Marketing Promotion and sales

PROMOTION : 

1 PROMOTION Submitted by Jakanathan Syed Mohammad fizan Gopinath Arunagiri Senthil vigneshwaran

PROMOTION : 

2 PROMOTION Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity. The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. The global market place consists of an increasingly complex arena of competitors within a rapidly changing environment. Everything about your product communicates: Price - Place - Product (including packaging) New companies are formed on a daily basis, How can one get people to know about their business so that it can grow?

ADVERTISING : 

3 ADVERTISING "Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor". - Philip Kotler and Armstrong "The means of providing the most persuasive possible selling message to the right prospects at the lowest possible cost". - Institute of Practitioners in Advertising Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is a form of Communication!

Cont., : 

4 Cont., Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.

Objectives : 

5 Objectives Paid non-personal communication through various media. Objective - To inform reader, listener or viewer about Retailer Offerings Prices Services What do you want to achieve and how will you measure it?

Scope and Importance of Advertising : 

6 Scope and Importance of Advertising Advertisements are important for: ▫ products aimed at large markets ▫ products that have easily communicated features ▫ products low in price ▫ products sold through independent channel members and/or are new. Broadcast Ad spending is at an all time high due to heavy competition in the: ▫ Computer industry ▫ Telecommunications Industry ▫ Auto Industry

Nature of Advertising : 

7 Nature of Advertising Used by many types of organizations including Universities, Civic groups and charities, politicians, government, public, private – Manufacturing, Trading & service sectors !! Need to consider the following issues: ▫ Does the product possess unique, important features to focus on Unique Selling Point (USP) ▫ Are the hidden qualities important to the buyers ▫ Is the general demand trend for the product adequate ▫ Is the market potential for the product adequate ▫ Is the competitive environment favorable ▫ Is the organization able and willing to spend the required money to launch an advertising campaign

BENEFITS OF ADVERTISING : 

8 BENEFITS OF ADVERTISING Advertisements create awareness, interest and desire for products and services in customers to buy them. Advertising is cost efficient as advertisements can reach a vast number of audiences simultaneously. The message can be repeated several times It helps in boosting the sales of the company.  It supports the activities of the distribution network of the firm by creating demand and encouraging purchase through pull strategy. It helps in making the job of the sales force easier, by crating awareness among potential customers. Advertisements also help in building a strong image of a product or brand, apart from increasing its sales.

DAGMAR : 

9 DAGMAR DAGMAR was put forward by Russell H. Colley in his book titled “ Defining Advertising Goals for Measured Advertising Results “ in 1961 under the sponsorship of Association of National Advertisers. The term DAGMAR corresponds with the abbreviation of the title . DAGMAR views advertising has to perform a Communication task and not a Sales task, therefore advertising goal should be separate and specific, should be written, a defined audience and a specific time period.

Cont., : 

10 Cont., In the DAGMAR approach, the communication task is based on a specific model of the communication process which is also referred to as Hierarchy of Effects Model Hierarchy of Effects Model

The Five M’s of Advertising : 

11 The Five M’s of Advertising

Major Decisions in Advertising : 

12 Major Decisions in Advertising

DEVELOPING AN ADVERTISING PROGRAM : 

13 DEVELOPING AN ADVERTISING PROGRAM There are five main stages in a well-managed advertising campaign. From companies point of view : Steps involved in an advertisement program can be classified as, (a) Identifying the target audience (b) Specifying advertising objectives (c) Setting the advertising budget (d) Developing the advertising message (e) Selecting the right media (f) Scheduling the advertisement and (g) Measuring advertising effectiveness.

Identifying the target audience : 

14 Identifying the target audience Identify the Target Audience : Marketers must gather information on the geographic location, demographic variables (like age, sex, education, income level etc.) and consumer attitude towards the company products and competitor products. Local or Global audiences – Mass or niche Market For instance, an advertisement of Amrutanjan pain balm is targeted at the mass market, while the advertisement of Mercedes Benz is targeted at a niche market of status conscious, high income group customers.

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15 For Local Audience

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16 For Global Audiences

Specifying advertising objectives : 

17 Specifying advertising objectives “The objective of an advertising campaign is to achieve a specific communication task for a specific target audience during a specified period of time.” The objective should be laid down in clear, precise and measurable terms. An advertising campaign can have different objectives and they are: Inform - Persuade - Remind

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Setting the advertising budget : 

19 Setting the advertising budget It is influenced by various factors like the type of products advertised, the size of the market, the geographic distribution of customers within the market and the sales volume as compared to the competitor's sales volume. Some common methods followed by firms are , (1) Objective and task method (2) Percentage of sales method (3) Affordability method and (4) Competitive parity method.  Depends on affordability Keep in mind that budget could have a direct effect on results.

Developing the advertising message : 

20 Developing the advertising message A successful advertising message should have the following characteristics : Creditable - Meaningful - Distinctive – Believable – Achievable – Creative – Noticeable - Relevant Approaches to creating advertising messages : Comparative advertising Inoculate advertising Refutation advertising Emotional advertising  Message Structure One side - Two side

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Selecting the right media : 

23 Selecting the right media Who should be reached? Where are they located? Which media is appropriate? When do we run the advertising campaign?  You have a wide choice of media vehicles each with it’s own advantages and shortcomings. Media analysis "An investigation into the relative effectiveness and the relative costs of using the various advertising media in an advertising campaign"

Cont., : 

24 Cont., A useful distinction can be made between “published media” and “visual/aural media”. Published or print media include: National daily newspapers Sunday newspapers Local and regional newspapers Consumer magazines Specialist magazines Trade and professional press Internet Visual and aural media include: Television (terrestrial and digital) Radio Cinema Billboards (Out door) Transport Direct mailing

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Profile of major advertising mediums : 

26 Profile of major advertising mediums

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Scheduling the advertisement : 

37 Scheduling the advertisement The firm can vary the advertising to follow the seasonal pattern, to oppose the seasonal pattern, or to be same for the year. Scheduling pattern : Continuity – scheduling Ads evenly within the given period. Pulsing - scheduling Ads unevenly over a given time. Thus 52-Ads, could either be scheduled at 1/week during the year or pulsed in several Burst.

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38 seasonal

Measuring advertising effectiveness : 

39 Measuring advertising effectiveness Advertising program should evaluate both communication effects and sales effects of advertisement, regularly. Communication effects – Can be measured by Copy testing, it is taken before and after the Advertisement. Before - change of attitude of consumers. After - Product awareness, preferences of consumers. Sales effects are calculated by comparing past sales (with past AD expenditure) or by testing the effects of different advertising spending levels ex. Coca cola

DEVELOPING AN ADVERTISING PROGRAM : 

40 DEVELOPING AN ADVERTISING PROGRAM • From recipient point of view a) Exposure b) Processing by the recipient c) Communication effect (The recipient forms an opinion about a brand) d) Target Audience Action (An action of trial, purchase, etc. by the buyer) e) Sales/market share f) Profit

Categories of Advertising : 

41 Categories of Advertising Public Awareness Advertising Product Advertising- 3 Types Consumer Advertising Industrial Product Advertising Service Advertising Corporate Advertising Public Relation Advertising Public Service Advertising Financial Advertising Global Advertising Internationalizing of Advertising Institutional Advertising Cause Advertising Celebrity Advertising Cause Advertising

Public Awareness Advertising : 

42 Public Awareness Advertising Public Awareness Advertising

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43 Pioneering – Product AD

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44 Competitive - product AD

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45 Comparative - product AD

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46 Industrial Product Advertising

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47 Consumer Advertising

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48 Corporate Advertising

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49 Institutional Advertising

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50 Public Relational Advertising

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51 Service Advertising

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52 Financial Advertising

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53 Competitive Advertising

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54 Global Advertisement

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55 Internationalizing Advertising

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56 Celebrity Advertising

Sales promotion : 

57 Sales promotion Short term incentives to encourage the purchase or sale of a product or service. Sales promotion include tools for consumer promotion, trade promotion and business and sales force promotion. Now ,it is part of the Marketing spend of all companies and these days SP spends in many companies exceed that of the advertisements spends.

Objectives : 

58 Objectives Speeding the sales process and increasing the sales volume. Building product awareness. Creating interest. Providing information. Reinforcing the brand.

Tools of sales promotion : 

59 Tools of sales promotion Consumer promotion tools Trade promotion tools Business promotion tools

Consumer promotion tools : 

60 Consumer promotion tools Coupon certificate that gives buyers a saving when they purchase a specified product. Sample A small amount of a product offer to customers for trial. Cash refund offer (rebate) Offer to refund the part of the purchase price of the product to consume send a “ proof of purchase “ to the manufacturer. Price pack (cents – off - deal) Reduced price that is marked by the producer directly on the label or package.

Cont., : 

61 Cont., Advertising capacity Useful article imprinted with an advertiser’s name, given as a gift to consumers. Patronage reward Cash or other award for the regular use of certain company’s products or services. Point – of – purchase (POP) promotion Display and the demonstration that takes place at the point of purchase or sale. Contents, Sweepstakes, Games Promotional events that give the consumer the chance to win something – such as cash, trips or goods – by luck or through extra effort. Premium Good offered either free or at low cost as an incentive to buy a product.

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62 coupon

Trade promotion tools : 

63 Trade promotion tools Discount A straight reduction in price on purchases during a stated period of time. Allowance Promotional money paid by manufacturers to retails in return for an agreement to feature the manufacturer’s product in some way.

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Business promotion tools : 

65 Business promotion tools Companies spend billions of dollars each year on promotion to customers. This tool is used to generate business leads, stimulate purchases, reward customers and motivate sales people. Many companies and trade associations organize the conventions and trade shows to promote their product.

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66 Ftv show

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Uses of sales promotion : 

68 Uses of sales promotion Immediate purchases Increase trial Boost consumer inventory Encourage repurchase Encourage brand switching Encourage brand loyalty

Direct marketing : 

69 Direct marketing Direct marketing Direct marketing creates a direct relationship between the customer and the business on an individual basis. Many forms: Telephone marketing, direct mail, online marketing, etc. Four distinctive characteristics: – Nonpublic – Immediate – Customized – Interactive • Well-suited to highly targeted marketing efforts

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Public Relationship : 

71 Public Relationship “The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics”. Highly credible Many forms: news stories, news features, events and sponsorships, etc. Reaches many prospects missed via other forms of promotion

Public relations techniques : 

72 Public relations techniques There are many techniques available to influence public opinion, some of which are more appropriate in certain circumstances than others: Consumer communication Customer press releases Trade press releases Promotional videos Consumer exhibitions Competitions and prizes Product launch events Celebrity endorsements Web sites Business communication Corporate identity design Company and product videos Direct mailings Web site Trade exhibitions Internal & External communication In-house newsletters and magazines Intranet Notice boards Employee conferences Email Company literature (brochures, videos etc.) Community involvement programs Trade, local, national and international media relations Financial communication Financial media relations Annual report and accounts Meetings with stock market analysts, fund managers etc Shareholder meetings (including the annual general meeting)

Personal Selling : 

73 Personal Selling Direct communications between paid representatives and prospects that lead to transactions, customer satisfaction, account development, and profitable relationships. Most effective tool for building buyers’ preferences, convictions, and actions Personal interaction allows for feedback and adjustments Relationship-oriented Buyers are more attentive Sales force represents a long-term commitment Most expensive of the promotional tools (Paid one)

Cont., : 

74 Cont., Steps in Personal Selling Process: - Opening a call - Need Exploration - Presentation - Handling objections - Closing the sale - Follow-up

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Sales management : 

77 Sales management Controlling of personal contact programs designed to achieve the sales and profit objectives of the firm. Responsible of Sales Manager Achieving or exceeding the goals established for performance in the current period Developing the people reporting to them The planning, organizing, and leading

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78 Planning Budgeting Recruiting and selecting Training Motivating Compensating Designing territories Evaluating performance Sales Management Advertising Public Relation Personal Selling Sales Promotion Internet Positions of Personal Selling and Sales Management in the Marketing Mix

THE SALES MANAGEMENT PROCESS : 

79 THE SALES MANAGEMENT PROCESS The formulation of a sales program. The implementation of the sales program. The evaluation and control of the sales program.

THE SALES MANAGEMENT COMPETENCIES : 

80 THE SALES MANAGEMENT COMPETENCIES Strategic Action Competency. Understanding the industry Understanding the organization Taking strategic actions Coaching Competency. Providing verbal feedback Role modeling Building trust Team-Building Competency. Designing teams properly Creating a supportive environment Managing team dynamics appropriately

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81 Cont., Self-Management Competency. • Integrity and ethical conduct • Managing personal drive • Self-awareness and development Global Perspective Competency. Cultural knowledge and sensitivity Global selling program Technology Competency. Understanding the productivity potential of new technology Implementing sales force automation (SFA) Implementing customer relationship management (CRM)

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82 THANK YOU FOR LISTENING