2/8/2010

Promotion

Amayy Kothari

Promotional Mix
“ Advertising
“ Public relations
“ Sales Promotion
“ Direct Marketing
“ Personnel Selling

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Advertising

Any paid form of non – personal, mass

communication about an organisation,
good, service, or idea by an identified
sponsor

Advertising
“ Mass in nature
“ High absolute costs, but low per
exposure costs (CPM)
“ No direct feedback
“ Fees paid for media space and time
“ Three main goal: inform, persuade,
remind.

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Advertising Media
Traditional Electronic
Advertising Media Advertising Media

“ Television “ Internet
“ Radio
“ Electronic Mail
“ Newspaper
“ CD ROM
“ Magazines
“ Phone–on–Demand
“ Books
B k “ Kiosks
“ Direct mail
“ iTV
“ Billboards
“ Mobile Phone
“ Transit cards
“ Fax Machine

Public Relations
“ Involves communication activates
designed to influence the perceptions,
opinions, and beliefs about an
organisation among its relevant publics
including: customers, employees,
shareholders,, government,
g , and the
general publics.

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Public Relations
“ Mass in Nature
“ Credible (at least publicity)
“ Difficult to get stories placed
“ No payment to media, but not “free”

Sales Promotion
“A shot – term inducement of value
offered to arouse interest in buying a
good or service. Can be offered to the
ultimate consumer or to intermediaries.

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Sale Promotion
“ Mass in Nature
“ Effective in changing short – run
behavior
“ Costs vary with promotion type
“ Flexible
“ Easily abused
“ Can reduce brand equity.

Sale Promotion
Free Sample

Contest

Premiums

Trade Show
Popular Tools
for Vocational Giveaways
Consumer Sales
Promotion
Coupons

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Direct Marketing
“ Involves Communication directly with
target customers to encourage an
“immediate” response by telephone,
mail, or electronic means.

Direct Marketing
“ Customized
“ Message prepared quickly
“ Costs depend on type of communication
“ Declining customer response
“ Database management costs and
problems.

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Personal Selling
“ Two – way flow communication
between buyer and seller, designed to
influence a person’s or group’ purchase
decision.

Personal Selling
“ Customized
“ High cost
“ Immediate feedback, quick message
changes
“ Control problems
“ Good for complex message.

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Goals and Tasks of Promotion

Informing Reminding

Target
Audience

Persuading

Goals and Task of Promotion

“ Informative Objects
“ Increase awareness
“ Explain how product works

“ Suggest new uses

“ Build Company Image

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Goals and Task of Promotion

“ Persuasion Objectives
“ Encourage brand switching
“ Change customers’ perception of product
attributes
“ Influence buying decision

“ Persuade customers to call.

Goals and Task of Promotion

“ Reminder Objective
“ Remind customer that product may be
needed
“ Remind customer where to buy product

“ Maintain customer awareness

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The AIDA Concepts

“ Model that outlines
the process for
achieving
promotional goals
in terms of stages
of consumer
involvement with
the message.

The AIDA Concepts

Action

Desire

Interest

Attention

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Product Life Cycle and the

Promotional Mix
Maturity

Decline
Growth

Introduction

Light Heavy use of Advertising, Ads AD/PR

Advertising, Advertising, PR, Brand decreases. decreases,
Pre – PR for loyalty
loyalty, Sales Limited Sales
introduction Awareness; Personal promotion, Promotion,
Publicity Sales Selling for Personal Personal
Promotion for distribution Selling, Selling for
trial Reminder & distribution.
Persuasive

Type of Buying Decision

Advertising
R ti
Routine
Sales Promotion

Type of
Buying Decision affects Advertising
Promotional Not Routine or
Mix Choice Complex
Public Relation

Complex Personal Selling

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Available Fund
“ Trade – offs with funds available
“ Number of people in target market
“ Quality of communication needed
“ Relative costs of promotional elements

Push and Pull Promotional

Strategies
A. Push Strategy B. Pull Strategy

Manufacture Manufacture
Flow of Flow of
Flow of Promotion; Flow of Promotion;
demand Mainly demand Mainly
stimulation personal stimulation advertising
selling directed to
directed to consumer
Wholesaler Intermediates Wholesaler

Retailer Retailer

Consumer Consumer

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Sale Promotion
Nature of Product

Stage in PLC

Traget Market Factors

Type of Buying Decision

Factors
Affecting Promotional Funds
Choice of
Promotional Mix
Push or Pull Strategy

The Consumer Purchase Decision and

The Promotional Mix
High
Personal Selling
Importannce of Promotional Tool

Sales Promotion

Direct Marketing

Public Relations

Advertising

Low
Pre - Purchase Purchase Post Purchase
Stage of Consumer’s Purchase Decision

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The Promotion Decision Process

Planningg p
Implementation Control
Developing the
Promotional program
o Identify the target Executing the Evaluating the
audience Promotional Program Promotional Program
o Specify the objectives
o Set the budget o Pretest the promotion o Posttest the promotion
o Select the right o Carry out the o Make needed
promotional elements promotion changes
o Design
D i the th promotion
ti
o Schedule the
promotional

Corrective actions Corrective actions

Characteristics of Advertising
Advertising
Communication Indirect and non personal
p
Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One – Way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all
audiences

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Characteristics of Public
Relation
Public Relation
Communication Usuallyy indirect,, non –
personal
Communication Control Moderate or Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One – Way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually Fast
Message Flexibility Usually no direct control

Characteristics of Sales
Promotion
Sales Promotion
Communication Usuallyy indirect and non
Personal
Communication Control Moderate to Low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly One – Way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varies
target

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Characteristics of Personnel
Selling
Personnel Selling
Communication Direct and face to face
Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two – way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect

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