Transcript promotional strategy

• Promotion The function of informing, persuading, and influencing a purchase
decision.
INTEGRATED MARKETING
COMMUNICATIONS
• Coordination of promotional activities to produce a unified customer-focused
message.
• Must take a broad view and plan for all form of customer contact.
• Elements include personal selling, advertising, sales promotion,
publicity, and public relations.
THE PROMOTIONAL MIX
• Combination of personal and nonpersonal selling techniques designed to achieve
promotional objectives.
• Personal selling
• Nonpersonal selling
Objectives of Promotional Strategy
• Differentiate product
• Provide information
• Stabilize sales
• Increase sales
• Accentuate product value
Promotional Planning
• Product placement
• Guerilla marketing
ADVERTISING
• Paid nonpersonal communication delivered through various media and designed
to inform, persuade, or remind members of a particular audience.
Types of Advertising
• Product advertising, institutional advertising, cause advertising
Advertising and the Product Life Cycle
• Informative advertising, persuasive advertising, and reminder-oriented
advertising.
Advertising Media
• All media offer advantages and disadvantages
SALES PROMOTION
Consumer-Oriented Promotions
• Premiums, coupons, rebates, samples
• Games, contest, and sweepstakes
• Specialty advertising
Trade-Oriented Promotions
• Sales promotion geared to marketing intermediaries rather than to consumers.
• Point-of-purchase (POP) advertising.
• Promote goods and services at trade shows.
PERSONAL SELLING
• A person-to-person promotional presentation to a potential buyer.
Sales Tasks
• Order processing, creative selling, missionary selling, telemarketing
The Sales Process
Public Relations
• Public organization’s communications and relationships with its various
audience.
Publicity
• Stimulation of demand by disseminating news or obtaining
favorable unpaid media presentations.
PROMOTIONAL STRATEGY
Pushing and Pulling Strategies
• Pushing relies on personal selling to market an item within a company’s
distribution channels.
• Pulling promotes a product by generating demand.
• Most marketing situations require combinations of pushing and pulling
strategies.
ETHICS IN PROMOTION
Puffery and Deception
• Exaggeration about the benefits or superiority of a product.
• Deliberately making promises that are untrue.
Promotion to Children and Teens
• Children and teens have enormous purchasing power but cannot analyze
advertising messages.
Promotion in Public Schools and on College
Campuses
• Schools earn income from in-school advertising, but it is generating
backlash.
PRICING OBJECTIVES IN THE
MARKETING MIX
• Price Exchange value of a good or service.
Pricing Objectives:
•
Profitability
•
Volume
•
Meeting Competition
•
Prestige
PRICING STRATEGIES
Price Determination in Practice
• Cost-based pricing
Breakeven Analysis
• Pricing technique used to determine the minimum sales volume a product must
generate at a certain price level to cover all costs.
Alternative Pricing Strategies
• Skimming pricing
• Penetration pricing
• Everyday low pricing
• Discount pricing
• Competitive pricing
CONSUMER PERCEPTIONS OF PRICE
Price-Quality Relationships
• Consumers’ perceptions of quality closely tied to price.
Odd Pricing
• Setting prices in uneven amounts or amounts that sound less than they really are.
• Also used as a signal a product is on sale.