move potential buyers through these stages.
  • 24. 5 Ms of Advertising • MISSION- Objectives • MONEY- to pay for the Campaign • MESSAGE- to be Delivered • MEDIA- choice of advertising Media • MEASURE- Measuring the impact
  • 25. Determining the Budget - Money • The advertising budget will be set in terms of one of: - what can be afforded - A given percentage of sales - Comparison with rivals - Objective and Task- whatever is needed to achieve objective
  • 26. Developing an Advertising Campaign - Message • Set the advertising objectives. • Define target market. • Determine the advertising budget. • Determine the key advertising message. • Decide which media to use. • Plan campaign timing. • Evaluate the results of the campaign.
  • 27. Factors in the choice of media • Marketing mix • Permanence of the • Relative cost media • Target audience • Nature of the product • Impact of the media • Size and spread of the • market Competition • • Advertising budget Legal constraints • Message to be conveyed
  • 28. Main Advertising Media • Television • Cinema • Radio • Outdoors (billboards) • Internet • Print media- news papers and magazines
  • 29. Television Advantages Disadvantages • Large audience • Very high overall cost • Low cost per exposure • Limited prime time • high impact-color, space sound and movement • Short lived • Can target specific • May not be watched- groups visual wallpapers • Convey only a limited message
  • 30. Radio Advantages Disadvantages • Relatively • Limited impact inexpensive • No vision • target specific • Short life segment • Relatively mobile • Local
  • 31. News Paper Advantages Disadvantages • Target specific segments • Low impact • Widely read • May get lost in the rest • Short lead time of the paper • Frequent publication • Not every group reads a • Inexpensive compared paper to television • High costs especially • Color printing adds to for national news paper impact • Local regional national papers available
  • 32. Magazine Advantages Disadvantages • Useful for targeting • Can be expensive specific group • Long read time • Good reproduction- • Some magazines are only high quality gloss published monthly. images • Moderate impact • Long life-read at leisure • Slow impact due to long life • Can be linked to • Magazines with limited features readership are not suitable • All consumers interests for mass marketing catered for
  • 33. Cinema Advantages Disadvantages • Captive audience • Limited audience • High impact • Mainly young • Can be specifically audience targeted • Short lived message • Local audience • May only be seen • Visual, sound, once. movement
  • 34. Out door-Bill boards Advantages Disadvantages • Repeatedly seen • Message must be • 24/7 coverage simple and short • Target particular area • Can not target • Local media socioeconomic groups • May encourage • Rarely attract full attention impulse buying if close to shops • Short lived • May be seen as traffic hazard • Difficult to measure effectiveness
  • 35. Advertising on transport Advantages Disadvantages • Low cost • Harder to target by • Target specific areas socioeconomic class • Captive audience • Quick results unlikely • Reaches wide diverse • Difficult to measure audience effectiveness • Rarely gains reader’s full attention • Space for only a short message
  • 36. Internet advertising • Cheap • Problems of • Easy to set up connecting • Easily updated • Limited audience • Number of hits can be • Technical problems monitored-useful • Banner adverts not measure of very effective effectiveness • Search engine listing can be costly (e.g. click fraud)
  • 37. Public Relations – Public Relations – Public Relations Department Functions Include: • Press relations • Product publicity • Corporate communication • Lobbying – Advocacy • Counseling
  • 38. Public Relations • Marketing Public Relations (MPR) – Publicity vs. MPR – MPR assists in the following tasks: • Assisting in the launch of new products • Assisting in repositioning a mature product • Building interest in a product category • Influencing specific target groups • Defending products that have encountered public problems • Building the corporate image in a way that reflects favorably on its products
  • 39. Public Relations – Establishing the Marketing Objectives • MPR can: – Build awareness – Build creditability – Hold down promotional cost – Choosing message and vehicle – Implement the plan and evaluate the result
  • 40. Sales Force Management The successful salesperson cares first for the customer, second for the products.
  • 41. PERSONAL SELLING Most ancient method of marketing. It is person-to-person selling. It involves Home selling and Direct selling. It is also called door-to-door selling.
  • 42. PERSONAL SELLING is the means of face to face Communication to persuade the customers to buy any product or services. It mainly involves Home Selling and Direct selling.
  • 43. Contd.. HOME SELLING: It takes place at the customer’s home. It is always one-to-one. DIRECT SELLING:- It can take place at the customer’s home or workplace. It can be for a group.
  • 44. Activities involved in personal selling… Identifying potential customers. Matching consumer needs with product attributes. Persuading customers to buy. Satisfying after purchase .
  • 45. PERSONAL SELLING PROCESS 1. Prospecting 2. Qualifying 3. Approaching customers 4. Sales Presentation 5. Handling Objections 6. Closing the sale 7. Following up the sales
  • 46. OBJECTIVES OF PERSONAL SELLING… Search new customers Obtain sales volume Secure market share Provide technical advice to customers Collect and report market information Assist with training of sales personal
  • 47. IMPORTANCE OF PERSONAL SELLING … Pin-points Prospects Meet objections Close encounter of the product Time saving