Marketing Management-IV

Mrs Gopika Kumar

Promotion
Promotion Mix
Marketing Communication Mix
Marketing communication are the means
by which firms attempt to inform,
persuade and remind consumers directly
or indirectly about the products and
brands that they sell.
It consists of a specific blend of adv,
sales promotion, personal selling & direct
Marketing.
Objectives of Promotion
 Create awareness
 Stimulate Demand
 Encourage Product Trial
 Identify Prospects
 Retain Loyal customers
 Facilitate reseller support
 Combat Competitive Promotional efforts
 Reduce Sales fluctuations
Marketing Communications
Mix

 Advertising
 Sales Promotion
 Events/Experiences
 Public Relations and Publicity
 Personal Selling
 Direct and Interactive Marketing
The Communication Process

Advertising Sales Public Personal Direct

Promotion Relations Selling Marketing
Print and Contests, News Sales Catalogs
broadcast ads games, presentation
sweepstakes,
lotteries
Packaging- Premiums and Speeches Sales Mailings
outer gifts meetings

Packaging Sampling Seminars Incentive Telemarketing

inserts programs

Motion Fairs and Annual Samples Electronic

pictures trade shows reports shopping
Selecting Promotion Mix
Elements

1. Type of Product Market

2. Buyer Readiness Stage
3. Product Life cycle Stage
Integrated Marketing
Communication (IMC)
Managing and Coordinating the entire
communication process calls for
integrated marketing communication.

Marketing communication planning which

recognizes the added value of a
comprehensive plan that evaluates the
strategic roles of a variety of
communications discipline and combines
these to provide clarity and maximum
impact.
How Communication Works?
Developing Effective
Communication
Promotion Mix
Advertising
Advertising
Advertising is any paid form
of non personal presentation
and promotion of ideas, goods
or services by an identified
sponsor.
Developing and Managing an
Advertising Program

The Five Ms of Advertising

Developing and Managing an
Advertising Program

1. Advertising objectives at different

stages in Hierarchy of Effects
 Informative advertising
 Persuasive advertising
 Reminder advertising
 Reinforcement advertising
Developing and Managing an
Advertising Program

2. Deciding on the Advertising Budget

 Five factors to consider when setting the
advertising budget:
 Stage in the product life cycle
 Market share and consumer base
 Competition and clutter
 Advertising frequency
 Product substitutability
Developing and Managing an
Advertising Program

3. Choosing the Advertising

Message
 Message generation  Message execution
 Message evaluation  Rational
and selection positioning
 Messages on:  Emotional
 Desirability positioning
 Exclusiveness  Social responsibility
 Believability review
Developing and Managing an
Advertising Program
4. Decide on Media & Measuring
Effectiveness
-Decide on most effective media
To Increase audience awareness:
Reach: The no. of different persons or households exposed
to a particular media schedule at least once during a
specified time period.
Frequency: The number of times within the specified time
period that an average person or household is exposed
to the message
Impact: The qualitative value of an exposure though a
given medium.
Developing and Managing an
Advertising Program
4. Decide on Media & Measuring
Effectiveness Newspapers
-Choosing Media Type Television
Direct Mail
Radio
Magazines
Outdoor
Yellow Pages
Newsletters
Medium Advantages Limitations

Newspapers Flexibility; timeliness; good Short life; poor reproduction

local market coverage; broad quality; small “passalong”
acceptance; high believability audience

Television Combines sight, sound, and High absolute cost; high

motion; appealing to the clutter; fleeting exposure;
senses; high attention; high less audience selectivity
reach

Direct mail Audience selectivity; Relatively high cost; “junk

flexibility; no ad competition mail” image
within the same medium;
personalization
Developing and Managing an
Advertising Program
4. Decide on Media & Measuring
Effectiveness
-Choosing Media Vehicle
 Allocating the Budget
 Audience size measures:
 Circulation
 Audience
 Effective audience
Developing and Managing an
Advertising Program
4. Decide on Media & Measuring
Effectiveness
-Decide on Media Timing
-Decide on Geographical Allocation
-Evaluating Advertising Effectiveness
 Communication Effect Research
 Copy Testing
 Consumer Feedback
 Portfolio Test
 Laboratory Test
 Sales Effect Research
Sales Promotion
Sales Promotion
Designed to stimulate quicker or
greater purchase of particular
product or service by consumers or
the trade.
Why Sales Promotion?
1.Effective Sales Tool

2.Competition

3.Consumers are Price Oriented

4.Decreasing Advertising efficiency

Process of Sales Promotion
1. Establishing Objectives
2. Select the Tools
 Consumer Promotion tools
 Trade Promotion tools
 Business and Sales force Promotion tools
3. Developing the Program
 Size, Condition, Duration, distribution Vehicle,
Timing, Total Budget.
4. Pretesting. Implementing, Controlling and
evaluating the Program
Consumer Promotion Tools
Samples: Offer of a free amount of a product or service delivered door to
door, sent in the mail, picked up in a store, attached to another product, or
featured in an advertising offer.
Coupons: Certificates entitling the bearer to a stated saving on the purchase
of a specific product: mailed, enclosed in other products or attached to
them, or inserted in magazines and newspaper ads.
Cash Refund Offers (rebates): Provide a price reduction after purchase rather
than at the retail shop: consumer sends a specified “proof of purchase” to
the manufacturer who “refunds” part of the purchase price by mail.
Price Packs (cents-off deals): Offers to consumers of savings off the regular
price of a product, flagged on the label or package. A reduced-price pack is
a single package sold at a reduced price (such as two for the price of one).
A banded pack is two related products banded together (such as a
toothbrush and toothpaste).
Trade Promotion Tools
Price-Off(off-invoice or off-list): A straight discount off the list price on each
case purchased during a stated time period.
Allowance: An amount offered in return for the retailer’s agreeing to feature
the manufacturer’s products in some way. An advertising allowance
compensates retailers for advertising the manufacturer’s product. A display
allowance compensates them for carrying a special product display.
Free Goods: Offers of extra cases of merchandise to intermediaries who buy
a certain quantity or who feature a certain flavor or size.
Business and Sales force Promotion
Tools
Trade Shows and Conventions: Industry associations organize annual trade
shows and conventions. Business marketers may spend as much as 35
percent of their annual promotion budget on trade shows. Over 5,600 trade
shows take place every year, drawing approximately 80 million attendees.
Trade show attendance can range from a few thousand people to over
70,000 for large shows held by the restaurant or hotel-motel industries.
Participating vendors expect several benefits, including generating new
sales leads, maintaining customer contacts, introducing new products,
meeting new customers, selling more to present customers, and educating
customers with publications, videos, and other audiovisual materials.
Sales Contests: A sales contest aims at inducing the sales force or dealers
to increase their sales results over a stated period, with prizes (money,
trips, gifts, or points) going to those who succeed.
Other Communication Mix
Elements
Other Communication Mix
Elements
Events and Experiences
Marketers sponsor events to enhance a
corporate image
Public Relations

It involves a variety of programs designed to

promote or protect a company’s image or its
individual products.
Tools:
Publications/Events/Sponsorships/News/Speec
hes/Public Service Activities/Identity Media
Other Communication Mix
Elements
Direct Marketing
No Middlemen
Tools:
DirectMails/Catalogs/Telemarketing/Inte
ractive TV/Kiosks/Websites/Mobiles etc.
Personal Selling

Salesman for Direct Marketing

Communication Issues
Does Promotion Increase
Prices?

Does Promotion Create

Needs?
Does Promotion Encourage
Materialism?

Should Potentially Harmful

Products be Promoted?