Newport institute communication & economics Karachi

PROMOTION

Ch # 15 Advertising, Sales Promotion & PR

Promotion – marketing communication
• An element of marketing mix • Communication techniques aimed at informing, influencing, and persuading to buy or use a particular product.

Ch # 15 Advertising, Sales Promotion & PR

Promotional mix
• Specific mix of advertising, personal selling, sales promotion and public relations that a company uses to pursue its advertising & marketing objectives • Main elements of the mix:
Advertising Sales promotion Personal selling Personal relation/publicity

- Direct mail - Sponsorship

• These elements should be integrated in a logical, consistent and cohesive manner.

Ch # 15 Advertising, Sales Promotion & PR

Composition of mix depends upon…
• Stage in the life cycle: Advertising is very important at the time of launch • Nature of the product: Complex/Technical • Competitor activities • Marketing budget • Marketing strategy • Target market

Ch # 15 Advertising, Sales Promotion & PR

The Promotional Mix
• • • • • • • Advertising Press advertising Radio advertising TV advertising Outdoor advertising Transit advertising Press releases • • • • • • • Public relations Sponsorship Personal selling Sales promotion Telemarketing Internet marketing Exhibitions & trade fairs

Ch # 15 Advertising, Sales Promotion & PR

Promotional campaign
• Promotional objectives: What do the firm seeks to achieve? • Promotional strategies: Ways to achieve the objectives • Target audience • Message • Budget • Feedback, Monitoring and control

Ch # 15 Advertising, Sales Promotion & PR

Promotional objectives
• • • • • • • • To increase sales To attract new customers To retain existing ones To encourage customer loyalty To create awareness To inform To remind To ensure • • • • To modify attitudes To create an image To position a product To improve position in the market • To pull the product through channels • To push the product through channels

Ch # 15 Advertising, Sales Promotion & PR

Above the line promotion (ATL)
• Advertising through independent media • Advertising is defined as any paid form of non-personal presentation promoting ideas, concepts, goods or services by an identified sponsor • One way communication through various media

Ch # 15 Advertising, Sales Promotion & PR

Advertising
• STRENGTHS
Wide coverage Awareness/Hype Control of msg Can be used to build brand loyalty

• WEAKNESSES
- Expensive - Impersonal - One way communication - Lacks flexibility

Ch # 15 Advertising, Sales Promotion & PR

Below the line advertising
• All forms of promotion other than advertising – direct mails, exhibitions, sales promotions, branding, merchandising, personal selling, packaging, public relations • Used for short term tactical reasons • Promotional activity not involving media but the use of methods over which the firm has some control

Ch # 15 Advertising, Sales Promotion & PR

Examples of BTL
• • • • • • • • Personal selling Merchandising Direct mail Sales promotion Packaging Sponsorship Public relations Exhibitions/trade fairs

Ch # 15 Advertising, Sales Promotion & PR

Personal Selling
• Promotion on a person to person basis • Two way communication • Carried out through telephone, at meetings, at retail outlets & door to door selling • High priced, low volume and highly technical products rely heavily on personal selling

Ch # 15 Advertising, Sales Promotion & PR

Personal Selling
• • • • • STRENGTHS Great attention Msg is customized Persuasive impact Potential for development of relationship • Adaptable • Opportunity to close sale call • WEAKNESSES High cost Labor intensive Expensive Can only reach a limited no. of customers

Ch # 15 Advertising, Sales Promotion & PR

Sales promotion
• Tactical point of sale material or inducements designed to stimulate purchases • Short term incentives to increase sales • Some promotions are aimed at consumers, some at intermediaries and others at the salesforce • E.g.: coupons, leaflets, demonstrations, samples, free gifts, point of sale (POS) displays etc.

Ch # 15 Advertising, Sales Promotion & PR

Sales promotion
• Incentives provide a quick boost to sales • Effects maybe short term only • Excess use of some incentives may adversely effect brand image

Ch # 15 Advertising, Sales Promotion & PR

Consumer promotions
• Promotions aimed at the consumers. E.g.
Price reduction Coupons Vouchers Competition Free gifts - Events - Displays

Ch # 15 Advertising, Sales Promotion & PR

Trade promotions
• Promotions aimed at intermediaries. • Purpose is to encourage distributors to stock the product
- Loyalty bonuses - Range bonuses - Return facility

-

Credit Delayed invoicing New product offers Competitions Free services Training

Ch # 15 Advertising, Sales Promotion & PR

Sales force promotions
• Promotions aimed at the sales force • Designed to motivate the sales force. E.g.
- Bonus - Commission - Coupon Vouchers Free Services Money equivalents Free gifts Competition

Ch # 15 Advertising, Sales Promotion & PR

Public relations
• Managing relations with an organization’s various stakeholders • The planned and sustained effort to establish and maintain goodwill & mutual understanding between an organization’s various stakeholders

Ch # 15 Advertising, Sales Promotion & PR

Publicity
• Release of a commercially significant news about a particular product or service • Purpose is to obtain a favorable presentation of such news via a medium not paid for by a sponsor • Involves getting media coverage of an event or product launch / articles in newspapers

Ch # 15 Advertising, Sales Promotion & PR

Scope of PR
• Promotion through media publicity • Enhances public awareness of the company • Projects company’s mission & philosophy • Projection of the organization as a source of opportunities • Obtaining favorable comments on the media

Ch # 15 Advertising, Sales Promotion & PR

Sponsorship
• Payment for an event/person/organization is given in return of some benefit • A specialized form of advertising that can create significant exposure for companies • Common in the world of art and sports

Ch # 15 Advertising, Sales Promotion & PR

Merchandising
• Attempts to influence customers at the point of sale
Display pop-up stands Shelf talkers, wobblers, danglers etc. Store layout Storage space Ambience

Ch # 15 Advertising, Sales Promotion & PR

Packaging
• The outer wrapper or the container is often an indicator of the quality of the product itself • Packaging serves the following purposes:
Protection of the product Preservation of the product Provides information Promotes the product Convenience

Ch # 15 Advertising, Sales Promotion & PR

Direct Marketing
• Contacting the customer through offers directly • Emails, letters, websites etc. • Communication can be personalized • Short term effectiveness can be easily measured • Response rates are often low • Poorly targeted direct marketing causes customer annoyance

Ch # 15 Advertising, Sales Promotion & PR

Evaluation of promotional effort
• Two ways of evaluation:
- Was it effective? Did it achieve its objectives? - Was it efficient? Were the objectives achieved at lowest possible cost?

Ch # 15 Advertising, Sales Promotion & PR

Promotional effectiveness & efficiency
Effective Ineffective

Efficient

Objectives achieved at lowest costs Effective & cost efficient Objectives achieved but at high cost

Low promotional budget Objectives not achieved
Expensive promotion which fails to achieve objective

Inefficient

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