Transcript PowerPoint - Promotion

Promotion
Objectives:
• Define promotion and its role in marketing
• Promotion strategy options
“Promotion”
• The act of a business communicating the benefits of their
product / service with their customers
• Activities to prompt or entice customers to act in a certain way
• A “promotional mix” is a blend of all of the marketing
communications the business generates to increase sales
The four main elements of a “promotional mix”
are:
1. Advertising
2. Personal Sales
3. Sales Promotion
4. Publicity
Let’s look at each ……
1. ADVERTISING
• Any paid form of communication of ideas or products in the
"prime media"
•
Advertising is intended to persuade and to inform
•
The two basic aspects of advertising are:
• the message (what you want your communication to say)
• the medium (how you get your message across)
» Examples: Newspaper, radio, TV, magazine,
billboards, direct mail, internet, social media
» (ie – Facebook, YouTube, Google Plus, etc.)
2. PERSONAL SELLING
•
Involves personal interaction with potential buyers of a product with the
intention of making a sale
•
The personal selling may focus initially on developing a relationship
with the potential buyer, but will always ultimately end with an attempt
to “close the sale”
What are the main roles involved in personal selling ?
Prospecting - trying to find new customers
Communicating - with existing and potential customers about the
product range
Selling - contact with the customer, answering questions and trying
to close the sale
Servicing - providing support and service to the customer in the
period up to delivery and post sale
3. SALES PROMOTION
•
Providing incentives to customers to stimulate demand for a product
•
More than any other element of the promotional mix, sales promotion is
about “action”.
•
Its ultimate goal is about stimulating customers to buy a product
Methods of Sales Promotion
•
there are many consumer sales promotional techniques available
•
Which techniques are used depends on the particular business and
product / service
Examples:
•
Discounting
– a discount to the normal selling price of a product
– more of the product at the normal price.
•
Coupons
– Offer a discount or extra if “coupon” is redeemed
• Gift with Purchase
– The customer gets something in addition to the main purchase
– Ie – sweater with magazine subscription, toothbrush with
toothpaste, etc..
• Contests
– Offer customer chance to win a prize by entering a contest if
they purchase your product (ie – win a cruise, TV, car, cash, etc.)
• Rebates
– customer receives a money refund after submitting a proof of
purchase to the manufacturer.
• Frequent User / Loyalty Incentives
– Repeat purchases may be stimulated by frequent user incentives.
– Ie - frequent flyer points, AIR MILES, Petro Points, etc.
•
Free Samples
– Free trial of product / service to let them test it without
investing any money
•
Point-of-Sale displays
– promotions that customers see in the store.
– Attractive, informative and well-positioned point-of-sale
displays
4. PUBLICITY
•
otherwise known as "public relations" or PR.
•
It is the communication of a product, brand or business by placing
information about it in the media without paying for the time or
media space directly
•
The main goal of Public Relations to enhance a company’s
reputation by presenting the company or individual to the world in
the best light.
•
As a result, companies will try to build goodwill with its target
market through community, charitable events and special
programs
Examples:
•
Contact local TV and radio stations and offer to be interviewed
•
Offer or sponsor a seminar
•
Write news releases and fax them to the media
•
Sponsor a community project
•
Support a charity (host event and donate proceeds)
•
Using Social Media (ie – Facebook, YouTube, Google Plus)
Mix Element
Advertising
Personal Selling
Sales Promotion
Public Relations
Advantages
Disadvantages
• Good for building awareness
• Effective at reaching a wide audience
• Impersonal - cannot answer
all of a customer's questions
• Not good at getting
customers to make a final
purchasing decision
• Highly interactive - lots of communication
between the buyer and seller
• Excellent for communicating complex /
detailed product information and features
• Costly
• Not suitable if there are
thousands of important
buyers
• Can stimulate quick increases in sales by
targeting promotional incentives on
particular products
• Good short term tactical tool
• If used over the long-term,
customers may get used to
the effect
• Often seen as more "credible" - since the
message seems to be coming from a third
party (e.g. magazine, newspaper)
• Cheap way of reaching many customers
• Risk of losing control cannot always control what
other people write or say
about your product
So….how do we ever decide on which elements and variables to
use in our “promotional mix”?
You need to consider……
1.
Resource Availability
•
•
2.
the cost of each promotional tool
the overall resource budget for the promotional campaign will
often determine which tools the business can afford to use.
Market Size and Concentration
•
Where are your customers and how many are there?
• If a market size is small and the number of potential buyers
is small, then personal selling may be the most cost-effective
promotional tool.
• If a market size is bigger and more spread out, then
advertising may be more effective.
3.
Intangibles
•
•
The promotional mix needs to reflect the uniqueness of the
product and the “arena” it is competing in
What are you trying to achieve with your marketing
efforts?
•
As a result, the “promotional mix” is a puzzle….you
simply need to put the right pieces together in order to
achieve your marketing goals.
The End !!