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AMITY SCHOOL OF BUSINESS BBA , II Sem PRINCIPLES OF MARKETING II Ruchika Jeswal

AMITY SCHOOL OF BUSINESS BBA , II Sem PRINCIPLES OF MARKETING II Ruchika Jeswal. What is Promotion Mix?. The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.

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AMITY SCHOOL OF BUSINESS BBA , II Sem PRINCIPLES OF MARKETING II Ruchika Jeswal

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  1. AMITY SCHOOL OF BUSINESSBBA, II SemPRINCIPLES OF MARKETING IIRuchika Jeswal

  2. What is Promotion Mix? The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. It consists of a specific blend of advertising, public relations, personal selling, sales promotion and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships.

  3. Definitions of the five major promotion tools are as follows: Advertising – Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. Sales Promotion- Short-term incentives to encourage the purchase or sale of a product or service. Personal Selling- Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Public relations-Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events . Direct Marketing- Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships- the use of direct mail, the telephone, direct- response television, e-mail, the internet, and other tools to communicate directly with specific customers.

  4. Integrated Marketing Communications • Carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.

  5. Steps in Developing Effective Marketing Communication • Identifying the Target Audience. • Determining the Communication Objectives. • Designing a message- Message content, Message Structure, Message Format. • Choosing Media • Selecting the message source. • Collecting Feedback.

  6. Setting the Total Promotion Budget • Four common methods used to set the total budget for advertising: 1)The affordable method. 2) Percentage-of –sales method. 3) Competitive-Parity method. 4) Objective-and- task method.

  7. Shaping the overall Promotion Mix • The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix. • Companies within the same industry differ greatly in their designs of promotion mixes.

  8. The nature of each Promotion Tools. • Advertising- Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times. • Personal Selling- It is the most effective tool at certain stages of the buying process, particularly in building up buyer’s preference, convictions and actions.

  9. The nature of each Promotion Tools(contd) • Sales Promotion- It includes a wide assortment of tools- coupons, contests, cents-off deals, premiums, and others- all of which have many unique qualities. • Public Relations- It is very believable- news stories, features, sponsorships, and events more real and believable to readers than ads do. • Direct Marketing- It is less public. Normally directed to a specific person. It is immediate and customized. It is interactive. It allows a dialogue between the marketing team and the consumer, and messages can be altered depending on the consumer’s response.

  10. Promotion Mix Strategies • Marketers can choose from two basic promotion strategies: • Push Strategy- It involves pushing the product through marketing channels to final consumers. • Pull Strategy- The producer directs its marketing activities towards final consumers to induce them to buy the product.

  11. Integrating the Promotion Mix • Start with customers. • Analyze trends- Internal and external. • Audit the pockets of communications spending throughout the organization. • Team up in communications planning. • Create compatible themes, tones and quality across all communications media. • Create performance measures that are shared by all communications elements. • Appoint a director responsible for the company’s persuasive communications efforts.

  12. ADVERTISING • Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. • Four important decisions when developing an advertisement program: • Setting advertising objectives • Setting the advertising budget • Developing advertising strategy(message decisions and media decisions) • Evaluating advertising campaign

  13. Possible advertising Objectives: • Informative Advertising • Persuasive Advertising • Reminder Advertising

  14. PUBLIC RELATIONS • Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable stories, rumors and events. • Functions performed: • Press relations-creating newsworthy information in the news. • Product publicity- Publicizing specific products. • Lobbying- Building and maintaining national or local community relations. • Investor relations- Maintaining relationships with shareholders and others in the financial community. • Development- Public relations with donors or members of non-profit organization to gain financial or volunteer support.

  15. Major PR Tools • NEWS • SPEECHES • SPECIAL EVENTS • WRITTEN MATERIALS • AUDIO-VISUAL MATERIALS • CORPORATE IDENTITY MATERIALS • PUBLIC SERVICE ACTIVITIES • BUZZ MARKETING

  16. PERSONAL SELLING • Personal presentation by the firms sales force for the purpose of making sales and build customer relationships. • Salesperson- An individual representing a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing. Information gathering and relationship building.

  17. Role of sales force • PS is an interpersonal arm of promotion mix. • It involves interpersonal interaction between salespeople and individual customers. • It can be more effective than advertising in more complex situations. • They can learn more about the people and adjust the marketing offering and presentation to fit the needs of each customer.

  18. SALES PROMOTION • It consists of short-term incentives to encourage the purchase or sales of a product or service. • E.g.Sunday newspaper carrying an insert offering a coupon of Rs 20 off on Bournvita. • Sony laptop with a free case. • Zen Estillo with a discount of Rs 30,000.

  19. Sales promotion tools are used by most organizations, including manufacturers, distributors, retailers, and not-for-profit organizations. They may be targeted to any of the following: • Consumer promotions: final buyers • Trade wholesalers: retailers and wholesalers • Business customers: business promotions • Sales force promotions: sales force.

  20. Major Sales Promotion Tools • Consumer Promotions- Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships. • Samples • Coupons • Cash refunds • Price packs • Premiums • Promotional products • Point-of-purchase promotions • Contests, sweepstakes and games • event marketing

  21. Trade promotions-Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. • Manufacturers offer an allowance, offer free goods, offer push money, free specialty advertising items. • Business Promotions- Sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate sales people. • It includes many of the same tools used for consumer or trade promotions. • Some additional include – conventions and trade shows and sales contests.

  22. DIRECT MARKETING • Connecting directly with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. • Direct Marketing is the fastest growing form of marketing.

  23. Forms of Direct Marketing • Direct mail marketing • Catalog Marketing • Telephone Marketing • Direct response Television Marketing • Kiosk Marketing • mobile phone marketing/ podcasts and vodcasts /interactive TV(ITV)

  24. Growth and benefits of direct marketing • Benefits to Buyers: • Convenient , easy and private • Ready access to a wealth of products. • Wealth of comparative information about companies, products, and competitors. • Interactive and immediate.

  25. Benefits to sellers: • Helps building customer relationships. • Offers sellers an easy, low cost, efficient, speedy alternative for reaching their markets. • Results in lower costs, improved efficiencies, and speedier handling of channel and logistics functions. • Allows greater flexibility. • Gives sellers access to buyers that they could not reach through other channels.

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