PROMOTIONS SEMINAR 10
CONTENTS • Definition of promotion • Promotional strategies • Promotional tools (Advertising) • Promotional tools (Personal Selling) • Promotional tools (Sales Promotion) • Promotional tools (Public Relations • Promotional tools (Direct Marketing) • Promotional mixes (IMC)
DEFINITION OF PROMOTION Definition of Promotion Promotion refers to the marketing processthatinforms, persuades, and reminds buyer on a product.
PROMOTIONAL STRATEGIES • The Push Strategies • The Pull Strategies
PUSH STRATEGIES • marketing efforts to push a product from a producer through a distribution channel to the consumers. • The manufacturer concentrates their marketing efforts on promoting their product to the trade to convince them to stock the product. • In this strategy, the manufacturer use aggressive personal selling and trade advertising to convince wholesalers and retailer to carry and sell the company’s products to consumers.
PULL STRATEGIES • A pull strategy is based around the manufacturer promoting their product and directing it to the target market to create demand. • In this strategy, the manufacturer try to attract the attention of buyers through the use of advertising or sales promotion. • Manufacturer may gives sample of their products and when customers are satisfied with the products, the retailers will make it available by ordering the demanded product through wholesalers.
PROMOTIONAL TOOLS • Promotional Tool (Advertising) • Promotional Tool (Personal Selling) • Promotional Tool (Sales Promotion) • Promotional Tool (Public Relations) • Promotional Tool (Direct Marketing)
PROMOTIONAL TOOLS Direct Marketing Advertising Public Relations Promotion Tools Sales Promotion Personal Selling Internet Marketing
PROMOTIONAL TOOL (ADVERTISING) Advertising • Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • Advertisements are found in the pages of newspapers, and magazines, as well as on the television and radio, among other media.
ADVERTISING STRATEGIES • 5 main steps in advertising: • Determine the advertising objective. • Determine the budget for advertising. • Form the advertising message. • Select the advertising media. • Evaluate the advertising campaign.
ADVERTISING OBJECTIVES • TO INFORM • When marketers wish to introduce a product to a target market, they will initiate an advertising campaign (informative advertising) to inform and make the public aware of the new product 2. TO PERSUADE • If the target market is already aware of the product, the next objective is to persuade it to buy the product. The company will launch a persuasive advertisement (features, brand, comparison) for the purpose of persuading consumers to buy. 3. TO REMIND • For products which have existed for a long while in the market, a company may want to communicate message in the form of a reminder advertisement in order to refresh consumers’ mind about the existing product.
DECIDING ADVERTISING MEDIA • Consumer preferences • Identify the most popular media used by consumers daily • Frequent media • Characteristics of products • Technical products is suitable for newspapers, television and magazines • Consumers products are suitable for television, magazines, newspapers, radio and many more • Type of message • Informative message are suitable for television, newspapers, magazines and internet • Cost • Printed media are cheaper • Electronic media are expensive
PROMOTIONAL TOOL (PUBLIC RELATION) Public Relations • Building good relations with the company’s various publics by obtaining favourable publicity, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events. • These are not-directly-paid-for activities designed to promote and/or protect a company’s image or reputation. • The central idea here is to proactively work toward getting positive • coverage in the media.
PUBLIC RELATIONS Functions: • Press Relations (Creating and placing valuable information in news media to attract attention towards a person, product or service). • Product Publicity (The company can hold an event to launch a new product to announce it to the public). • Community Relations (The company can develop and maintain good relationship with the community it serves). • Investor Relations (The company can maintain strong relationships with its shareholders). • Lobbying (The company can build relationships with government agencies as well).
PROMOTIONAL TOOL (PERSONAL SELLING) Personal Selling • Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. • This involves direct or face-to-face interaction with one • or more prospective customers, with the intention of closing sales. • This 2- ways interaction gives the organisation the opportunity to check out the needs of the buyer more closely as well as having the flexibility to • adjust/modify the presentation and (product) offering to meet these • needs. Personal Selling
PERSONAL SELLING STEPS: • Courting and Qualifying (list and screening) • Pre-selling Approach (study & appointment) • Approach Selling (ask consumer needs) • Presentation and Demonstration • Tackling Rejections (reasons and needs behind) • Deal Sealed (Closing sales by placing order) • Follow-up Action (repeat purchase)
PROMOTIONAL TOOL (SALES PROMOTION) Sales Promotion • Short-term incentives to encourage the purchase or sale of a product or service. • samples, • Coupons • price-off deals • Short-term incentives to persuade the trade to stock up on the product as well as to push the product • Competitions • Delayed Invoicing • Loyalty bonuses.
SALES PROMOTION Objectives: • To increase short-term sales • To capture a bigger market share • To persuade consumers to try its products. • To reward a company’s loyal customers • To build long-lasting relationships.
PROMOTIONAL TOOL (DIRECT MARKETING) DIRECT MARKETING • direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. • It is more towards non-public and involves the direct mail, telemarketing, e-marketing, on-line marketing • It is purposely to address the specific person and normally more customized • It is very interactive and can be in the form of dialogue • It is more suitable for one-to-one customer relationships.
DIRECT MARKETING • Benefit to Customer • Allows customers to shop at home with ease and comfort (avoid shopping in overcrowded supermarket or parking problems). • Enables customers to find information from various sources (help them in making product comparisons before purchase. • Benefit to Seller • Enables sellers to build longer relationships with customers (new technology like the Internet helps sellers to interact with customers and a continuous relationship can be established). • Can buy a mailing list e.g. lifestyle list to reach out to targeted small groups and use more personalised messages according to their taste and preference
DIRECT MARKETING TOOLS • Direct selling (insurance & MLM) • Direct mailing (readers digest) • Internet marketing (Online marketing) • Telemarketing (telephone) • Direct responsive using television (toll free) • Catalogue marketing
PROMOTIONAL TOOL (INTERNET MARKETING) INTERNET MARKETING • This refers to computer-and-electronic-based activities that provide and respond to information through the medium of the computer and other forms of new media. • The Internet is increasingly becoming popular. • For the consumer, Internet marketing offers convenience, a source of objective and abundant information about product choices and a relatively hassle-free shopping environment.
PROMOTIONAL MIXES • It is the combination of any two or more promotional tools to facilitate the promotion of a product. • It is also called as Integrated Marketing Communication or IMC.