Promotion. Promotion is an intricate part of market mix. Marketing mix includes product, price, place/distribution and promotion (4 Ps). The activities of the first three Ps -- product planning, pricing, and distribution -- are performed mainly within the firm or between the firm and its marketing “partners.” With promotional activities, a firm communicates directly with potential customers. Promotion is an attempt to influence. Promotional activities are designed to inform, persuade, or remind the market of the firm and its products and ultimately to influence consumers’ feelings, beliefs, and behavior. A successful promotion program should include all the communication tools that can deliver a message to a target audience. A promotion program can include five components: advertising, sales promotion, public relations, sales force, and direct marketing. Basically our topic is related with promotion so we will discuss sales promotion in detail with respect to an example. Sales promotion
Transcript
Promotion.
Promotion is an intricate part of market mix. Marketing mix includes product, price,
place/distribution and promotion (4 Ps). The activities of the first three Ps -- product planning,
pricing, and distribution -- are performed mainly within the firm or between the firm and its
marketing “partners.” With promotional activities, a firm communicates directly with potential
customers.
Promotion is an attempt to influence. Promotional activities are designed to inform,
persuade, or remind the market of the firm and its products and ultimately to influence
consumers’ feelings, beliefs, and behavior. A successful promotion program should include all
the communication tools that can deliver a message to a target audience. A promotion program
can include five components: advertising, sales promotion, public relations, sales force, and
direct marketing.
Basically our topic is related with promotion so we will discuss sales promotion in detail with respect to an example.
Sales promotion
Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap
cakes, an extra soap cake will be given to you free of cost under “buy 2 get 3” scheme. You feel
attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item
which is required on a regular basis, and so you can keep the extra two cakes to be used later.
Meaning of Sales PromotionEvery businessman wants to increase the sale of goods that he deals in. He can adopt several
ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”,
“30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have
seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products.
There are also exchange offers, like in exchange of existing model of television you can get a new
model at a reduced price. You may have also observed in your neighbouring markets notices of
“winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other schemes to
attract customers to buy certain products. All these are incentives offered by manufacturers or
dealers to increase the sale of their goods. These incentives may be in the form of free samples,
gifts, discount coupons, demonstrations, shows, contests etc. All these measures normally motivate
the customers to buy more and thus, it increases sales of the product. This approach of selling
goods is known as “Sales Promotion”.
EXAMPLE ORGANIZATIONFor making a valueable discussion on this topic we have choosen a services concern to elaborate and understand the topic.The organization we have choosen is MOBILINK.
WHY MOBILINK?The question arises that why we have choosen MOBILINK a cellular company.the reason behind it is because there is really a tough competition between ceelular companies specially in so it is realy hard first to attract customer and then to retain him!
NOW LETS TALK ABOUT MOBILINK.
Introduction
Mobilink GSM -IntroductionPakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan. Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc., later it was sold to Orascom, an Egypt-based multi-national company. It has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan - a base of over 24 million and growing. Mobilink prides itself on being the first cellular service provider to operate on a 100%
digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers.
What it offers?
Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporates and multinationals. To achieve this objective,
JAZZ AND INDIGO
Mobilink offers both postpaid (Indigo) and prepaid (JAZZ) solutions to its customers. Compared to its competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry.
VOICE COMMUNICATION AND VALUE ADDED SERVICES
In addition to providing advanced voice communication services that makes the lives of millions that much easy, Mobilink also offers a host of value-added-services in its Mobilink World brand to its prized customers.
COVERAGE
At the same time, Mobilink places high importance to its coverage, which is why it covers its customers in 5000+ cities and towns nationwide as well as over 100 countries on international roaming service. Mobilink is also the official telecommunication service provider for the Pakistan Cricket Board (PCB). The company was awarded the license to operate in Azad Jammu and Kashmir (AJK) on 27 June-2006.
Facts About Mobilink GSMCompany Structure Private Limited
Genre Subsidiary
Parent Orascom Telecom Egypt
Owner Naguib Sawiris
Founded 1994
Founder Motorola USA
Industry Telecommunication
Headquarters 42 Kulsum Plaza, Blue Area, Islamabad.
Area served 5000 cities, towns, and villages across Pakistan
Revenue 250.2 million USD (3rd quarter, 2006)
Website www.mobilinkgsm.com
Mobilink VisionN “To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”.
It was the basic introduction about mobilink,now lets move on towards the subject information i.e MARKETING MANAGEMEN.
IN THIS SECTION WE WILL DISCUSS ABOUT OUR TOPIC PROMOTIONS.
Marketing Mix The 4 Ps
Marketing mixIt is the set of marketing tools a firm uses to pursue its marketing objectives. McCarthy has classified these tools into four broad groups, called the four Ps of marketing:
1. Product
2. Price
3. Place
4. Promotion
IMPORTANCE OF MARKETING MIX FOR MOBILINK
Mobilink management understands the importance of the marketing mix and its decisions, which must be made for influencing the trade channels as well as the final consumers. The company prepares an offering mix of products, services, and prices, and utilizes a communication mix of advertising, sales promotion, events, and experiences, public relations, direct marketing, and personal selling to reach the trade channels and the target customers.
CUSTOMER EXPECTATIONAs a popular brand there is a lot that is expected from the company and the management strives hard to ensure that the promises are kept. Mobilink has been continuously investing in network resources and improving its marketing mix so that its vast customer base can be satisfied and expanded.
PRODUCT
Mobilink Product LinesMainly there are four product lines of Mobilink with each having separate target markets and positioning.
Mobilink Indigo
Mobilink Jazz
Mobilink World
Mobilink PCO
Mobilink IndigoMobilink re-launched its postpaid services on the 11th of May, 2004 under the brand name, Indigo. Indigo ignited an evolution in the communication industry redefining the essence of the post-paid services in Pakistan. The brand delicately caters to the need of its customers, symbolizing the vision of connecting the subscribers in every aspect of life. Indigo says:
“In life you come across some exceptional people, who, like you, appreciate only the finer things in life. When it comes to creating a bond and staying connected to them count on
Indigo for its unrivalled premium post – paid connectivity to get you through”.
Indigo OfferingsIndigo
BlackBerry
Citi Mobilink Credit Card
Call& Control
Indigo Reward
Indigo Genie
Mobilink JazzJazz is an exciting and energetic offering of Mobilink, targeting specifically those enthusiastic teenagers, middle class and the youth market of the country, wishing to enjoy freedom, fun, lower rates and a package that matches their personality.
Jazz OfferingsJazz Budget
Jazz Octane
Jazz Ladies first
Jazz Easy
Jazz Share
Jazz Load
Jazz Advance
Mobilink WorldMobilink World is the Value Added Services Brand for Mobilink. These services are not just fun, but also help its customers with their business needs. Whether it's a Bolo SMS they want to send to a friend or a ring tone they want to download to customize their phone with, Mobilink World has something special for them.
Mobilink World OfferingsMobi Safe
Holy Sayings
Corporate SMS
Mobi Greetings
SMS Scheduler
SMS Game Time
Bolo SMS
Mobitunes
G:i:30
WAP Portal
Mobilink Edge
Mind Reader
CricVideo
International SMS Chat
Ring Tone Club
Mobilink PCOFor the first time ever Mobilink has brought Mobilink PCO, a revolution in its own right that shall surely set apace the way its consumers communicate at the grass root level. Mobilink PCO is a fixed wireless phone that has special PCO functions capability. It consists of two LCD's that helps customers to keep a tap on the duration and the costing of the calls they make.
This latest venture from Mobilink is aimed at bringing prosperity and happiness for all the people throughout Pakistan. It's a complete self-employment solution for the people of Pakistan, fulfilling their dreams and aspirations.
Mobilink PCO does not only give its consumers higher returns on a very low investment but it also creates a world of better prospects in terms of a consistent source of income for them.
Mobilink PCO claims
“Wherever you are, throughout Pakistan whether the remotest deserts of Sindh or the spectacular peaks up north expect unparallel coverage from your Mobilink PCO”
With this unit customers experience even higher returns even though the investment in terms of capital is very minimal. Mobilink PCO no doubt is a world of opportunities within itself.
Exceptional coverage and the ease of its wireless technology-carry it wherever you wish
Load the free jazz card provided and embark on a successful business venture right away
Benefits from after sales services
Parental Control Phone Disney D100Mobilink and Disney have launched a parental-controlled mobile phone for children. This is the first time a cellular company in Pakistan has launched a mobile phone that will meet the communication and security needs of parents.
HELPFUL FOR PARENTSThe features of the new Mobilink-Disney D100 allow complete parental control on all outgoing and incoming calls and text messages. With the help of this new feature, parents can control who the child can correspond with, thus enabling parents to keep a check on the list of people the child is communicating with. Furthermore, the phone is easy to use as it provides the child with a one-key option to reach parents. It is also protected in that it does not feature Bluetooth or a camera and cannot access any type of multimedia content or website.
PricingMobilink is the undisputed market leader, which is why it is believed to be expensive as compare to other telecommunication service providers. Having the largest customer base in the country with the fact that its service is available in the remote areas of Pakistan as well, people rely on Mobilink services leading to the fact that Mobilink charges higher compared to its competitors.
Mobilink has the largest subscriber base in Pakistan with 24 million customers. Mobilink recently started GPRS services with RS. 500/ month of unlimited usage which is a treat for GRPS users who want to take their office with them. Mobilink provides them with this facility with fairly reasonable charges.
Tariff Details for Mobilink Products
IndigoIndigo Freedom Plans
Details ChargeFreedom
Plan 1Freedom
Plan 2Freedom
Plan 3Freedom Plan 3+
Freedom Plan 4
Weekend Tariffs
Rs/min 0.99 0.75 0.63 0.50 0.40
F&F Charges
Rs/min 0.99 0.75 0.63 0.50 N/A
Air Time Charges
Rs/min 2.00 1.50 1.25 1.00 0.60
Free Monthly 0 100 400 800 1200
Minutes
Line Rent Rs 0 100 400 900 1500
SMS Rs/msg 1.00 1.00 1.00 0.75 0.50
Free SMS Monthly 10 15 20 25 30
Jazz
Jazz Budget Tariffs
Details Rates
Outgoing calls to any Mobilink number during selected Happy Hour Window *
Late Night Option - All Mobilink numbers **Rs. 0.75 / min
Outgoing Calls to any 3 F&F Mobilink numbers*
Rs. 0.99 / min
Outgoing calls - Any Mobilink number Rs. 2.50 / min
Outgoing calls - To Landline numbers (inclusive of interconnect charges)
Rs. 2.99 / min
Outgoing calls - Other mobile networks (inclusive of interconnect charges)
Rs. 2.99 / min
SMS - to any Mobilink number *** 20 paisas / SMS
SMS - to any other network in Pakistan 50 paisas / SMS
Daily Charges Rs. 1.00
Jazz Ladies First Tariffs
Details Rates
Outgoing calls - Any Mobilink number (1st Rs. 2.50 / min
Minute)
Outgoing calls - Any Mobilink number (2nd minute onwards)
Rs. 1.50 / min
Outgoing calls - Any Mobilink number ( 3pm-6pm )
Rs. 1.50 / min
Outgoing calls - To Landline numbers (inclusive of interconnect charges)
Rs. 2.99 / min
Outgoing calls - Other mobile networks (inclusive of interconnect charges)
Rs. 2.99 / min
SMS based Value Added Services Subscription
Rs. 30 / month
SMS (Push based Value Added Services) Rs. 2.00 / SMS
SMS - Any mobilink number Rs. 1.00 / SMS
SMS - Any other network Rs. 1.50 / SMS
Pricing Strategies
PSYCHOLOGICAL PRICING
Mobilink uses psychological pricing. They have set their target price on consumer perception of the product value e.g. outgoing calls at any 3 Mobilink numbers cost Rs.0.99/min. They haven’t set the price exactly on Re.1 but have used psychological pricing to attract customers. Mobilink is the only telecommunication network in Pakistan, which has reached maturity and is the market leader. This is why, there prices are somewhat higher than its competitors like PTCL Wireless and World Call Wireless (at introduction), Warid (at growth) and Paktel (at decline). They made use of psychological pricing also by offering free roaming facility during Hajj.
COMPETITIVE PRICING
Mobilink is not using competitive pricing strategy because they are enjoying the market leadership in Pakistan. At maturity, as different market segments are targeted the prices must be offered in such a way that suits the targeted segments.
Mobilink is doing exactly the same. They have offered prepaid connections like Jazz Octane, Jazz Budget and Jazz Ladies First, which can be afforded by the people not having very high incomes. Though, the prices of these packages are relatively higher than the prepaid packages of other telecommunication networks but still attractive. Jazz Ladies First is a package designed specially for ladies through which they can shop, listen to beauty tips and recipes at relatively
lower rates. Jazz Octane offers SMS rates as low as 25 paisas/msg and late night option rates at Rs 1.50/min and many other facilities at attractive rates. Jazz
BUDGET PACKAGE
Budget Package is an economical way to talk to any Mobilink number in Pakistan. It has announced another ground breaking first of its kind offer with the re-launch of Jazz Budget. The package has been launched with a fresh look and tariffs tailored specifically for the masses.
One of the key highlights of this package is the ‘Happy Hour’, which is bound to hit a chord with the nation, and has been developed keeping the communication needs of the Pakistani people in mind. Keeping in view the fact that Mobilink customers make 7 out of every 10 calls to a Mobilink number, the new package is specifically customized to offer customers the lowest rates to call the largest mobile network in Pakistan.
POSTPAID CONNECTIONS
Mobilink is also offering postpaid connections with the name of Mobilink Indigo, popular within the business class. In this way, Mobilink is earning maximum profits by enabling people from different target segments to become a part of the largest cellular network in Pakistan. Jazz customers can now call US and a number of other Zone 1 destinations on Jazz local outgoing rate!
Mobilink is also offering "Zabardast GPRS Offer" which allows Mobilink customers to use GPRS just for RS.100/year.
Place
Marketing NetworkDuring the last 13 years, Mobilink has set up one of the largest cellular networks in the country. Currently, Mobilink is covering more than 5000+ cities and towns. This has involved an investment in the company of more than US$ 1 Billion. Mobilink have 50 Switches and more than 4,900 cell sites and the number keeps growing at a rapid pace. Mobilink also have deployed around 3,000 km of optical cable.
Struggles by mobilink
For Mobilink, last year was a bit difficult as they struggled to grow as quickly as the market itself. Today mobilink is confident that it has all the essential building blocks in place to take the dream forward and to play a leadership role in the rapid growth and development of telecommunication industry in Pakistan.
Investments in this regard
In 2003 mobilink invested upwards of US$ 200 million in improving their network and services. Mobilink have already put in 7 switches, over 820 cell sites and new IN platforms for better coverage and connectivity. In upcoming years mobilink is trying to invest in technological upgrades, superior customer services, and improved coverage.
Call centres
Mobilink customers remain their priority and in an effort to enrich their lives Mobilink have put in place state-of-the-art call centers in Karachi, Lahore, Islamabad and in other cities of Pakistan where well trained staff is geared to answer complaints and queries, and a new billing system is in the process of commissioning. Mobilink is constantly expanding their nationwide franchise and distribution network and upgrading them to offer customer services so that the customers can find a Mobilink contact as near to them as possible.
CoverageMobilink provides the widest coverage network, covering more than 5000+ cities, towns, and villages across Pakistan. It connects over 24 million family members every second of the day with exceptional voice quality due to its broad coverage. The coverage is expanding day by day, and it is claimed by the management that soon the only other thing covering Pakistan more than Mobilink would be the clear blue sky.
Types of coverage services
The type of coverage service Mobilink provides is divided into three main categories:
PHYSICAL PRESENCE (Mobilink has physical infrastructure in the area)
INDOOR SPILLOVER COVERAGE (High coverage level in adjoining area)
OUTDOOR SPILLOVER COVERAGE (Medium coverage level in adjoining area)
Nationwide coverageMobilink provide true nationwide coverage in more than 5000+ cities, towns, and villages across Pakistan. Mobilink provide its services in urban areas as well as towns and villages. In nationwide Mobilink provide services in following areas.
Punjab
Sindh
Balochistan
NWFP
Capital
AJK
FATA
International RoamingAlong with nationwide coverage, Mobilink also provides true International Roaming in over 100 countries with more than 300 partner operators worldwide. The regions where Mobilink provide International Roaming are as follows. Mobilink’s roaming partnership with Thuraya has further enhanced international roaming coverage. Through satellite communication the Mobilink connection can be used in areas where there is no GSM coverage.
United States
Canada
Caribbean
Europe
Middle East
Africa
Asia
Australia
Mobilink International PartnersA list of recent partners is given below:
Sr. # Country Name Operator Name Frequency
1. Jamaica Digicel 900/1800
2. UAE du 900/1800
3. Cyprus Areeba 900/1800
4. N/A GSM on the Ship 900/1800
5. United Kingdom T - Mobile 900/1800
6. Maldives Wataniya 900
7. Switzerland Orange 1800
8. N/A OceanCell 900
9. Maritime Roaming MCP 1800
10. Mozambique mCel 900/1800
11. Senegal Sonatel 900
12. Panama C&W 850
13. Ivory Coast MTN 900
14. Oman Nawras 900
15. Brunei DST 900
16. Ukraine UMC 900/1800
17. Portugal Optimus 900/1800
18. Uzbekistan Coscom 900/1800
19. South Africa Vodacom 900
20. Argentina CTI Movil 1900
21. Jordan Xpress iDEN
22. Uruguay CTI Movil 1900
23. Belgium BASE 1800
24. Sri Lanka Mobitel 1800
25. El Salvador CTE Personal 1900
26. Armenia K Telecom 900/1800
27. Saudi Arabia Etihad Etisalat 900
28. Tajikistan Indigo (North) 900
29. Italy Wind 900/1800
30. Germany O2 1800
Distribution channel of MobilinkMobilink provide its service products directly to customers or with help of intermediaries involved in distributing its product. Distribution channel contain set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users. Mobilink also distributes its product to end user with help of intermediaries as well as it distributes its product directly to customers.
Mobilink supplies its product range to intermediaries with involvement of its “Commercial and Sales Department.”
Mobilink authorizes limited number of dealers to deliver its service product. But Mobilink provides its prepaid cards to almost all the markets and consumer shops. Providing its prepaid cards in every corner of the city helps mobilink to satisfy the need of consumer and to gain customer satisfaction. However mobilink deliver its Sims to customer with help of Franchises, service centers, and sales offices. These Franchises, service centers, and sales offices are given by the right of providing its service product by Mobilink itself.
Distribution Strategy of Mobilink
There are three types of distribution strategies.First Intensive Distribution, second Extensive Distribution and third is Selective Distribution. However mobilink follow both intensive and exclusive distribution strategies.
Intensive distribution strategy While providing its Jazz prepaid cards Mobilink follow Intensive Distribution strategy means that stocking Jazz prepaid cards in as many outlets as possible.
Extensive distribution strategyWhile providing its service products (like SIM Cards of Jazz, SIM Cards of indigo and Mobilink PCO Sets as well as Prepaid cards) Mobilink follow Extensive Distribution strategy means that it gives limited number of dealers the right to deliver its product
PromotionCompanies can do more than make good products—they must inform consumers about product benefits and carefully position products in consumers’ minds. To do this, they must skillfully use the promotion tools of advertising, sales promotion, public relations, sales force, direct marketing, and personal selling.
Although mobilink is doing its promotions in all ways but our main focus would be on
“SALES PROMOTION”
ADVERTISING being an important tool for promotion so it is very important to discuss it first as for mobilink advertisement and sales promotion go together!
Advertising GoalThe chief advertising goal of Mobilink is to increase its customer base and to stimulate more usage.
Mobilink is currently using:
Information Advertising: To create brand awareness and knowledge of its Mobilink World brand.
Reminder Advertising: To stimulate the repeat purchase of its Jazz and Indigo brands.
Advertising BudgetSince the competition is intense in the telecommunication market, Mobilink has a significant advertising budget. It is advertising heavily to be heard and to constantly remind its target market to go for Mobilink. However, Mobilink’s actual advertising budget was not disclosed by the management.
Advertising MediaMobilink is using television, print, and radio advertising media to disseminate its message and to build a brand preference but the most preferred is television since this medium is the most powerful, reaches a broad spectrum of consumers and has the maximum customer impact.
Radio: It has a relatively large listeners’ base and so is an effective way to communicate the message.
Billboards and Print Media: The Company has come up with elaborate campaigns, billboards and posters to promote Indigo, their post-paid brand.
Advertising Campaigns
THEMEThe advertising theme “Mobilink: It’s simply a way to communicate”, is designed to demonstrate the new service’s simplicity and convenience.
NATIONWIDE CAMPAIGN
Along with its service debut, Mobilink launched a nationwide campaign composed of television commercials and print ads. The national campaign is supplemented by local and regional ad campaigns produced by the Mobilink licencees. The national print and broadcast ads are designed to be localized.
INCREASED OFFERINGS
The success of Mobilink has not only to do with its increased offerings, but also has a great deal to do with the campaigns that Mobilink comes up with. The TV ads exude energy and liveliness, and an expressive color and lightning palette, the high frequency and visibility makes these advertisements noticeable which results into increased brand awareness and brand loyalty boosting sales.
Strong Brand Ambassadors:
Mobilink in its advertising went on a different route (now copied by competitors) by starring the most charismatic superstars in its advertisements. The tested method of having a pretty face holding a Jazz card makes its advertising campaigns booming. Strings, Vaneeza Ahmad, Shaan, Iman Ali, Zainab Qayyum, Wasim Akram, and Shahid Afridi are some of celebrities associated with Mobilink.
The Indigo Campaign:
In its Indigo campaign, Mobilink has made a conscious effort of strongly placing it on the “image” platform and mapping it in the prospects mind making it a prestigious brand. Interestingly, it re-enforces Mobilink’s early perception of being the brand for the image conscious (peer leader) which gives the impression that Indigo is an ‘enhanced’ step further in this direction.
The Jazz Campaign:
The current prepaid Jazz campaign has brought Mobilink’s image to the masses and is more on the ‘functional’ platform. When competition was introduced in the Pakistani market, It was at this point that the true evolution of prepay began. It was more than apparent that every single customer was important and every single subscriber was vital. Almost immediately, the marketing and advertising improved; and a more conscious effort was made towards trying to reach out to every aspect of the consumer market.
TARGETING YOUTH
At first, Mobilink went a slightly different route, and instead of targeting the large youth market, continued to use it’s tried and tested method of having a pretty face holding a Jazz card. Iman Ali joined other famous models as being a Jazz Girl.
THE RAISED PROFILE
But with the competition getting intense, Mobilink finally decided to raise the profile of Jazz. The tariff wars between the providers initially caused Mobilink to offer WAP on Jazz, and then to slash prices and improve its quality. Finally, in February 2006, Mobilink launched Jazz Octane, a package ‘designed for the communication needs and lifestyle of the Pakistani youth segment’. The belated foray of Mobilink into the youth market has met with promising early success, and the new package offers quite a bit. The early success of Octane has not only to do with its increased offerings, but also has a great deal to do with the campaign that Mobilink came up with. Perhaps most effectively and symbolically, the ad showed an old woman embracing the youthful abandon that Octane is shown to offer. It can be argued that the old woman’s name is Mobilink.
Later the introduction of such packages as Jazz Budget, and Jazz Ladies First has met tremendous success.
The Mobilink World Campaign:
Mobilink World being the value added service brand for Mobilink has been started with an elaborate campaign with TV advertisements and print ads.
Sales PromotionFor mobilink sales promotion is of considerable importance and it uses different tools and tacticts to enhance it.
In this section we will totally be focusing on sales promotion.I:E
WHY WE NEED PROMOTION?
WHY IT IS BEING DONE BY MOBILINK?
TOOLS OF SALES PROMOTION
OBJECTIVES Of SALES PROMOTION
HOW SALES PROMOTION PROGRAM IS DEVELOPED
ITS IMPORTANCE
IN all these topics we will be focusing on sales promotion generally and specifically our focus would be
on mobilink.
Objectives of Sales Promotion
Sales promotion is a tool used to achieve most of the five major promotional objectives
Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts.
Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product. Several sales promotion techniques offer the opportunity for customers to try products for free or at low cost.
Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a
promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email.
Stimulating Demand – Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales.
Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or “preferred” customers with special promotions, such as email “special deals” and surprise price reductions at the cash register.
Consumer Sales Promotions
Consumer sales promotions encompass a variety of short-term promotional techniques designed to induce customers to respond in some way. The most popular consumer sales promotions are directly associated with product purchasing. These promotions are intended to enhance the value of a product purchase by either reducing the overall cost of the product (i.e., get same product but for less money) or by adding more benefit to the regular purchase price (i.e., get more for the money).
While tying a promotion to an immediate purchase is a major use of consumer sales promotion, it is not the only one. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. Consequently, a marketer’s promotional toolbox contains a large variety of consumer promotions.
Most important 11 types of consumer sales promotions:
Here marketers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise.
The incentive for the trade with this programme is that the price reduction increases the margin (and profits) a wholesaler or retailer realizes on the off-invoiced brand.
This scheme is in general available for many products, where if the bill amount is above a certain amount you get a certain percentage discount. The % varies from around 2% to 10%, from company to company and also from time to time.
Buying allowance ( Trade Promotion Technique)
It is similar to the off-invoice allowance. It is a discount for the purchase of the promoted product during the specified period on the purchase of certain minimum quantity of the product. This trade incentive is often used to gain more distribution or to maintain the existing one.
Display and advertising allowance
The retailer is required to arrange the product display in a prominent show-window or offer discount to consumers and advertise this offer in the local newspaper or arrange a point-of-purchase display on the shelf corner. The retailer earns the incentive only after meeting the conditions set by the manufacturer.
Buy back allowance
Manufacturers sometimes announce a buy-back allowance to encourage re-stocking by retailers. This promotion immediately follows another type of deal offered to resellers and offered some incentive for new purchases. When the manufacturer realizes that after the initial deal the inventory levels at the retail level are quite low or depleted, such an offer helps in building the inventory level with retailers to normal. Eg. Bread, thepalas, perishable gds.
Bill back allowance
The manufacturer offers a discount for every item purchased during the promotion period. At the end after the promotion is over, the dealer counts the discount per unit for all the items bought during the promotion period, adds any additional promotional allowances as stipulated by the manufacturer and submits the statement. He also needs to submit the bill for all such items.
Slotting allowance
These are the fees that a retailer charges the manufacturers to make available the space on the shelf for their new products. Retail store owners say that the number of brands in each category is multiplying, there is increasing competition and margins are decreasing, hence they have no option but to ask for a fee to keep the product on their shelf and use the money to improve their shelf design and promotion, etc.
Merchandise allowance
In the form of free products packed with regular shipments, are payments to the trade for setting up and maintaining displays. The payments are typically far less than manufacturers would have to spend to maintain the displays themselves.
Sales Promotions and the Role of Trade Promotions
to understand the nature and purpose of sales promotions.
.
To recognize the tasks that sales promotions can and cannot accomplish
To appreciate the objectives of trade-oriented promotions and the factors critical to building a successful trade promotion program.
.
To comprehend the various forms of trade allowances and the reasons for their usage.
Sales force role in sales promotion
The benefit of a proven sales process is in the sales process steps. Clearly defined steps allows individuals to know when to proceed forward during the sales and when to stop. Additionally, a proven sales process helps to make the necessary course corrections not to mention identifying any mis-steps during the selling activity.
1. Include mentors as part of communication feedback
Mentors can provide communication feedback. This tips allows the sales force training participants to share what is working and provide some guidance from those who have more experience.
2. Develop attitudes and habits
Attitude is everything. Unfortunately in most sales force training, attitudes are not consistently developed. The continued focus on knowledge and skills to improve
performance through sales force training while performance failure more often than not is due to poor attitudes and habits demonstrates why most sales force training is ineffective to non-sustainable.
3. Identify desired results to ensure positive return on investment (ROI)
When the sales force training is aligned to the strategic plan, the sales training is immediately aligned to the desired results. If this is not the case for your business, then identify the desired results to include pre-determined benchmarks such as number of leads, number of appointments, number of meetings, number of closes, number of follow-ups and number of referrals.
4. Schedule training on consecutive weeks
Many sales force training engagements are one to two days without reinforcement. Scheduling training and development on a weekly basis for no more than 2 hours each session will increase cognitive retention, provide opportunities for practice and constructive feedback. Research suggests that a one time exposure to a learning event after 16 days delivers 2% cognitive retention while multiple exposures to that same learning event deliver 65% retention. What makes more sense to you?
5. Combine sales force training with corporate coaching
Corporate coaching provides opportunities for continued reinforcement after the initial sales force training or developmental sessions have been completed. Given that research confirms that one on one executive coaching delivers a significant return on investment, including corporate coaching will only increase the return on investment.
TOOLS
Sales Promotion
Consumer Promotion Tools
Objectives – Consumer Promotions:
Increase short-term sales Generate product trial
Samples A small amount of product offered to customers for trial.some samples are free;for others the company charges small amount to offset the cost.the samples might be delivered door to door,sent by mail,handed out in a store ,attached to another product or featured in an ad.
Cash Refunds (Rebates) Offer to refund part of the purchase price of product to consumers who send a proof of purchase to the manufacturer.
Price packs (cents-off deals) Reduced price that is marked by the producer directly on label or package. Price package can be single package sold at reduced price or two related products banded together.
Advertising Specialties Useful article imprinted with an advertiser name, given as a gift to consumer. it includes t-shirts and other appareles.pen,coffee mug, calendars, key rings, mouse pads,matches,tote bags,coolers,golf balls and bags.
Premiums Goods offered either free or at a low cost as an incentive to buy a product,ranging from toys included with kids products to phone cards and cd’s.
Patronage Rewards Cash or other award for regular use of certain company’s products or service.
Point-of-Purchase Communications Display and demonstration that takes place at the point of purchase or sale.
Contests, Games, and Sweepstak Promotional events that give consumers the chance to win something such as cash, trips , or goods by luck or through extra effort. A contest calls for consumers to submit an entry as ajingle, guess. A game presents consumers with something as missing letters, bingo numbers. A sweepstake calls for consumers to submit their names for drawing.
Consumer promotion tools at Mobilink
In order to kindle greater and quicker purchases Mobilink is carrying out the following consumer promotion activities including special deals such as:
Indigo Freedom Plan: this deal offers certain benefits of which two are:-
o Friends & Family: This feature is available to the customers on any three Mobilink numbers (Jazz and Indigo) which can be added into F&F list by calling the help line at 111.
o Local Rates: According to this freedom plan across Pakistan, all call, across all networks are charged as local calls.
Apna hai It has launched to increase loyalty among customers.
Bonuses & Free Airtimes: Mobilink has been offering a number of bonuses to its consumers. An example of its current bonus offer is:
Bonus on Recharge: Mobilink brings an exciting offer for its Jazz customers. Recharging their Mobilink Jazz connection between 18th May 2007 and 18th June 2007 will give them 100% free airtime (if the customers have not
recharged in the year )
Mobilink also offers cash prizes, electronic items as refrigerators and irons or little give aways as t.shirts , caps and mugs.but public is most intersted in cash prizes.
Objectives – Trade Promotions
Obtaining distribution and shelf space
Encouraging retailers to advertise the brand
Trade Promotion Tools
Discounts (also called price-offs, off-list, and off-invoice discounts)
A straight reduction in price on purchases during a stated period of time.
Allowances
Promotional money paid by the manufacturers to retailers in return for an agreement to feature the manufactures products in some way.
Advertising allowances
It compensates retailers for advertising the product.
Display allowances
A display allowance compensates for using special displays.
Free goods
Manufacturers may offer free goods , which are extra cases of merchandises, to resellers who buy a certain quantity or who feature a certain flavor or size.
Push money
Cash or gifts to dealers or their sales force to push the manufacturers goods.
Specialty advertising items
These items carry the business name such as pens, pencils, calendars, paper weights, matchbooks, memo pads and yardsticks.
Business Promotion Tools
Companies spend billions of dollars each year on promotion to industrial customers its aims are
To generate business leads
Stimulate purchases
Reward customers and motivate sales people
It Includes many of the same tools used in trade and consumer promotions
Two additional tools:
Conventions & trade shows
Firms selling to the industry show their products at trade shows. vendors receive many benefits such as opportunities to find new new sales leaders and to introduce new products to customers.
Sales contests
A sales contest is held for sales people or dealers to motivate them to increase their sales performance over a given period.
Business and Sales Force Promotions
Mobilink also carries out business and sales force promotions on frequent basis.
Specialty Advertising: Mobilink uses certain items imprinted with its logo as well advertising
messages such as calendars, caps, radios, mugs, and candles. These items are given as gifts to
customers by salespeople.
Sales Contests: Mobilink actively carries out yearly sales contests in order to motivate the sales
force to put in greater effort.
Trade Shows: mobilink actively participates in trade shows in order to enhance its business promotions. It took part in the usual
trade-show presentations of Asia Pacific Billing and Revenue Management Week. This event has a particularly interesting through
line of taking services to understand markets. Topics like ‘Increasing Prepaid ARPU in Price Sensitive Markets’ and sessions on
micro payment plans for low income markets were discussed in detail. The speakers included individuals from Mobilink GSM in
Pakistan and Telemig Celular in Brazil.
Event Sponsorship
To enhance its corporate image, Mobilink practices event sponsorship. It sponsors movie premieres, concerts,
sports events and community welfare. A few events sponsored by Mobilink are given below.
Golf Organized for Premium Consumers by Mobilink Indigo Brand
On May 4, 2007 Mobilink Pakistan organized an invitational Club Indigo Golf Tournament exclusively for
Mobilink’s corporate customers. The golf tournament was organized at the Islamabad Golf Club by Mobilink
Indigo Club. It aimed at bringing the top executives from the corporate sector at one of the most popular greens
of the city. Expressing his views on the Indigo Club tournament, Zouhair A. Khaliq, the President and CEO of
Mobilink said,
“Needless to say we are the leaders in the telecom sector, but this does not stop us from doing more for our
customers, we strive to set higher standards for all in the business. Through Club Indigo we ensure the
maximum level of customer satisfaction for our corporate accounts and establish concrete relationships
through tailor-made services and special offers for our major clients.”
Club Indigo is responsible for building relationships with its exclusive clientele, through superior customer
services.
Other Sports Events
Recently Mobilink also held an invitational tennis tournament in Karachi and has organized and sponsored
various sports events across Pakistan, including cricket and Polo tournaments, providing quality entertainment
