Download promotion strategy

PROMOTIONSTRATEGY
A86012ManagementandPrinciplesof
Accoun:ng
1
12-2
Promotion Strategy
Promotion encourages consumers to accept products
and influences opinions and attitudes
!  Advertising, personal selling, publicity and sales
promotion are collectively known as the promotion mix
Integrated Marketing Communications
•  Coordinating the promotion mix elements and
synchronizing promotion as a unified effort
!  This approach results in delivery of the
desired message to consumers
Source:MBusiness5thEdi:on
12-3
Promotion Strategy
Advertising
•  A paid form of non-personal communication transmitted
through a mass medium, such as television
commercials or magazine advertisements
Advertising Campaign
•  Designing a series of advertisements and placing them
in various media to reach a particular target market
Several factors affect the campaign, including: product features,
target audience, marketing objectives and the choice of media used
Source:MBusiness5thEdi:on
12-4
Promotion Strategy
Personal Selling
•  Direct, two-way communication with buyers and
potential buyers
o  Most flexible promotional method but expensive
o  Three categories of salesperson:
"  Order takers – retail sales clerks
"  Creative salespersons – automobiles sales
"  Support salespersons – customer educators
Source:MBusiness5thEdi:on
12-5
Promotion Strategy
Personal selling is a six-step process
Prospecting:
identifying potential
buyers
Approaching:
referral or cold call
Presenting:
demonstrating the
product
Handling
Objections:
countering reasons
for purchase
Closing: asking for
a purchase
Following Up:
checking back
after purchase
Source:MBusiness5thEdi:on
12-6
Promotion Strategy
Publicity
Non-personal
communication
transmitted through
mass media but not
paid for directly by
the firm
Source:MBusiness5thEdi:on
Most companies
Message is
have a public
presented as a
relations
news story and the
department trying to
company is not
gain favorable
seen as the
publicity and
originator of the
minimize negative
message
publicity
12-7
Promotion Strategy
Advertising and publicity are both carried by mass
media but they differ is several ways
Purpose
•  Advertising in
informative,
persuasive, or
both; publicity
is informative
Source:MBusiness5thEdi:on
Impact
•  Advertising
calls for
action;
publicity
rarely does
Cost
•  Companies
pay for
advertising;
publicity is
free
Duration
•  Advertising is
repeated
often;
publicity
appears once
12-8
Promotion Strategy
Buzz marketing is a variation of traditional advertising
where marketers attempt to create a trend
Companies seek
out trend setters in
a community and
get them to “talk up”
their product
The idea is that
accepted members
of a group have
more credibility than
any form of paid
communication
Works best as part
of an integrated
marketing plan
A related concept is viral marketing, which gets Internet
users to pass on ads and promotions to others
Source:MBusiness5thEdi:on
12-9
Promotion Strategy
Sales Promotion
•  Direct inducements offering added value or some
other incentive for buyers to enter into an exchange
!  Easier to measure and less expensive than
advertising
!  Includes:
store displays, premiums, samples and
demonstrations, coupons, contests and
sweepstakes, refunds, and trade shows
!  Used to enhance and supplement other forms of
promotion
Source:MBusiness5thEdi:on
12-10
Promotion Strategy
When developing a promotion mix, companies must
decide whether to push or pull the product
Push
Strategy
Pull
Strategy
An attempt to motivate
intermediaries to push the product
down to their customers
Uses promotion to create consumer
demand so consumers exert
pressure on marketing channel
members to make it available
A company can use either strategy or a combination
Source:MBusiness5thEdi:on
12-11
Promotion Strategy
Personalsellingindicatesapushstrategy
Theexclusiveuseofadver:singisapullstrategy
Source:MBusiness5thEdi:on
12-12
Promotion Strategy
Typical objectives of promotion
Stimulate Demand
Stabilize Sales
•  Often through ads
and sales promotion,
particularly important
when using a pull
strategy
•  Decreasing sales call
for sales promotions
and ads
Inform, remind
and reinforce
customers
Promotional positioning uses promotion to create
and maintain an image of a product in buyers’ minds
Source:MBusiness5thEdi:on
12-13
The Importance of Marketing Strategy
!  Marketing creates value through the marketing mix
!  The marketing mix must be carefully integrated into
an effective marketing strategy
!  Companies with an effective marketing mix gain
competitive advantage
!  Advantages often come when a company excels at
one or more elements of the marketing mix
!  Companies must monitor demand and adapt the
marketing mix when needed
Source:MBusiness5thEdi:on
DIGITALMARKETINGANDSOCIAL
NETWORKING
A86012ManagementandPrinciplesof
Accoun:ng
14
13-15
Growth and Benefits of Digital
Communication
E-Business
•  Carrying out the goals of business through utilization of
the Internet
Digital Media
•  Electronic media that function using digital codes via
computers, cellular phones, smart phones, and other
digital devices that have been released in recent years
Digital Marketing
•  Uses all digital media, including the Internet and
mobile and interactive channels, to develop
communication and exchanges with customers
Source:MBusiness5thEdi:on
13-16
Growth and Benefits of Digital
Communication
•  Forge relationships with
consumers and business
customers
Digital media
has created
•  Target markets more
tremendous
precisely
opportunities
for businesses •  Reach previously
inaccessible markets at
to:
home and around the world
Source:MBusiness5thEdi:on
13-17
Using Digital Media in Business
•  Fast and inexpensive
communication
Digital media
have created •  More interactive
new ways of •  Easier comparison
doing business
shopping
and shopping •  Easier to conduct marketing
research and advertise
Source:MBusiness5thEdi:on