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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Promotion Strategies
Chapter 9
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
What is a promotion?
Promotion is the element in an organisation’s marketing mix that serves to inform, persuade and remind the market about the organisation and/or its products.
9-1
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
The promotional mix Personal selling: the presentation of a
product to a prospective customer by a firm’s sales executive.
Advertising: paid, non-personal mass communication, in which the sponsor is clearly identified.
9-2
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
The promotional mix (cont.)
Sales promotion: demand-stimulating activity designed to supplement advertising and co-ordinate personal selling.
Publicity: a non-paid form of advertising that uses mass communication to stimulate demand.
9-3
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
The Promotional Mix
Public relations: a planned communication effort by an organisation to contribute to generally favourable attitudes and opinions toward an organisation and its products.
9-4
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Choosing the right form of promotion
Marketers need to consider: The target market. The nature of the product. The stage of the product’s life
cycle. Money available for the
promotion.
9-5
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Reaching the target market
Marketers need to identify whom they are trying to influence.
Determine customer’s readiness to buy. Awareness Knowledge Liking Preference Conviction Purchase
9-6
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Nature of the product
Unit value of the product.
Amount of product customisation.
Amount of pre-sale and post-sale service required.
9-7
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Push vs pull strategy Push Strategy• Producer creates demand for product.• Aims promotional activity to channel
member(s)• Each channel member promotes to next
channel member• Demand ‘pushed’ down distribution
channel.• Consumer influenced by retailer’s
advertising.
9-8
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Push vs pull strategy (cont.)
Pull Strategy• Producer creates demand for product• Aims promotional activity directly at
the consumer• Consumer demands product from
retailer• Demand ‘pulled’ up the distribution
channel.
9-9
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Push vs pull strategy (cont.)
Producer Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
PUSH STRATEGY
PULL STRATEGY
Product flow Promotion effort
9-10
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
The promotional budget
Percentage of sales method Company may determine past or
anticipated sales and apply a percentage of sales as the promotional budget.
All available funds Company uses all available funds on the
promotional campaign .
9-11
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
The promotional budget (cont.)
Matching the competition (also known as competitive parity). Promotional expenditure based on market
share of competitors, or actual expenditure if known.
Task or objective method Determine what tasks or objectives the
promotion must accomplish. Determine what it will cost to perform the
task or meet objective.
9-12
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Skills of the sales person A good sales person requires various
attributes: Time management. Organising ability. Consulting skills. Communication skills. Problem-solving skills. Credibility (also a positive attitude).
9-13
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Managing the sales team Recruitment and selection
Decide who the right person is for the job and what attributes and qualifications they should have.
Choose the right people Various methods used are interview,
references, psychological and aptitude tests, also physical examinations.
9-14
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Managing the sales team (cont.)
The induction A method used to familiarise a new employee
with their new working environment. The training
Determine who should train new sales person. A training program should be developed to
meet company objectives which outline philosophy, company and product overview.
9-15
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Managing the sales team (cont.)
Sales people need: Coaching
∆Spending time with a sales person to observe and assist with their work practice, outcomes and to develop knowledge and skills.
Motivation∆Managers should find out what motivates an
individual.∆These include financial and non-financial rewards.
9-16
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Compensation
There are various forms of compensation: Straight salary. Straight commission. A third from of compensation used in
business is a combination of both methods. This is used to motivate sales team members with financial incentives.
9-17
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Types of advertising Consumer versus business advertising
Emotional and rational vs informational. Product versus institutional advertising
Focus on particular product or brand and information and goodwill to company.
Primary-demand and selective-demand advertising Stimulate demand for generic or specific
brands
9-18
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Which media should we use?
To Choose the right medium for a promotional message, we need to consider the following.
What do we want our ads to do? Who are we trying to reach? What message do we want to
communicate? How much will each medium cost?
9-19
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Media characteristics Newspapers Television Radio Magazines Direct Mail Outdoor advertising Yellow pages Internet
9-20
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Did our advertising work?
Here are some of the factors that make it difficult to measure the sales impact of advertising• Ads have different objectives• Ads can have an effect over time• The effects of ads are difficult to
measure
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Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Methods used to measure effectiveness include Direct tests: these measure or predict
the sales volume stemming from an advertising campaign
Tabulating the number of inquiries from a direct-response campaign
Indirect tests: these measure something other than actual sales (e.g. recall tests)
9-22
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Choosing the rightsales promotion
What are our promotional objectives? Who is our target market? Can our product be sampled? What will it cost to use the right
promotional tool? What is the current economic
condition?
9-23
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Managing public relationsand publicity P.R. can be achieved by:
Supporting charitable projects Supplying volunteers or other resources Participating in community-service
events Sponsorship Providing information to customers via
newsletters.
9-24
Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata
Managing public relationsand publicity (cont.) Publicity can be achieved by:
structured news-release to the media co-ordinating personal
communication with a group co-ordinating one-to-one personal
communication (lobbying)
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