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    8 views30 pages

    Promotionmix by Rashmi Phirake

    Uploaded by

    Harshal Shejwalkar

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 30

    CHAPTER 4

    PROMOTION MIX
    AND
    KINDS OF PROMOTION

    By:-Dr. Rashmi Phirake.


    AISSMS-IOM
    ‡ Not only informs, but is also used to differentiate the
    sellers’ Products/Services from its competitors.

    ‡ The marketing communications strategy of a firm


    must be coordinated and linked with concepts such
    as target segments, positioning, differentiation, and
    branding.

    ‡ To influence feelings, beliefs, or behaviour of the


    target customers.
    Marketing Communications are the
    means by which a firm attempts to
    inform, persuade, and remind consumer
    – directly or indirectly – about the
    products and brands they sell.
    PROMOTION
    DEFINITION :-
    Promotion involves disseminating information
    about a product, product line, brand, or
    company. It is one of the four key aspects of the
    marketing mix. (The other three elements are
    product marketing, pricing, and distribution.)

    To generate sales and profits, the benefits


    of products have to be communicated to
    customers. In marketing this is commonly known
    as “promotions”.
    PROMOTION MIX

    DEFINITION :-

    Specific combination of promotional


    methods such as print or broadcast
    advertising, direct marketing,
    personal selling, point of sale
    display, merchandising, etc., used
    for one product or a family of
    products.
    ROLE OF PROMOTION IN
    MARKETING STRATEGY

    Role of Promotion in Marketing Strategy Affects


    3 Key Aspects of Decision Making with
    Respect to Brands
    • Creating the Marketing Mix
    • Achieving Effective Market Segmentation,
    Product Differentiation, and Positioning
    • Enhancing Revenues and Profits
    Six main Promotion Tactics

    1. ADVERTISING
    2. SALES PROMOTION
    3. PUBLIC RELATIONS
    4. PERSONAL SELLING
    5. PUBLICITY
    6. DIRECT MARKETING
    The factors that guide a marketer’s
    decision in selecting a promotion mix
    are :-

     Nature of the product market.


     Overall marketing strategy.
     Buyer readiness stage.
     Product life cycle stage.
    ADVERTISING
    The means of providing the most persuasive
    possible selling message to the right prospects at
    some cost".

    Kotler and Armstrong provide an alternative


    definition:-

    "Advertising is any paid form of non-personal


    presentation and promotion of ideas, goods and
    services through mass media such as
    newspapers, magazines, television or radio by an
    identified sponsor".
    Medium of Advertising
    Print
    Electronic
    Outdoor
    SALES PROMOTION
    “An activity designed to boost the sales of a product
    or service. It may include a free-sample
    campaign, offering free gifts, arranging
    demonstrations or exhibitions, setting up
    competitions with attractive prizes, temporary
    price reductions, other methods”.
    More than any other element of the promotional
    mix, sales promotion is about “action”. It is about
    stimulating customers to buy a product. It is not
    designed to be informative – a role which
    advertising is much better suited to.
    Types of Sales Promotion
    Consumer Sales Promotion
    Trade Sales Promotion
    PUBLIC RELATIONS

    “The planned and sustained effort to


    establish and maintain goodwill and
    mutual understanding between an
    organisation and its publics”.

    Public relations activities include, press


    releases, concert, company literature,
    videos, websites and annual reports.
    PERSONAL SELLING
    Personal selling is oral communication with
    potential buyers of a product with the
    intention of making a sale. The personal
    selling may focus initially on developing a
    relationship with the potential buyer, but will
    always ultimately end with an attempt to
    "close the sale“

    Personal selling is one of the oldest forms of


    promotion. It involves the use of a sales
    force to support a push strategy
    (encouraging intermediaries to buy the
    product) or a pull strategy (where the role of
    the sales force may be limited to supporting
    retailers and providing after-sales service).
    PUBLICITY
    Publicity refers to nonpersonal communi-cations
    regarding an organization , product , service , or
    idea not directly paid for or run under identified
    sponsorship .it usually comes in the form of news
    story , editorial , or announcement about an
    organization and/or its products and services.

    Techniques used to gain publicity include news


    releases , press conferences , feature articles ,
    photographs , films , and videotapes.

    “Publicity is stories and brand mentions delivered


    by the mass media without charge” (Duncan,
    2005, p. 10).
    Events & Sponsorships
    Events: A highly targeted brand-
    associated activity designed to actively
    engage customers and prospects and generate
    publicity
    Example: Harley Owners Group motorcycle
    rallies.
    Sponsorships: Financial support for an
    organization, person, or activity in exchange
    for brand publicity and association
    Example: Nike’s sponsorship of Tiger Woods.
    DIRECT MARKETING
    Direct marketing is concerned with establishing an
    individual relationship between the business
    offering a product or service and the final
    customer.
    Direct marketing has been defined by the Institute
    of Direct Marketing as:
    “The planned recording, analysis and
    tracking of customer behaviour to develop a
    relational marketing strategies”.
    The tools of direct marketing covers a wide range
    These include:
    • Direct-response adverts on television and radio
    • Mail order catalogues
    • E-commerce
    • Magazine inserts
    • Direct mail
    • Telemarketing
    OBJECTIVES FOR PROMOTION

    • BUILD AWARENESS.
    • CREATE INTEREST.
    • PROVIDE INFORMATION.
    • STIMULATE DEMAND.
    • REINFORCE THE BRAND.
    Integrated Marketing
    Communication…..

    It is a process for planning, executing


    & monitoring the brand messages
    that create customer relationships
    IMC “is the coordination and
    integration of all marketing
    communication tools, avenues, and
    sources within a company into a
    seamless program that maximizes the
    impact on consumers and other end
    users at a minimal cost” (Clow &
    Baack, 2007, p. 8).
    The Goal of IMC
    As with all marketing activities, the
    goal of IMC is to build brands.
    Brands that are well known and liked
    are more likely to be purchased →
    increase profit margins.
    Brand Equity: “the intangible value of
    a brand – value added to a product or
    service that derives from a perception
    in customer’s minds” (Duncan, 2005, p.
    8).
    IMC provides greater:

    Brand differentiation.
    Accountability within a firm.
    Trust among consumers.
    Levels of effectiveness in cutting
    through message clutter(mess) than
    single strategies.
    The Changing World of MC
    Old World New World
    “Talking At” Consumers Two-way
    Dialogue With Consumers
    Focus on Winning New Focus on Building Long
    Customers Term Relationships With
    Consumers

    Marketers Relied Primarily Marketers Use and


    on Advertising and Promotion Coordinate Many
    Different Forms of
    Communication With
    consumer
    The Key Players in the IMC
    Process
    Integrated Marketing Communications
    Model
    Developing Effective Communication
    Identifying Target Audience
    Determining communication objective
    Designing the communication
    Selecting communication channel
    Colleting feedback
    1. Identifying the Target Audience: The
    communicator starts with a clear target
    audience in mind. The audience may be an
    individual, a group, special public or general
    public. The target audience will tremendously
    affect the communicator's decision like what
    will be said, how it will be said, when it will
    be said and who will say it.

    2. Determining the Communication


    Objectives: When the target audience is
    identified, the communicator must decide
    what response is asked for.
    3. Designing a Message: Here the communicator
    develops an effective message which should get
    attention, hold interest, raise desire and obtain
    action.

    4. Selection of Channels: The communicator must


    select the channels of communication which may be:

    (a) Personal communication channels: e.g.


    Telephone, Mails, Emails etc. where message is sent
    through personal contact and feedback.

    (b) Non-personal communication channels: e.g.


    Newspapers, Magazines, Radio, Television,
    Signboards, Posters etc. where the media carry
    messages without personal contact or feedback.
    Selection of the Message Source: The
    communicator must select the message
    source. Message delivered by highly credible
    source is more persuasive.

    6. Collection of Feedback: When the message


    is sent to the target audience, the
    communicator must know the response from
    target audience.

    7. Good Listening: The receiver should be a


    good listener to avoid misunderstanding. Also
    the sender should become good listener to
    get an effective feedback.
    THANKS!

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