Marketing Mgt

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22/5/24 1 Chapter Eleven Reported By: Mina F. Aureus

description

promotion mix

Transcript of Marketing Mgt

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Chapter Eleven

Reported By:

Mina F. Aureus

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What is promotion

Promotion means a series of actions implemented by a company in order to motivate and cultivate buys’ interests, to intensify their buying desires, to mine potential demands, and to create sales volume, by means of transmitting messages related products and channels to target consumers.

Chapter 13 Promotion Mix

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Promotion mix

Promotion mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing tools a company uses to pursue its advertising and marketing objectives.

Chapter 11 Promotion Mix

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Strategy that Calls for Spending A Lot on Advertising and Consumer Promotion to Build Up (Pull) Consumer Demand.

Strategy Selected Depends

on:

Type of Product-Market &

Product Life-Cycle

Stage

Strategy that Calls for Using the Salesforce and Trade Promotion to Push the Product Through the Channels.

Promotion Mix Strategies

Chapter 11 Promotion Mix

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Push StrategyPush Strategy

Pull StrategyPull Strategy

PromotionPromotion

DistributionDistribution

Retail StoreRetail Store

CustomerCustomer

PromotionPromotion

5

Chapter 13 Promotion Mix

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Factors Influencing the Promotion Mix

Promotion budget available Stage in the product life cycle Nature of market situation Target of the promotion

Chapter 13 Promotion Mix

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Marketing Communication Mix or Promotion Mix

Chapter 11 Promotion Mix

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What is advertising

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising

Chapter 11 Advertising

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Mission: What are the ad objectives?Money: How much can be spent?Message: What message should be sent?Media: What media should be used?Measurement: How should the result be evaluated?

Sometimes we call this “five Ms”.

Five major decisions in developing an advertising program

Chapter 11 Advertising

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Product advertising – Attempts to sell a product.

Institutional (corporate) advertising – Attempts to enhance an organization’s image and reputation.

Advocacy advertising – Attempts to change public opinion in an area where there is controversy.

Some types of advertising:Chapter 11 Advertising

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Personal selling=Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

Personal selling

Chapter 11 Personal Selling

For example, ads run by the teachers’ union against vouchers or the coal industry ads encouraging the use of coal by power plants. Some claim that this may not be advertising.

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More specific communication aimed at one or more persons.Effective at building buyers preferences, convictions and actions. Cost per person is high, most expensive promotional tool. Greater impact on consumers Provides immediate feedback Allows marketers to adjust message quickly to improve communication. Buyer feels a great need to listen and respond. Long term commitment is needed to develop a sales force.

Chapter 11 Personal Selling

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Steps in Personal Selling

Prospect/QualifyProspect/QualifyProspect/QualifyProspect/Qualify

PreapproachPreapproachPreapproachPreapproach

ApproachApproachApproachApproach

PresentatioPresentationn

PresentatioPresentationn

ObjectionsObjectionsObjectionsObjections

CloseCloseCloseClose

Follow-upFollow-upFollow-upFollow-up

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What is Sales Promotion ?

Sales Promotion is a Mass Communication Technique

That Offers Short-Term Incentives to Encourage

Purchase or Sales of a Product or Service.

Offers Reasons to Buy Now.

Chapter 11 Sales Promotion

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Difference between sales promotion and advertising

Advertising offers a reason to buy.

Sales promotion offers an incentive to buy.

Sales promotion

Chapter 11 Sales Promotion

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SampleSample

CouponsCoupons

Cash RefundsCash Refunds

Price PacksPrice Packs

PremiumsPremiums

Advertising Specialties

Advertising Specialties

Trial amount of a productTrial amount of a product

Savings when purchasing specified products

Savings when purchasing specified products

Refund of part of the purchase priceRefund of part of the purchase price

Reduced prices marked on the label or package

Reduced prices marked on the label or package

Goods offered free or low cost as an incentive to buy a product

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Articles imprinted with an advertiser’s name given as gifts

Some examples of sales promotions

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Patronage RewardsPatronage Rewards

Point-of-PurchasePoint-of-Purchase

ContestsContests

SweepstakesSweepstakes

GameGame

Cash or other rewards for the use of a certain product

Cash or other rewards for the use of a certain product

Displays and demonstrations that take place at the point of sale

Displays and demonstrations that take place at the point of sale

Consumers submit an entry to be judged

Consumers submit an entry to be judged

Consumers submit their names for a drawing

Consumers submit their names for a drawing

Presents consumers with something every time they buy

Presents consumers with something every time they buy

Some examples of sales promotions

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(1)What is public?

Any group that has an actual or potential interest in or impact on a company’s ability to achieve its objectives.

(2)What is public relation?

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.

Public Relation

Chapter 11 Public Relationship

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News

Speeches

Special Events

Written MaterialsAudiovisual

Materials

Corporate Identity

Materials

Public Service

Activities

Web Site

Major Public Relations Tools

Chapter 11 Public Relationship

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Direct marketing - direct communications with carefully targeted individual consumers to obtain an immediate response, and cultivate lasting customer relationships.

Direct marketing

Chapter 11 Direct Marketing

Many forms: Telephone marketing, direct mail, online marketing, etc.;

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More specific communication aimed at one or more persons.Effective at building buyers preferences, convictions and actions. Cost per person is high, most expensive promotional tool. Greater impact on consumers Provides immediate feedback Allows marketers to adjust message quickly to improve communication. Buyer feels a great need to listen and respond. Long term commitment is needed to develop a sales force.

Chapter 11 Personal Selling