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PROMOTION TOOLS INBUSINESS MARKETINGPROMOTION TOOLS INBUSINESS MARKETING
Presenting by:ChandraShekar
Vii Sem MBS
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PROMOTION Promotion keeps the product in the minds of the customer
and helps stimulate demand for the product. Promotioninvolves ongoing advertising and publicity. The ongoingactivities of advertising, sales and public relations are oftenconsidered aspects of promotions.
The global market place consists of an increasingly complexarena of competitors within a rapidly changing environment.
Everything about your product communicates:
Price - Place - Product (including packaging)
New companies are formed on a daily basis,
How can one get people to know about their
business so that it can grow?
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ADVERTISING "A
dvertising is any paid form of non-personal presentationand promotion of ideas, goods and services through massmedia such as newspapers, magazines, television or radio byan identified sponsor".
- Philip Kotler and Armstrong
"The means of providing the most persuasive possible sellingmessage to the right prospects at the lowest possible cost".
- Institute of Practitioners in Advertising
Advertising is bringing a product (or service) to the
attention of potential and current customers.
Advertising is a form of Communication!
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Objectives
Paid non-personal communication through various media.
Objective - To inform reader, listener or viewer about
RetailerOfferingsPrices
Services
What do you want to achieve and how will youmeasure it?
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Scope and Importance
of Advertising Advertisements are important for:
products aimed at large markets products that have easily communicated features products low in price products sold through independent channel members
and/or are new.
Broadcast Ad spending is at an all time high due to heavycompetition in the:
Computer industry Telecommunications Industry Auto Industry
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BENEFITS OF ADVERTISING A
dvertisements create awareness, interest and desire forproducts and services in customers to buy them.
Advertising is cost efficient as advertisements can reach avast number of audiences simultaneously.
The message can be repeated several times It helps inboosting the sales of the company.
It supports the activities of the distribution network of thefirm by creating demand and encouraging purchase through pullstrategy.
It helps in making the job of the sales force easier, by cratingawareness among potential customers.
Advertisements also help in building a strong image of aproduct or brand, apart from increasing its sales.
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The Five Ms of
Advertising
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Identifying the target
audience Identify the Target Audience :
Marketers must gather information on thegeographic location, demographic variables (like age, sex,education, income level etc.) and consumer attitude towards
the company products and competitor products.
Local or Global audiences Mass or niche Market
For instance, an advertisement of Amrutanjan pain balm istargeted at the mass market, while the advertisement of
Mercedes Benz is targeted at a niche market of statusconscious, high income group customers.
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Selecting the right
media Who should be reached? Where are they located? Which media is appropriate? When do we run the advertising campaign?
You have a wide choice of media vehicles each with its ownadvantages and shortcomings.
Media analysis
"An investigation into the relative effectiveness and therelative costs of using the various advertising media in anadvertising campaign"
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Cont., A useful distinction can be made between published media
and visual/aural media.
Published or print media include:National daily newspapersSunday newspapersLocal and regional newspapersConsumer magazinesSpecialist magazinesTrade and professional pressInternet
Visual and aural media include:
Television (terrestrial and digital)RadioCinemaBillboards (Out door)TransportDirect mailing
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Profile of major advertising mediumsNewspapers Flexibility; timeliness; good
local market coverage; broadacceptance; high believability
Short life; poor reproductionquality;
small pass along audience
Television Combines sight, sound and
motion; appealing to the
senses; high attention; high
reach.
High absolute cost, high clutter,fleeting
exposure, less audience selectivity
Direct mail Audience selectivity, flexibility, no adcompetition within the same medium,
personalization.
Relatively high cost, junk mail image.
Radio Mass use, high geographical
and demographic selectivity;
low cost.
Audio presentations only; lower
attention than television; non
standardized rate structure;fleeting
exposure.
Magazines High geographical and
demographic selectivity;credibility and prestige; high
quality reproduction, long life;
good pass-along readership.
Long ad purchase lead time; some
wastecirculation; no guarantee of position
Outdoor Flexibility; high repeat
exposure; low cost; low
competition.
Limited audience selectivity;creative
limitation.
BroachersF
lexibility; full control; candramatize message.
Overproduction could lead to runaway
costs.
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Categories of Advertising Public Awareness Advertising Product Advertising- 3 Types Consumer Advertising Industrial Product Advertising Service Advertising Corporate Advertising Public Relation Advertising Public Service Advertising Financial Advertising
Global Advertising Internationalizing of Advertising Institutional Advertising Cause Advertising Celebrity Advertising Cause Advertising
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Public Awareness
Advertising
Public Awareness Advertising
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Celebrity Advertising
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Sales promotion
Short term incentives to encourage thepurchase or sale of a product or service.
Sales promotion include tools for consumer
promotion, trade promotion and businessand sales force promotion.
Now ,it is part of the Marketing spend of
all companies and these days SP spends inmany companies exceed that of theadvertisements spends.
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Objectives Speeding the sales process and
increasing the sales volume.
Building product awareness. Creating interest.
Providing information.
Reinforcing the brand.
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Tools of sales promotion
Consumer promotion tools
Trade promotion tools
Business promotion tools
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Consumer promotion tools
Couponcertificate that gives buyers a saving when theypurchase a specified product.
SampleA small amount of a product offer to customers for
trial.
Cash refund offer (rebate)Offer to refund the part of the purchase price of the
product to consume send a proof of purchase to themanufacturer.
Price pack (cents off - deal)Reduced price that is marked by the producer directly
on the label or package.
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Trade promotion tools
DiscountA straight reduction in price on
purchases during a stated period of time.
AllowancePromotional money paid by
manufacturers to retails in return for an
agreement to feature the manufacturersproduct in some way.
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Business promotion tools
Companies spend billions of dollars eachyear on promotion to customers.
This tool is used to generate businessleads, stimulate purchases, rewardcustomers and motivate sales people.
Many companies and trade associationsorganize the conventions and trade showsto promote their product.
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Uses of sales promotion
Immediate purchases
Increase trial
Boost consumer inventory Encourage repurchase
Encourage brand switching
Encourage brand loyalty
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Direct marketing Direct marketing
Direct marketing creates a direct relationship betweenthe customer and the business on an individual basis.
Many forms: Telephone marketing, direct mail, onlinemarketing, etc.
Four distinctive characteristics: Nonpublic Immediate Customized
Interactive
Well-suited to highly targeted marketing efforts
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Public Relationship
The planned and sustained effort to establishand maintain goodwill and mutual understandingbetween an organization and its publics.
Highly credible
Many forms: news stories, news features, eventsand sponsorships, etc.
Reaches many prospects missed via other formsof promotion
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Public relations techniques
There are many techniques available to influencepublic opinion, some of which are moreappropriate in certain circumstances than others:
Consumer
communication
Customer press releases
Trade press releases
Promotional videos
Consumer exhibitions
Competitions and
prizes
Product launch events
Celebrity endorsements
Web sites
Business
communication
Corporate identitydesign
Company and
product videos
Direct mailings
Web site
Trade exhibitions
Internal & External
communication
In-house newslettersand magazines
Intranet
Notice boards
Employee conferences
Company literature
(brochures, videos etc.) Community
involvement programs
Trade, local, national
and international media
relations
Financial
communication
Financialmedia relations
Annual report
and accounts
Meetings with
stock market
analysts, fund
managers etc Shareholder
meetings
(including the
annual general
meeting)
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Personal Selling Direct communications between paid representatives and
prospects that lead to transactions, customer satisfaction,account development, and profitable relationships.
Most effective tool for building buyers preferences,convictions, and actions
Personal interaction allows for feedback and adjustments Relationship-oriented
Buyers are more attentive
Sales force represents a long-term commitment
Most expensive of the promotional tools (Paid one)
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Cont., Steps in Personal Selling Process:
- Opening a call
- Need Exploration
- Presentation
- Handling objections
- Closing the sale
- Follow-up
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Sales management
Controlling of personal contact programsdesigned to achieve the sales and profitobjectives of the firm.
Responsible of Sales Manager Achieving or exceeding the goals established
for performance in the current period
Developing the people reporting to them
The planning, organizing, and leading
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PlanningBudgetingRecruiting andselecting
Training
MotivatingCompensatingDesigning territoriesEvaluating performance
Sales
Management
Advertising Public
Relation
Personal
Selling
Sales
PromotionInternet
MarketingMix
Product Price Promotion Distribution
Positions of Personal Selling and SalesManagement in the Marketing Mix
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THE SALES
MANAGEMENT PROCESS1. The formulation of a sales program.2
. The implementation of the salesprogram.3. The evaluation and control of the
sales program.
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THE SALES MANAGEMENT
COMPETENCIES Strategic Action Competency.
Understanding the industry Understanding the organization Taking strategic actions
Coaching Competency. Providing verbal feedback Role modeling Building trust
Team-Building Competency. Designing teams properly Creating a supportive environment Managing team dynamics appropriately
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Cont.,
Self-Management Competency. Integrity and ethical conduct Managing personal drive Self-awareness and development
Global Perspective Competency. Cultural knowledge and sensitivity Global selling program
Technology Competency. Understanding the productivity potential of new
technology Implementing sales force automation (SFA) Implementing customer relationship management (CRM)
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THANK YOU FOR
LISTENING
Question?
Presented by:
Chandrashekar
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