Sales promotion

• Types of consumer and trade promotion.

• Short term incentives to encourage the
purchase or sale of a product or service
• Sample-a small amt of product offered to
customers for trail
• Coupons-certificate that gives buyers a
saving when they purchase a specified
product,
 Promotion tools
• Cash refund offer-offer to refund part of the
purchase price of a product to consumer who send
proof of purchase.
• Premium-good offered either free or at low cost as
an incentive to buy a product.
• Advertising specialty- useful article imprinted with
advertisers name given as a gift.
• Patronage reward –cash or other award for the
regular use of a certain company's product or
services.
• Contest sweepstakes- promotional events that give
consumers a chance to win cash trips or goods
 Trade promotion tools
• Discount-a straight reduction in price on
purchases during a stated period of time.
• Allowance-promotional money paid by
manufacturer to retailers in return for an
agreement to feature the manufacturers
products in some way.
 Direct marketing
• Direct communications with carefully targeted individual
consumers
• Forms of direct marketing-
• Personnel selling .
• Telephone marketing –using the phone to sell directly
to customers.
• Direct mail mktg- sending an offer ,
announcement,reminder to a person at an address
(fax,e-mail,voicemail)
• Direct response television mktg- direct mktg via t..v,
including telev ads or infomercials and home shopping
channels
 ..
• kiosk mktg-place info and ordering
machines (stores airports other locations)
• Catalog mktg -direct mktg thru print video
or electronic catalogs that are mailed to
select customers made available in stores
or presented online
 INTEGRATED MARKETING
COMMUNICATION
• The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver
a clear consistent and compelling
message about the orgn and its products.
• Carefully blended mix of promotion tools
• For consistent ,clear, and compelling
company and product messages
 ..
• To communicate effectively marketers
need to understand how communication
works
 Elements in Communication Process
.
Message
• . Sender
Sender Encoding
Encoding Message Decoding
Decoding Receiver
Receiver
Media
Media
Sender’s field Receiver’s field
of experience of experience
Noise
Noise

Feedback
Feedback Response
Response

Communication involves nine elements

 THE MARKETING COMMUNICATIONS MIX
..
• .. Definition:
Advertising
“Any paid from of nonpersonal presentation and
Personal selling promotion of ideas, goods, or services by an
identified sponsor.”
Sales promotion

Public relations The specific tools involved :

Direct-Mkting Printing, Broad cast, Outdoor, etc.,.

 THE MARKETING COMMUNICATIONS MIX
.
• . Advantages:
Advertising
•Reach Masses
•Low cost per exposure
Personal selling
•Beyond this it says seller’s size, Popularity, Success.
•Allows to Dramatize Products
Sales promotion
•To build long term Image for a product.
•Can trigger Quick Sales
Public relations
Short comings:
Direct-Mkting
•Cannot be directly Persuasive as company sales people
•One way communication
•can be very costly
 THE MARKETING COMMUNICATIONS MIX
.
• . Definition:
Advertising
“Personal presentation by the firm’s sales force for
Personal selling the purpose of making sales and building customer
relationships.”
Sales promotion

Public relations The specific tools involved :

Direct-Mkting Sales Presentations, Trade shows,

Incentive programs, etc.,.
 THE MARKETING COMMUNICATIONS MIX
.
• . Advantages:
Advertising •Most effective in building buyer’s preferences,
•convictions and actions.
Personal selling •Observe needs and make Quick adjustments.
•Allows all kinds of relationships
Sales promotion •Gains more attention

Public relations Disadvantages:

Direct-Mkting •Harder to change

•Costly
 THE MARKETING COMMUNICATIONS MIX
.
• . Advantages:
Advertising
•Attract consumer attention
Personal selling •Boost Sagging sales
•Invites Quick response
Sales promotion
Disadvantages:
Public relations
•Effects are often short lived
Direct-Mkting •Not effecvtive as Advertising or personal selling in
building Long term Brand preference.
 THE MARKETING COMMUNICATIONS MIX
.
• . Definition:
Advertising
“Building good relations with the company’s various
Personal selling publics by obtaning favourable publicity, building up
a good corporate image, and handling or heading off
Sales promotion unfavourable rumors, stories and events.”

Public relations

Direct-Mkting
 THE MARKETING COMMUNICATIONS MIX
.
• . Definition:
Advertising
“Direct connections with carefully targeted individual
Personal selling consumers to both obtain an immediate response
and cultivate lasting customer relationships.”
Sales promotion

Public relations The specific tools involved :

Direct-Mkting Telephone, mail, fax, e-mail, the internet, kiosks,

etc.,.
 THE MARKETING COMMUNICATIONS MIX
.
• . Highly Targeted Mktg
Advertising
Non Public
Personal selling
Immediate & customised
Sales promotion
Interactive
Public relations
Builds One-to-one Customer relationships
Direct-Mkting
THE MKTG. COMMUNICATION MEDIA
COMM. MIX .
• . People can communicate through both
Advertising
Traditional media:
Personal selling
News papers, Radio, Television, Telephone, etc.,.
Sales promotion
Newer Media Forms:
Public relations
Fax machines, pagers, cellular phones,
Direct-Mkting computers, etc.,.

These new technologies lead more companies to

move from mass communication to more targeted
communication and one-to-one dialogue.
 INTEGRATED
INTEGRATED MARKETING
MARKETING COMMUNICATIONS
COMMUNICATIONS
.
Several past decades

Companies preferred the art of mass marketing.

• .
selling highly standardized products to
mass customers

developed effective mass media advertising

techniques

Invested $M in mass media , reaching million of

customer with a single ad.
(Greatest share of their promotion Budget)

And Now

Marketing managers face some new marketing

Communication realities.
 INTEGRATED
INTEGRATED MARKETING
MARKETING COMMUNICATIONS
COMMUNICATIONS
.
THE CHANGING COMMUNICATIONS ENVIRONMENT
• .
Mass markets are fragmented

Marketers are shifting to focused Marketing

Programs to build closer relationships with the
Customer in more narrowly defined Micro markets.
THE MKTG. INTEGRATED
INTEGRATED MARKETING
MARKETING COMMUNICATIONS
COMMUNICATIONS
COMM. MIX .
NEED FOR INTEGRATED MARKETING COMMUNICATIONS

• .
Advertising “ The messages delivered via different promotional
approaches become part of a single message about the
Personal selling company.

Sales promotion If
Mass Adv. Say one thing
Public relations Price Promotion sends Different signal
Product Label create still another message
Direct-Mkting Company sales literature - altogether different
Company’s Website - out of Sync with every thing

Conflicting messages from them can result

in Confused Company Images and Brand Positions. ”
 Designing Message

Message Content

The Communicator has to figure out an appeal or

Message theme that will produce the desired response.
Content
There are three types of Appeals
Message
Structure • Rational Appeal

Message • Emotional Appeal

Format
• Morale Appeal

Select which appeal will produce the desired response.

 Determining the Communication Objective

Buyer Decision
Process

Awareness
Awareness
The Marketing communicator must
Knowledge
Knowledge Decide what response he sought.

Liking
Liking Know where the TA now stands and to what
stage it needs to move.
Preference
Preference

Conviction
Conviction

Purchase
Purchase
 Choosing Media

Major
Major Media
Media
Personal

Non-Personal
Major Media
Atmosphere
Events
Print
Print Broadcast
Broadcast Display
Display Online
Online
Media
Media Media
Media Media
Media Media
Media
 Designing Message

Ideally the Message should

AIDA Model
Get Attention
Message
Content Hold Interest

Message Arouse Desire

Structure
Obtain Action
Message
Format
Decide

What to say(Message Content)

How to say (Message Structure and Format)

sss
Specialty advtg-
virtual advtg
Transit Advtg.
•
Out Door Advtg
Out door
.
Advtg.
 Retailing
aaaa
 Personal
selling

Sales force management includes

designing sales force strategy-
recruiting, selecting, training,
supervising, compensating and
evaluating the firms sales people
 Selling process
• Prospecting and qualifying- preapproach-
approach- presentation and
demonstration – handling objections-
closing-follow up