Transcript 7a9c7Module IV - Notes Milenge

AMITY SCHOOL OF BUSINESS
AMITY SCHOOL OF
BUSINESS
BBA, II Sem
PRINCIPLES OF MARKETING II
Ruchika Jeswal
What is Promotion Mix?
• The specific blend of promotion tools that the
company uses to persuasively communicate
customer value and build customer
relationships.
• It consists of a specific blend of advertising,
public relations, personal selling, sales
promotion and direct marketing tools that the
company uses to persuasively communicate
customer value and build customer
relationships.
Definitions of the five major
promotion tools are as follows:
• Advertising – Any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor.
• Sales Promotion- Short-term incentives to encourage the purchase
or sale of a product or service.
• Personal Selling- Personal presentation by the firm’s sales force for
the purpose of making sales and building customer relationships.
• Public relations- Building good relations with the company’s various
publics by obtaining favorable publicity, building up a good corporate
image, and handling or heading off unfavorable rumors, stories and
events .
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Direct Marketing- Direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting
customer relationships- the use of direct mail, the telephone, directresponse television, e-mail, the internet, and other tools to communicate
directly with specific customers.
Integrated Marketing
Communications
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Carefully integrating and coordinating the company’s many
communications channels to deliver a clear, consistent, and compelling
message about the organization and its products.
Steps in Developing Effective
Marketing Communication
• Identifying the Target Audience.
• Determining the Communication
Objectives.
• Designing a message- Message content,
Message Structure, Message Format.
• Choosing Media
• Selecting the message source.
• Collecting Feedback.
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Setting the Total Promotion
Budget
• Four common methods used to set the
total budget for advertising:
1)The affordable method.
2) Percentage-of –sales method.
3) Competitive-Parity method.
4) Objective-and- task method.
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Shaping the overall Promotion
Mix
• The concept of integrated marketing
communications suggests that the
company must blend the promotion tools
carefully into a coordinated promotion mix.
• Companies within the same industry differ
greatly in their designs of promotion
mixes.
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The nature of each Promotion
Tools.
• Advertising- Advertising can reach masses
of geographically dispersed buyers at a
low cost per exposure, and it enables the
seller to repeat a message many times.
• Personal Selling- It is the most effective
tool at certain stages of the buying
process, particularly in building up buyer’s
preference, convictions and actions.
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The nature of each Promotion
Tools(contd)
• Sales Promotion- It includes a wide assortment of toolscoupons, contests, cents-off deals, premiums, and
others- all of which have many unique qualities.
• Public Relations- It is very believable- news stories,
features, sponsorships, and events more real and
believable to readers than ads do.
• Direct Marketing- It is less public. Normally directed to a
specific person. It is immediate and customized. It is
interactive. It allows a dialogue between the marketing
team and the consumer, and messages can be altered
depending on the consumer’s response.
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Promotion Mix Strategies
• Marketers can choose from two basic
promotion strategies:
1) Push Strategy- It involves pushing the
product through marketing channels to
final consumers.
2) Pull Strategy- The producer directs its
marketing activities towards final
consumers to induce them to buy the
product.
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Integrating the Promotion Mix
• Start with customers.
• Analyze trends- Internal and external.
• Audit the pockets of communications spending
throughout the organization.
• Team up in communications planning.
• Create compatible themes, tones and quality across all
communications media.
• Create performance measures that are shared by all
communications elements.
• Appoint a director responsible for the company’s
persuasive communications efforts.
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ADVERTISING
• Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an
identified sponsor.
• Four important decisions when developing an
advertisement program:
• Setting advertising objectives
• Setting the advertising budget
• Developing advertising strategy(message decisions and media
decisions)
• Evaluating advertising campaign
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• Possible advertising Objectives:
1) Informative Advertising
2) Persuasive Advertising
3) Reminder Advertising
PUBLIC RELATIONS
• Building good relations with the company’s various
publics by obtaining favorable publicity, building up a
good corporate image, and handling unfavorable stories,
rumors and events.
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Functions performed:
Press relations-creating newsworthy information in the news.
Product publicity- Publicizing specific products.
Lobbying- Building and maintaining national or local community relations.
Investor relations- Maintaining relationships with shareholders and others in
the financial community.
Development- Public relations with donors or members of non-profit
organization to gain financial or volunteer support.
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Major PR Tools
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NEWS
SPEECHES
SPECIAL EVENTS
WRITTEN MATERIALS
AUDIO-VISUAL MATERIALS
CORPORATE IDENTITY MATERIALS
PUBLIC SERVICE ACTIVITIES
BUZZ MARKETING
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PERSONAL SELLING
• Personal presentation by the firms sales
force for the purpose of making sales and
build customer relationships.
• Salesperson- An individual representing a
company to customers by performing one
or more of the following activities:
prospecting, communicating, selling,
servicing. Information gathering and
relationship building.
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Role of sales force
• PS is an interpersonal arm of promotion mix.
• It involves interpersonal interaction between
salespeople and individual customers.
• It can be more effective than advertising in more
complex situations.
• They can learn more about the people and
adjust the marketing offering and presentation to
fit the needs of each customer.
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SALES PROMOTION
• It consists of short-term incentives to
encourage the purchase or sales of a
product or service.
• E.g.Sunday newspaper carrying an insert
offering a coupon of Rs 20 off on
Bournvita.
• Sony laptop with a free case.
• Zen Estillo with a discount of Rs 30,000.
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• Sales promotion tools are used by most organizations,
including manufacturers, distributors, retailers, and notfor-profit organizations. They may be targeted to any of
the following:
• Consumer promotions: final buyers
• Trade wholesalers: retailers and wholesalers
• Business customers: business promotions
• Sales force promotions: sales force.
Major Sales Promotion Tools
• Consumer Promotions- Sales promotion tools used to
boost short-term customer buying and involvement or to
enhance long-term customer relationships.
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Samples
Coupons
Cash refunds
Price packs
Premiums
Promotional products
Point-of-purchase promotions
Contests, sweepstakes and games
event marketing
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• Trade promotions-Sales promotion tools used to persuade
resellers to carry a brand, give it shelf space, promote it in
advertising, and push it to consumers.
• Manufacturers offer an allowance, offer free goods, offer push
money, free specialty advertising items.
• Business Promotions- Sales promotion tools used to generate
business leads, stimulate purchases, reward customers, and
motivate sales people.
• It includes many of the same tools used for consumer or trade
promotions.
• Some additional include – conventions and trade shows and
sales contests.
DIRECT MARKETING
• Connecting directly with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships.
• Direct Marketing is the fastest growing
form of marketing.
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Forms of Direct Marketing
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Direct mail marketing
Catalog Marketing
Telephone Marketing
Direct response Television Marketing
Kiosk Marketing
mobile phone marketing/ podcasts and
vodcasts /interactive TV(ITV)
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Growth and benefits of direct
marketing
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Benefits to Buyers:
Convenient , easy and private
Ready access to a wealth of products.
Wealth of comparative information about
companies, products, and competitors.
• Interactive and immediate.
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Benefits to sellers:
• Helps building customer relationships.
• Offers sellers an easy, low cost, efficient, speedy
alternative for reaching their markets.
• Results in lower costs, improved efficiencies, and
speedier handling of channel and logistics functions.
• Allows greater flexibility.
• Gives sellers access to buyers that they could not reach
through other channels.