Download Marketing Strategy – III: Promotion, Consumerism and International

Marketing Strategy – III:
Promotion, Consumerism and
International Marketing
Learning Objectives
Explain the promotional mix.
Formulate various marketing mix strategies
for different stages of a product life cycle.
Analyze the consumerism and its effect on
marketing.
Analyze environmental forces in international
markets.
Suggest various methods of developing
international markets.
Promotion
Informing and influencing consumers.
Promtional Mix
Personnal selling
Sales Promotion
Mass Selling
POP communication Event Marketing
Promotion mix
The combination of a company’s
promotional means.
Components of the promotional
mix
Advertising
Personal selling
Sales promotion
Publicity
Advertising
A paid and non-personal communication
Types of advertising:
Product advertising
(1)
(2)
(3)
Informative
Persuasive
Reminder
Institutional advertising

to build goodwill/image for an organization
Advertising media
The means or devices by which the
advertising message reaches its
audience.
Characteristics of major
advertising media
Television
Reaches a mass audience
Communicates a temporary message
Lacks selectivity
Expensive
Newspapers
Reach mass readers
Can communicate a complicated message
Easy to be ignored
Relatively inexpensive
Direct mail
Provides selectivity
Can communicate a complicated message
Easy to be ignored
Outdoor
advertising
Reaches many audiences
Limited to a simple message
Easy to be ignored
Key objectives of advertising
To increase sales and profits
To retain existing customers
To increase consumer awareness of the
product
To provide product information
To build image and goodwill
Factors affecting choice of
advertising media
(1) Cost
(2) Audience reached
(3) Advertising competitors
(4) Impact
(5) Marketing mix
(6) Law
(7) Presentation and recording of information
Criticism of advertising
consumers pay higher prices for goods than if
they were not advertised.
encourages people to buy too many
unnecessary things.
contents of many advertisements are
misleading or in poor taste.
Companies pay too much attention to
advertising, rather than improving the
product quality or services.
Personal selling
Promoting a product or service on a
person-to-person basis
Can be done over telephone, in retail
outlets, or by “knocking on doors”
For (1)highly priced; (2) technically
complex; (3) individual products
Sales promotion
Any activity, other than advertising and
personal selling, aimed at creating
immediate sales
Types of sales promotion
(1) coupons, refunds and loyalty reward
(2)
(3)
(4)
(5)
(6)
card
Competition
Product endorsements
Product placing
Free offers
Special credit terms
Impulse buying
The purchase decision is made on the
spot and without prior planning.
Publicity
Any form of non-paid news release or other
promotional activities aimed at improving the
image of the company
Activities includes:
Press conferences
Press releases
Donation to charities
Sponsorship
Company visit
Components of a marketing
plan
1. Marketing research to collect
2.
3.
4.
5.
6.
information.
Product strategies
Pricing strategies
Distribution strategies
Promotion strategies
Recommendations
Different stages in the Product
Life Cycle
Introduction stage
Growth stage
Maturity stage
Decline stage
Marketing mix at different stages of
the product life cycle
Introductio
n
Objective
Growth
Maturity
Decline
Increase
market size
Increase
market share
Maintain
market share
Reduce
marketing
effort
Product
Basic features
Modified
Add new
features
No new
features
Promotion
Heavy
promotion and
informative
advertising
Heavy
promotion and
persuasive
adverting
Vary forms of
promotion
Reduce
promotion
expenditures
High
High
Lowered
Low level
Selective
distribution
Intensive
Intensive
Intensive
Price
Place
Rights of consumers
Rights of
Consumers
Explanation
Right to be
informed
Right to choose
To have information to make
their purchasing decisions
Right to safety
To have safe goods which will
not affect their health
Right to be heard
To have the right to complain
and give their opinions
To have the freedom to
choose the goods they actually
want to buy
Environmental forces in
international markets
1. Economic factors
2. Political climate
3. Legal environment
4. Cultural forces
International business
involvement
1. Exporting
2. Setting up overseas manufacturing
plants
3. Licensing
4. Contract production
5. Joint ventures