Transcript Lecture 25- Marketing Mix

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
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LECTURE 25
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RECAP
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PLC
Stages of PLC
Introduction
Growth
Maturity
Decline
Variation in life span
Importance of PLC
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PROMOTION
• Promotion is the method used
to spread the word about the
product or service to customers,
stakeholders and the broader
public.
• Once the target market is
identified, you’ll have a good
idea of the best way to reach them,
but most businesses use a mix of advertising, personal selling,
referrals, sales promotion and public relations to promote
their products or services.
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PROMOTION INFORMS
• Promotion informs consumers about the rest of the
marketing mix. Without it, consumers do not know about the
product, the price, or the place.
• Promotion is more than just advertising
• Includes several activities.
• Crucial when selling in a mass market or
• Have a brand name.
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OBJECTIVES OF PROMOTION
• Promotion refers to raising customer awareness of a product
or brand, generating sales, and creating brand loyalty.
• Promotion is also found in the specification of promotional
plan.
• A promotional mix specifies how much attention to pay to
each of the five subcategories
• And how much money to budget for each.
• Fundamentally, there are three basic objectives of
promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
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OTHER BROAD OBJECTIVES
• A promotional plan can have a wide range of objectives,
including:
• sales increases,
• new product acceptance,
• creation of brand equity,
• positioning,
• competitive retaliations, or
• creation of a corporate image.
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PROMOTIONAL MIX
• Promotional Mix includes:
Advertisements: They can take different forms, e.g. on TV, in
newspapers.
Promotion: e.g. Money off coupons.
Personal selling: Sending out sales representatives to talk
directly to the consumers.
Public relations: Involves making the public aware of the
company, e.g. creating publicity in the media.
• Includes all of the tools available to the marketer for
'marketing communications'.
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ELEMENTS OF THE PROMOTIONS MIX
• As with the marketing mix, marketing communications has its own
'promotions mix’, where different aspects of the promotions mix
can be integrated to deliver a unique campaign
• The elements of the promotions mix are:
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Personal Selling.
Sales Promotion.
Public Relations.
Advertising
Direct Mail
Trade Fairs and Exhibitions
Sponsorship.
• Elements of the promotions mix are integrated to form a coherent
campaign in relation to the strategy developed using STP.
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PERSONAL SELLING
• Personal Selling is an effective way to manage personal
customer relationships.
• The sales person acts on behalf of the organisation.
• They tend to be well trained in the approaches and
techniques of personal selling.
• Personal selling is highly persuasive and is often used in
markets where personal choice figures strongly in the
purchase, e.g. cosmetics.
• The use of celebrity endorsements within marketing
communications can be seen as a way of introducing subtle
personal selling –
• You want to be like the celebrity so you ‘sell’ yourself the
benefits of the product they are endorsing!
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STAGES OF SELLING
• Depending on the circumstances, a sales transaction can include
one, some or all of the following stages.
• Prospecting and qualifying – identifying qualified prospects ie:
those that are likely to want or need your product or service and
can afford to pay for it.
• Pre-approach – undertaking research about prospects to assist in
the actual selling process.
• Approach – making actual contact with the prospect in person, by
phone or in writing.
• Presentation and demonstration – presenting and demonstrating
the features and benefits of your product or service in order to
convince the prospect that their want or need can be satisfied.
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STAGES OF SELLING (CONT’D)
• Handling objections – demonstrating the product or service
value to overcome real or perceived objections or
misunderstandings that are impeding the purchase decision.
• Closing – bringing the selling process to a successful
conclusion by either asking for the order or responding to a
positive decision from the prospect.
• Follow-up – proactive or reactive contact with the purchaser
to establish their satisfaction level and to address any
problems that may exist
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PLANNING PERSONAL SALES
• In planning the selling element of your marketing strategy you
will need to consider the following:
• The size and structure of your sales team
• Recruiting, training, motivating and evaluating individuals and
the team as a whole
• The remuneration structure
• The location/territory to be serviced
• Management and communication systems
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SELLING SERVICES
• Selling is a particularly important element if you are marketing
services
• The purchaser of a professional service is in fact buying the
capabilities of the seller.
• So he or she would be closely evaluating the behaviour and
characteristics of your sales person, your business, its
reputation, facilities and appearance
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SALES PROMOTION
• Sales promotion relates to short term incentives or activities
that encourage the purchase or sale of a product or service.
• Sales promotions initiatives are often referred to as “below
the line” activities
• Sales promotions tend to be thought of as being all
promotions apart from advertising, personal selling, and
public relations.
• Others include couponing, money-off promotions,
competitions, free accessories
– such as free blades with a new razor
– introductory offers such as buy digital TV and get free installation
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SALES PROMOTION ACTIVITIES
• Sales promotion activities can be targeted toward final buyers
(consumer promotions), business customers (business
promotions), retailers and wholesalers (trade promotions)
and members of the sales force (sales force promotions).
• Here are some typical sales promotion activities:
• Consumer promotions
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Point of purchase display material
In-store demonstrations, samplings and celebrity appearances
Competitions, coupons, sweepstakes and games
On-pack offers, multi-packs and bonuses
Loyalty reward programs
• Sales Force Promotions
– Commissions
– Sales competitions with prizes or awards
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SALES PROMOTION ACTIVITIES (CONT’D)
• Business promotions
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Seminars and workshops
Conference presentations
Trade show displays
Telemarketing and direct mail campaigns
Newsletters
Event sponsorship
Capability documents
• Trade promotions
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Reward incentives linked to purchases or sales
Reseller staff incentives
Competitions
Corporate entertainment
Bonus stock
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PUBLIC RELATIONS
• “The deliberate, planned and sustained effort to establish and
maintain mutual understanding between an organisation (or
individual) and its (or their) publics”
• Put more simply, public relations is about building good
relations with the stakeholders (public) of your business by
obtaining favourable publicity, building a good corporate
image and handling or heading off unfavourable rumours,
stories and events.
• By building good relationships with your stakeholders,
particularly customers, you can generate positive word of
mouth and referrals from satisfied customers.
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PUBLIC RELATIONS
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Public Relations is
'deliberate,
planned and
sustained effort
to establish and
maintain mutual understanding between an organisation and
its public
• PR can be split into 2 forms
1. Proactive
2. Reactive
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FORMS OF PUBLIC RELATIONS
• Proactive
– communications designed to build understanding
– Pro-active campaigns are long-term attempts to build on core values
of the organisation
• Reactive
– communications designed to counter misunderstanding.
– the result of the need to counter an event that has resulted in
negative views about the organisation,
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STAKEHOLDERS
• Stakeholders are the various groups in a society which can
influence or pressure your business’s decision making and have an
impact on its marketing performance.
• Operationally, stakeholders really refer to those groups that your
business is or should be, communicating with
• These groups include:
• Clients/customers
• Staff
• Shareholders
• Strategic partners
• Media
• Government
• Local community
• Financial institutions
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SUMMARY
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Promotion
Objectives of Promotion
Promotional Mix
Elements of Promotional mix
Personal selling
Stages of Personal selling
Planning personal sales
Selling of services
Sales promotion
Sales promotion activities
Public relations
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THANKYOU
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