Transcript Promotion & Public Relations Strategies

PRODUCT PROMOTION
What Will You Do To Sell
Your Product?
Promotion
Integrated Marketing
Communications
Advertising
Personal selling
Sales promotion
Public relations
Direct marketing
Promotions - AIDA Approach
• Increase
awareness
• Attract interest
• Arouse desire
• Initiate action
Setting the Promotion Mix
Advertising
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Promotional Objectives
Action
Unawareness
Awareness
Conviction
Knowledge
Preference
Liking
Promotional Mix
Involves personal and non-personal
communication techniques
Is determined by three factors
– Geographical nature
• wide market requires mass coverage
• local market use personal selling
– Business’s target customers
• Shotgun promotion or consumer analysis
– Product’s characteristics
• High priced item use personal selling
• Inexpensive item use advertising
Billboard
Promotion Mix
Advertising
Paid for impersonal presentation of an idea that is
identified with a business.
• Informs, persuades, reminds customers
Conveys a consistent, enduring image that reinforces the
position of the product or company
• McDonald’s “I’m Loving It”
• Pepsi “The Pepsi Generation”
Print – magazines, newspapers, direct mail
Broadcast – television, radio
Display – billboards, signs, posters
• Daily newspaper, weekly newspaper, telephone directory, direct
mail, radio, television, transit, outdoor, local magazine, posters and
leaflets, billboards, athletic arenas, park benches.
Product and Institutional advertising
Newspaper Advertisement
Sales Promotion
Short-term inducement to encourage trial or
purchase a product or service
Aimed at consumers at the point-of-sale
In-store displays or On-package
– Communication, incentive, invitation with customers
– Contests, games, gifts, coupons, sampling, rebates,
exhibits, demonstrations, trade-in, point-of-purchase
discount, free weekends, video tapes.
Offer promotions to top selling salespersons in
company or retail outlets selling the product
Face Book Business Page
Twitter Business Page
Personal Selling
“Two-way communication for the purpose of
making sales and building customer relationships.”
Face to face interaction with one or more
prospective purchasers, to make presentations,
answer questions
Provides a forum for immediate exchange of
needs, goals, ideas, and feedback
– Personal confrontation, relationship building, response
– Sales presentations, meetings, incentive programs,
samples trade shows
Advertisement that will appear in Foot Magazine
Join the Revolution.
Want girls?
He did.
Public Relations
Programs designed to promote and/or
protect a company’s image or its individual
products.
– Obtain favorable publicity, improve “corporate
image”, head off unfavorable rumors, stories,
events
• High credibility, ability to catch buyers off guard,
dramatization
• Press kits, speeches, seminars, charitable donations,
sponsorships, publications events, company
newsletter
Direct Marketing
 Using non personal contact tools
to communicate directly or solicit
a response for specific customers
and prospects
– Nonpublic, customized,
up-to-date, interactive
– Catalogs, mailings,
telemarketing, electronic
shopping, fax mail, email, voice mail
Advertisement that will appear in Foot Magazine
Need a new bike?
Join the Revolution.
The Product Life Cycle
Sales Curve
Dollars
Profit Curve
Time
Growth
Product
Maturity
Decline
Introduction
Development
12-8
Factors in Setting the
Promotional Mix
Product Life Cycle
– Introduction stage – advertising, public relations,
personal selling promote trial purchase and
awareness
– Growth stage – advertising, public relations
continue, promotion reduced
– Maturity – sales promotion important again
– Decline – advertising continues, PR is dropped, sales
promotion continues
Website
Factors in Setting Promotion
Mix
Strategy that
Calls for
Spending A Lot
on Advertising
and Consumer
Promotion to
Build Up (Pull)
Consumer
Demand.
Strategy
Selected
Depends
on:
Type of
ProductMarket &
Product
Life-Cycle
Stage
Strategy that
Calls for Using
the Salesforce
and Trade
Promotion to
Push the
Product Through
the Channels.
Profiles of Major Media Types
Medium
Advantages
Limitations
Internet
Allows messages to be customized,
reaches specific market interactive
capabilities
Clutter, audience characteristics, hard
to measure effectiveness
Newspapers
Flexibility, timeliness, good local market,
coverage
Short life, poor reproduction quality,
small pass-along audience
Television
Good mass market coverage, combines
sight, sound, & motion
High absolute cost, high clutter,
fleeting exposure, less audience
selectivity
Direct Mail
High audience selectivity, flexibility, no ad
competition, allows personalization
Relatively high cost per exposure,
“junk mail” image
Radio
Good local acceptance, high geographic &
demographic selectivity, low cost
Audio only, low attention, (“the halfheard” medium); fragmented audience
Magazines
High geographic & demographic
selectivity, long life & good pass-along
readership
Long advertisement purchase lead
time, high cost, no guarantee of
position
Outdoor
Flexibility, high repeat exposure, low cost,
low message competition
Little audience selectivity, creative
limitations
Magazine Advertisement
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