Download Promotion

What is a 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- the promotional mix
Answer the followings:
1. What stages are there in the process in a
consummer’s decision to buy a new product?
2. What does AIDA stand for?
3. What is the marketing communications mix?
4. Which is the most important tool for
consumer goods?
5. Which is the most important tool for
inductrial goods?
The promotional 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 coordinate personal selling.
The promotional mix
• Publicity—a non-paid form of advertising
that uses mass communication to
stimulate demand.
• Public relations—a planned
communication effort by an organisation
to contribute to generally favourable
attitudes and opinions toward an
organisation and its products.
The communication process…1
The communication process…2
Promotion
• Marketers use promotional
activities to differentiate their
products from those of
competitors, and induce the
consumer’s purchase decision by
introducing new information.
What is advertising?
• Advertising consists of presenting a non-personal,
sponsor-identified message about a product
or organisation.
– Four key elements:
1. a verbal and/or visual message
2. a sponsor, who is identified in the
advertisement
3. delivery through one or more media
4. payment by the sponsor to the media carrying
the message.
Advertising
• Advertising is any paid form of nonpersonal communication of ideas or
products in the "prime media": i.e.
television, newspapers, magazines,
billboard posters, radio, cinema etc.
Advertising is intended to persuade and
to inform.
Types of advertising
• Consumer versus business advertising
– Informational bases and makes appeals to rational or
emotional buying motives.
• Product versus institutional advertising
– Focus on particular product or brand and information
and goodwill to company.
• Primary-demand and selective-demand advertising
– Stimulate demand for generic or specific brands.
• Cooperative advertising
– Promotes the products of two or more firms that share
its costs.
Which medium should we choose?
• To choose the right medium for a promotional
message, we need to consider the following
questions:
• What do we want our ads to do?
• Who are we trying to reach?
• What message do we want to communicate?
• Where and when do our targeted customers
make their buying decisions?
• How much will each medium cost?
Advertising
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newspaper
television
radio
magazines
direct mail
outdoor advertising
Yellow pages
Internet
mobile phones (SMS/MMS).
Sales Promotion
• Sales promotion refers to the
provision of incentives to
customers or to the distribution
channel to stimulate demand for
a product.
Managing sales promotion…1
• Sales promotion (promotion marketing)
includes: premiums, in-store displays,
trade shows, demonstrations and
contests.
• It is distinct from advertising and
personal selling, but all three are
interrelated.
Managing sales promotion …2
Choosing the right sales promotional
tools
• What is the objective?
• Who is the target market?
• product considerations—
demonstrational
• the cost of the tool
• current economic conditions.
Managing sales promotion …2
Measuring the success of our sales
promotion
• Responses to a premium or special offer.
• Sales promotions have definite start and
end dates.
• Most promotions are designed to impact
sales directly, rather than awareness or
attitude.
• Results may be inflated by sales
cannibalisation.
Personal Selling
• Personal selling refers to oral
communication with potential buyers of a
product with the intention of making a
sale. The personal selling may focus
initially on developing a relationship with
the potential buyer, but will always
ultimately end with an attempt to "close
the sale".
Managing personal selling
• Personal or face-to-face selling is usually
used when:
–The market is concentrated geographically.
–The product has a high unit value.
–The sale involves a trade-in.
–The product is in the introductory stage of
its life cycle.
–There is not enough money to sustain the
campaign.
Skills of the salesperson
• A good salesperson requires various attributes:
– time management skills
– organisational ability
– consulting skills
– communication skills
– problem-solving skills
– credibility (also a positive attitude).
Changing approaches to
personal selling
• Team selling
– A group of people from various departments or
affiliate firms form the sales team, usually used for
major projects.
• Systems selling
– Selling a total package of related goods and
services—a system—to solve a customer’s
problem.
• Relationship selling
– Developing relationships with current and new
clients over an extended period.
The integrated approach
• Personal selling and direct marketing:
– used to develop sales leads
– usually done via telemarketing
– assists in categorising customers by value
– best form for taking routine orders
– cost-effective manner of communication.
• Online selling—company website set up to take
orders online.
Personal selling process
Selling models
• AIDA
– Awareness
– Interest
– Desire
– Action
– A traditional approach, which focused on the
salesperson and their objectives more than on
customer needs.
• Consultative
– A method used to determine the customer’s needs
and assist in providing a solution.
Telemarketing and selling
This technique has the following characteristics:
• Cost of a telephone sales call is one-tenth of the cost of a
call in person.
• Can be used to make initial contact with sales leads.
• Involves less time face to face with customers.
• Effective in keeping in touch with customers.
• Collecting ‘routine’ orders allows the sales team
to devote more time to creative selling.
• Works best when combined with other
sales strategies.
Managing the sales team…1
• Recruitment and selection
– Decide who is the right person for the job
and what attributes and qualifications they
should have.
• Choose the right people
– Various methods used are interview,
references, psychological and aptitude tests
and physical examinations.
Managing the sales team…2
• Induction
– A method used to familiarise a new
employee with their new working
environment.
• Training
– Determine who should train new
salespeople.
– A training program should be developed to
meet company objectives and cover
philosophy, company and product overview.
Managing the sales team…3
• Coaching
–Spending time with a salesperson to
observe and assist with their work
practices, outcomes and to develop their
knowledge and skills.
• Motivation
–Managers should find out what
motivates
an individual.
–Motivators include financial and non-
Remuneration(酬劳)
• There are various forms of
compensation:
–Straight salary
• Offers the maximum degree of
security and stability of earnings.
–Straight commission
• Opposite merits and limitations to
those of the straight-salary plan.
Evaluating salespeople's performance…1
Quantitative and qualitative assessments
should both be used as the basis of
performance evaluation.
Quantitative factors: Output factors
include sales volume, gross margin
achieved, orders won and number of
new accounts opened.
– Input factors include calls per day (call
rate), direct selling expenses, number of
sales, display set ups, number of training
sessions, etc.
Evaluating salespeople's
performance …2
Qualitative factors:
• knowledge of the product, policies and completion
• management of the salesperson’s own time and
preparation calls
• customer relations
• personal appearance and health
• personality and attitudinal factors, such as
cooperation, resourcefulness and the ability to
analyse logically and make decisions.
Public Relations
• Public relations is the
communication of a product,
brand or business by placing
information about it in the media
without paying for the time or
media space directly.
Managing public relations
and publicity…1
PR can be achieved by:
• Supporting charitable projects.
• Supplying volunteers or other resources.
• Participating in community-service events.
• Providing sponsorship.
• Providing information to customers via
newsletters.
Managing public relations
and publicity …2
• Main advantages:
–There can be lower cost and credibility
given to the message by an apparently
independent service.
• Main disadvantages:
–The organisation can have a lack of
final control over the actual message,
and when and how it is communicated.
The communication process
Promotion
Marketers use promotional activities
to differentiate their products from
those of competitors, and induce
the consumer’s purchase decision
by introducing new information.
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
• Consumers need reminding of product’s
availability.
Choosing the right form
of promotion
• Marketers need to consider:
–the target market
–the nature of the product
–the stage of the product’s life cycle
–money available for the promotion.
Reaching the target market
• Marketers need to identify who they are trying to
influence.
• Determining customer’s readiness to buy:
– awareness
– knowledge
– liking
– preference
– conviction
– purchase.
• This is the hierarchy of effects (or buying stages).
Reaching the target market
(continued)
• Determine where the customers are located
–geographic location and access to the
message
• Determine the types of customers
–retail, wholesale, intermediaries, business
• Determine how many customers there are
–size of the potential customer and choice
of suitable communication, e.g. personal
selling.
Nature of the product
• unit value of the product
• amount of product customisation
• amount of pre-sale and post-sale
service required.
Product’s life cycle stage
• Introduction
– Customers are not aware of the product’s
features.
• Growth
– Customers are aware of the product’s benefits.
• Maturity
– Competition intensifies and sales level off.
• Decline
– Sales and profits are declining.
Planning a promotional
campaign
Determine campaign objectives.
Determine buying motives by purchaser.
Determine campaign theme.
Determine the campaign’s integrated
marketing communication process.
The promotional budget
How much should I spend?
• Percentage of sales method
–Company might determine past or
anticipated sales and apply a percentage
of sales as the promotional budget.
• All available funds
–Company might use all available funds on
the promotional campaign.
The promotional budget (continued)
How much should I spend?
• Matching the competition (also known as ‘share
of voice’)
– Promotional expenditure based on market share
of competitors, or actual expenditure, if known.
• Task or objective method
– Determine what tasks or objectives the
promotion must accomplish.
– Determine what it will cost to perform the task or
meet the objective.
Add appropriate words from the text.
• 1. Each of the above components of
__________ has strengths and
weaknesses.
• 2. If a market size is small and the
number of potential buyers is small,
then ____________ may be the
most cost-effective promotional tool.
• 3. Some _______ customers need to be
provided with detailed, complex
information to help them evaluate a
purchase (e.g. buyers of equipment for
nuclear power stations, or health service
managers investing in the latest medical
technology). In this situation, personal
selling is almost always required - often
using selling teams rather than just one
individual.
• 4. The
overall resource __________for
the promotional campaign will often
determine which tools the business can
afford to use.
• 5. By contrast, few consumers need
much information about _______ such
as baked beans or bread. Promotional
tools such as brand advertising and
sales ________ are much more
effective in this case.
Answers
• 1. Marketing communication mix
• 2. personal selling
• 3. potential,
• 4. budget
• 5. products, promotion