Module VI Promotion

Mission
CHRIST is a nurturing ground for an individual’s holistic
development to make effective contribution to the society in a
dynamic environment
Vision Dr Ben
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Core Values
Faith in God | Moral Uprightness
Love of Fellow Beings | Social Responsibility | Pursuit of
Excellence
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Module 6 – Promotion
o Significance of Integrated Marketing Communication
o Advertising
o Sales promotion
o Personal selling, direct marketing and public relations
o Direct and online marketing, multilevel promotions and new marketing
models
o Others promotional strategies

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An Overview
Promotional Mix
 ◼ Advertising

◼ Sales Promotion

◼ Personal Selling

◼ Public Relations

◼ Direct Marketing

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An Overview
The Communication Process
● Communications efforts should be viewed from the
 perspective of managing customer relationships
over time.
● The communication process begins with an audit of
all potential contacts a customer might have with the
brand.
● Effective communication requires knowledge of
how communication works.

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An Overview
Elements in the Communication Process
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Advertising
 Advertising is any paid
form of non-personal
presentation and
promotion of ideas,
goods,
or services by an
identified
sponsor

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Advertising
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Advertising
Setting Advertising Objectives
An advertising objective is a
specific communication task to
be
accomplished with a specific
target audience during a
specific
time
Objectives are classified by primary purpose
● Inform
● Persuade
● Remind

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Advertising
Setting Advertising Objectives

Informative advertising is used when introducing a

new product category; the objective is to build
primary demand
• Comparative advertising directly or indirectly
compares the brand with one or more other brands
Persuasive advertising is important with increased
competition to build selective demand
Reminder advertising is important with mature
products to help maintain customer relationships
and keep customers thinking about the product

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Advertising
Setting the Advertising
Budget

Product life-cycle stage

● New products require larger budgets
● Mature brands require lower budgets

Market share
● Building or taking market share requires
 larger budgets
● Markets with heavy competition require
larger budgets

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Advertising
Developing Advertising
Strategy

Advertising strategy is the

strategy by
which the company accomplishes
its
 advertising objectives and consists of:
• Creating advertising messages
• Selecting advertising media

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Advertising
Creating the Advertising Message
Advertisements need to:
● Gain attention
● Communicate well
Advertisements need to be better
planned, more imaginative, more
entertaining, and more rewarding to
consumers

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Advertising
Creating the Advertising Message
Message
strategy

Creative
concept

Message
execution

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Advertising
Creating the Advertising
Message

Message strategy is the

general message that will
be communicated to
consumers
• Identifies consumer benefits

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Advertising
 Creating the
Advertising
Message

Creative concept is the idea that

will
bring the message strategy to
life
and guide specific appeals to be
used in an advertising
campaign
Characteristics of the appeals
include:
• Meaningful
• Believable
• Distinctive
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Advertising
Creating the
Advertising
Message
• Message execution is when the
advertiser turns the big idea
into an actual ad execution that
will capture the target market’s
attention and interest.
• The creative team must find the
best approach, style, tone,
words, and format for executing
the message.
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Advertising
Selecting
Advertising
Media

Major steps include:

• Deciding on reach—
frequency—impact
• Selecting media vehicles
• Deciding on media timing
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Advertising
Selecting
Advertising Media

Reach is a measure of the percentage of

people in the target market who are
exposed to the ad campaign during a
given period of time
Frequency is a measure of how many
times the average person in the target
market is exposed to the message
Impact is the qualitative value of a
message exposure through a given
medium
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Sales Promotion
Sales promotion is the
short-term incentives to
encourage purchases
or
sales of a product or
service

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Sales Promotion
Rapid Growth of Sales Promotion
 Types of Sales Promotions
• Consumer promotions
Targeted toward final buyers
• Trade promotions
Targeted toward retailers & wholesalers
• Business promotions
Targeted toward business customers
• Sales force promotions
Targeted toward member of the sales force
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Sales Promotion
Rapid Growth of Sales Promotion
Factors in the Growth of Sales Promotions

• Product managers are under pressure to increase current sales •

Companies face more competition
• Competing brands offer less differentiation
• Advertising efficiency has declined due to rising costs and legal
constraints
 • Consumers have become more deal-oriented
• Large retailers are demanding more deals from suppliers

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Sales Promotion
Rapid Growth of Sales
Promotion
Factors in the Growth of
Sales Promotions

Developing a sales promotion program

• Set sales promotion objectives
• Select sales promotion tools

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Sales Promotion
Sales Promotion
Objectives

Setting sales promotion objectives

include using:
• Consumer promotions
• Trade promotions
• Sales force promotions

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Sales Promotion
Sales Promotion Objectives
Consumer promotions
objectives are to:
• Urge short-term customer
buying
• Enhance long-term customer
relationships
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Sales Promotion
Sales Promotion Objectives
Trade promotions urge retailers
to:
•Carry new items or more
inventory
• Buy in advance
• Advertise company products
• Get more shelf space

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Sales Promotion
Sales Promotion Objectives
 Sales
force

promotion
objectives include
getting:
• More sales force support for
new or current products
• Salespeople to sign up new
consumer accounts
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 Sales

Promotion
Major Sales Promotion Tools

• Consumer promotion tools

 • Trade promotion tools

• Business promotion tools

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• Samples • Coupons
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Major Sales Promotion Tools • Patronage rewards
• Point of purchase
Consumer Promotion Tools
• Cash refunds displays
• Price packs • Demonstrations • Contests

• Premiums • Sweepstakes • Games

• Advertising specialties

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Sales Promotion
Major Sales Promotion Tools
Consumer Promotion Tools

Samples offer a trial amount of a product

Coupons are certificates that give buyers a saving when
they purchase specified products

Cash refunds are similar to coupons except that the price

reduction occurs after the purchase

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Sales Promotion
Major Sales Promotion Tools
 Consumer Promotion Tools

Price packs offer consumers savings off the

regular price of a product Premiums are goods

offered either free or at low cost to buy a product

Advertising specialties are useful articles imprinted with the

advertiser’s name, logo, or message that are given as gifts to

consumers

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 Sales Promotion
Major Sales Promotion Tools
Consumer Promotion Tools

Patronage rewards are

cash or other awards
offered for the regular use of a certain company’s
products or services

Point-of-purchase promotions include displays and demonstrations

 that take place at the point of sales

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Sales Promotion
Major Sales Promotion Tools
Consumer Promotion Tools

Contests, sweepstakes, and games give consumers the chance to win

something, such as cash, trips, or goods, by luck or through extra effort •

Contests require an entry by a consumer

• Sweepstakes require consumers to submit their names for a drawing •

Games present consumers with something that may or may not help them
win a prize

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 Sales Promotion
Major Sales Promotion Tools
Trade Promotion Tools
Trade promotion tools persuade resellers to:
• Carry a brand
• Give the brand more shelf space
• Promote the brand in advertising
• Push the brand to consumers

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Sales Promotion
Major Sales Promotion Tools
Trade Promotion Tools
Trade promotion tools
include:

• Discount

• Free goods

• Specialty advertising

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Sales Promotion
Major Sales Promotion Tools
Business Promotion Tools
Conventions and trade shows are
effective ways to reach many
customers not reached with the
regular sales force

Sales contests are effective in

motivating salespeople or
dealers
to increase performance over a
given period
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Sales Promotion
Developing the Sales Promotion Program
• Size of the incentive

• Conditions for participation

•Promote and distribute the

program

• Length of the program

• Evaluation of the program

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Personal Selling and Sales Management

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Personal Selling and Sales

Management The Nature of Personal Selling
Examples of people who do the selling
include: • Salespeople
• Sales representatives
• District managers
• Account executives
• Sales engineers
• Agents
• Business Development
reps

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Personal Selling and Sales

 Management The Nature of Personal Selling
Salespeople can include an
order taker such as
someone
standing behind the counter
or an order getter whose
position demands more
creative selling and
relationship building
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 Personal Selling and Sales
Management The Role of the Sales Force

Personal selling is the

interpersonal part of the
promotion mix and can
include:
• Face-to-face communication
• Telephone communication

• Video or Web conferencing

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Personal Selling and Sales

Management The Role of the Sales Force
Salespeople can be more
effective
than advertising
• Learn about customer problems
and adjust the marketing offer
and presentation accordingly to
meet the special needs of each
customer
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Personal Selling and

Sales Management The
Role of the Sales Force

Salespeople are an effective link

between
the company and its customers to
produce customer value and
company
profit by:
• Representing the company to customers
• Representing customers to the company
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Personal Selling and Sales

Management Managing the Sales Force
Sales
Force
Size
Salespeople are one of the
company’s most
productive and
expensive assets

Increases in sales force

size
 can increase sales and
costs
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Personal Selling and

Sales Management
Compensating Salespeople

Compensation is made up of:

• Fixed amounts

• Variable amounts

• Expenses

• Fringe benefits
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Personal Selling and Sales

Management Supervising and Motivating
Salespeople

The goal of supervision is to

help salespeople work
smart by doing the right
things in the right ways

The goal of motivation is to

encourage salespeople to
work hard and energetically
toward sales force goals
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Personal Selling and Sales Management

Evaluating Salespeople and Sales Force
Performance

• Sales reports
• Call reports
• Expense reports
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The Personal Selling Process

The goal of the personal selling process is to get new customers

and obtain orders from them

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Public and Customer Relations

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Public Relations
 Public relations involves 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

Public relations is used to promote product, people, ideas,

and activities

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Public Relations
Public relations department functions include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development

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 Public Relations
Press relations or press
agency
involves the creation and
placing of newsworthy
information to attract
attention
to a person, product, or
service
 Product publicity involves
publicizing specific products
Public affairs involves building
and maintaining national or
local community relations

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Public
Relations
Lobbying involves building
and
maintaining relations
with legislators
and government officials to
 influence legislation and regulation
Investor relations involves
maintaining relationships with
shareholders and others in the
financial community
Development involves public
relations
with donors or members of
nonprofit
organizations to gain financial or
volunteer support
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Public Relations
The Role and Impact of Public Relations
• Lower cost than advertising

• Stronger impact on public

awareness than advertising

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Customer Relationship Management

● Customer relationship management (CRM) is a technology

 for managing all your company's relationships and
interactions with customers and potential customers.
● The goal is simple: Improve business relationships. ● A
CRM system helps companies stay connected to customers,
streamline processes, and improve profitability.

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Customer Relationship Management

⚫ Focus of CRM:
➢Customers rather than products

➢Changes in processes, systems, and culture

➢All channels and media involved in the marketing effort, from

the Internet to field sales.

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Benefits of CRM to the Small Firm

 ● Economic benefits of maintaining relationships with
current customers:
○ Acquisition costs for new customers are high.
○ Long-time customers spend more money than new
ones. ○ Happy customers refer their friends and
colleagues.
○ Order-processing costs (CoO/NoO) are lower for
established customers.
○ Current customers are willing to pay more for products.

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Benefits of CRM to the Small Firm

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Significance of Integrated
Marketing Communication

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Integrated Marketing
Communications Definition
 The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver a
clear, consistent, and compelling message
about the organization and its products.

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Integrated Marketing Communications Marketing

Communications Mix
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Integrated Marketing Communications

The Marketing Communications
Environment is Changing
○ Mass markets have fragmented, causing
 marketers to shift away from mass marketing to
target marketing.
○ Improvements in information technology

are facilitating segmentation

○ Media fragmentation has occurred with

companies doing less broadcasting and more

narrowcasting
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Integrated Marketing Communications

The Need for Integrated Marketing
Communications
 ○ Conflicting messages from different sources or
promotional approaches can confuse company or
brand images

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Integrated Marketing Communications The New Marketing

Model
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Integrated Marketing Communications The New Marketing

Model
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