PROMOTION

PROMOTION - Definition
The coordination of all seller initiated efforts to set

up channels of information and persuasion to facilitate the sale of goods or services or the acceptance of an idea It refers to the activities to push forward or to advance an idea, in such a way as to gain approval & acceptance. Promotion is telling & selling. Promotion activity is basically an exercise in communication for bringing notice to the consumers.

Need for Promotional Activities

Essential to make customers know from where, how,

when & at what price the product would be available. Due to stiff competition among manufacturers/sellers Large scale production large scale selling, possible through the promotional activities Imperfect market condition product cannot be easily sold on the basis of product differentiation. Promotional activities draws attention of consumers

Objectives of Promotional Activities

Demand objectives Responsible for demand creation Communication objectives Creating awareness Specific objectives or Performance objectives Specific information about product & influences the consumers decision of purchasing

Promotional Mix or Tools of Promotion

Sales promotion: Short term incentives to encourage the purchase & sale of a product Personal selling: Oral presentation in conversation wit one or more prospective purchasers for the purpose of making sales. Advertising: Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

Promotional Mix or Tools of Promotion

Public Relations: Building good relations with the companys various clients by obtaining favorable response. Publicity: It is a non-personal stimulation of demand which is not paid for.

Advertising

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

The Five Ms of Advertising

Mission Money Message

Media
Measurement

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Advertising Objectives
Informative advertising Persuasive advertising Reminder advertising

Reinforcement advertising

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Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle Market share and consumer base Competition Advertising frequency Product substitutability

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Major Media Types

Newspapers
Television Direct mail

Outdoor
Yellow pages Newsletters

Radio
Magazines

Brochures
Telephone Internet

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Place Advertising
Billboards Public spaces

Product placement
Point-of-purchase

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Sales Promotion

Collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

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Sales Promotion Tactics

Consumer-directed Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions Trade-directed Price offs Allowances Free goods Sales contests Trade shows

Using Sales Promotions

Establish objectives
Select tools Develop program

Pretest
Implement and control Evaluate results

Events and Experiences

Sports Tours Festivals, fairs Arts Causes

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Why Sponsor Events?

To identify with a particular target market or life

style To increase brand awareness To create or reinforce consumer perceptions of key brand image associations To enhance corporate image To create experiences and evoke feelings To express commitment to community To entertain key clients or reward employees To permit merchandising or promotional opportunities

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Using Sponsored Events

Establish objectives
Choose event opportunities Design program

Implement and control

Measure effectiveness

Public Relations Functions

Press relations Product publicity Corporate communications

Lobbying
Counseling

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Marketing Public Relations Functions

Assist in product launches
Assist in repositioning mature products Build interest in a product category Influence specific target groups Defend products

Build corporate image

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Major Tools in Marketing PR

Publications Events Sponsorships

News
Speeches Public Service Activities Identity Media

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Steps in Marketing PR
Establish objectives
Choose messages Choose vehicles

Implement and control

Measure effectiveness

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