Promotion Decision

Promotion

 When a company develops a new product, changes

an old one or wants increase sales of an existing
product or service, it must transmit its selling
messages to potential customers.
“ Promotion includes all the tools in the marketing
mix whose major role is persuasive
communication.”
“ Promotion consists of those activities that are
designed to bring a company's goods and services
to the favourable attention of customers.”

19-2
The Communications Process

19-3
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

3. Design the Message

4. Select the communication

channel

5. Establish Marketing
Communication Budget

6. Execute The Message

19-4
 Developing Effective Communication

. Identify the Target

Audience

19-5
 1. Identify the Target Audience
( Audience Analysis)
 The communication process start with a clear
target audience
 Target audience can be current users,
deciders, influencers, individuals, groups,
potential customers etc.
 The target audience analysis is a critical
influence on the communicators decision on
what to say? When to say? And to whom to
say it?

19-6
 1. Identify the Target Audience
( Audience Analysis)
 Audience analysis also includes the image
analysis which assess the current image of
the company, its product, and its competitors.
 Audience analysis helpful for the organization
to determine the communication objectives,
design the message, select the media, set the
communication budget and to select the
appropriate promotional tool.

19-7
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

19-8
2. Determining the Communication
Objectives

19-9
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

3. Design the Message

19-10
 3. Designing a Message
 Message content:
 Rational appeals
 Emotional appeals
 Moral appeals
 Message structure:
 Draw conclusion or not
 One versus two-sided argument
 Strongest argument first or last
 Message format:
 Sight, sound, colour, and texture

19-11
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

3. Design the Message

4. Select the communication

channel

19-12
 4. Select the Communications
Channels
Personal
Selling
Personal
Personal
Channels
Channels
Word of
Mouth

Print
Media
Non-personal
Non-personal
Channels
Channels
Broadcast
Media

19-13
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

3. Design the Message

4. Select the communication

channel

5. Establish Marketing
Communication Budget

19-14
5. Establish The Communication Budget

Affordable What management thinks

method the company can afford

Percentage-of-sales The budget as a percentage

method of forecasted sales

Competitive-parity Setting the budget to

method match competition spending

1. Defining specific objectives

Objective-and-task 2. Determining tasks needed
method 3. Estimating costs of tasks
4. Adding total costs

19-15
 Developing Effective Communication

. Identify the Target

Audience

2. Determine the
communication Objectives

3. Design the Message

4. Select the communication

channel

5. Establish Marketing
Communication Budget

6. Execute The Message

19-16
 Promotion Mix

“The basic tools used to accomplish an

organization's communication objectives
are often referred to as promotional mix.”

19-17
Basic Elements of the Promotional Mix

Advertising
Advertising

Direct
Direct Marketing
Marketing

Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales
Sales Promotion
Promotion

Publicity/Public
Publicity/Public
Relations
Relations

Personal
Personal Selling
Selling
19-18
 Advertising

“ Advertising is paid non-personal

communication from an identified
sponsor using mass media to persuade
or influence an audience”

19-19
 Advertising

 Advertising has six elements

 Advertising is a paid form of communication.
 Sponsor is identified
 Tries to persuade or influence the consumer
to do something.
 Message is conveyed through many different
kinds of mass media
 Advertising reaches a large audience
 It is a non -personal

19-20
 Types of Advertising

1. On the Basis of Geographical Spread

 National Advertising
 Local Advertising
 Global Advertising

19-21
 Type of Advertising

2. On the Basis of Target Advertising

 Consumer Advertising
 Industrial Advertising
 Trade Advertising
 Professional Advertising
3. Public Service Advertisements
4. Institutional Advertising/Corporate
Advertising

19-22
 Type of Advertising

5. Brand Advertising
6. Political Advertising
7. Directory Advertisement
8. Direct Response Advertising
9. Financial Advertising
10. Primary Demand Advertising
11. Selective Advertising

19-23
 Publicity

“ Refers to the generation of news about a person,

product or service that appears in broadcast or print
media”

“Non- Personal not paid stimulation of demand of the

products or services by planting commercially
significant news or editorial comment in the print
media or by obtaining a favourable presentation if it
upon radio, and television.

19-24
 The Power of Publicity

“Why publicity is much more powerful than advertising

or sales promotion- or even other forms of promotion?”
 Publicity is highly credible.
 Publicity information is perceived as endorsed by the
medium in which it appears.
 It has news value
 High frequency of exposure.

19-25
 Public Relations

“ The management function which evaluates public

attitudes, identifies the policies and procedures of an
organization with the public interest and executes a
programme of action to earn public understanding and
acceptance.”

19-26
 Sales Promotion

“ A Direct Inducement that offers an extra value or

incentive for the product to the sales force, distributors,
or the ultimate consumer with the primary objective of
creating an immediate sale.”

 Sales promotion consists of short-term incentives to

encourage the purchase or sales of a product or
service.

 The idea behind sales promotion is to generate

immediate sales.

19-27
 Types of the Sales Promotion

 Consumer oriented sales promotion

 Trade oriented sales promotion.

19-28
Sales Promotion Tools

Coupons
Samples Trade
Allowances
Premiums
POP Displays
Contests/Sweepstakes
Training
Refunds/Rebates Programs
Bonus Packs Trade
Shows
Loyalty Programs
Coop
Events Advertising
 Trade-oriented
• Consumer-  [For resellers]

oriented
• [For end-users]
19-29
 Direct Marketing Defined

“Direct
“Direct Marketing
Marketing isis the
the use
use of
of Consumer
Consumer –– direct
direct channels
channels
to
to reach
reach and
and deliver
deliver goods
goods and
and services
services to
to customers
customers with
with
out
out using
using marketing
marketing middlemen.”
middlemen.”

“A
“A system
system of
of Marketing
Marketing by by which
which organisations
organisations
communicate
communicate directly
directly with
with customers
customers to
to generate
generate aa response
response
or
or transaction.”
transaction.”

19-30
 Direct Marketing Defined

“The
“The total
total of
of activities
activities by
by which
which the
the seller
seller directs
directs efforts
efforts to
to aa
target
target audience
audience using
using one
one or
or more
more media
media forfor the
the purpose
purpose of of
soliciting
soliciting aa response
response byby phone,
phone, mail,
mail, or
or personal
personal visit
visit from
from aa
prospective
prospective customer.”
customer.”

TV
TV Selling
Selling
Catalog
Catalog Selling
Selling
Direct
Direct Mail
Mail
Telemarketing
Telemarketing

Direct
Direct Selling
Selling Direct
Direct Action
Action Advertising
Advertising

19-31
 The Internet

“The Internet is a worldwide means of

exchanging information and
communicating through a series of
interconnected computers”

19-32
 Internet Participants

Senders Internet Receivers

Advertisers
Advertisers Users
Users

Sponsors
Sponsors Internet
Internet Shoppers
Shoppers

e-Commerce
e-Commerce Customers
Customers
Merchants
Merchants

19-33
Integrating the Internet--Advertising

Banners
Banners

Sponsorships
Sponsorships

Internet
Internet Pop-ups/
Pop-ups/
Advertising
Advertising
Has
Has aa Variety
Variety of
of
Forms:
Forms: Interstitials
Interstitials

Push
Push
Technologies
Technologies

Links
Links

19-34
 Personal Selling

“Oral Presentation in conversation with

one or more prospective purchaser for
the purpose of making sales”

Personal selling consists of contracting

prospective buyers of a product
personally”
19-35
 Factors Influencing Promotional Mix

 Product Related Factors

 Amount and complexity of product information.
 Products stage in the life cycle.
 Product type and unit price.
 Consumer related Factors
 Size and characteristics of the target market
 Type of buying decision

19-36
 Factors Influencing Promotional Mix

 Firm related Factors

 Pricing strategy
 Budget
 Company Personnel
 Marketing channel
 Situation Related Factors
 Visibility of the firm
 Competitors action

19-37