Marketing- Promotion

Promotion mix
The combination of promotional tools an organization uses
Advertising
impersonal, one-way mass communication about a product or organization that is paid for by a identified sponsor
Target audience
The portion of the whole audience that the speaker most wants to persuade… Market segment
Integrated Marketing Communication
combines all the promotional tools into one comprehensive, unified promotional strategy
Informative advertising
Used when introducing a new product or major change to an existing products
Persuasive advertising
Used when competition increases
The aim is to build selective demand
i.e. to select the company’s product (brand)
Reminder advertising
Keeps consumers thinking about the company’s products. (product position)
Selective attention
1st step to try to get the message into the consumers’ Short Term Memory, then into Long Term Memory
Creative concept
The “big idea” that brings the message to life in a distinctive and memorable way
Execution Style
How to capture the market’s attention
eg. typical user, music, scientific evidence
Reach
the number of people in the target who are exposed to the advertising campaign
Frequency
the number of times the average person in the target market is exposed to the message
Impact
the quality of the message : the ability of the message to impress the audience
Media selection considerations
Media habits of target consumers
Nature of the product
Type of message- urgent news, tech info, etc.
Cost
Media types
Print
T.V.
Radio
Cinema
Outdoor (billboards, posters)
Media selection advantages/ disadvantages
cost, permanence, Impact, reach, repeating, geographic, demographic, regional, clutter, information content, etc
Sales promotion
use of short term incentives/ rewards
Samples
Small amount of product is offered to consumers as a trial.
Coupons
a certificate that allows consumers to discount when they purchase specified products
Price packs
Reduced prices are marked on the packs when a the customer buys it for a limited period of time. (single product packs, 2 for 1, two related products)
Premiums
Goods offered either free at low cost as a reward for buying a product
Advertising specialties
useful articles imprinted with the advertiser’s name, given as a gift to the consumers
Patronage rewards (loyalty programs)
cash or other awards for regular use of a company’s products or services, eg. frequent flyer miles programs, or coffee cards- buy 6 get 1 free.
Contests and games
promotion events that give consumers a chance to win cash, services or goods
P.R.
Public Relations
Public Relations advantages
Obtaining favorable publicity
Building up a good corporate image
Dealing with unfavorable rumors, stories, and events
P.R. Tools
News- Media releases
Information materials- videos, etc.
Corporate identity materials- logo, business cards, buildings, staff uniforms.
Community service
Sponsorship- eg. racing cars with sponsors’ logos
Personal Selling
representative of the product interacts directly with the potential customer, eg. face to face, telephone, P.G.
Sales Process, Prospecting (1)
Identifying potential customers (leads, cold calls)
Sales Process, Pre-approach (2)
Learning as much as possible about the customer and their needs
Sales Process, Presentation (3)
Meet the customer for the first time.
Tell the “product story”, highlighting customer benefits
Sales Process, Handling Objections (4)
Clarify customer uncertainties, discuss customer objections
Sales Process, Closing (5)
Asking for an order or sale
Sales Process, Follow Up (6)
Contact with customer after the sale to ensure customer satisfaction and repeat business.
Direct Marketing
type of advertising directed to a targeted group of prospects
Direct Marketing, Catalogue
Marketing through print, video, or electronic catalogues that are mailed to select customers, made available in stores, or presented online.
Direct Marketing, Telephone
Outbound- telephone contact with customers to sell products
Inbound- toll free numbers to receive orders
Direct Marketing, Mobile Phone
Use of text messages to inform mobile phone users of products and promotions
Direct Marketing, Online Marketing
Company web pages
Banner ads and pop-ups
Email: spam, opt-in services
E Marketing, Pay per click
Cost per click- Every time a web reader clicks on the advertising site
Smart pricing- only pay when sale is achieved, higher rate than Cpc.
E Marketing, Search marketing
Sponsored search: Displays add at the top of search engine results.
Local advertising: Add is listed in online business directories
E Marketing, Affiliate marketing
A company offers an incentive to other websites to have a link to their company’s website.
E Marketing, Offline promotion
A company’s e-presence should be promoted using non-electronic media
eg. business cards, brochures, labels, print media, etc.