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PROMOTION
Promotion-mix
 A promotion mix is a company’s total marketing communications and it
consists of a specific blend of:
• Advertising - Any paid form of non-personal presentation and promotion of
products in the media by an identified.
• Sales Promotions - Providing incentives to target customers or to the
distribution channel to stimulate demand for a product.
• Public Relations (including publicity) – PR refers to planned and sustained
efforts by organizations to create a positive image about the company.
It includes publicity.
• Personal Selling - Face to face interaction with prospective customers for
the purpose of making presentations, answering questions and winning
orders.
• Direct marketing - It is an interactive, database driven marketing
communication process that uses a range of media to motivate a response
from target customers.
• .
Promotional expenses for Q2, 2009-10
What is Advertising?
• Advertising is Any form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.
• Most forceful and visible form of promotion.
• Advertising is used by:
– Business firms,
– Nonprofit organizations,
– Professionals,
– Governments.
Informative Advertising
Build Primary Demand
Persuasive Advertising
Build Selective Demand
Comparison Advertising
Compares One Brand to
Another
Classification on the basis of Advertising Objectives
Reminder Advertising
Keeps Consumers Thinking
About a Product.
Classification of advertising
Classification of advertising
Classification on the basis of media used
• Mass media advertising – TV, Radio, Newspapers etc.
• Outdoor (OOH-Out of Home) advertising - Hoardings, posters,
banners.
• Transit advertising – Bus, Trains etc.
• Interactive advertising – Internet
• Direct advertising – telephone, e mail
• POP advertising
• Cinema advertising
Major Decisions in Advertising
Objectives Setting
Budget Decisions
Message Decisions
Campaign Evaluation
Media Decisions
Advertising Objectives
• Objective can be set on the basis of Specific Communication Task
Purchase
Conviction
Preference
Liking
Interest
Knowledge
Awareness
. Objective can be set on the basis of Sales/Profit to be achieved.
Setting the Advertising Budget
Stage in the Product
Life Cycle
Competition and Clutter
Clutter means noise
Market Share- More budget
if market share is high
Advertising Frequency
High, if repetitions required
Product Differentiation
More budget if there is not
Significant brand difference
Factors in
Setting the
Advertising
Budget
Factors affecting Advertising Budget Methods
Selecting Advertising Media
Step 1. Decide on Reach, Frequency,
and Impact
Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers
Nature of the Product
Type of Message
Cost
Step 3. Selecting Specific Media Vehicles
Specific Media Within a Given Type, i.e. Magazines.
Step 4. Deciding on Media Timing
Scheduling of Advertising Over the Course of a Year
Decision on adv. Message involves deciding on
Deciding Advertising Messages
Deciding on
Message appeal
Functional appeal
Emotional appeal
Deciding on
Massage structure
Message sidedness
Order of presentation
Deciding on Message
execution style
Slice of life
Humour
Lifestyle
Fantasy
Scientific evidence
Testimonial evidence
Advertising Evaluation
Communication Effects
Is the Ad Communicating Well?
Advertising Program Evaluation
Sales Effects
Is the Ad Increasing Sales?
SALES PROMOTION
 Sales promotion refers to short term incentives to customers to
encourage trial & usage and/or sales of a product .
 Sales promotions can be directed at either the customer, sales staff,
or distribution channel members (such as retailers).
• Sales promotions targeted at the consumer are called consumer
sales promotions.
• Sales promotions targeted at retailers and wholesalers are called
trade sales promotions.
Sales Promotion Tools
Consumer-directed
• Samples
• Coupons
• Cash refund offers
• Price packs
• Price-offs
• Premiums
• Prizes (Contests,
Sweepstakes)
• Patronage rewards
• Free trials
Trade-directed
• Price offs
• Allowances
• Free goods

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7 promotion class 2013

  • 2. Promotion-mix  A promotion mix is a company’s total marketing communications and it consists of a specific blend of: • Advertising - Any paid form of non-personal presentation and promotion of products in the media by an identified. • Sales Promotions - Providing incentives to target customers or to the distribution channel to stimulate demand for a product. • Public Relations (including publicity) – PR refers to planned and sustained efforts by organizations to create a positive image about the company. It includes publicity. • Personal Selling - Face to face interaction with prospective customers for the purpose of making presentations, answering questions and winning orders. • Direct marketing - It is an interactive, database driven marketing communication process that uses a range of media to motivate a response from target customers.
  • 3. • . Promotional expenses for Q2, 2009-10
  • 4. What is Advertising? • Advertising is Any form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • Most forceful and visible form of promotion. • Advertising is used by: – Business firms, – Nonprofit organizations, – Professionals, – Governments.
  • 5. Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Comparison Advertising Compares One Brand to Another Classification on the basis of Advertising Objectives Reminder Advertising Keeps Consumers Thinking About a Product. Classification of advertising
  • 6. Classification of advertising Classification on the basis of media used • Mass media advertising – TV, Radio, Newspapers etc. • Outdoor (OOH-Out of Home) advertising - Hoardings, posters, banners. • Transit advertising – Bus, Trains etc. • Interactive advertising – Internet • Direct advertising – telephone, e mail • POP advertising • Cinema advertising
  • 7. Major Decisions in Advertising Objectives Setting Budget Decisions Message Decisions Campaign Evaluation Media Decisions
  • 8. Advertising Objectives • Objective can be set on the basis of Specific Communication Task Purchase Conviction Preference Liking Interest Knowledge Awareness . Objective can be set on the basis of Sales/Profit to be achieved.
  • 9. Setting the Advertising Budget Stage in the Product Life Cycle Competition and Clutter Clutter means noise Market Share- More budget if market share is high Advertising Frequency High, if repetitions required Product Differentiation More budget if there is not Significant brand difference Factors in Setting the Advertising Budget Factors affecting Advertising Budget Methods
  • 10. Selecting Advertising Media Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types Media Habits of Target Consumers Nature of the Product Type of Message Cost Step 3. Selecting Specific Media Vehicles Specific Media Within a Given Type, i.e. Magazines. Step 4. Deciding on Media Timing Scheduling of Advertising Over the Course of a Year
  • 11. Decision on adv. Message involves deciding on Deciding Advertising Messages Deciding on Message appeal Functional appeal Emotional appeal Deciding on Massage structure Message sidedness Order of presentation Deciding on Message execution style Slice of life Humour Lifestyle Fantasy Scientific evidence Testimonial evidence
  • 12. Advertising Evaluation Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales?
  • 13. SALES PROMOTION  Sales promotion refers to short term incentives to customers to encourage trial & usage and/or sales of a product .  Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). • Sales promotions targeted at the consumer are called consumer sales promotions. • Sales promotions targeted at retailers and wholesalers are called trade sales promotions.
  • 14. Sales Promotion Tools Consumer-directed • Samples • Coupons • Cash refund offers • Price packs • Price-offs • Premiums • Prizes (Contests, Sweepstakes) • Patronage rewards • Free trials Trade-directed • Price offs • Allowances • Free goods