Promotional Tools for Marketing

Marketing Communications Mix The specific mix of advertising, personal selling, sales promotion, and public relations a company uses to pursue its advertising and marketing objectives.

Promotion The function of informing,

persuading, and influencing a purchase decision.

Integrated marketing communications (IMC) Coordination of

all promotional activitiesmedia advertising, direct mail, personal selling, sales promotion, and public relationsto produce a unified customer-focused message.

THE PROMOTIONAL MIX

Promotional mix Combination of personal and nonpersonal selling techniques designed to achieve promotional objectives. Personal selling Interpersonal promotional process involving a sellers face-to-face presentation to a prospective buyer.
Nonpersonal selling Advertising, sales promotion, direct marketing, and public relations.

The main tasks of promotion are: - to inform,

- to persuade,
- and to remind (prospective) customers.

The Role of Promotion in Marketing - Promotion is intended to make a product more attractive to prospective customers - Through promotion a company strives to increase its products sales volume at any given price; that is, the firm seeks to shift its demand curve to the right - A firm also hopes that promotion will affect the demand elasticity for its product; the intent is to make the demand more inelastic when price increases and more elastic when price decreases

The promotional mix

Advertising
Personal Selling Public Relation Sales Promotion Direct Marketing

Mass Customised Mass Mass Customised

ADVERTISING

Advertising Paid nonpersonal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience.
Types of Advertising Product advertising, institutional advertising, cause advertising

Advertising Functions
Informing

Persuading
Reminding Adding Value Assisting Other Company Efforts
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Advertising Functions
Informing

Makes consumers aware, educates them about the features and benefits, and facilitates the creation of positive brand images Facilitates the introduction of new brands and increases demand for existing brands

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Advertising Functions
Persuading

Persuades customers to try advertised products and services

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Advertising Functions
Reminding

Keeps a companys brand fresh in the consumers memory Influences brand switching
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Advertising Functions
Adding Value

Three basic ways by which companies can add value innovating improving quality altering consumer perceptions 13
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Budgeting Considerations in Practice

What is the Ad objective? How much are competitors spending? How much money is available?

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Advertising Advantages Disadvantages

Advantages

The widest range The greatest influence Different time of broadcasting Short but long-lasting

Advertising Advantages Diaadvantages

Disadvantages

Very expensive Time consuming in production Easy to forget Short existence Lack of interest

SALES PROMOTION
Sales promotion Non personal

marketing activities other than advertising, personal selling, and public relations that stimulate consumer purchasing and dealer effectiveness.

Sales Promotion
Objective: Bolster/complement other promotional mix elements during a specific time period Targeted toward: Sales force Wholesalers and retailers Consumers

Sales Promotion Methods for Consumers

Product sampling, demonstrations Coupons, refunds

Rebates,
Contests, games & sweepstakes

Classifying Types of Sales Promotions

Promotional Pricing - Price reductions Free goods Tied offers ,Money off next purchase Non Promotional Pricing- Contests ,Free gifts, Guarantees and added services Sampling-- Most effective in the early stages of a new product launch

Trade-Oriented Promotions Sales promotion geared to marketing intermediaries rather than to consumers.
To stock new products. To continue carrying existing ones. To promote both new and existing products effectively to consumers.

Encourage retailers in several ways:

 Point-of-purchase (POP)

advertising Displays or demonstrations that promote products when and where consumers buy them, such as in retail stores. Promote goods and services at trade shows.

Sales Promotion, Pro and Con

Advantages: Motivation

method for special

efforts Short-term sales increase Defined target audience

Sales Promotion, Pro and Con Disadvantages: Only short-term Hidden costs Confusion Price cutting -Brand image Postponement effect

Personal Selling Defined

Personal selling refers to personal communication with a an audience through paid personnel of an organization or its agents in such a way that the audience perceives the communicators organization as being the source of the message.

PERSONAL SELLING
Usually used under four conditions: Customers are relatively few in number and geographically concentrated. The product is technically complex, involves trade-ins, and requires special handling.

 The product carries a relatively

high price. It moves through directdistribution channels. Example: Selling to the government or military.

Sales Tasks All involve assisting customers in some way. Order Processing Identifying customer needs, pointing out merchandise to meet them, and processing the order. Creative Selling Promoting a good or service whose benefits are not readily apparent

Analysis of alternatives.
Missionary Selling

Representative promotes goodwill for a company or provides technical or operational assistance to the customer. Telemarketing Personal selling conducted by telephone; regulated by the

Evolution of Personal Selling

selling door to door . . . Selling function became more structured

As we begin the 21st century, selling 1800s 1900s 2000s continues to develop, Industrial Post-Industrial War and Modern becoming more professional andEra more Revolution Revolution Depression relational Business organizations employed salespeople Selling function became more professional

Transaction-Focused

Short term thinking Making the sale has priority over most other considerations Interaction between buyer and seller is competitive Salesperson is self-interest oriented

Relationship-Focused

Long term thinking Developing the relationship takes priority over getting the sale Interaction between buyer and seller is collaborative. Salesperson is customeroriented

Classification of Personal Selling Approaches

Stimulus Response Selling Mental States Selling Need Satisfaction Selling Problem Solving Selling

Stimulus Response Selling

Continue Process until Purchase Decision

Salesper son Provides Stimuli

Buyer Responses Sought

Attention

Mental States Selling

Interest
Conviction

Desire
Action

Need Satisfaction Selling

Present Offering to Satisfy Buyer Needs
Continue Selling until Purchase Decision

Uncover and Confirm Buyer Needs

Problem Solving Selling

Define Problem

Generate Evaluate Altern Alternative ative Solutions Solutions

Continue Selling until Purchase Decision

The Sales Process: An Overview Selling

Foundatio ns Initiating Customer Relations hips Developi ng Custom er Relation ships

Selling Strategy

Enhanci ng Custome r Relation ships

The Sales Process: Selling Foundations

In order to be successful in todays global business environment, salespeople must have a solid relationship building foundation. They must:

Be Trustworthy Behave Ethically Understand Buyer Behaviour Possess Excellent Communication Skills

Direct marketing

Direct marketing definition

An interactive system of marketing which uses one or more advertising media to effect a measurable response at any location, forming a basis for creating and further developing an ongoing relationship between an organisation and its customers.

Direct marketing techniques

Direct mail - material distributed via the postal service to a recipients home or business to promote a product/service. Direct response advertising standard broadcast and print media designed to generate a direct response, e.g an order or personal visit.

Telemarketing - a direct personal, verbal approach via some kind of written or visual method.

Mail order - the purchase of products featured in advertising or selected from a catalogue. Teleshopping - home based shopping.

Direct mail - the advantages

Targeting - for example using the post code, targeted campaigns can be developed using geographical / demographical criteria.
Personalisation - large numbers of personalised mailings can be undertaken regularly. Response rates can be high.

Flexibility of creative scope.

Can hold attention of reader/recipient.

Limitations of telemarketing

Operational issues - requires systems that can cope with volumes of inbound calls.

Regulatory issues regarding for example unsolicited mail and cold calling.

Objectives of direct marketing

Direct ordering.
Providing information.

Visit generation.
Trial generation.

Public Relations Public relations Public organizations communications and relationships with its various audience.

Helps a firm establish awareness of goods and services and builds a positive image of them.

Publicity

Publicity Stimulation of demand for a good, service, place, idea, person, or organization by disseminating news or obtaining favorable unpaid media presentations. Good publicity can promote a firms positive image Negative publicity can cause problems.

 Introduction Stage Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product. Publicity, Advertising, sales promotion Target- To Inform Growth Stage Promotion is aimed at a broader audience. Personal selling advertising Target To persuade

Product Life Cycle and Promotion

Product Life Cycle and Promotion

Maturity Stage Promotion emphasizes product differentiation. Reminder advertising, reminder direct mail, sales promotion, limited personal selling Target To remind Decline Stage Not much promotion is done

Factors that influence the use of promotional tools

The Promotional mix

Personal Selling

Sales Promotion

Direct M arketing

Advertising

Target Audience Prroduct Life Cycle Product Charectoristics Channel Decesion

Public \Relations

The promotion decision process

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Setting the Promotional Budget and Mix

Promotion Mix Strategies Push strategy: trade promotions and personal selling efforts push the product through the distribution channels. Pull strategy: producers use advertising and consumer sales promotions to generate strong consumer demand for products.
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Online Marketing

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