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PROMOTIONAL MIX

Marketing Mix

4Ps (Seller) 4Cs (Customer)


Product Customer Need
Price Customer Cost
Place convenience
Promotion Communication

What is Product all about (Product)


Promotion How much Cost Customer has to Pay (Price)
From Where Customer can get (Place)
Marketing Mix

4Ps (Seller) 4Cs (Customer)


Product Meet Customer Need
Price Economical Customer Cost
Place Convenient Convenience
Promotion Effective Communication
PROMOTION
DEFINITION :-
Promotion involves disseminating information
about a product, product line, brand, or
company. It is one of the four key aspects of the
marketing mix. (The other three elements are
product marketing, pricing, and distribution.)
PROMOTION
Any form of communication a
business or company uses to
inform, persuade, or remind
people about products and to
improve its image

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GOALS AND TASKS OF PROMOTION

Informing Reminding

Target
Audience

Persuading
OBJECTIVES FOR PROMOTION

• PROVIDE INFORMATION.
• BUILD AWARENESS.
• CREATE INTEREST.
• STIMULATE DEMAND.
• TO BUILD FAVORABLE IMAGE.
• REINFORCE THE BRAND.
Steps in Effective Communication

1. Identifying the target audience


2. Determining communication objective (AIDA)
3. Selecting the communication channel ( personal or
non-personal)
4. Designing the message
5. Establishing Communication Budget
6. Evaluating communicator / source effect
7. Establishing the total promotion budget
8. Deciding the promotion mix

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PURPOSES OF PROMOTION

•Convince potential customers to buy


•Explain features/benefits of products
•Tell where products are sold
•Advertise sales on products
•Answer customers’ questions
•Introduce new products
•Create a favorable image of the company or
product

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Push marketing

TAKING THE PRODUCT TO THE CONSUMER


A push strategy uses manufacturer’s sales force, trade
promotion money, or other means to induce intermediaries
to carry, promote, and sell the product to end users.
Primarily aims at benefitting the manufacturer & retailer
through increased sale.
It has slow impact on demand creation- particularly for
consumable and consumer goods
Examples of push strategy
• Trade show promotions to encourage retailer demand
• Direct selling to customers in showrooms or face to
face selling.
• Point of sale displays
• Promotional allowances
• Cooperative advertising
• Contests aimed at trade partners
When to use?
• Customers are easily identifiable
• The product is complex in nature
• Buyers view the purchase as risky
• Product or service is early in life cycle.
• The org. has limited funds for customer
advertising.
PULL STRATEGY
• LET THE CUSTOMER COME TO YOU

• In a pull strategy the manufacturer uses


advertising, promotion, and other forms of
communication to persuade consumers to
demand the product from intermediaries, thus
inducing the intermediaries to order it.
• Example :
Top marketing companies such as coca cola
, skilfully
employ both push and pull strategies.

A push strategy is more effective when


accompanied by a well-designed and well-
executed pull strategy that activates consumer
demand.
EXAMPLES
• Advertising & mass media promotion
• Word of mouth referrals
• Customer relationship management
• Sales promotions & discounts
When to use?

• There is a positive primary demand for the product


category.
• The advertised product can be easily differentiated from
its customers
• The product has such qualities that can be portrayed to
the customers
• There are strong buying motives involved such as
concern for health, beauty , status etc.;
ADVERTISING

The non-personal
presentation of
ideas and products
by an identified
sponsor.

**PAID FOR**
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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

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Objectives of Advertising
To make people aware about the
products & services

To stimulate trial among the customers

To promote the sales of the company &


maintaining brand identity
To remind & reinforce the decision that
customers have taken
NATURE(characteristics ) OF ADVERTISING
• Impersonal & paid form.
• Helps in promotion of goods & services.
• An identified sponsor
• Uses the mass media
• Feedback is not quick
• Target oriented.
• Both an Art & Science.
• Vital element in marketing mix.
• Creativity- the spirit of advertising.
Functions of Advertising
• To create awareness for your product & service.
• To create a preference for a product.
• To create interest in the product.
• To remind customers about the goods & services
of a company.
• To help promote the sales.
• To create an image in the customers mind.
• Communicating a change in the existing product
line..
• Introduction of a new product or service
Benefits of Advertising- To Manufacturer

• Created demand.
• Helps in launching new products
• Large scale production & marketing.
• Helps in effective personal selling & sales promotion.
• Helps fighting the competition.
• Helps building brand image.
• Goodwill builder
Benefits of Advertising- To Consumers
• Makes the people aware about the products &
services.
• Stimulates trial among the customers.
• Acts as reminder
• Raises living standards.
• Removes misunderstanding.
• Effective product use.
TYPES OF ADVERTISING
A. INFORMATIVE ADVERTISING
 The information about products & services is
provided to customer.
 Suitable for new products.
 Used in Insurance, financial products, new electric
goods, vacuum cleaner.
 Eg: Ujala when it informed that blue is now in
liquid form & assured uniform & consistent results.
B. PERSUASIVE ADVERTISING:
 The emphasis is on the distinct features of
the brand that would persuade the buyers
to switch and buy the products.
Used in Perfumes, cars, electronics, banks.
Eg: whirlpool did persuasive advertising
when it stresses upon distinct feature of
quick ice making
C. REMINDING ADVERTISING:
The customers are reminded about the
products & services that a company is
offering.
Used in Noodles, corn flakes, cold drink.
Eg: thumps up, pepsi, coke ads a month
before summer or vaseline jelly ads or
warmer ads just before start of winters.
4. REINFORCEMENT ADVERTISING:
The customers are given assurance that
they have taken the right decision.
Used in cars (No. 1 in customer
satisfaction), News channel (No. 1 for last
5 years)
Eg: Bajaj did with its chetek – “hamara
bajaj, buland bharat ki bulan aawaz”
MEDIA OF ADVERTISING
The means to transmit the message from the advertiser to
particular class of people.
1. Press Advertising or Print Media
a. Newspaper advertising
b. Magazine Advertising.
2. Radio advertising.
3. Film advertising
4. Television advertising
5. Direct mail advertising
6. Window display
7. Outdoor advertising
8. Internet advertising
Newspaper advertisement
Merits Limitations
Large circulation, a single ad Short life, consumer
can reach large number of contribute insignificant part of
people their day’s time
Continuous ad is possible as Only helpful to reach educated
it is published daily consumers
Provides flexibility, can be Cannot be used for high class
changed promptly color advertisements
Ad are major source of
income thus to consumers
it reach at reduced prices
Magazine advertising
MERITS LIMITATIONS
Read more carefully & costly
at greater leisure. Thus
more effective
Longer life Circulation is small
Colored form creates a To be prepared in
better image and gives advance. Last minute
exact picture which help change not possible.
to identify it better at
point of purchase
Radio Advertising
MERITS DEMERITS
Effective appeal & cover Detailed message cannot be
numerous listeners of different broadcasted
tastes.
Teach illiterate people who People may not remember the
cannot read newspaper & message
magazines
Provides selectivity to some Non visual, less impact
extent
Highly suitable for mass scale Message not properly
consumer goods understood. High switch rate
during commercials or ads.
FILM ADVERTISING
MERITS DEMERITS
Very effective since it Usually ignored by people
comes with spoken words
& visual presentation
Selective advertisement Effectiveness is limited as
only few people are
present in the hall before
the start of film & during
the interval
TELEVISION ADVERTISEMENT
MERITS DEMERITS
Greater effectiveness as Very costly
message is conveyed at
their homes
Selectivity of message Once presented, its back
reference is not possible.
Direct Mail Advertising: booklets, circular
letters, catalogues
MERITS DEMERITS
Personal appeal Coverage limited
Maintains secrecy in advertising. Not possible to get details of all prospects
Competitors do not get information about
advertised material

Gives flexibility(message & receiver) Effectiveness is doubtful

Provide detailed & illustrated information

Most selective medium. Saves money


Window Display
• Goods exhibited in artistically laid out windows.
• Attractive display of goods at point-of-purchase(POP)
• Objective is to draw the attention of public and
arouse interest.
• Creates display of product.
• Act as silent salesman.
• Should be changed frequently to make customers
look everytime
OUTDOOR ADVERTISING
Purpose is to attract the attention of the people
at busy roads & markets.
Poster displays: also known as Mural
advertising (fans, tonics, beauty aids)
Bill board displays
Electrical displays
Vehicular displays
OUTDOOR ADVERTISING
MERITS DEMERITS
Highly flexible, low cost Cant carry long messages
Useful for consumer Low retention value
products
Attracts quick attention & Distracts attention and
requires less time and may cause accidents
effort on the part of the
readers
INTERNET ADVERTISING
MERITS DEMERITS
Not expensive Limited reach
Dramatization of Effectiveness yet to be
message possible established
Interactive media (2-
way communication)
CHOICE OF ADVERTISING MEDIA
1. NATURE OF PRODUCT
• Consumer goods: newspapers, magazines, radio &
television.
• Industrial goods: specialized trade, technical & professional
journals.
2. NATURE OF MARKET
• Depends on geographical region, size of population &
purchasing power.
• Local products: film advertisement,
• National products: newspapers, tv
3. OBJECTIVES OF ADVERTISING:
• Awareness, increase demand, introduction
of new product.
4. COVERAGE OF MEDIA:
• Greater circulation- newspaper
• Selective circulation- radio, film, TV
5. COST CONSIDERATION:
• Amount of funds available and the
circulation of the media.
• Cost benefit analysis
6. TYPE OF AUDIENCE:
• Illiterate or less literate: radio, TV, cinema
• Literate: newspaper, magazines, displays.
7. LIFE OF ADVERTISEMENT:
• outdoor display, magazines & direct mail
have sufficiently longer life.
• Newspaper, radio, TV has very short life
unless repeated regularly.
8. MEDIA USED BY COMPETITORS:
• Same medium as used by competitor.

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