Chapter 12

Promotion, Advertising, and Sales promotion Strategies

Promotion strategy, advertising strategy, and sales

promotion strategy. Components of promotional strategy Developing promotion strategy, determining the budget, and implementing it. Advertising strategy’s objectives & budgeting. Role of advertising agency. Implementing an advertising strategy. Sales promotion strategy & activities. Advantages & limitations of sales promotion strategy.

A successful product or service means

nothing unless the benefit of such a service can be communicated clearly to the target market. Therefore, we are going to discuss the promotion, advertising, and the sales promotion strategy which is a vital part of the positioning strategy.

•Promotion strategy: consists of planning, implementing, and controlling an organization's communications to its customers and other target audiences. •Advertising strategy: any form of non personal communication concerning a product that has an impact on buyers, and should deliver a message for its audience. •Sales promotion strategy: aims at improving a company's sales by modifying your target customers purchasing behavior and patterns. It helps to boost sales and also helps a business to draw new customers while at the same time retaining older ones.

Promotion strategy
Components of promotion strategy

Developing a promotion strategy

Illustrative communication objective

Deciding the role of promotion components
Specify each promotion component role

and contribution in the strategy. budget.

Decide each component's part of the

Communication objectives will help in

deciding the role of each component.

Determining the promotion budget
There are many factors that influence sales and promotion; so we need to consider these factors in determining the budget. Using the following methods: Objective & task: is a cost- effective method, where management sets the tasks necessary to achieve the objectives, and then the cost is added. Percent of sales: a method that calculates the budget as a percent of sales, but it fails to recognize the promotion efforts and results related.

Cont ,,,
Competitive parity: a method that studies

how much competitors spend on their strategies. Not necessarily comparable. All you can afford: top management limit all budget decision, they specify the amount should be spent. Budgeting in practice: it is a combination of rational, political, and expedient actions.

Characteristics of integrated marketing communications:
Should be comprehensive Unified Targeted Coordinated with the all the components Emphasize reaching the designated targets

The advertising strategy objectives are more closely linked to the purchase decision, like:

Advertising strategy Objectives, budgeting, and creative strategy

Expose communication to target

audience Create awareness Change attitudes Increase sales Generate profits

Cont ,,,
Budgeting determination Like the previously mentioned methods of budgeting, the objective – task method is the best one. Creative strategy Is guided by the market target and the desired positioning strategy for the product or brand. The creative theme seeks to effectively communicate the intended positioning to buyers and others influencing the purchase or brand. Provide a unifying concept that binds together the various parts of an advertising campaign.

Role of advertising agency
Develop creative designs and select media. Offer a range of services including marketing research,

sales promotion, & marketing planning.

The relationship with the advertising agency should be

cooperative; the client briefs an idea about the company's concept and core business, so that its strategy would be effective.

Some agencies are compensated by a commission

percent, depending on the results. However, some problems may rise where agencies work with competitors.

Implementing the advertisement strategy & measuring its effectiveness
Decide how to measure the effectiveness of

the strategy before implementing it. Assign responsibility for tracking performance(not necessarily through measuring the sales , but also through advertising research, testing the market, longitudinal studies tracking the advertising expenditures, cash register ) Assess the quality of advertising.

Sales promotion strategy
Consists of various incentives that are

intended to accelerate the selling process to build sales volume. The strategy process is similar to the design of advertising strategy. Its scope is difficult to identify; because the activities included are included in various departments & budgets.

Sales promotion activities & targets
Activities include trade shows, specialty advertising, contests, displays, coupons, recognition programs, and free samples.
Sales promotion target
Consumer buyers Business buyers Sales people

Value chain

Advantages & limitations of sales promotion strategy
Some people may take advantage of the

free coupons, free offers, and other incentives. Value – added sellers may build inventories on products manufacturers' trade discounts. Incentives & price promotional incentives need to be monitored.

Thank you for listening
Mera G. Al Horani

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