Product Promotion - University of Minnesota
Download
Report
Transcript Product Promotion - University of Minnesota
Product Promotion
ApEc 4451
Communication Process
Consider:
- Source: who/what will convey info.
- Message: factual; emotional (fear, sex appeal,
humor).
- Receiver.
Communicating effectively;
- Sender & receiver must have shared field of
experience.
- Feedback: from receiver to sender.
- Noise: want to reduce extraneous factors.
Major Methods
Personal Selling: direct presentation of product to
perspective customer.
Advertising: non-personal paid communication.
- TV, radio, print, billboards, internet.
- Less mass market; more targeted selling.
Sales promotion: temporary incentives to
encourage purchases.
Public relations: to create favorable attitude
toward company and its products.
(Publicity): news coverage; can be positive or
negative.
Trade-oriented sales promotion
Allowances
& discounts.
Cooperative advertising.
Slotting fees.
Consumer-oriented sales
promotion
Coupons- paper to electronic.
Premiums.
Deals- short-term price reductions.
Contests- need to do something to win
(skill; ability).
Sweepstakes- win purely by chance.
Samples- tasting.
Point-of-purchase display.
Sponsorship of events.
Advantages & Disadvantages
Personal
selling:
- Permits flexible presentation and
gains immediate response.
- Costs more than other forms per
contact.
Advertising:
-
Can reach large audience.
Cost in relation to audience.
Control over message.
Considerable waste.
Hard to close sale.
Hard to demonstrate product.
Difficult to measure results.
Sales
promotion:
- Gains attention & has immediate
effect.
- Easy for others to imitate or
match.
Public
Relations:
- High degree of believability when
done right.
- Not as easily controlled as other
forms.
- Difficult to measure or
demonstrate the results.
Hierarchy of Effects Model
Awareness
(to inform)
Knowledge
Liking
(to persuade)
Preference
Conviction
Adoption (Purchase).
Remind.
Effective Advertising (AIDA)
Gets
consumers attention.
Holds her/his interest.
Arouses their desire.
Leads to consumer action to buy.
Packaging
Functional benefits:
- Protection.
- Convenience.
- Storage (shelf life).
- Preservation of quality (freshness).
- Consumer protection (tamper
resistance).
Perceptual
benefits:
- Perception by the consumer:
- Can connote status, economy,
quality.
- Influenced by color; shape.
- Repackaging of existing products.
Communication
benefits:
- Promotion and advertising at point
of purchase decision.
- Ingredients.
- Nutrition information.
- Directions.
- Menus.
Packaging Trends
Reduced
& recyclable (to reduce
environmental impact & cost).
More package sizes – smaller for 1-2
people; also large economy size
(Sam’s Club; Costco).
Packaging for convenience.