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7/25/2019 Unit 8 Promotion.pptx
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Promotion
Unit 8
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Concept of Promotion:
It is an important mix of marketing. It communicates essential
messages to potential buyers. It is any form of
communications used to inform, persuade, or remind peopleabout an organization's or individual's goods, services etc. It
tells the target customers about product, price and place.
According to Philip otler !Promotion includes all the
activities the company undertakes to communicate andpromote its products to the target market.!
After the goods have been produced, people must be
communicated about the products and persuade them for
acceptance. Promotion is an attempt to influence thempositively. Promotional elements consists or advertising,
sales promotion, personal selling, publicity and public
relations.
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Three basic objectives of promotion. These
are:
". #o present information to consumers as $ellas others
%. #o increase demand
&. #o differentiate a product.
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Objectives Marketing Communication
1.Informing:
ne of the most important ob(ectives of promotion is to inform customers
about the use, benefits, and features of the products. It includes the name and
address of the manufacturer or seller also.
%.Persuading:
nly by informing consumers about the products, they may not be influenced
to$ards the products. In order to influence them, the manufacturer or seller must
kindly persuade or appeal them to use his products.
&. Reminding:
nce the products are communicated it may not serve market for al$ays.
)onsumers may forget about the products because several competitive products
are available in the market. *o the market should repeat communication to
remind customers that a product is still avai+lable and serve as they desire.
.Re-enforcing:
-arketers usually reenforce the customers to buy products. It is a form of
psychological pressure to the customer for make purchase or re purchase of the
products. It consists motivating, heavy advertisement, publicity developing a
no$ atmosphere etc.
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ar!eting communication process and "ystem
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ar!eting communication process and "ystem
". *ources
%. )ommunication message
&. -essage encoding. -essage delivery system
/. 0ecoding
1. 2eceiver3. 4oise
+. 5eedback
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The Promotion Mix Strategy
Promotion Mix:
It is the combination of advertising publicity, public relation, sales
promotion and personal selling. It is the particular combination of
promotional tools. #hey are given belo$:
".#dvertising:
It is paid form of non personal communication. It is delivered
through mass media like radios, #elevision, ne$spapers, brochures,
posters etc. It consists of Print media67isual media6 Internet.
%.Personal selling:
It is a face to face communication bet$een the sellers and
prospective buyers. -ore money spent on personal selling.
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$. "ales promotion:
It involves marketing activities other than advertising,
publicity or personal selling that stimulate consumer purchases
and dealer effectiveness. #he forms of sales promotion include:
#rade sho$s.
0emonstrations.
)oupons 2ebates
*amples
)ontests
*ales promotion means any steps that taken for the purposeof increasing sales. It is a bridge bet$een advertising and
personal salesmanship.
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. Publicity:
It is any message concerning an organization appearing in the
mass media as a ne$s item for $hich the organization does not
pay and is not generally considered to be the source. 5or
example press conference and speeches, ne$s releases feature
articles, publication.
/. Public relation:
It is any unpaid form of presentation designed ato promotesfavorable attitudes and opinions to$ard organization, its policies
and products. It is an attempt to be a good citizen in the market.
8Public service activities
8 *ponsorship of events 8 9obbying 6 xhibits and displays.
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Push Strategy: -anufacturer ;holesaler
2etailer )ustomer
Pull Strategy: -anufacturer ;holesaler2etailer )ustomer
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Push Strategy:
#he promotion program is directed at middlemen. #he product is
pushed through the channel. #he channel members are persuaded to
order, carry and promote product to customers. #he manufacturerpromotes to $holesaler, the $holesaler promotes retailer, the
retailer promotes to customer. Personal selling and trade promotion
tools are emphasized in push strategy. #his strategy is useful $here
brand loyalty is lo$ and market share is to be protected.
Pull Strategy:
#he promotion program is directed at customers. #he customers
are persuaded to ask the product from the retailers, the retailers ask
the product from the $holesalers and $holesalers order the productfrom the manufacturers. #he product is pulled through the channel
to increase sales.
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#dvertising
Advertising:
It is paid form of non personal communication. It is deliveredthrough mass media like radios, #elevision, ne$spapers, brochures, posters
etc. It consists of Print media67isual media6 Internet.
AIDA: Attention6interest6desire6action Features:
1. Advertising involves costs
2. Advertising is impersonal !ords" sym#ols $
%. Advertising can #e various &orm consumer ' Industrial $
(. Advertising uses various media
). Advertising promotes goods" services and ideas
*. Advertising is targeted at some actions in&orm" persuade" remind
etc $
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Objectives of Advertising
Support to personal selling
Reach mass people
Attract a new market segment Promotion of new prouct
!mpro"e ealer relations
#xpan company sales
!nformation
Persuasion
Reminer
Reinforcement
Media:
$Press or print $ Auio or Raio
$ Auio%&isual
$ 'isplay
$ #lectronic (!nternet etc )
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#dvertising %udgets
It is converting the advertising plan into
monetary value. It is a plan that involves
determining the total allocation of monetary
resources for various activities involved. #he
ma(or ob(ectives of budgets are :
". 5acilitate the advertising program
%. Achievement of advertising goals
&. )ontrol tool
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#he ma(or items of expenditures in advertising
are located in different areas:
". 2esearch expenses
%. 0evelopment expenses
&. Production
. 2elease
/. Administrative cost
%udgeting #pproaches&. Top-'o(n approach
). %ottom-up approach
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#dvertising message "election
#he main focus of advertising is to design the most
communicative messages and deliver the to the target audience
in the most effective $ay. It is also the most important element
of and advertising. 5ollo$ing
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*actors affecting message design*
1. Advertising objectives = ob(ectives may be differ like
informs, persuades, reassures and reminds consumersabout products or services etc >
2. Product factor= industrial or consumer products >
3. Customer factor = male or females > messages that
appeal to the children may not appeal to teenagers. #hecopy $riter has to consider the demographic and
psychographic profile of the target audients before
$riting message.
4. Competitor factor = careful evaluate the competitor
factors before designing the message >
/. -edia 5actor
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#dvertising media selection
There are various media options available to
the advertiser. #he advertising media can begrouped in to four categories:
". Press -edia = indoor ad. media > : 4e$s paper,
-agazines, 2adios. Indoor media reach theaudience in their homes and offices.
%. ut door advertising media : #his media reach
the target audience in open spaces. 5orexample : Posters and $all paintings,
?oarding, lectric6lectronic signs, *ky
$riting, *and$ich men
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+. Direct Media: It reach customers their homesand offices through the postal or courier
systems. nvelop enclosures, post cards
@ooklets and catalogues
ift novelties = key rings, pen stands and paper$eights.
?andbills = Pamphlets >
. Display Media: ;indo$ display, xhibitionsand trade fairs, -obiles etc
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bjectives or goals of media selection*
". 2each the defined target audience
%. -atch the product distribution $ith media
coverage
&. -atch advertising ob(ective $ith media vehicle.
. )ounter the advertising of competitors
/. *tay $ithin the advertising budget
1. )irculation = number of copies of the
ne$spapers and magazines etc >
3. 2each 6 continuity 6 Impressions
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Personal Selling:
-eaning:
It is a face to face communication bet$een the sellersand prospective buyers. -ore money spent on personal
selling. It is a process of informing customers and
persuading them to purchase products through personal
communication in an exchange #rans actions. It is aoral presentation in a conversation $ith one or more
prospective customer for the purpose of making sales.
According to +illiam ,. Stanton - Personal selling is
personal communication o& in&ormation to persuade
some#ody to #y somethings.
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Natures:
Traitional metho
two way communication
!ni"iual attention for consumers
Persuasion (re,uest or appeal)
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Importance o& Personal selling:
5lexibility = changeable to meet $ith
customers >
#$o $ay communication
Persuasion = face to face interaction >
2epresents the $hole company
2eliable source of information
-inimizes $asted efforts
It results in the actuarial sales
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/#,ectives o& Personal selling:
ntrance to selling area.
#$o $ay communication.
0evelopment of relationship.
Profit making.
)onsumer facility.
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Methods: ' 0ypes
2etail selling = door to door selling>
#rade selling = selling to $hole seller and
retailer>
-issionary selling =#hey don't directly sales
product orders collection like pharmaceutical
and insurance sales person.>
0irect selling = direct to customer from
manufactures>
Industrial selling = use industrial sales person>
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Public Relations
Meaning/Nature
It is any unpaid form of presentation designed ato promotes
favorable attitudes and opinions to$ard organization, its policies andproducts. It is an attempt to be a good citizen in the market.
8Public service activities
8 *ponsorship of events
8 9obbying 6 xhibits and displays -arketing has to take care of the interest of various types of publics
such as media, government pressure groups, local people, and general
public and internal staff. Activities targeted at maintaining good relations
$ith the publics are kno$n as public elations.
According to Philip otler - Pu#lic relations involve a variety o&program designed to promote or protect a companys image or its
individual products
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Importance
@uild relationship $ith opinion leaders.
@uild direct relationship $ith customers.
@uild and maintain customer loyalty.
@uild market place excitement before product launch.
Methods 0ools $
". Press 2elations:
8Personal communication. 8 Press 2elease
8 5eature articles
8 Publication
%. Public service activities 8 *ponsorship of events
8 9obbying
8 xhibits and displays
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+bjectives of Public Relations
1. !uild mar"et place e#citement before product
launc$
2. !uild and maintain customer loyalty
3. !uild direct relations$ips %it$ consumers
4. !uild relations$ips %it$ opinion leaders.
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Sales romotion*
-eaning:
It involves marketing activities other than advertising, publicity or personal
selling that stimulate consumer purchases and dealer effectiveness. #he formsof sales promotion include:
#rade sho$s.
0emonstrations.
)oupons
2ebates
*amples
)ontests
*ales promotion means any steps that taken for the purpose of increasing
sales. It is a bridge bet$een advertising and personal salesmanship.
According to Philip otler - Sales promotion consists o& a diverse
collection o& incentive tools" mostly short term" designed to stimulate
3uic4er and or gr%ater purchase o& particular products 'survives #y
consumers or the trade
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/#,ectives
Attracting ne$ customers
-arketing of ne$ customers
#o compete
?elping middleman
#o increase selling
#o promote offseasons products
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Methods: 0ools$
Priceoff promotion
)oupons
*amples
Premiums = gift >
Prizes = contests 6 games >
Product $arranties
#rade sho$s and exhibitions
*ales contests
)redit facilities
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Relationship Marketing:
Marketers must take all possi-le eorts toretain the existing customers as well as -uilup
relationship with new customers. !t is the -est methoof retaining such customers in the company/sproucts. Actually it is the moern practice of -uilinglong term satisfying relations with key parties likecustomers0 supppliers0 an istri-utors. !t means -uil
prota-le uni,ue relationship with marketing network(customers0 employees0 suppliers0 istri-utors0retailers0 a"ertising agencies0 uni"ersity scientistsan others). !t pro"ies greater customer satisfaction
an hence retains the existing customers. Attract customers an keeping customers is
actually a i2cult task.
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3ustomer 'e"elopment Process
Susects
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!mportant ,uestions
'ene istri-ution an explain theo-5ecti"es of istri-ution .
#xplain the importance of marketingchannel an their key functions
'iscuss a-out channel ynamics.6ow hori7ontal conict arise9 Also
-riefy iscuss how channel conictcan -e manage.
'ene market logistic. #xplain its
functions