Product Promotion ApEc 4451
Communication Process • Consider: - Source: who/what will convey info. - Message: factual; emotional (fear, sex appeal, humor). - Receiver. • Communicating effectively; - Sender & receiver must have shared field of experience. - Feedback: from receiver to sender. - Noise: want to reduce extraneous factors.
Major Methods • Personal Selling: direct presentation of product to perspective customer. • Advertising: non-personal paid communication. - TV, radio, print, billboards, internet. - Less mass market; more targeted selling. • Sales promotion: temporary incentives to encourage purchases. • Public relations: to create favorable attitude toward company and its products. • (Publicity): news coverage; can be positive or negative.
Trade-oriented sales promotion • Allowances & discounts. • Cooperative advertising. • Slotting fees.
Consumer-oriented sales promotion • Coupons- paper to electronic. • Premiums. • Deals- short-term price reductions. • Contests- need to do something to win (skill; ability). • Sweepstakes- win purely by chance. • Samples- tasting. • Point-of-purchase display. • Sponsorship of events.
Advantages & Disadvantages • Personal selling: - Permits flexible presentation and gains immediate response. - Costs more than other forms per contact.
Advertising: - Can reach large audience. - Cost in relation to audience. - Control over message. - Considerable waste. - Hard to close sale. - Hard to demonstrate product. - Difficult to measure results.
Sales promotion: - Gains attention & has immediate effect. - Easy for others to imitate or match.
Public Relations: - High degree of believability when done right. - Not as easily controlled as other forms. - Difficult to measure or demonstrate the results.
Hierarchy of Effects Model • Awareness (to inform) • Knowledge • Liking (to persuade) • Preference • Conviction • Adoption (Purchase). • Remind.
Effective Advertising (AIDA) • Gets consumers attention. • Holds her/his interest. • Arouses their desire. • Leads to consumer action to buy.
Packaging • Functional benefits: - Protection. - Convenience. - Storage (shelf life). - Preservation of quality (freshness). - Consumer protection (tamper resistance).
Perceptual benefits: - Perception by the consumer: - Can connote status, economy, quality. - Influenced by color; shape. - Repackaging of existing products.
Communication benefits: - Promotion and advertising at point of purchase decision. - Ingredients. - Nutrition information. - Directions. - Menus.
Packaging Trends • Reduced & recyclable (to reduce environmental impact & cost). • More package sizes – smaller for 1-2 people; also large economy size (Sam’s Club; Costco). • Packaging for convenience.