Unit-II Elements of Market Promotion Mix - Copy

8/12/2019 Unit-II Elements of Market Promotion Mix - Copy

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Unit-II Elements of market

promotion mix

B.B.A-IV

Prepared by: Abin Varghese


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Introduction ( Advertising)

It is a Paid, Non personal Communication From An IdentifiedSponsor Using Mass Media to Persuade or Influence an Audience. Itis structured and composed non personal communication ofinformation, It is usually paid for and usually persuasive in nature,

It is about offering (goods, services, and ideas)

Made by identified sponsors through various media Advertising, as a mass communication, must reach numerous

publics. These include: distributors; employees customers;potential customers; stockholders (who provide operating revenue);the community-at-large (who can influence public opinion and thushelp with efforts such as new manufacturing plants and warehouselocations).


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Definition

Advertising is the non personal communication

of information usually paid for and usuallypersuasive in nature about products, services or

ideas by identified sponsors through the variousmedia-Richard F Taflinger

Advertising is any paid form of non-personalpresentation and promotion of ideas, goods and

services through mass media such asnewspapers, magazines, television or radio by anidentified sponsor. Philip Kotler.


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Objective of advertising

(a) To informInformative advertising, seeks to tell the marketabout the product, explain how the product works, provideinformation on pricing, and build awareness of both the productand the company. Such objectives are normally pursued at thelaunch of a new product, or re-launch / up-date of an existing

product. (b) To persuadeTo encourage customers to switch to a different

brand. Here objectives are to encourage the target audience toswitch brands, make the purchase, and create a preference in themarket for the product as opposed to its competition. Advertisingof this nature is required in highly competitive markets, where a

range of products compete directly with each other. In suchcircumstances businesses often seek to differentiate their productthrough Comparison Advertisingeither directly or indirectlycomparing its product to that of its competitors.


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(c) Toremind - To remind buyers where tofind a product. Reminder Advertising, is usedto maintain interest and awareness of a well

established product in the market, often in thelatter stages of its product life cycle. It is oftenused at the Point-of-Purchase to remindconsumers of the Brand. Such advertising is

used by the likes of Coca-Cola and otherleading brands, to maintain their position inthe market.


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Advertising


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Features of advertising

Advertising provides information : The basic purpose of advertising is to provide

information about products/services to prospective buyers. The details of products such as

features, uses, prices, benefits, manufacturer's name, and instructions to be followed while

using the product are given in the advertisements.

Paid form of communication : The advertiser has to pay to the media for giving publicity to

his advertising message. He pays for the advertisement and naturally he decides the size,

slogan, etc. given in the advertisement. Advertising is a form of paid communication.

Non-personal presentation : Advertising is non-personal in character as against

salesmanship which is personal (face to face communication) in character. In advertising, the

message is given to all and not to one specific individual. This rule is applicable to all

advertising media including press. However even in advertising target consumers or target

market can be selected for making an advertising appeal.

Gives publicity to goods, services and ideas : Advertising is basically for giving informationto consumers. This information is always related to the features and benefits of goods and

services of different types. Advertising gives new ideas to consumers as its contents are

meaningful. The aim is to make the ideas popular and thereby to promote sales. For example,

advertising on family planning, family welfare, and life insurance is useful for placing new

ideas before the people.


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Contd..

Basically for persuasion : Advertising aims at persuasion of potential customers. Advertising attracts

attention towards a product, creates desire to have the same and finally induces consumers to visit the market

and purchase the same. Advertising has psychological impact on consumers. It influences the buying

decisions of consumers.

Target oriented : It is possible to make intensive advertising by selecting a specific market or specific

segment of consumers (e.g. children, housewives, etc.) for the purpose of advertising. This selection of a

specific market is called target market.

An Art, Science and Profession : It is now universally accepted that advertising is an art, science and a

profession. It is an art as it needs creativity for raising its effectiveness. Advertising is a science as it has its

principles and rules. Advertising is now treated as a profession with its professional bodies and code of

conduct for members. Advertising agencies and space brokers function as professionals in the field of

advertising.

Important element in marketing mix : Advertising is an important element in marketing mix. It supports the

sales promotion efforts of the manufacturer and makes positive contribution in sales promotion provided other

elements in the marketing mix are reasonably favorable. This is natural as advertising alone is not adequatefor promoting sales. Many companies now spend huge funds on advertising and public relations

Creativity - the essence of advertising : Advertising is a method of presenting a product in an artistic,

attractive and agreeable manner. This is possible through the element of creativity which is the essence of

advertising. Creativity can be introduced by creative people (professionals) in the field of advertising.


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Advertising media

The advertiser has to take decision about the media to be used foradvertising purpose.

Media differ as regards cost, coverage, effectiveness and so on. Theselection of media depends on the budget provided, products to beadvertised, and features of prospective buyers and so on.

Wrong decision on media may make advertising ineffective and moneyspent will be wasted. This suggests that media should be selected properlyand decision in this regard is important and critical.


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Types of media.


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Personal Selling. An Introduction

The In-Face, Face to face, convincing to buy aproduct/ service between a potential-buyerand seller is appropriately called personal

selling. Personal selling is more effectively used for

the sale of certain kind of products.

Personal selling is best suited for the productswhere a demonstration of the features is animportant part of selling.


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Definition Personal selling refers to personalcommunication with a an audience through

paid personnel of an organization or its agents

in such a way that the audience perceives the

communicators organization as being the

source of the message.Avila Schwepker Jr.

Personal selling involves oral presentation inconversation with one or more prospective

purchaser for the purpose of making sales--

AMA


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Features of personal selling

Problem solving approach: Personal selling involves face to

face presentation of goods, services or ideas by a sales

representative with prospective customers. Therefore he can

identify problem

Persuasion: Personal selling involves the ability to influence or

persuade people. It is the skill of handling people which

makes a person a successful salesman.

Winning the buyers confidence: With easy enough

persuasion skills one cannot in normal case use misleadingtools like misrepresentation or fraud but guide buyer in a

useful and productive way.


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Providing Services to the buyer: modern salesmanship is

based on the idea of the service. A sales person always tries

to find out the wants of his customers and provide the

product that will satisfy their wants. Every buyer has a

problem and the problem lies in the use of certain product orservice. Personal Selling tries to do that only.

Mutual Benefit: Personal selling is not the art of earning

profit at the cost of the customers. On the contrary personal

selling should benefit both buyer and seller. Educative process: It Educates people about their needs. Very

often people are not aware about their need. A salesperson

has to make them aware.


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Importance of personal selling

Personal Selling is extremely important as it helps in increasing sales. But

there are other features as well which make it important. Let us discuss

the importance of personal selling from the point of view of manufactures

as well as consumers.

From manufacturers point of view

i. It creates demand for products both new as well as existing ones.

ii. It creates new customers and, thus help in expanding the market for the

product.

ii. It leads to product improvement. While selling personally the seller getsacquainted with the choice and demands of customers and makes

suggestions accordingly to the manufacturer.

iv. It creates more regular demand thus makes planned and regular mass

production possible.


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From customers point of view

i. Personal selling provides an opportunity to the consumers to know

about new products introduced in the market. Thus, it informs and

educates the consumers about new products.

ii. It is because of personal selling that customers come to know about theuse of new product

From society point of view

i. Personal selling improves the standard of living

ii. It largely makes aware the society about the pros and cons of product or

services at large


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Difference between advertising

and personal selling Personal selling Personal selling involves direct interaction

of salesmen with individuals.

Personal selling is confined to a particular

area In personal selling there is a two way

communication. The salesman explains his

viewpoint to the potential buyer and

knows about his/ her reaction.

In Personal selling there is only one

channel of transmission of messages i.e.,personal talk of the salesman with the

potential buyers;

Salesmanship converts the potential

demand created by advertisement into

actual sale.

Advertising Advertising is non personal and is

addressed to the customers in

general

Advertising is generally found to

cover a larger number of people.

In advertising there is one way

communication; the targeted

persons' reactions cannot be

known immediately.

Advertising offers a wide choice

of channels, visual, audio such as

radio and audiovisual such as

television.

Advertising creates desire to buy


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Sales promotion

Sales promotion is any initiative undertaken

by an organization to promote an increase in

sales, usage or trial of a product or service (i.e.

initiatives that are not covered by the otherelements of the marketing communications or

promotions mix).


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Definition

Sales promotion refers to any steps that are

taken for the purpose of obtaining or

increasing sales, often this term refers

specially to selling efforts that are designed tosupplement personal selling and advertising

and by co-ordination, help to become

effectiveA.H.R. Delena


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Features of sales promotion

Initiates customers for purchase or trial

through attractive offers

After changed with various time

It offers a link between personal selling and

advertising

Uses various tools of promotion in effect

It is used for consumers, distributors and

salesmen alike.


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Objectives of sales promotion

To introduce new products: Perhaps you know that many companies distribute free samples

while introducing new products. The consumers after using these free samples may develop

a taste for it and buy the products later for consumption.

To attract new customers and retain the existing ones: Sales promotion measures help to

attract or create new customers for the products. While moving in the market, customers are

generally attracted towards the product that offers discount, gift, prize, etc on buying. These

are some of the tools used to encourage the customers to buy the goods. Thus, it helps toretain the existing customers, and at the same time it also attracts some new customers to

buy the product.

To maintain sales of seasonal products: There are some products like air conditioner, fan,

refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which

are used only in particular seasons. To maintain the sale of these types of products normally

the manufactures and dealers give off-season discount. For example, you can buy airconditioner in winter at a reduced price. Similarly you may get discount on winter clothes

during summer.


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To meet the challenge of competition: Todays business facescompetition all the time. New products frequently come to

the market and at the same time improvement also takes

place. So sales promotion measures have become essential to

retain the market share of the seller or producer in the

product-market.

To increase the usage rate: sales promotion activities

sometimes tends to focus on increasing the usage of the

product so that more purchases are made by the customer

To increase sales: The main objective of sales promotion is to

increase sales for that various tools and techniques are used


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Sales promotion tools

(a) consumer promotion tools

1. Free Samples

2. Price off

3. Bonus offer4. Money refund

5. Contests

6. Demonstrations7. Lucky draw

8. Coupon

9. After sale service


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(b) Trade or business promotions

1. Display and advertising allowance

2. Buying allowance

3. Buy-back allowance4. Dealer listed promotion

5. Sales contests for dealers

6. Free gifts7. Credit facility

8. Advertising materials


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(c) Sales force promotions

1. Bonus to sales force

2. Sales force contest

3. Sales meeting or conferences


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Importance of sales promotion

From the point of view of manufacturers

Sales promotion is important for manufacturers because

i. it helps to increase sales in a competitive market and thus, increases

profits;

ii. it helps to introduce new products in the market by drawing the attentionof potential customers;

iii. when a new product is introduced or there is a change of fashion or taste

of consumers, existing stocks can be quickly disposed off;

iv. it stabilizes sales volume by keeping its customers with them. In the age

of competition it is quite much possible that a customer may change his/hermind and try other brands. Various incentives under sales promotion

schemes help to retain the customers.


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From the point of view of consumers

Sales promotion is important for consumers because

i. the consumer gets the product at a cheaper rate

ii. it gives financial benefit to the customers by way of providing prizes and sending

them to visit different places;

iii. the consumer gets all information about the quality, features and uses of

different products;

iv. certain schemes like money back offer creates confidence in the mind of

customers about the quality of goods; and

v. it helps to raise the standard of living of people.

By exchanging their old items they can use latest items

Promotional strategy used by

luna


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Limitations

Sales promotion is an important strategy for producing quick, short-term,

positive results, it is not a cure for a bad product, poor advertising, or an

inferior sales team.

After a consumer uses a coupon for the initial purchase of a product, the

product must then take over and convince them to become repeat buyers.

In addition, sales promotion activities may bring several negative

consequences, including "clutter" due to the number of competitive

promotions. New approaches are promptly cloned by competitors, as each

marketer tries to be more creative, more attention getting, or more

effective in attracting the attention of consumers and the trade.

Sometimes discounts may not be real the because the real prices may

already be inflated


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Publicity and public relations

Publicity is a non personal communication for

a product or service upon radio, TV or stage

that is not paid by a sponsor- AMA


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Features of publicity and public

relationsFree of charge: Publicity can be obtained at no cost at all

wherein the third party would be reporting any news

Mass coverage through news:people normally avoid

reading advertising but they are more likely to read

information published in the form of news.

Various means are used: Different means like newspapers,

radio, TV etc are used

Dependence on good Image on media: Publicity the rather

depends on good relation with the media.

Publicity as a part of public relations: The objective of

public relations is to create good image of the company in

mind of the people connected


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Advantage of publicity

1. News worthiness:if a company has any specialty it becomes news

worthy and suitable for publicity. Peoples attention can be easily drawn

towards the product and its specialty

2. Trustworthy: The news published in newspaper is true and the readers

have unshakable faith in its truth

3. Wide coverage: People normally avoid reading advertising but they like

to read information published in newspaper

4. High credibility:Depending on rather than advertising people tend to

easily accept truth of news.

5. Free of cost:generally public relation and publicity does not depend onmarketing budget but rather depends on the local media.


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Parties involved in public relations

Customers

Shareholders

Employees

Suppliers

Community

Government


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Methods of Public Relations

News:one of the major tools of publicity is news. Public relation professionals find or create

favorable news about the company and its product or people

Speeches: Speeches and various press conferences also create product and company

publicity. Increasingly, company executives must give talks to media, trade associations or at

sales meeting

Special Events: Another common public relation tool is special events, ranging from news

conference, press tours, grand openings and star studded events or educational programdesigned to reach and interest target publics.

Written materials: Public relations people also prepare written materials to reach and

influence their target markets. These materials include annual reports, brochures, articles

and company newsletters and magazines

Corporate identity materials: Corporate identity materials also help create a corporate

identity that the public can immediately recognize. Logos, stationary, signs, business forms,business cards, uniforms become marketing tools when they are attractive, distinctive and

memorable.

Public Service activities: Companies can also improve public goodwill by contributing money

and time to public services activities. For eg Hope, Cry etc.

Companies website and networking: A companys website can be a good public relations

vehicle. Consumers and members of other public can visit the site for information andentertainment.


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End of unit II

Documents

Unit-II Elements of Market Promotion Mix - Copy