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Promotion
Amayy Kothari
Promotional Mix
Advertising
Public relations
Sales Promotion
Direct Marketing
Personnel Selling
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Advertising
Any paid form of non – personal, mass
communication about an organisation,
good, service, or idea by an identified
sponsor
Advertising
Mass in nature
High absolute costs, but low per
exposure costs (CPM)
No direct feedback
Fees paid for media space and time
Three main goal: inform, persuade,
remind.
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Advertising Media
Traditional Electronic
Advertising Media Advertising Media
Television Internet
Radio
Electronic Mail
Newspaper
CD ROM
Magazines
Phone–on–Demand
Books
B k Kiosks
Direct mail
iTV
Billboards
Mobile Phone
Transit cards
Fax Machine
Public Relations
Involves communication activates
designed to influence the perceptions,
opinions, and beliefs about an
organisation among its relevant publics
including: customers, employees,
shareholders,, government,
g , and the
general publics.
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Public Relations
Mass in Nature
Credible (at least publicity)
Difficult to get stories placed
No payment to media, but not “free”
Sales Promotion
A shot – term inducement of value
offered to arouse interest in buying a
good or service. Can be offered to the
ultimate consumer or to intermediaries.
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Sale Promotion
Mass in Nature
Effective in changing short – run
behavior
Costs vary with promotion type
Flexible
Easily abused
Can reduce brand equity.
Sale Promotion
Free Sample
Contest
Premiums
Trade Show
Popular Tools
for Vocational Giveaways
Consumer Sales
Promotion
Coupons
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Direct Marketing
Involves Communication directly with
target customers to encourage an
“immediate” response by telephone,
mail, or electronic means.
Direct Marketing
Customized
Message prepared quickly
Costs depend on type of communication
Declining customer response
Database management costs and
problems.
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Personal Selling
Two – way flow communication
between buyer and seller, designed to
influence a person’s or group’ purchase
decision.
Personal Selling
Customized
High cost
Immediate feedback, quick message
changes
Control problems
Good for complex message.
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Goals and Tasks of Promotion
Informing Reminding
Target
Audience
Persuading
Goals and Task of Promotion
Informative Objects
Increase awareness
Explain how product works
Suggest new uses
Build Company Image
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Goals and Task of Promotion
Persuasion Objectives
Encourage brand switching
Change customers’ perception of product
attributes
Influence buying decision
Persuade customers to call.
Goals and Task of Promotion
Reminder Objective
Remind customer that product may be
needed
Remind customer where to buy product
Maintain customer awareness
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The AIDA Concepts
Model that outlines
the process for
achieving
promotional goals
in terms of stages
of consumer
involvement with
the message.
The AIDA Concepts
Action
Desire
Interest
Attention
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Product Life Cycle and the
Promotional Mix
Maturity
Decline
Growth
Introduction
Light Heavy use of Advertising, Ads AD/PR
Advertising, Advertising, PR, Brand decreases. decreases,
Pre – PR for loyalty
loyalty, Sales Limited Sales
introduction Awareness; Personal promotion, Promotion,
Publicity Sales Selling for Personal Personal
Promotion for distribution Selling, Selling for
trial Reminder & distribution.
Persuasive
Type of Buying Decision
Advertising
R ti
Routine
Sales Promotion
Type of
Buying Decision affects Advertising
Promotional Not Routine or
Mix Choice Complex
Public Relation
Complex Personal Selling
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Available Fund
Trade – offs with funds available
Number of people in target market
Quality of communication needed
Relative costs of promotional elements
Push and Pull Promotional
Strategies
A. Push Strategy B. Pull Strategy
Manufacture Manufacture
Flow of Flow of
Flow of Promotion; Flow of Promotion;
demand Mainly demand Mainly
stimulation personal stimulation advertising
selling directed to
directed to consumer
Wholesaler Intermediates Wholesaler
Retailer Retailer
Consumer Consumer
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Sale Promotion
Nature of Product
Stage in PLC
Traget Market Factors
Type of Buying Decision
Factors
Affecting Promotional Funds
Choice of
Promotional Mix
Push or Pull Strategy
The Consumer Purchase Decision and
The Promotional Mix
High
Personal Selling
Importannce of Promotional Tool
Sales Promotion
Direct Marketing
Public Relations
Advertising
Low
Pre - Purchase Purchase Post Purchase
Stage of Consumer’s Purchase Decision
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The Promotion Decision Process
Planningg p
Implementation Control
Developing the
Promotional program
o Identify the target Executing the Evaluating the
audience Promotional Program Promotional Program
o Specify the objectives
o Set the budget o Pretest the promotion o Posttest the promotion
o Select the right o Carry out the o Make needed
promotional elements promotion changes
o Design
D i the th promotion
ti
o Schedule the
promotional
Corrective actions Corrective actions
Characteristics of Advertising
Advertising
Communication Indirect and non personal
p
Communication Control Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One – Way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to all
audiences
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Characteristics of Public
Relation
Public Relation
Communication Usuallyy indirect,, non –
personal
Communication Control Moderate or Low
Feedback Amount Little
Feedback Speed Delayed
Message Flow Direction One – Way
Message Content Control No
Sponsor Identification No
Reaching Large Audience Usually Fast
Message Flexibility Usually no direct control
Characteristics of Sales
Promotion
Sales Promotion
Communication Usuallyy indirect and non
Personal
Communication Control Moderate to Low
Feedback Amount Little to moderate
Feedback Speed Varies
Message Flow Direction Mostly One – Way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Fast
Message Flexibility Same message to varies
target
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Characteristics of Personnel
Selling
Personnel Selling
Communication Direct and face to face
Communication Control High
Feedback Amount Much
Feedback Speed Immediate
Message Flow Direction Two – way
Message Content Control Yes
Sponsor Identification Yes
Reaching Large Audience Slow
Message Flexibility Tailored to prospect
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