Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides...

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by RixSlides prepared by Joe Rosagrata

Promotion Strategies

Chapter 9


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.

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.

9-2


The promotional mix (cont.)

Sales promotion: demand-stimulating activity designed to supplement advertising and co-ordinate personal selling.

Publicity: a non-paid form of advertising that uses mass communication to stimulate demand.

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.

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.

9-5


Reaching the target market

Marketers need to identify whom they are trying to influence.

Determine customer’s readiness to buy. Awareness Knowledge Liking Preference Conviction Purchase

9-6


Nature of the product

Unit value of the product.

Amount of product customisation.

Amount of pre-sale and post-sale service required.

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.

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.

9-9


Push vs pull strategy (cont.)

Producer Wholesaler Retailer Consumer

Producer Wholesaler Retailer Consumer

PUSH STRATEGY

PULL STRATEGY

Product flow Promotion effort

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 .

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.

9-12


Skills of the sales person

A good sales person requires various attributes: Time management. Organising ability. Consulting skills. Communication skills. Problem-solving skills. Credibility (also a positive attitude).

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.

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.

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.

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.

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

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?

9-19


Media characteristics

Newspapers Television Radio Magazines Direct Mail Outdoor advertising Yellow pages Internet

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

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)

9-22


Choosing the rightsales 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?

9-23


Managing public relationsand 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.

9-24


Managing public relationsand 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)

9-25

Copyright 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix Slides...

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