Download Session 3 -Promotion

Sales & Marketing
Session 3
Kay Geronikos
(Business & Finance Faculty)
Business Studies Teacher
PROMOTION
• Promotion is the element in an organisation’s
marketing mix that serves to inform, persuade
and remind the market about the organisation
and/or its products.
• Promotion is an attempt to influence; whether a
particular promotional activity is designed to
inform, persuade or remind, the ultimate
objective is to influence the recipient’s feelings,
beliefs or behaviour.
PROMOTION MIX
• Personal selling—the presentation of a product to a prospective
customer by a firm’s sales executive.
• Advertising—paid, non-personal mass communication, in which
the sponsor is clearly identified.
• Sales promotion—demand-stimulating activity designed to
supplement advertising and co-ordinate personal selling.
PROMOTION MIX
• Direct Marketing – direct connections with carefully targeted
individual consumers to both obtain an immediate response and
develop long term customer relationships
• Public relations—a planned communication effort by an
organisation to contribute to generally favourable attitudes and
opinions toward an organisation and its products.
• Sponsorhip – an organisation provides support or funding to an
event for the purposes of advertising their brand ot product
THE ROLES OF PROMOTION
• Informing
– The most useful product will be a failure if no one knows about it.
• Persuading
– Intensive competition exists in the market.
• Reminding
– Consumer’s need reminding of product’s availability.
To inform
To persuade
To remind
CHOOSING THE RIGHT PROMOTION STRATEGY
• Marketers need to consider:
– The target market – location, type & how many
– The nature of the product – unit value,
customisation & service required
– The stage of the product’s life cycle – introduction,
growth, maturity or decline.
– Money available for the promotion – budget vs
cost
INTEGRATED MARKETING COMMUNICATIONS
• Integrated Marketing Communications (IMC) is
about carefully integrating & coordinating the
company’s many communications channels to deliver
a clear, consistent, and compelling message about
the organisation and its products.
INTEGRATED MARKETING COMMUNICATIONS
• New marketing communications landscape – several
factors are changing today’s marketing
communications:
– Consumers are changing: better informed and
communications empowered
– Marketing strategies are changing: marketers are moving
away from mass marketing to focused marketing programs
aimed at narrowly defined target groups
– Changes in communications technology: smart phones,
satellite, cable TV, internet & social media
INTEGRATED MARKETING COMMUNICATIONS
• The new digital media has given birth to a new
marketing communications model
• Although television, magazines, newspapers and
other mass media remain very important, their
dominance is declining. Eg. Procter and Gamble still
spends majority of its budget on mass media,
however its digital outlay more than doubled last
year – which accounts for 5% of overall advertising
spend.
INTEGRATED MARKETING COMMUNICATIONS
INTEGRATED MARKETING COMMUNICATIONS
• Benefits of new marketing communications:
– Marketers can reach smaller groups of consumers
– More interactive and engaging communications
– The choices are now wider such as: cable TV, web videos,
internet catalogs, e-mail, blogs, mobile phone content,
online social networks.
Trend for less broadcasting and more narrowcasting
INTEGRATED MARKETING COMMUNICATIONS
Traditional or Digital?
Have your say……….
INTEGRATED MARKETING COMMUNICATIONS
• IMC needs to tie together all the company’s
messages and images.
– The company’s TV and print ads have the same
message, look & feel as its e-mail and personal selling
communications
– Public relations material project the same image as its
web site or social network presence
– Different media play unique roles in attracting,
informing and persuading consumers & these must be
carefully coordinated under the overall IMC.
PROMOTION MIX STRATEGIES
• The ‘PUSH’ marketing communications strategy
– using normal promotion efforts to sell the marketing mix
to channel members
• The ‘PULL’ marketing communications strategy
– getting customers to ask intermediaries for the product,
usually because of promotion directed to final consumers
or users
• Some combination of the two methods is usually
required
PROMOTION MIX STRATEGIES
• Push strategy
• Producer creates demand for product.
• Aims promotional activity to channel
member(s).
• Each channel member promotes to next
channel member.
• Demand ‘pushed’ down distribution channel.
• Consumer influenced by retailer’s advertising.
PROMOTION MIX STRATEGIES
Pull strategy
• Producer creates demand for product.
• Aims promotional activity directly at end user.
• Consumer demands product from retailer.
• Demand ‘pulled’ up the distribution channel.
PUSH VS PULL STRATEGY
PROMOTION MIX STRATEGIES
CASE STUDY
• Watch the DVD on Specialised Marketing
Services
• Provides a consolidation on IMC