#11 Promotion Flashcards
promotion mix
Advertising
Personal Selling
Sales Promotion
Public Relations
Direct Marketing
Advertising
reach masses of geographically dispersed buyers
Can repeat a message many times, dramatised
Is impersonal, one-way communication.
Can be very costly for some media types.
Sales Promotion
short-term incentives
generate immediate sales
more popular due to more pressure to increase sales, more competition, advertising not efficient, consumer being more deal oriented
Public Relations
building good relations with the firm’s various publics
obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
strongly impact public awareness at a lower cost than advertising
good results
High credibility
Very subtle
Capable of dramatisation
Personal Selling
paid
two-way personal interactive communication, relationship building.
Instantaneous response and importance of body language
Most expensive, Most effective way
Face to face, Telephone, Video conferencing
Direct Marketing
carefully targeted individual consumers
One-on-one communication
direct, immediate, and measurable consumer response
Benefits to Buyers
Convenient., Easy to use., Private. Ready access to products and information,Immediate and interactive.
Benefits to Sellers
Build relationships, Highly Personalised, lowcost, efficient
Eg. Direct Mail, Catalog, Tele, Direct Response Television, Kisok
Promotion Mix Strategies
Push
Producer directs its marketing activities toward channel members to induce them to carry the product and promote it to the final consumers.
Pull
Producer directs its marketing activities toward final consumers to induce them to buy the product.
Factors Determining Promotion Mix Strategies
Type of product/market
Product Life Cycle Stage
Type of product/market
Business to Consumer (B2C) tends to be Pull in the form of advertising, sales promotion, personal selling and then public relations.
Business to Business (B2B) tends to be Push in the form of personal selling, followed
by sales promotion, advertising and then public relations
Product Life Cycle Stage
Introduction ->Create Awareness, Early Trial. Trade to carry product
1. Advertising
2. Sales Promotion
3. Public Relations
4. Personnel Selling
Growth -> maintain awareness, less incentives
1. Advertising
2. Sales promotion (reduced)
3. Public Relations
Maturity -> Increase sales as reminder
1. Advertising (reduced)
2. Sales Promotion
Decline -> Reboost sales as reminder
1. Advertising (minimal)
2. Sales Promotion
Sales Force
a critical link between a company and its customers
represent the company to customers, and
represent customers to the company
Goal: customer satisfaction and company profit
Selling Process
- Prospecting and Qualifying
- Pre-approach (learn about customer)
- Approach (how to meet customer)
- Presentation/ Demonstration (story with benefits)
- Handling Objections
- Closing (customer order)
- Followup (satisfaction & repeat business)
Trend leading to growth of direct marketing
Increased Market Niches & distinct preferences
HIghest Cost of driving, traffic & parking congestion
Consumer Lack of Time
Convenience of ordering from direct marketers
Growth of customer databases
Mass VS 1 to 1 Marketing
Average Consumer Individual Customerd
Customer Anonymity Customer Profile
Standard Product Customized Market Offering
Mass Production Customized Production
Mass Distribution Individualized Distribution
Mass Advertising Individualized Message
Mass Promotion Individualized Incentives
One-Way Message Two-Way Messages
Economies of Scale Economies of Scope
Share of Mind Share of Customer
All Customers Profitable Customers
Customer Attraction Customer Retention
