PROMOTION Definition Objectives Promotional Mix Promotional Strategies
Background of Promotion • Promotion is one of marketing mix element known as 4 P’s • 4 P’s element : • Product • Place (Distribution) • Price • Promotion
Product • Defined as everything, both favorable and unfavorable that a person receives in an exchange. • Product may be a tangible good such as pair of shoes, or intangible such a service like a haircut or an idea. • What is Information Product?
Price • Is that which is given up in an exchange to acquire a good or service. • Price can relate to anything with perceived value, not just money & called it as “Barter System”. • So price provide value to the customer.
Place (Distribution) • Refer to which marketing channel would you use to distribute the product & services • Use Direct channel / Retailer Channel / Wholesaler Channel / Agent or Broker Channel. • The organization must have the right product at the right time & price to achieve customer satisfaction.
Where promotion play its role in marketing mix ? Intermission……..
Definition:- Promotion • Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit (extract) a response (McDaniel, Lamb & Hair, Introduction to marketing) • The act of informing or reminding consumers about a specific product or a brand (Madura, Jef. Introduction to business)
Objectives • The goals and tasks of promotion can be divided into three: Inform the target audience Persuade the target audience Remind the target audience
Informative promotion • Increasing the awareness of a new brand, product class, or product attribute • Explaining how the product works (e.g Sunsilk Shampoo) • Suggesting new uses for a product (e.g Nescafe + Creamer) • Building a company image (e.g Unilever (Wholesealer)
Persuasive promotion • Encouraging brand switching • Changing customers’ perceptions of product attributes • Influencing customers to buy now • Persuading customers to call VS
Reminder promotion • Reminding consumers that the product may be needed in the near future • Remind of their product in public mind • Reminding consumers where to buy the product • Maintaining consumer awareness
Promotional Mix • Most promotional strategies use several ingredients to reach a target market which is called promotional mix • Promotional mix is the combination of promotional tools used to reach the target market and fulfill the organization’s overall goals
Promotional Mix • There are four promotional mix: • Advertising • Public relations • Sales promotion • Personal selling
Advertising • Nonpersonal sales presentation communicated through media or nonmedia forms to influence a large number of consumers • Impersonal, one-way mass communication about a product or organization that is paid for by a marketer
Advertising • Three types of advertising: • Brand advertising • Comparative advertising (e.g Brand X vs Dynamo • Reminding advertising (e.g TM,PETRONAS) • Institutional advertising - use to safeguard against negative consumer attitudes, enhance company credebility among consumer. (e.g MSU,IKIP,AKPK) • Industry advertising
Advertising Forms of Advertising • Newspapers • Magazines • Radio • Television • Internet • E-mail • Direct mail • Telemarketing • Outdoor ads • Transportation ads • Specialty ads Click Here
Public Relations • Refers to actions taken with the goal of creating or maintaining a favorable public image • Enhance the image of a product or of the firm itself • Publicity is public information about a company, good, or service appearing in the mass media as a news item
Public Relations • Three types of public relations strategies: • Special events • News releases • Press conferences Click Here
Sales Promotion • The set of activities that is intended to influence consumers • Generally, it is a short-run tool used to stimulate immediate increases in demand • Can be an effective means of encouraging consumers to purchase a specific product
Personal Selling • A personal sales presentation used to influence one or more consumers • Steps involve: • Identify the target market • Contact potential customers • Make the sales presentation • Answer questions • Close the sale • Follow up Click Here
PROMOTIONAL STRATEGIES PRODUCT LIFE CYCLE
TUTORIAL • Identify one product & discuss about it Product Life Cycle and identify the suitable promotion mix that you can include in its PLC.
GROUP ASSIGNMENT • Work in 3 – 5 persons in a group, choose one of information agencies such as Museum or Library that available in Malaysia and prepare an assignment on promoting its collections and services. In the report, student needs to include the matter as follows :
Background of information agencies • Target Market • Promotional Objectives • Promotion Methods • One of information products and services • Etc ….
TUTORIAL IMD 202 : CHAPTER 1 DEFINITION PROMOTION OBJECTIVES PRODUCT LIFE CYCLE PROMOTIONAL MIX
DEFINITION Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit (extract) a response OBJECTIVES INFORM PERSUADE REMIND
Informative Promotion Aware Persuasive Promotion Influence Reminder Promotion Public mind
Advertising Public relations PROMOTIONAL MIX Sales Promotion Personal Selling
Advertising • Three types of advertising: • Brand advertising • Comparative advertising • Reminding advertising • Institutional advertising • Industry advertising
Brand Advertising “Non-personal sales presentations about a specific brand”
Brand Advertising Comparative Advertising To persuade customers to purchase a specific product by demonstrating a brand’s superiority by comparing with another competing brands
Brand Advertising Reminding Advertising To remind consumers of a product’s existence
Institutional Advertising “A form of advertising designed to enhance a company’s image rather than a particular product”
Industry Advertising “A form of advertising that touts the benefits of a specific product or service”
FORMS OF ADVERTISING
PUBLIC RELATIONS Press Conference Special Events News Releases
SALES PROMOTION Coupons Rebates Sampling Displays Premiums
PERSONAL SELLING Target Market Contact Sales Presentation Follow up Close the Sale Q & A
Sales increase at decreasing rate Launch Of new product Sales increase at increasing rate Drop in sale Refer to the question I given last lecturing, how you can Include promotional method @ mix in this PLC .
Exercises • Discuss four reasons why public relations is used by marketers. • Define the term of promotional mix. • List down three forms of advertising. • Differentiate between Press Release & Press Conference. • Discuss 6 steps that should followed by salespeople in personal selling. • Identify five common sales promotion strategies.