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Unit1 Promotion Subhajit Sanyal
PROMOTION IS THE ELEMENT IN AN ORGANIZATION’S MARKETING MIX THAT SERVES TO INFORM, PERSUADE, AND REMIND THE MARKET REGARDING THE ORGANIZATION AND/OR ITS PRODUCTS. ,[object Object],[object Object],[object Object]
PROMOTION AND SEGMENTATION ,[object Object],[object Object]
Remember Models of Consumer Buying Behaviour Awareness Interest Evaluation Trial Adoption Mass communication sources - television, press/magazines, radio Mass communication sources - press/ magazines television, radio Personal sources - relatives, friends,  colleagues Personal sources - sales people, relatives friends Personal sources and mass media  communication (for re-assurance).
KEY ELEMENTS OF THE PROMOTION MIX ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Promotional Tools Personal Selling Branding Sales Promotion Public relations Merchandising Direct Marketing Exhibitions Word of Mouth Internal Marketing Corporate Image Packaging Sponsorship Advertising The  Customer
Advertising ,[object Object],[object Object],[object Object],[object Object]
cc Advertising uses Promote products, organisations and causes Stimulate primary and selective demand Offset competitors’ advertising Aid sales personnel Increase uses of a product Remind and reinforce Reduce sales fluctuations Major uses of advertising
Identify and analyse advertising target Define advertising objectives Create advertising platform Determine advertising budget Evaluate advertising effectiveness Execute campaign Create advertising messages Develop  media plan General steps for developing and implementing an advertising campaign
Sponsorship ,[object Object],[object Object],[object Object],[object Object],[object Object]
PERSONAL SELLING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Motivating sales force performance through an organised set of activities Sales personnel Organisational climate Sales meetings Financial compensation Sales support systems Perks Incentive programmes
Sales Promotion  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Uses of sales promotion in the marketing channel (Consumer promotion) (Trade promotion) Initiator of promotion Audience for promotion Consumer: Coupons, free samples, demonstrations, competitions Trade (at wholesalers, retailers, salespeople): Sales competitions, free merchandise, P.O.S. displays, plus trade shows and conferences (Sales force promotion) (Retail promotion) SOURCE: John Rossiter and Larry Percy, Advertising and Promotion Management. Copyright   1987 by McGraw-Hill, Inc. Used with permission of The McGraw-Hill Companies. Manufacturer Sales force Distributor Consumer
Types of Direct Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Direct mail ,[object Object],[object Object],[object Object],[object Object],[object Object]
Public Relations ,[object Object],[object Object],[object Object]
The tools of Public Relations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Role of Marketing Communication ,[object Object],[object Object],[object Object],[object Object]
Marketing  Communications  Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sales Force –  (Face to Face Selling) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sales Promotions / Point-of-Sale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Public Relations ,[object Object],[object Object],[object Object]
Direct Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Integrated Marketing Communication ,[object Object],[object Object]
Types of Media ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
P ROMOTION IS COMMUNICATION, AS SUCH IT HAS FOUR BASIC ELEMENTS: ,[object Object],[object Object],[object Object],[object Object],A ND SEVERAL IMPORTANT COMPONENTS: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Components of the Linear Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MESSAGE  CHANNEL Select the media or other vehicle to carry the message DECODING THE MESSAGE Receiver compares message to frame of reference MESSAGE  AS RECEIVED Knowledge, beliefs, or feelings of receiver changed RESPONSE Ranges from simple  awareness to purchase FEEDBACK Impact measured using research, sales, or another measure ENCODING THE MESSAGE Create an ad, display, or sales presentation MESSAGE AS INTENDED A promotional idea in marketer’s mind NOISE Competing ads, other  distractions
Source Coded message Medium of transmission Decoded message Receiver or audience NOISE NOISE Feedback Figure 16.2 The communication process
What is Communication ? SENDER MESSAGE RECEIVER ENCODE DECODE FEEDBACK n  o  i  s  e
The Marketing Communications Process Sender Encoding NOISE Message Media FEEDBACK Decoding Receiver
I NSIGHTS FROM A COMMUNICATIONS PERSPECTIVE INCLUDE: ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],W ORD OF MOUTH IS A SPECIAL FORM OF COMMERCIAL COMMUNICATION
P ROMOTION IS NECESSARY IN A FREE MARKET ECONOMY BECAUSE OF: ,[object Object],[object Object],[object Object]
IN ECONOMIC TERMS, THE PURPOSE OF PROMOTION IS TO CHANGE THE  LOCATION  AND  SHAPE  OF THE DEMAND CURVE FOR A COMPANY’S PRODUCT.  IT CAN: ,[object Object],[object Object]
Price Price Quantity Quantity Demand goal with promotion Demand  without promotion a. A shift in the demand curve to the right. b. Changing the shape (or elasticity) of the demand curve. Demand goal with promotion Demand  without promotion
FOUR FACTORS SHOULD BE TAKEN INTO ACCOUNT WHEN DETERMINING THE PROMOTIONAL MIX : ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A BASIC DECISION IS THE CHOICE OF A PUSH OR PULL STRATEGY. ,[object Object],[object Object]
Producer Wholesaler Retailer Consumer Producer Wholesaler Retailer Consumer PUSH STRATEGY PULL STRATEGY Product flow Promotion effort
A CAMPAIGN IS A COORDINATED SERIES OF PROMOTIONAL EFFORTS BUILT AROUND A SINGLE THEME AND DESIGNED TO REACH A PREDETERMINED GOAL. ,[object Object],[object Object],[object Object]
THERE ARE FOUR METHODS OF DETERMINING THE BUDGET FOR PROMOTION ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Unit1 marketing mix promotion

  • 2.
  • 3.
  • 4. Remember Models of Consumer Buying Behaviour Awareness Interest Evaluation Trial Adoption Mass communication sources - television, press/magazines, radio Mass communication sources - press/ magazines television, radio Personal sources - relatives, friends, colleagues Personal sources - sales people, relatives friends Personal sources and mass media communication (for re-assurance).
  • 5.
  • 6. Promotional Tools Personal Selling Branding Sales Promotion Public relations Merchandising Direct Marketing Exhibitions Word of Mouth Internal Marketing Corporate Image Packaging Sponsorship Advertising The Customer
  • 7.
  • 8. cc Advertising uses Promote products, organisations and causes Stimulate primary and selective demand Offset competitors’ advertising Aid sales personnel Increase uses of a product Remind and reinforce Reduce sales fluctuations Major uses of advertising
  • 9. Identify and analyse advertising target Define advertising objectives Create advertising platform Determine advertising budget Evaluate advertising effectiveness Execute campaign Create advertising messages Develop media plan General steps for developing and implementing an advertising campaign
  • 10.
  • 11.
  • 12. Motivating sales force performance through an organised set of activities Sales personnel Organisational climate Sales meetings Financial compensation Sales support systems Perks Incentive programmes
  • 13.
  • 14. Uses of sales promotion in the marketing channel (Consumer promotion) (Trade promotion) Initiator of promotion Audience for promotion Consumer: Coupons, free samples, demonstrations, competitions Trade (at wholesalers, retailers, salespeople): Sales competitions, free merchandise, P.O.S. displays, plus trade shows and conferences (Sales force promotion) (Retail promotion) SOURCE: John Rossiter and Larry Percy, Advertising and Promotion Management. Copyright  1987 by McGraw-Hill, Inc. Used with permission of The McGraw-Hill Companies. Manufacturer Sales force Distributor Consumer
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. MESSAGE CHANNEL Select the media or other vehicle to carry the message DECODING THE MESSAGE Receiver compares message to frame of reference MESSAGE AS RECEIVED Knowledge, beliefs, or feelings of receiver changed RESPONSE Ranges from simple awareness to purchase FEEDBACK Impact measured using research, sales, or another measure ENCODING THE MESSAGE Create an ad, display, or sales presentation MESSAGE AS INTENDED A promotional idea in marketer’s mind NOISE Competing ads, other distractions
  • 30. Source Coded message Medium of transmission Decoded message Receiver or audience NOISE NOISE Feedback Figure 16.2 The communication process
  • 31. What is Communication ? SENDER MESSAGE RECEIVER ENCODE DECODE FEEDBACK n o i s e
  • 32. The Marketing Communications Process Sender Encoding NOISE Message Media FEEDBACK Decoding Receiver
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. Price Price Quantity Quantity Demand goal with promotion Demand without promotion a. A shift in the demand curve to the right. b. Changing the shape (or elasticity) of the demand curve. Demand goal with promotion Demand without promotion
  • 38.
  • 39.
  • 40. Producer Wholesaler Retailer Consumer Producer Wholesaler Retailer Consumer PUSH STRATEGY PULL STRATEGY Product flow Promotion effort
  • 41.
  • 42.

Editor's Notes

  1. 9 9 9 9 7
  2. 10 10 10 10 8
  3. 15 15 15
  4. 19 19 19
  5. 2 2 2 2 2