Marketing Mix Components PROMOTION MIX.pptx

Promotion Mix Details for the Course on Marketing for BBA & MBA students

1. PROMOTION MIX

2. PROMOTION All Tools in marketing mix whose major role is persuasive communication Objectives 1. Behavior Modification of Target Customers 2. Information 3. Remind & Recall 4. Trial , Purchase.

3. PROMOTION STRTGYS 1. PUSH STRATEGY : Target Intermediaries to stock, promote & sell prods. More effective in following situations Undifferentiated Products Brand Clutter Low Brand Loyalty Industrial and Institutional Sales Lack of Access to Advertising Media Low Promotional Budget Short Marketing Channels

4. PROMOTION STRTGYS 2. PULL STRATEGY

5. PROMOTION STRTGYS 2. PULL STRATEGY-motivating customers to buy products from retailers who buy from a wholesaler and so on. More effective in: 1. Strong Brand Identity 2. High Promotional Budget 3. Product features facilitate Differentiation 4. Self Service-Supermarkets 5. High Involvement Product Category

6. COMMUNICATION PROCESS

7. COMMUNICATION PROCESS 1. Source-Advertiser, Sponsor 2. Message-Creative-Words, Pictures, Symbols, Appeals 3. Channel-Media-Print, Visual, Audio Visual 4. Reciever -Research TG Details, Level of Perception, Attitude-Effect 5. Feedback-Enquiry, Doubt, Trial, Interest 6 Noise External-Other Brands, Opinion Leaders Internal-Lack of Clarity, Conflicting Messages

8. Elements of Promotion Mix 1. Advertising 2. Publicity 3. Public Relations 4. Word of Mouth-Viral 5. Direct Marketing 6. Sales Promotion 7. Personal Selling 8. Online Marketing

9. ADVERTISING Any paid form of non personal prsntn of ideas, goods or services with the intent to persuade people to try or buy Objectives/benefits of Advertising to Marketer 1. Increase Sales 2. Stabilise Demand-smoothen seasonal fluctuations 3. Reduce costs due to economies of scale in Production & Mktng 4. Generate interest in dealers 5. Quicker Inventory Turnaround 6. Supplementing Salesmanship 7. Creation of Advertisers goodwill

10. ADVERTISING Benefits for Customer 1. Facilitates Purchase 2. Improvement in Quality to maintain brand image 3. Elimination of Intermediaries 4. Enhances Customer’s self iage 5. Education of Consumers Benefits to Society 1. Generates Employment 2. Revenue through Taxes 3. Improves Society Standard of Living 4. Generate Demand and the Desire to increase the income

11. Disadvs /Problems of Advertising 1. Exaggeration 2. Misrepresentation-Untruthful 3. Increased Cost=High Price 4. Does not Add Value to Economy 5. Creates Entry Barriers for New Quality Manufacturers 6. Debt Trap- Conspicious Consumption 7. Vulgar Advertising 8. Promotion of Noxious-Undesirable-Harmful products

12. Types of Advertising 1. Geographical 2. Target Group-TG 3. PLC 4. Nature of Demand Creation 5. Nature of Desired Response

13. Types of Advertising Geographical 1. Local 2. Regional 3. National 4. Global Factors Nature of Message-Sensitivity Language Idioms, Models Media Budget

14. Types of Advertising Target Group TG 1. Consumer 2. Industrial 3. Trade 4. Professional Media, Message, Money

15. Types of Advertising Product Life Cycle Different Advertising for Different Stages 1. Informative-Launch-Attracting Attention 2. Persuasive-Creating Interest & Desire 3. Comparative-Maturity 4. Recall-Reminder

16. Types of Advertising Nature of Demand 1. Primary Demand- Product Category-Introduction stage 2. Selective-Secondary-Brand within a Category-Features, USP, Comparative

17. Types of Advertising Nature of Desired Response 1. Direct Action-Purchase 2. Indirect Action-Interest-Sustained-Create Desire to Check and Try 3. Surrogate-Between the Lines-Due to the Nature of Product, we are not being Direct. Social Norms or Legal Issues 4. Negative Advertising for Demarketing- Tobacco, Alcholism ..

18. ADVERTISING MEDIA Factors Influencing Choice of Media 1. Nature of Product 2. Target Audience 3. Advertising Budget 4. Competition 5. Stage of PLC 6. Desired Response 7. Company Policy 8. Availability of Media

19. Outdoor Media 1. Bill Boards/Hoardings 2. Posters 3. Railway Stations/Airports/Bus Stands 4. Vehicular-Bus/Train/Air Craft 5. Wall Painting 6. Neon Signs/Electric Bill Boards 7. Sandwichmen 8. Airel-Hot Air Balloons/ Sky Writing

20. SALES PROMOTION activities that stimulate consumer purchasing an dealer effectiveness and are various non recurrent selling efforts not in ordinary routine Objectives: 1. Encourage Trial of New Products, Modified Products, Repositioned Products 2. To increase Sales in short run, that lead to increase in Market Share in the long run 3. Clear Old Stocks 4. Encourage Dealers & other Intermediaries to start buying company’s products 5. To increase the size of their orders 6. to lock display space at dealers for greater visibility & recall

21. SALES PROMOTION TOOLS CONSUMER PROMOTION 1. Free Distribution of Samples 2. Coupons-Time based certificate that entitles consumer to savings@packet 3. Premiums-Extra for a given period in special packs 4. Money Refund-to encourage trial. Refund to dissatisfied customers 5. Contest/Sweepstakes-Lucky Draws 6. Bonus Stamps-Collection of Tokens for getting more of a product 7. Gifts, Cheap Bargain on complementary products

22. SALES PROMOTION TOOLS INTERMEDIARIES-DEALERS 1. Buying Allowance-Deduction on Purchase or Payment 2. Buy Back Allowance 3. Display & Advertising Allowance 4. Dealer Listing on Company’s Advertising or Promotional material 5. Push Money 6. Sales Contests-Tours, Gadgets, Cars 7. Gifts & Advertising Material 8. Credit for Limited period

23. SALES PROMOTION TOOLS Sales Team 1. Special Allowances 2. Contests & Conferences 3. Sales during given periods and for given products 4. Given percentage on each product sold-Slab basis

24. SALES PROMOTION Benefits/Advantages/Strengths 1. Facilitates Launch of New Products 2. Offsets the fall in demand due to recession 3. Helps in modifying consumer behavior 4. Gets Support of Retailers 5. Measurable Response 6. Increase in Market Share 7. Generate Customer Loyalty

25. SALES PROMOTION TOOLS Problems/Disadvantages/Problems 1. Perception about Product being Inferior or Mfr. Being unreliable 2. Deception by Manufacutures -Jacked up Prices on Discount 3. Short Term Result. Sales revert to previous levels on withdrawal of promotions 4. Dilutes Brand Image 5. Attract Deal Prone Customers who keep switching between brands 6. Imitative-other compttrs also resort to the same.

26. Public Relations & Publicity Public Relations -planned & sustained effort to establish and maintain goodwill and mutual understanding between an orgn . and its public Publicity -any paid form of non paid commercially significant news or editorial comment about ideas, products or institutions

27. Tools for PR Campaign 1. Print, Radio & TV-Media-Place stories about company, products and companys senior professionals 2. Media Tour 3. News letters-Regular contact with the Target Group 4. Special Events 5. Sponsorships 6. Opinion Building through website and views 7. Market Monitoring 8. Customer Service & Customer Relationship Marketing

28. Benefits of PR 1. Credibility 2. Low Cost 3. supplements other components of promotion Weaknesses 1 . Limited Control over Media 2. Effectiveness difficult to measure 3. Short Life 4. Not very effective in changing perceptions