Transcript Promotion Strategies

Promotion Strategies
Chapter 9
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
What is a promotion?
 Promotion is the element in an
organisation’s marketing mix that
serves to inform, persuade and remind
the market about the organisation
and/or its products.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-1
The promotional mix
 Personal selling: the presentation of a
product to a prospective customer by a firm’s
sales executive.
 Advertising: paid, non-personal mass
communication, in which the sponsor is
clearly identified.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-2
The promotional mix (cont.)
 Sales promotion: demand-stimulating activity
designed to supplement advertising and coordinate personal selling.
 Publicity: a non-paid form of advertising that
uses mass communication to stimulate
demand.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-3
The Promotional Mix
 Public relations: a planned communication
effort by an organisation to contribute to
generally favourable attitudes and opinions
toward an organisation and its products.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-4
Choosing the right form
of promotion
 Marketers need to consider:
 The target market.
 The nature of the product.
 The stage of the product’s life cycle.
 Money available for the promotion.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-5
Reaching the target
market
 Marketers need to identify whom they are
trying to influence.
 Determine customer’s readiness to buy.
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Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-6
Nature of the product
 Unit value of the product.
 Amount of product customisation.
 Amount of pre-sale and post-sale service
required.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-7
Push vs pull strategy
 Push Strategy
• Producer creates demand for product.
• Aims promotional activity to channel
member(s)
• Each channel member promotes to next
channel member
• Demand ‘pushed’ down distribution
channel.
• Consumer influenced by retailer’s
advertising.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-8
Push vs pull strategy
(cont.)
 Pull Strategy
• Producer creates demand for product
• Aims promotional activity directly at the
consumer
• Consumer demands product from retailer
• Demand ‘pulled’ up the distribution
channel.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-9
Push vs pull strategy
(cont.)
PUSH STRATEGY
Producer
Wholesaler
Retailer
Consumer
PULL STRATEGY
Producer
Wholesaler
Product flow
Retailer
Consumer
Promotion effort
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-10
The promotional budget
 Percentage of sales method
 Company may determine past or anticipated sales
and apply a percentage of sales as the
promotional budget.
 All available funds
 Company uses all available funds on the
promotional campaign .
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-11
The promotional budget
(cont.)
 Matching the competition (also known as
competitive parity).
 Promotional expenditure based on market share of
competitors, or actual expenditure if known.
 Task or objective method
 Determine what tasks or objectives the promotion
must accomplish.
 Determine what it will cost to perform the task or
meet objective.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-12
Skills of the sales person
 A good sales person requires various
attributes:
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Time management.
Organising ability.
Consulting skills.
Communication skills.
Problem-solving skills.
Credibility (also a positive attitude).
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-13
Managing the sales team
 Recruitment and selection
 Decide who the right person is for the job
and what attributes and qualifications
they should have.
 Choose the right people
 Various methods used are interview,
references, psychological and aptitude
tests, also physical examinations.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-14
Managing the sales team
(cont.)
 The induction
 A method used to familiarise a new employee
with their new working environment.
 The training
 Determine who should train new sales person.
 A training program should be developed to meet
company objectives which outline philosophy,
company and product overview.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-15
Managing the sales team
(cont.)
 Sales people need:
 Coaching
∆ Spending time with a sales person to observe
and assist with their work practice, outcomes
and to develop knowledge and skills.
 Motivation
∆ Managers should find out what motivates an
individual.
∆ These include financial and non-financial
rewards.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-16
Compensation
 There are various forms of compensation:
 Straight salary.
 Straight commission.
 A third from of compensation used in
business is a combination of both methods.
This is used to motivate sales team
members with financial incentives.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-17
Types of advertising
 Consumer versus business advertising
 Emotional and rational vs informational.
 Product versus institutional advertising
 Focus on particular product or brand and
information and goodwill to company.
 Primary-demand and selective-demand
advertising
 Stimulate demand for generic or specific
brands
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-18
Which media should we use?
 To Choose the right medium for a
promotional message, we need to consider
the following.
 What do we want our ads to do?
 Who are we trying to reach?
 What message do we want to
communicate?
 How much will each medium cost?
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-19
Media characteristics
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Newspapers
Television
Radio
Magazines
Direct Mail
Outdoor advertising
Yellow pages
Internet
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-20
Did our advertising work?
 Here are some of the factors that make it
difficult to measure the sales impact of
advertising
• Ads have different objectives
• Ads can have an effect over time
• The effects of ads are difficult to
measure
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-21
Methods used to measure
effectiveness include
 Direct tests: these measure or predict the
sales volume stemming from an advertising
campaign
 Tabulating the number of inquiries from a
direct-response campaign
 Indirect tests: these measure something
other than actual sales (e.g. recall tests)
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-22
Choosing the right
sales promotion
What are our promotional objectives?
Who is our target market?
Can our product be sampled?
What will it cost to use the right
promotional tool?
 What is the current economic condition?
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Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-23
Managing public relations
and publicity
 P.R. can be achieved by:
 Supporting charitable projects
 Supplying volunteers or other resources
 Participating in community-service events
 Sponsorship
 Providing information to customers via
newsletters.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-24
Managing public relations
and publicity (cont.)
 Publicity can be achieved by:
 structured news-release to the media
 co-ordinating personal communication with
a group
 co-ordinating one-to-one personal
communication (lobbying)
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-25