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Product Promotion. ApEc 4451. Communication Process. Consider: - Source: who/what will convey info. - Message: factual; emotional (fear, sex appeal, humor). - Receiver. Communicating effectively; - Sender & receiver must have shared field of experience.

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Presentation Transcript
communication process
Communication Process
  • Consider:

- Source: who/what will convey info.

- Message: factual; emotional (fear, sex appeal,

humor).

- Receiver.

  • Communicating effectively;

- Sender & receiver must have shared field of experience.

- Feedback: from receiver to sender.

- Noise: want to reduce extraneous factors.

major methods
Major Methods
  • Personal Selling: direct presentation of product to perspective customer.
  • Advertising: non-personal paid communication.

- TV, radio, print, billboards, internet.

- Less mass market; more targeted selling.

  • Sales promotion: temporary incentives to encourage purchases.
  • Public relations: to create favorable attitude toward company and its products.
  • (Publicity): news coverage; can be positive or negative.
trade oriented sales promotion
Trade-oriented sales promotion
  • Allowances & discounts.
  • Cooperative advertising.
  • Slotting fees.
consumer oriented sales promotion
Consumer-oriented sales promotion
  • Coupons- paper to electronic.
  • Premiums.
  • Deals- short-term price reductions.
  • Contests- need to do something to win (skill; ability).
  • Sweepstakes- win purely by chance.
  • Samples- tasting.
  • Point-of-purchase display.
  • Sponsorship of events.
advantages disadvantages
Advantages & Disadvantages
  • Personal selling:

- Permits flexible presentation and gains immediate response.

- Costs more than other forms per contact.

slide7
Advertising:

- Can reach large audience.

- Cost in relation to audience.

- Control over message.

- Considerable waste.

- Hard to close sale.

- Hard to demonstrate product.

- Difficult to measure results.

slide8
Sales promotion:

- Gains attention & has immediate effect.

- Easy for others to imitate or match.

slide9
Public Relations:

- High degree of believability when done right.

- Not as easily controlled as other forms.

- Difficult to measure or demonstrate the results.

hierarchy of effects model
Hierarchy of Effects Model
  • Awareness (to inform)
  • Knowledge
  • Liking (to persuade)
  • Preference
  • Conviction
  • Adoption (Purchase).
  • Remind.
effective advertising aida
Effective Advertising (AIDA)
  • Gets consumers attention.
  • Holds her/his interest.
  • Arouses their desire.
  • Leads to consumer action to buy.
packaging
Packaging
  • Functional benefits:

- Protection.

- Convenience.

- Storage (shelf life).

- Preservation of quality (freshness).

- Consumer protection (tamper

resistance).

slide13
Perceptual benefits:

- Perception by the consumer:

- Can connote status, economy,

quality.

- Influenced by color; shape.

- Repackaging of existing products.

slide14
Communication benefits:

- Promotion and advertising at point of purchase decision.

- Ingredients.

- Nutrition information.

- Directions.

- Menus.

packaging trends
Packaging Trends
  • Reduced & recyclable (to reduce environmental impact & cost).
  • More package sizes – smaller for 1-2 people; also large economy size (Sam’s Club; Costco).
  • Packaging for convenience.