Professional Documents
Culture Documents
Session Plan
Merchandise Promotional Techniques Various forms of marketing and promotion
Discounting Visual Communication Direct vs Indirect Marketing Advertising Marketing Mix Marketing Channels
Sales promotion refers to those activities other than personal selling, advertising and publicity that encourages purchase or sale of a particular product or service. Sales promotional techniques often effect an immediate increase in sales. Measuring the effectiveness of sales promotion techniques is far easier as compared to the other promotional methods.
Price Off Offers: This technique involves products at a lower price than the normal price. Quantity off offers: Offering more quantity at same or higher price. Premiums: Offering free products/services to regular customers.
Coupons: Coupons are discount cards which can be redeemed by the customer at the time of bill payment. Coupons can be distributed via email, newspapers, inside any packaged merchandise or handed over by dealers/salesmen. Cash Back offers: giving cash back on submitting their proof of purchase.
Contests and lucky draw: these can be organized with lucky draw, giving away free samples and discounts on purchases. Loyalty Points: Giving reward points on each purchases. Very common in retail chains. Trade discounts: Discount is offered to dealers to encourage them to stock more qty of products.
Dealer contests: offering incentives to dealers who will achieve a sales target. These incentives can be in kind or cash.
Internet marketing Offline marketing. News papers, magazines Outbound marketing.for people who are not looking for it. Trade show marketing Promotional marketing
Direct marketing
Its main goal is to send a message directly to consumers, without having to use any third party outlets Examples of direct marketing include mail marketing, telemarketing and direct selling. Direct marketing is often preferable because the results can be easily measured, giving the marketer a better understanding of the success of that campaign. find egs.
Marketing
Demographics Economics Natural environment Technological environment Political-legal environment Social-cultural environment
Marketing Mix
Is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. McCarthy classified these tools into four broad groups that he called the four Ps of marketing. Product Price Place Promotion
A product's strengths are sorted for analysis into the 4 P's: 1. Product -- Is the product what consumers want? Consider brand name appeal, packaging, quality, styling, and warrantees. 2. Price -- Is the pricing strategy working? Consider competitive products, suggested retail price, wholesale pricing, cash discounts for volume sales, and other factors that impact on per-unit profit. 3. Place -- Where is the product being bought by consumers? Consider "Brick and mortar" and Internet retailers. 4. Promotion -- How well is marketing working? Consider advertising, public relations, sales force, and sales promotions.
Branding
Quality
Features
Benefits offered
We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and
Penetration
Skimming
Pricing Strategies
Competition
Product Line
Pricing is the only mix which generates a turnover for the organisation. The remaining 3ps are the variable cost for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.
Bundle
Psychological
Indirect Distribution
Manufacturer Manufacturer
Promotional Mix
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix can consist of:
Direct Mail
Internet/ E-commerce
7 Ps
7Ps Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industry
Marketing Mix
Three additional P's were added to the four Ps, bringing the total to seven. These extra P's are:
1. People -- From consumers to marketers to the people who manufacture a product, people exert a great impact on its marketplace success.
2. Process -- The procedures and mechanisms that consumers use to acquire products (e.g., retail, Internet, direct-response or other buying systems) are essential to bring the product to market. Examples: Retail, Internet, direct-response or other buying systems.
3. Physical evidence -- The "real world" factors that influence buying behaviour, such as advertising and customers' prior experience with a brand or specific product will also determine success in the marketplace.
Advertising
A set of activities involving the presentation of a mass message, called an advertisement, about a product, a service, or an idea that is paid for by an identified sponsor. Any paid form of nonpersonal presentation and promotion of ideas, goods,. A store spends the greatest portion of its promotion budget on advertising, a buyer has the responsibility for planning advertising that will reach a large number of people.
Advertising is used primarily by buyer to: 1. To attract customers to the store 2. To motivate customers to make purchase 3. To build goodwill for the store 4. To introduce new products, fashions, and services 5. To stimulate and create demand for products and services. 6. To build a favorable store image. 7. To show new applications of a product. 8. To develop a list of potential customers 9. To assist the salesperson through preselling 10. To increase mail and telephone orders 11. To maintain store name, trademark, or product before the public. 12. To keep customers satisfied with previous purchases.
The main types of retail advertising There are three types of retail advertising: 1. Promotional advertising 2. Institutional advertising 3. A combination of promotional and institutional advertising
Promotional Advertising The primary objective is to bring customers into the store to purchase specific items of merchandise It is the most popular type of advertising Primary objective of increasing store traffic and to increase sale of advertised goods.
Merchandise is available only for limited time period. It may take any of the following three forms: Regular price advertising Sale price advertising Clearance sale advertising
Promotional Advertising Regular price advertising: merchandise is offered at regular price, however, consumer appeal is based on the products characteristics and desirability. Sale price advertising. Merchandise is offered at a sale price or as a special consumer appeal is based on the opportunity to save Clearance sale advertising: merchandise is offered at lower price, however, the prime objective is to move out slow-moving inventory, broken and odd assortment, obsolete goods, and irregulars and seconds.
Institutional Advertising It is an indirect action advertisement. The primary objective is to create goodwill for the store, build confidence in its merchandise and service, and establish customer loyalty. Two forms: 1. Prestige advertising 2. Service advertising
Prestige advertising: It aims to attract present and prospective customers by the stores ability to offer the latest styles, designs, and materials, as well as maintaining past traditions. Service advertising: it seeks to attract present and prospective customers by calling attention to the stores various services and facilities, which make it a desirable place to shop. In this case no merchandise is advertised, no special sale is mentioned, and no attempt is made to build immediate customer traffic. it is attempting to build goodwill for the store.
Securing Action The action may involve a visit to the store, mail
order, telephone call, or filling out a coupon. The customer must take some kind of desired action if merchandise is to be sold.
Select business- and sales force promotion tools Develop the program Pretest the program Implement and evaluate the program
Major Consumer Promotion Tools Samples Coupons Cash refunds (rebates) Prizes (contests / games)
Patronage awards Free trials Product warranties Tie-in promotions Cross-promotions Point-of-purchase displays and demonstrations
Word-of-Mouth Is primarily responsible for building store image and goodwill. If you have satisfied consumers, they will speak positively about your store,and visa-versa.
Packaging Well-designed packaging is important. It offers many advantages to the buyer. Good packaging will : Attract customer attention, Stimulate interest in the product, Protect the merchandise, Make the product available in proper quantity and size, Reflect the use of the product, and Make displays more attractive and effective.
Personal Selling Wholesale selling or contact selling: where the seller usually contacts the customer Retail selling: where the customer usually approaches the retail store. There are three types of retail personal selling: 1. House-to-house selling 2. Mail and telephone selling 3. Over-the-counter selling