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MODULE-1
Promotion Mix
What is Promotion ?
A specific combination of promotional methods used for one product or a family of products.
Elements of the Promotion Mix
Advertising
Ingredientsof the
PromotionMix
Ingredientsof the
PromotionMix
Public Relations
Personal Selling
Sales Promotion
Advertising
Advertising - Presentation and promotion of ideas,
goods, or services by an identified sponsor.
Examples: Print ads, radio, television, billboard,
direct mail, brochures and catalogs, signs, in-store
displays, posters, mobile apps, motion pictures,
Web pages, banner ads, and emails.
Public Relation
Public relations - Paid intimate stimulation of
supply for a product, service, or business unit by
planting significant news about it or a favorable
presentation of it in the media. Examples:
Newspaper and magazine articles/reports, TVs
and radio presentations, charitable contributions,
speeches, issue advertising, and seminars.
Personal SellingPersonal selling - A process of helping and
persuading one or more prospects to purchase a
good or service or to act on any idea through the
use of an oral presentation. Examples: Sales
presentations, sales meetings, sales training and
incentive programs for intermediary salespeople,
samples, and telemarketing. Can be face-to-face
selling or via telephone.
Sales PromotionSales Promotion - Media and non-media
marketing communication are employed for a
pre-determined, limited time to increase
consumer demand, stimulate market demand or
improve product availability. Examples:
Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, self-liquidating
premiums, trade shows, trade-ins, and
exhibitions.
The Communication Process
ReceiverDecodingChannelEncodingSender
Noise
Channel
Goals and Tasks of Promotion
Informing Reminding
Persuading
TargetAudience
AIDA and the Hierarchy of Effects
Attention Interest Desire Action
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
When Elements of Promotion Are Most Useful
Advertising
Personalselling
Salespromotion
Publicrelations
Either not effective or inefficient
Very effective
Somewhat effective
Awareness Knowledge Liking Preference Conviction
Eff
ecti
ven
ess
Purchase
Factors that Affect the Promotion Mix
Push–and–Pull Strategies
Nature of the Product
Stage in the ProductLife Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds $ $ $
Creating a Promotion Plan
Choose Promotion Mix
Develop Promotion Budget
Set Promotion Objectives
Identify Target Market
Analyze the Marketplace
Criteria for Setting Promotion Objectives
Promotion objectives should:
be measurable, concrete
be based on sound research, with a well-defined target audience
be realistic
reinforce the overall marketing plan and relate to specific marketing objectives
Examples of Promotion Objectives
Objective: To RemindTo remind consumers that Peter Pan peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores
Objective: To Inform (Awareness)To increase the top-of-mind awareness level for Peter Pan peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)To increase the percentage of parents who feel that Peter Pan peanut butter is the best peanut butter for their children from22 percent to 35 percent
Techniques for Setting Promotion Budgets
• Department Budget Allocation
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task
Major Types of Advertising
Corporate Image
Advocacy Advertising
Typesof
Advertising
Typesof
AdvertisingPioneering
Comparative
ProductAdvertising
InstitutionalAdvertising
Corporate Image AdvertisingMental picture that springs up at the mention of a firm's name. It is a composite psychological impression that continually changes with the firm's circumstances, media coverage, performance, pronouncements, etc. Similar to a firm's reputation or goodwill, it is the public perception of the firm rather than a reflection of its actual state or position.
Pioneering Advertisement
Pioneering advertising refers to the launch
campaign of a new product category, as opposed to
the marketing of a single product within a
developed marketplace. The purpose of pioneering
advertising is to inform consumers of the arrival of
an entirely new concept and explain its benefits.
Comparative Advertising
Promotional technique in which an advertiser
claims the superiority of its product over
competing product(s) by direct or indirect
comparison. If other products are mentioned by
their name (and not as 'brand X,' 'brand Y,' etc.)
Advertising Campaign Decision Process
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.
Common Advertising Appeals
ProfitProfit
HealthHealth
Love or RomanceLove or Romance
FearFear
AdmirationAdmiration
ConvenienceConvenience
Fun and PleasureFun and Pleasure
Vanity and EgotismVanity and Egotism
Save money, keep from losing moneySave money, keep from losing money
Body-conscious, healthyBody-conscious, healthy
Sell cosmetics and perfumesSell cosmetics and perfumes
Social embarrassment, growing old, losing health, power
Social embarrassment, growing old, losing health, power
Celebrity endorsement effectiveCelebrity endorsement effective
Fast-food and microwave productsFast-food and microwave products
Vacations, beer, amusement parksVacations, beer, amusement parks
Expensive, conspicuous itemsExpensive, conspicuous items
Executional Styles for Advertising
Mood or Image
Musical
Demon-stration
Scientific
Real/AnimatedProductSymbols
Fantasy
Lifestyle
Spokes-person/
Testimonial
Slice-of-Life
Humorous
CommonExecutional
Styles
CommonExecutional
Styles
The Tools of Public Relations
MajorTools
Used ByPR
Professionals
MajorTools
Used ByPR
Professionals
New Product Publicity
Product Placement
Customer SatisfactionPhone Lines
Consumer Education
Event Sponsorship
Issue Sponsorship
Web Sites
Tools for Consumer Sales Promotion
Coupons
Premiums
Frequent Buyer Programs
Contests and Sweepstakes
Samples
Point-of-PurchaseDisplays
SixCategories
ofConsumer
SalesPromotions
SixCategories
ofConsumer
SalesPromotions
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstrations
Business Meetings, Conventions, Trade-Shows
SixCategories
ofTradeSales
Promotions
SixCategories
ofTradeSales
Promotions
Advantages of Personal Selling
Cost ControlCost Control
Message ControlMessage Control
TargetedTargeted
Detailed Information
Detailed Information
Closing SalesClosing Sales
Advertising Versus Personal Selling
Personal Selling is more important if...
The product has a high value.It is a custom-made product.There are few customers.The product is technically complex.Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.It is a standardized product.There are many customers.The product is simple to understand.Customers are geographically dispersed.
Differences Between Traditional & Relationship Selling
Traditional Personal Selling
Sell products (goods and services)
Focus on closing sales
Limited sales planning
Spend most contact time telling customers about product
Conduct “product-specific” needs assessment
“Lone-wolf” approach to the account
Proposals and presentations basedon pricing and product features
Sales follow-up focused on product delivery
Relationship Selling
Sell advice, assistance, and counsel
Focus on improving the customer’s bottom line
Considers sales planning as top priority
Spend most contact time attempting to build a problem-solving environment with the customer
Conduct discovery in the full scope of the customer’s operations
Team approach to the account
Proposals and presentations based on profit impact and strategic benefits to the customer
Sales follow-up is long term, focused on long-term relationship enhancement
Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,” National Conference on Sales Management, Proceedings, March 1996.
Steps in the Selling Process
BasicSteps in
theSelling
Process
BasicSteps in
theSelling
Process
Generating Sales Leads
Qualifying Sales Leads
Making the Sales Approach
Making the Sales Presentation
Handling Objections
Closing the Sale
Following Up
Functions of Sales Management
Motivate Sales Force
Evaluate Sales Force
Manage Turnover
Train Sales Force
Develop Compen-
sation Plan
Structure Sales Force
Determine Sales Force
Size
Recruit Sales Force
Set Sales Objectives
Major Tasks of Sales
Management
Major Tasks of Sales
Management
8 successful Mantras for successful sales call
1. Develop a professional greeting.2. Introduce yourself and your company.3. Express gratitude.4. State the purpose of your call5. Schedule a meeting6. Face-to-face meeting7. Thank them for their time today and
for the upcoming appointment8.Follow up
How To Identify Prospective Customer
• Data base• Personal observation• Social Meeting• Direct Mailers or Letters• Tele calling• Cold Calling
Essentials for a successful sales man
1. Believe that you will be successful2. Confidence To Make a Sales Call3. Enthusiasm During A Sales Call4. Focus On Your Customer5. Be a Great Listener6. Handle the Queries Successfully
Steps in Setting the Right Price
$ $ $ $ $ $ $ $
Fine-Tune Base Price
Choose Strategy
Estimate Demand, Costs, and Profits
Establish Pricing Goals
Right Price
Legal and Ethical Issues in Pricing
Unfair Trade Practices
Key Legaland Ethical
IssuesRelated to
Price
Key Legaland Ethical
IssuesRelated to
Price
Price Fixing
Price Discrimination