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.

possible through the promotional activities  Imperfect market condition – product cannot be easily sold on the basis of product differentiation. when & at what price the product would be available.Need for Promotional Activities  Essential to make customers know from where.  Due to stiff competition among manufacturers/sellers  Large scale production –large scale selling. how. 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 consumer’s decision of purchasing .

. goods or services by an identified sponsor.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.

Promotional Mix or Tools of Promotion  Public Relations:  Building good relations with the company’s 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. or services by an identified sponsor. . goods.

The Five M’s of Advertising  Mission  Money  Message  Media  Measurement 18-8 .

Advertising Objectives  Informative advertising  Persuasive advertising  Reminder advertising  Reinforcement advertising 18-9 .

Factors to Consider in Setting an Advertising Budget  Stage in the product life cycle  Market share and consumer base  Competition  Advertising frequency  Product substitutability 18-10 .

Major Media Types  Newspapers  Television  Direct mail  Outdoor  Yellow pages  Newsletters  Radio  Magazines  Brochures  Telephone  Internet 18-11 .

Place Advertising  Billboards  Public spaces  Product placement  Point-of-purchase 18-12 .

designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade. 18-13 .Sales Promotion Collection of incentive tools. mostly short term.

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 18-16 .

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 18-17 .

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 18-19 .

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 18-20 .

Major Tools in Marketing PR  Publications  Events  Sponsorships  News  Speeches  Public Service Activities  Identity Media 18-21 .

Steps in Marketing PR Establish objectives Choose messages Choose vehicles Implement and control Measure effectiveness 18-22 .

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