1 PROMOTIONS SEMINAR 10

CONTENTS 1.Definition of promotion 2.Promotional strategies 3.Promotional tools (Advertising) 4.Promotional tools (Personal Selling) 5.Promotional tools (Sales Promotion) 6.Promotional tools (Public Relations 7.Promotional tools (Direct Marketing) 8.Promotional mixes (IMC)

3 DEFINITION OF PROMOTION Definition of Promotion Promotion refers to the marketing process that informs, persuades, and reminds buyer on a product.

PROMOTIONAL STRATEGIES 1.The Push Strategies 2.The Pull Strategies

PUSH STRATEGIES marketing efforts to push a product from a producer through a distribution channel to the consumers. The manufacturer concentrates their marketing efforts on promoting their product to the trade to convince them to stock the product. In this strategy, the manufacturer use aggressive personal selling and trade advertising to convince wholesalers and retailer to carry and sell the company’s products to consumers.

PULL STRATEGIES A pull strategy is based around the manufacturer promoting their product and directing it to the target market to create demand. In this strategy, the manufacturer try to attract the attention of buyers through the use of advertising or sales promotion. Manufacturer may gives sample of their products and when customers are satisfied with the products, the retailers will make it available by ordering the demanded product through wholesalers.

PROMOTIONAL TOOLS 1.Promotional Tool (Advertising) 2.Promotional Tool (Personal Selling) 3.Promotional Tool (Sales Promotion) 4.Promotional Tool (Public Relations) 5.Promotional Tool (Direct Marketing)

8 PROMOTIONAL TOOLS Direct Marketing Internet Marketing

9 PROMOTIONAL TOOL (ADVERTISING)  Any paid form of non- personal presentation and promotion of ideas, goods, or services by an identified sponsor.  Advertisements are found in the pages of newspapers, and magazines, as well as on the television and radio, among other media.

ADVERTISING STRATEGIES 5 main steps in advertising: 1.Determine the advertising objective. 2.Determine the budget for advertising. 3.Form the advertising message. 4.Select the advertising media. 5.Evaluate the advertising campaign.

ADVERTISING OBJECTIVES 1.TO INFORM When marketers wish to introduce a product to a target market, they will initiate an advertising campaign (informative advertising) to inform and make the public aware of the new product 2. TO PERSUADE If the target market is already aware of the product, the next objective is to persuade it to buy the product. The company will launch a persuasive advertisement (features, brand, comparison) for the purpose of persuading consumers to buy. 3. TO REMIND For products which have existed for a long while in the market, a company may want to communicate message in the form of a reminder advertisement in order to refresh consumers’ mind about the existing product.

DECIDING ADVERTISING MEDIA 1.Consumer preferences  Identify the most popular media used by consumers daily  Frequent media 2.Characteristics of products  Technical products is suitable for newspapers, television and magazines  Consumers products are suitable for television, magazines, newspapers, radio and many more 3.Type of message  Informative message are suitable for television, newspapers, magazines and internet 4.Cost  Printed media are cheaper  Electronic media are expensive

15  Building good relations with the company’s various publics by obtaining favourable publicity, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events.  These are not-directly-paid-for activities designed to promote and/or protect a company’s image or reputation.  The central idea here is to proactively work toward getting positive coverage in the media. PROMOTIONAL TOOL (PUBLIC RELATION)

PUBLIC RELATIONS Functions: 1.Press Relations (Creating and placing valuable information in news media to attract attention towards a person, product or service). 2.Product Publicity (The company can hold an event to launch a new product to announce it to the public). 3.Community Relations (The company can develop and maintain good relationship with the community it serves). 4.Investor Relations (The company can maintain strong relationships with its shareholders). 5.Lobbying (The company can build relationships with government agencies as well).

18  Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.  This involves direct or face-to-face interaction with one or more prospective customers, with the intention of closing sales.  This 2- ways interaction gives the organisation the opportunity to check out the needs of the buyer more closely as well as having the flexibility to adjust/modify the presentation and (product) offering to meet these needs. PROMOTIONAL TOOL (PERSONAL SELLING)

PERSONAL SELLING STEPS: 1.Courting and Qualifying (list and screening) 2.Pre-selling Approach (study & appointment) 3.Approach Selling (ask consumer needs) 4.Presentation and Demonstration 5.Tackling Rejections (reasons and needs behind) 6.Deal Sealed (Closing sales by placing order) 7.Follow-up Action (repeat purchase)

20  Short-term incentives to encourage the purchase or sale of a product or service.  samples,  Coupons  price-off deals  Short-term incentives to persuade the trade to stock up on the product as well as to push the product  Competitions  Delayed Invoicing  Loyalty bonuses. PROMOTIONAL TOOL (SALES PROMOTION)

SALES PROMOTION Objectives: 1.To increase short-term sales 2.To capture a bigger market share 3.To persuade consumers to try its products. 4.To reward a company’s loyal customers 5.To build long-lasting relationships.

23  direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.  It is more towards non-public and involves the direct mail, telemarketing, e-marketing, on-line marketing  It is purposely to address the specific person and normally more customized  It is very interactive and can be in the form of dialogue  It is more suitable for one-to-one customer relationships. DIRECT MARKETING PROMOTIONAL TOOL (DIRECT MARKETING)

DIRECT MARKETING Benefit to Customer 1.Allows customers to shop at home with ease and comfort (avoid shopping in overcrowded supermarket or parking problems). 2.Enables customers to find information from various sources (help them in making product comparisons before purchase. Benefit to Seller 1.Enables sellers to build longer relationships with customers (new technology like the Internet helps sellers to interact with customers and a continuous relationship can be established). 2.Can buy a mailing list e.g. lifestyle list to reach out to targeted small groups and use more personalised messages according to their taste and preference

DIRECT MARKETING TOOLS 1.Direct selling (insurance & MLM) 2.Direct mailing (readers digest) 3.Internet marketing (Online marketing) 4.Telemarketing (telephone) 5.Direct responsive using television (toll free) 6.Catalogue marketing

26  This refers to computer-and-electronic- based activities that provide and respond to information through the medium of the computer and other forms of new media.  The Internet is increasingly becoming popular.  For the consumer, Internet marketing offers convenience, a source of objective and abundant information about product choices and a relatively hassle-free shopping environment. INTERNET MARKETING PROMOTIONAL TOOL (INTERNET MARKETING)

27 EFFECTIVENESS OF PROMOTIONAL MIXES Promotional MixesEffectiveness Level Advertising becomes less effective over time Sales Promotion Effective by gives added incentive for buyer action Publicity more effective at awareness stage Personal Selling more effective when a more personal relationship is needed Direct Marketing more effective when a more personal relationship is needed Internet Marketing Very effective, 24/7 availability

PROMOTIONAL MIXES It is the combination of any two or more promotional tools to facilitate the promotion of a product. It is also called as Integrated Marketing Communication or IMC.