PROMOTION - PowerPoint PPT Presentation

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  1. PROMOTION Definition Objectives Promotional Mix Promotional Strategies

  2. Background of Promotion • Promotion is one of marketing mix element known as 4 P’s • 4 P’s element : • Product • Place (Distribution) • Price • Promotion

  3. 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?

  4. 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.

  5. 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.

  6. Where promotion play its role in marketing mix ? Intermission……..

  7. 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)

  8. Objectives • The goals and tasks of promotion can be divided into three: Inform the target audience Persuade the target audience Remind the target audience

  9. 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)

  10. Persuasive promotion • Encouraging brand switching • Changing customers’ perceptions of product attributes • Influencing customers to buy now • Persuading customers to call VS

  11. 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

  12. 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

  13. Promotional Mix • There are four promotional mix: • Advertising • Public relations • Sales promotion • Personal selling

  14. 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

  15. 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

  16. Advertising Forms of Advertising • Newspapers • Magazines • Radio • Television • Internet • E-mail • Direct mail • Telemarketing • Outdoor ads • Transportation ads • Specialty ads Click Here

  17. 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

  18. Public Relations • Three types of public relations strategies: • Special events • News releases • Press conferences Click Here

  19. 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

  20. Sales Promotion

  21. 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


  23. TUTORIAL • Identify one product & discuss about it Product Life Cycle and identify the suitable promotion mix that you can include in its PLC.

  24. 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 :

  25. Background of information agencies • Target Market • Promotional Objectives • Promotion Methods • One of information products and services • Etc ….



  28. 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

  29. Informative Promotion Aware Persuasive Promotion Influence Reminder Promotion Public mind

  30. Advertising Public relations PROMOTIONAL MIX Sales Promotion Personal Selling

  31. Advertising • Three types of advertising: • Brand advertising • Comparative advertising • Reminding advertising • Institutional advertising • Industry advertising

  32. Brand Advertising “Non-personal sales presentations about a specific brand”

  33. Brand Advertising Comparative Advertising To persuade customers to purchase a specific product by demonstrating a brand’s superiority by comparing with another competing brands

  34. Brand Advertising Reminding Advertising To remind consumers of a product’s existence

  35. Institutional Advertising “A form of advertising designed to enhance a company’s image rather than a particular product”

  36. Industry Advertising “A form of advertising that touts the benefits of a specific product or service”


  38. PUBLIC RELATIONS Press Conference Special Events News Releases

  39. SALES PROMOTION Coupons Rebates Sampling Displays Premiums

  40. PERSONAL SELLING Target Market Contact Sales Presentation Follow up Close the Sale Q & A

  41. 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 .

  42. 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.