promotion in marketing-191111020632.pptx

promotion in marketing-191111020632.pptx

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  Promotion in Marketing
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  Module Description 1. PromotionDefinition 2. Integrated Marketing Communication Process 3. Promotion Mix 4. Marketing Communication 4.1 Marketing Communication Process 5. Objectives of Promotion 6.Advertising 7. Sales Promotion 8. Public Relation 9. Direct Marketing 5/29/2024 2
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  Promotion  It isessential for organizations to promote their brands well among the end-users not only to outshine competitors but also survive in the long run. Brand promotion increases awareness of products and services and eventually increases their sales, yielding high profits and revenue for the organization. 5/29/2024 3
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  Integrated Marketing Communication Process 5/29/20244
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  Promotion Mix 5/29/2024 5
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  Marketing Communication 5/29/2024 6
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  Objectives of Promotion Build Awareness – New products and new companies are often unknown to a market, which means initial promotional efforts must focus on establishing an identity. In this situation the marketer must focus promotion to: 1) effectively reach customers, and 2) tell the market who they are and what they have to offer.  Create Interest – Moving a customer from awareness of a product to making a purchase can present a significant challenge. As we saw with our discussion of consumer and business buying behavior, customers must first recognize they have a need before they actively start to consider a purchase. The focus on creating messages that convince customers that a need exists has been the hallmark of marketing for a long time with promotional appeals targeted at basic human characteristics such as emotions, fears, sex, and humor.  Provide Information – Some promotion is designed to assist customers in the search stage of the purchasing process. In some cases, such as when a product is so novel it creates a new category of product and has few competitors, the information is simply intended to explain what the product is and may not mention any competitors. In other situations, where the product competes in an existing market, informational promotion may be used to help with a product positioning strategy. As we discuss in the Targeting Markets tutorial, marketers may use promotional means, including direct comparisons with competitor’s products, in an effort to get customers to mentally distinguish the marketer’s product from those of competitors. 5/29/2024 8
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  Objectives of Promotion Stimulate Demand – The right promotion can drive customers to make a purchase. In the case of products that a customer has not previously purchased or has not purchased in a long time, the promotional efforts may be directed at getting the customer to try the product. This is often seen on the Internet where software companies allow for free demonstrations or even free downloadable trials of their products. For products with an established customer-base, promotion can encourage customers to increase their purchasing by providing a reason to purchase products sooner or purchase in greater quantities than they normally do. For example, a pre-holiday newspaper advertisement may remind customers to stock up for the holiday by purchasing more than they typically purchase during non-holiday periods.  Reinforce the Brand – Once a purchase is made, a marketer can use promotion to help build a strong relationship that can lead to the purchaser becoming a loyal customer. For instance, many retail stores now ask for a customer’s email address so that follow-up emails containing additional product information or even an incentive to purchase other products from the retailer can be sent in order to strengthen the customer-marketer relationship. 5/29/2024 9
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  Advertising Advertising One definition ofadvertising is: "Advertising is the non personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media." 5/29/2024 10
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   Sales promotionis the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is not really designed to build long-term customer loyalty. 5/29/2024 11 Sales Promotion
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  Types of SalesPromotion  Money off Coupons – customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price  Competitions – buying the product will allow the customer to take part in a chance to win a prize  Discount Vouchers – a voucher (like a money off coupon)  Free Gifts – a free product when buy another product  Point of Sale Materials – e.g. posters, display stands – ways of presenting the product in its best way or show the customer that the product is there.  Loyalty Cards – e.g. Nectar and Air Miles; where customers earn points for buying certain goods or shopping at certain retailers – that can later be exchanged for money, goods or other offers 5/29/2024 12
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  Sales Promotion Advantages Disadvantages •Effectiveat achieving a quick boost to sales •Encourages customers to trial a product or switch brands •Sales effect may only be short-term •Customers may come to expect or anticipate further promotions •May damage brand image 5/29/2024 13
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  Public Relation  Typeof promotion that relies on public relations effect of a news story carried usually free by mass media.  The main objective of publicity is not sales promotion, but creation of an image through editorial or 'independent source' commentary 5/29/2024 14
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  Public Relation  Buildingawareness and a favorable image for a company or client within stories and articles found in relevant media outlets.  Closely monitoring numerous media channels for public comment about a company and its products.  Managing crises that threaten company or product image.  Building goodwill among an organization’s target market through community, philanthropic and special programs and events. 5/29/2024 15
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  Marketing Vs PublicRelation Marketing Public Relation Marketing promotes the transfer of goods and services from the producer and provider to the consumer. Public relations helps an organization and its publics adapt mutually to each other. Marketing's immediate goal is sales. Public relations' immediate goal is mutual understanding or positioning of the organization with its publics Marketing's implicit goal is profit. Public relations' implicit goal is positive perceptions and predispositions. Marketing's measure of success is the number of sales and/or the revenue it generates. Public relations' measure of success is expressed public opinion or other evidence of public support 5/29/2024 16
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  Direct Marketing  Directmarketing is just what it sounds like - directly reaching a market (customers and potential customers) on a personal (phone calls, private mailings) basis, or mass-media basis (infomercials, magazine ads, etc.).  Direct marketing is often distinguished by aggressive tactics that attempt to reach new customers usually by means of unsolicited direct communications. But it can also reach out to existing or past customers. A key factor in direct marketing is a "call to action." That is, direct marketing campaigns should offer an incentive or enticing message to get consumers to respond (act). 5/29/2024 17
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  Types of DirectMarketing  Telemarketing: Direct marketing that involves calling people at home or work to ask for donations, an opinion, or for sales purposes.  Email Direct Marketing: This form of direct marketing targets consumers through their Email accounts. Email addresses can be harvested from websites, forums, or purchased. Some companies require you to receive announcements to use their websites.  Direct Mail Marketing: Advertising material sent directly to home and business addresses. 5/29/2024 18
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