Introduction of advertisement

1. Promotion
“Coordination of all seller initiated efforts to
set up channels of information and
persuasion in order to sell goods and
services or promote an idea”.
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2. 1 Promotion
Pontiac
Communication by marketers
that informs, persuades, and
reminds potential buyers of a
product in order to influence an
opinion or elicit a response.
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3. 1 Promotional Strategy
A plan for the optimal use of the
elements of promotion:
Advertising
Public Relations
Personal Selling
Sales Promotion
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4. 1 The Role of Promotion
Overall
Overall
Marketing
Marketing
Objectives
Objectives
Marketing Mix
Marketing Mix
•• Product
Product
•• Distribution
Distribution
•• Promotion
Promotion
•• Price
Price
Target Market
Target Market
Chap. 14 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Promotional Mix
Promotional Mix
••Advertising
Advertising
••Public Relations
Public Relations
••Personal Selling
Personal Selling
••Sales Promotion
Sales Promotion
Promotion Plan
Promotion Plan
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5. 2 Promotional Mix
Combination of promotion tools
used to reach the target market
and fulfill
the organization’s
overall goals.
Advertising
Public Relations
Personal Selling
Sales Promotion
Direct Marketing
Interactive Marketing
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6. Advertising
• “Paid form of nonpersonal communication
about an organisation ,product ,service or
idea by an identified sponsor.”
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7. The Nature of Advertising
• advertising is distinguished from other
forms of promotion as follows
• it has a verbal and/or visual message
• the sponsor of the message is identified
• delivery is through recognizable media
• there is payment by the advertiser to the
media for carrying the message
• advertisers are increasingly being able to
reach specific audiences with tailor-made
messages
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8. Advertising
Advantages
Disadvantages
●
Reach large number
of people
● Total cost is high
●
Low cost per
contact
●
Can be microtargeted
Brand building
●
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9. Advertising to
Target Audiences
• advertising can be classified by the
target audience to which it is directed
• consumer advertising generally appears
in mass media and is directed to end
consumers: may be product or
institutional in nature
• business-to-business advertising is
often called trade advertising and is
directed to a business market
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10. What is Being Advertised?
• product advertising is designed to
promote the sale of a specific product or
service:
• may be direct-action, quick-response
direct-action
• may be indirect-action over a longer
time
• institutional advertising promotes the firm
or tries to create a positive image:
• may promote customer service
• or send a public service message
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11. What are the Objectives?
• primary-demand advertising is
intended to stimulate use of a category
of products
• selective-demand advertising is
intended to encourage purchase of a
particular brand or the products and
services of a specific firm
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12. Comparative Advertising
• Selective-demand advertising
• Involves comparing a product to its
competing brand
• May be:
• Direct, naming competitors outright
• Less direct, alluding to competitors
(e.g., “leading brand”, “Brand X”) but
not naming them
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13. Co-operative Advertising
• co-operative advertising involves the
sharing of the cost of advertising by
two or more sponsors:
• a manufacturer and retailers
(vertical), or
vertical
• a group of retailers (horizontal)
(horizontal
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37. Sales Promotion
• Demand-stimulating devices designed to
supplement advertising and facilitate
personal selling.
• Sales promotions include such things as
coupons, in-store displays, premiums,
trade shows, in-store demonstrations,
and contests.
• The target for these activities may be
middlemen, end users, or the producer’s
own salesforce.
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38. Types of Sales Promotion
• Trade promotions, directed to
members of the distribution channel.
• Consumer promotions, aimed at
consumers.
• Consumers got 3.3 billion coupons for
packaged goods alone in 1996.
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39. Consumer - Promotion
Tools
Short-Term Incentives to Encourage Purchase
or Sales of a Product or Service.
ConsumerConsumerPromotion Tools
Promotion
Entice Consumers to
Objectives
Entice Consumers to
Advertising
Samples
Advertising
Try a New Product
Try a New Product
Lure Customers Away
Lure Customers Away
From Competitors’ Products
From Competitors’ Products
Get Consumers to “Load Up’
Get Consumers to “Load Up’
on a Mature Product
on a Mature Product
Hold & Reward Loyal
Hold & Reward Loyal
Customers
Customers
Consumer Relationship
Consumer Relationship
Building
Building
Samples
Coupons
Coupons
Cash Refunds
Cash Refunds
Price Packs
Price Packs
Premiums
Premiums
Specialties
Specialties
Patronage
Patronage
Rewards
Rewards
Contests
Contests
Sweepstakes
Sweepstakes
Games
Games
Point-of-Purchase
Point-of-Purchase
Displays
Displays
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40. Trade -- Promotion Tools
Trade Promotion Tools
Short-Term Incentives That are Directed to
Retailers and Wholesalers.
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Persuade Retailers or
Wholesalers to Carry a Brand
Wholesalers to Carry a Brand
Price-Offs
Price-Offs
Premiums
Premiums
Give a Brand Shelf Space
Give a Brand Shelf Space
Allowances
Allowances
Promote a Brand in
Promote a Brand in
Advertising
Advertising
Buy-Back
Buy-Back
Guarantees
Guarantees
Patronage
Displays
Rewards
Push a Brand to Consumers
Push a Brand to Consumers
Free Goods
Free Goods
Contests
Contests
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Discounts
Discounts
Push Money
Push Money
Specialty
Specialty
Advertising
Advertising
Items
Items

41. Business -- Promotion Tools
Business Promotion Tools
Short-Term Incentives That are Directed to
Industrial Customers.
BusinessPromotion
Objectives
Generate Business Leads
Business-Promotion
Tools
Generate Business Leads
Conventions
Conventions
Stimulate Purchases
Stimulate Purchases
Trade Shows
Trade Shows
Reward Customers
Reward Customers
Sales Contests
Sales Contests
Motivate Salespeople
Motivate Salespeople
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42. Advantages of
Sales Promotion
• It can produce short-term results.
• Competitors are using sales
promotions.
• Sales promotions are attractive to
price-conscious consumers.
• Can enhance/facilitate retail
salesmanship which is often of low
quality.
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43. Key Reasons for
Sales Promotion
• Stimulating end-user demand.
• Sampling program for new/improved
product
• Improving the marketing performance
of middlemen and salespeople.
•
Sell more, win a holiday trip.
• Supplementing advertising and
facilitating personal selling.
•
Displays, promotional giveaways
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44. Public Relations
• A tool designed to influence favourably
attitudes towards an organization, its
products and policies.
• Public relations is often overlooked by
management because of:
• Organization structure; not in marketing.
• Inadequate definitions; loosely defined.
• Unrecognized benefits; many nonbelievers.
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45. Major Public Relations Tools
Major Public Relations Tools
Public
Public
Service
Service
Activities
Activities
Web Site
Web Site
News
News
Corporate
Corporate
Identity
Identity
Materials
Materials
Audiovisual
Audiovisual
Materials
Materials
Speeches
Speeches
Written
Written
Materials
Materials
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Special
Special
Events
Events

46. Publicity
Publicity is a form of public
relations that includes any
communication about an
organization or its products that
is presented by the media but is
not paid for by the organization.
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47. Strengths of Publicity
• Can announce new products, recognize
employees, report good results,
breakthroughs.
• Key Benefits:
• Lower cost than advertising or personal
selling.
• Increased readership; advertising ignored
often.
• More information.
• Timeliness.
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48. Weaknesses of Publicity
Some loss of control over
message.
• Limited exposure; only happens
once.
• Not free; preparation costs.
•
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