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Marketing Management-IV
Mrs Gopika Kumar
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Promotion
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Promotion MixMarketing Communication Mix
Marketing communication are the meansby which firms attempt to inform,persuade and remind consumers directlyor indirectly about the products andbrands that they sell.
It consists of a specific blend of adv,sales promotion, personal selling & directMarketing.
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Objectives ofPromotion Create awareness
Stimulate Demand
Encourage Product Trial
Identify Prospects
Retain Loyal customers
Facilitate reseller support
Combat Competitive Promotional efforts
Reduce Sales fluctuations
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Marketing Communications
Mix
Advertising
Sales Promotion Events/Experiences
Public Relations and Publicity
Personal Selling Direct and Interactive Marketing
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The Communication ProcessThe Communication Process
Advertising Sales
Promotion
Public
Relations
Personal
Selling
Direct
Marketing
Print and
broadcast ads
Contests,
games,sweepstakes,
lotteries
News Sales
presentation
Catalogs
Packaging-
outer
Premiums and
gifts
Speeches Sales
meetings
Mailings
Packaginginserts
Sampling Seminars Incentiveprograms
Telemarketing
Motion
pictures
Fairs and
trade shows
Annual
reports
Samples Electronic
shopping
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Selecting Promotion Mix
Elements1. Type ofProduct Market
2. Buyer Readiness Stage
3. Product Life cycle Stage
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Integrated Marketing
Communication (IMC)Managing and Coordinating the entirecommunication process calls forintegrated marketing communication.
Marketing communication planning whichrecognizes the added value of acomprehensive plan that evaluates the
strategic roles of a variety ofcommunications discipline and combinesthese to provide clarity and maximumimpact.
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How Communication Works?
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Developing Effective
Communication
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Promotion Mix
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Advertising
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AdvertisingAdvertising is any paid formof non personal presentation
and promotion of ideas, goodsor services by an identifiedsponsor.
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The Five Ms of Advertising
Developing and Managing an
Advertising Program
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Developing and Managing an
Advertising Program
1. Advertising objectives at different
stages in Hierarchy of Effects Informative advertising
Persuasive advertising
Reminder advertising
Reinforcement advertising
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Developing and Managing an
Advertising Program
2.Deciding on the Advertising Budget
Five factors to consider when setting theadvertising budget:
Stage in the product life cycle
Market share and consumer base
Competition and clutter
Advertising frequency
Product substitutability
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Developing and Managing an
Advertising Program
3. Choosing the AdvertisingMessage Message generation
Message evaluationand selection
Messages on:
Desirability
Exclusiveness
Believability
Message execution
Rationalpositioning
Emotionalpositioning
Social responsibilityreview
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Developing and Managing an
Advertising Program4.Decide on Media & Measuring
Effectiveness-Decide on most effective media
To Increase audience awareness:
Reach: The no. of different persons or households exposedto a particular media schedule at least once during aspecified time period.
Frequency: The number of times within the specified time
period that an average person or household is exposedto the message
Impact: The qualitative value of an exposure though agiven medium.
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Developing and Managing an
Advertising Program4.Decide on Media & Measuring
Effectiveness
-Choosing Media Type
Newspapers
TelevisionDirect Mail
Radio
Magazines
Outdoor
Yellow Pages
Newsletters
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Medium Advantages Limitations
Newspapers Flexibility; timeliness; good
local market coverage; broad
acceptance; high believability
Short life; poor reproduction
quality; small passalong
audience
Television Combines sight, sound, and
motion; appealing to the
senses; high attention; high
reach
High absolute cost; high
clutter; fleeting exposure;
less audience selectivity
Direct mail Audience selectivity;flexibility; no ad competition
within the same medium;
personalization
Relatively high cost; junkmail image
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Developing and Managing an
Advertising Program4.Decide on Media & Measuring
Effectiveness
-Choosing Media Vehicle Allocating the Budget
Audience size measures:
Circulation
Audience Effective audience
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Developing and Managing an
Advertising Program4.Decide on Media & Measuring
Effectiveness-Decide on Media Timing
-Decide on Geographical Allocation
-Evaluating Advertising Effectiveness
Communication Effect Research CopyTesting
Consumer Feedback Portfolio Test
LaboratoryTest
Sales Effect Research
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Sales Promotion
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Sales PromotionDesigned to stimulate quicker orgreater purchase of particularproduct or service by consumers or
the trade.Why Sales Promotion?
1.Effective Sales Tool
2.Competition3.Consumers are Price Oriented
4.Decreasing Advertising efficiency
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Process of Sales Promotion1. 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 andevaluating the Program
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Consumer Promotion ToolsSamples: 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 tothem, 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 packis
a single package sold at a reduced price (such as two for the price of one).
A banded packis two related products banded together (such as a
toothbrush and toothpaste).
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Trade Promotion ToolsPrice-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 retailers agreeing to feature
the manufacturers products in some way. An advertising allowance
compensates retailers for advertising the manufacturers 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.
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Business and Sales force Promotion
ToolsTrade 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.
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Other Communication MixElements
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Other Communication Mix
ElementsEvents and Experiences
Marketers sponsor events to enhance acorporate image
Public RelationsIt involves a variety of programs designed topromote or protect a companys image or itsindividual products.
Tools:Publications/Events/Sponsorships/News/Speeches/Public Service Activities/Identity Media
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Other Communication Mix
ElementsDirect Marketing
No Middlemen
Tools:DirectMails/Catalogs/Telemarketing/Interactive TV/Kiosks/Websites/Mobiles etc.
Personal Selling
Salesman for Direct Marketing
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Communication Issues
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Does Promotion Increase
Prices?
Does Promotion CreateNeeds?
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Does Promotion Encourage
Materialism?
Should Potentially HarmfulProducts be Promoted?