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Chapter 8

Promotion
Strategy

1. What is Promotion?
Activities that communicate the merits of
the product & persuade one to buy it

Promotion mix, include


Advertising;
Personal Selling;
Sales Promotion; and
Public Relations

1.0 Advertising:
Non-personal presentation & promotion of ideas, goods
Dissemination of mkg info thru the various media (TV, radio,
internet)
To increase & maintain effective demand & help the sale of
goods & services

Purpose of Advertising
Introduce a new product to the market - create awareness
Help to increase sales of existing products (reminder
advertising)
Educate the public on the special feature, characteristic &
importance of products
Create or enhance company goodwill & maintain or
increase public acceptance

1.0 Advertising:
Characteristics of Advertising

Public Presentation
Confers legitimacy of the product

Persuasiveness
Scale of advertisement reflects the sellers size &
popularity

Amplified expressiveness
Opportunity to dramatise the company &its products

Impersonality
Less compelling than salesperson (Less persuasive:
1way comm)

Able to
build up LT image, wide coverage at low cost per
exposure

2. Personal Selling:
Personal presentation by the firms sales force for the
purpose of making sales & building customer
relationships
Face-to-face with customer, a source of direct mkt
feedback on the firms product

Characteristics of Personal Selling


Personal Confrontation - Allows immediate adjustment

Cultivation - Allow cultivation of long term


relationships
Response - Potential customer under some obligation
to respond
Cost - Most expensive contact tool
Able to build up buyers preference, conviction &
action

2. Personal Selling:
Personal selling is effective when a
product:
Complex & technical in nature
(Eg.computer system)
High value (eg. Aircraft, cars..)
Requires demonstration (eg. Cosmetics,
filter, utensils)
Tailor made to the customers requirement
(eg. Insurance policy)

3. Sales Promotion:
Short-term incentives to encourage purchase or
sales of a product or services
Rapid Growth of Sales Promotion
Targeted toward consumer, business & trade
promotions
Several factors contributed to the rapid growth:
Pressures to increase sales;
Competition & competing brand;
Advertising efficiency declines, due to rising
costs &legal restraints;
Consumers are more deal-oriented, retailers are
more demanding

3.0 Sales Promotion


(cont):

Selecting Sales-Promotion Tools


Consumer-Promotion Tools

Samples
A small amount of products for trial

Coupons
Certificate that gives buyers a saving when they purchase
a product
Stimulate sales of a mature brand/promote early trial of
new brand

Refund
Offer to refund part of the purchase price of a product
Send a proof of purchase to the manufacturer, then get
a refund

3.0 Sales Promotion


(cont):
Price Packs
Reduced price that is marked by the producer directly on the
label
Can be single packages or two related products banded
together

Premiums
Goods offered either free or at low cost as an incentive to buy
Eg. Collect points, free products (in/out-pack)

Patronage rewards
Cash or other award for the regular use of a certain product
Eg. Airlines, 10 buys 1 free

Contests, Sweeptakes, & games


Give consumers chance to win prizes, cash,...
Eg. Sweepstakes & game - missing letters...

3.0 Sales Promotion (cont):


Trade-Promotion Tools

Persuade one to carry & promote a brand, give shelf


space
Discount
A straight reduction in price on purchase
during a stated period of time

Allowance
Money paid for an agreement to feature the
manufacturers product.

Eg. Free goods, push money, & specialty


advertising items..

4.0 Public Relations:


Build good relations with various publics by getting
favorable publicity, good image, & handling rumours.
Press Relations
Place info in news media to attract
attention
Product Publicity
Publicising specific products
Public Affairs
Build & maintain national or local
community relations

4.0 Public Relations:


Lobbying
Build relations with govrnmt officials to influence
legislation
Investor Relations
Keep relations with shareholders in financial
community

Tools
News; speeches; special events (fireworks show),
audiovisual
Corporate identity materials
E.g. biz card, uniforms, company cars, stationery
Public service activities