Sales & MarketingSession 3

Kay Geronikos (Business & Finance Faculty)

Business Studies Teacher

PROMOTION

• Promotion is the element in an organisation’s marketing mix that serves to inform, persuade and remind the market about the organisation and/or its products.

• Promotion is an attempt to influence; whether a particular promotional activity is designed to inform, persuade or remind, the ultimate objective is to influence the recipient’s feelings, beliefs or behaviour.

PROMOTION MIX

• Personal selling—the presentation of a product to a prospective customer by a firm’s sales executive.

• Advertising—paid, non-personal mass communication, in which the sponsor is clearly identified.

• Sales promotion—demand-stimulating activity designed to supplement advertising and co-ordinate personal selling.

PROMOTION MIX• Direct Marketing – direct connections with carefully targeted individual

consumers to both obtain an immediate response and develop long term customer relationships

• Public relations—a planned communication effort by an organisation to contribute to generally favourable attitudes and opinions toward an organisation and its products.

• Sponsorhip – an organisation provides support or funding to an event for the purposes of advertising their brand ot product

THE ROLES OF PROMOTION• Informing

– The most useful product will be a failure if no one knows about it.

• Persuading– Intensive competition exists in the market.

• Reminding– Consumer’s need reminding of product’s availability.

To inform To persuade To remind

CHOOSING THE RIGHT PROMOTION STRATEGY

• Marketers need to consider:– The target market – location, type & how many– The nature of the product – unit value,

customisation & service required– The stage of the product’s life cycle – introduction,

growth, maturity or decline.– Money available for the promotion – budget vs

cost

INTEGRATED MARKETING COMMUNICATIONS

• Integrated Marketing Communications (IMC) is about carefully integrating & coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organisation and its products.

INTEGRATED MARKETING COMMUNICATIONS

• New marketing communications landscape – several factors are changing today’s marketing communications:– Consumers are changing: better informed and

communications empowered – Marketing strategies are changing: marketers are moving

away from mass marketing to focused marketing programs aimed at narrowly defined target groups

– Changes in communications technology: smart phones, satellite, cable TV, internet & social media

INTEGRATED MARKETING COMMUNICATIONS

• The new digital media has given birth to a new marketing communications model

• Although television, magazines, newspapers and other mass media remain very important, their dominance is declining. Eg. Procter and Gamble still spends majority of its budget on mass media, however its digital outlay more than doubled last year – which accounts for 5% of overall advertising spend.

INTEGRATED MARKETING COMMUNICATIONS

INTEGRATED MARKETING COMMUNICATIONS

• Benefits of new marketing communications:– Marketers can reach smaller groups of consumers– More interactive and engaging communications– The choices are now wider such as: cable TV, web videos,

internet catalogs, e-mail, blogs, mobile phone content, online social networks.

Trend for less broadcasting and more narrowcasting

INTEGRATED MARKETING COMMUNICATIONS

Traditional or Digital?

Have your say……….

INTEGRATED MARKETING COMMUNICATIONS

• IMC needs to tie together all the company’s messages and images.– The company’s TV and print ads have the same message,

look & feel as its e-mail and personal selling communications

– Public relations material project the same image as its web site or social network presence

– Different media play unique roles in attracting, informing and persuading consumers & these must be carefully coordinated under the overall IMC.

PROMOTION MIX STRATEGIES

• The ‘PUSH’ marketing communications strategy– using normal promotion efforts to sell the marketing mix to

channel members

• The ‘PULL’ marketing communications strategy– getting customers to ask intermediaries for the product, usually

because of promotion directed to final consumers or users

• Some combination of the two methods is usually required

PROMOTION MIX STRATEGIES

• Push strategy• Producer creates demand for product.• Aims promotional activity to channel

member(s).• Each channel member promotes to next

channel member.• Demand ‘pushed’ down distribution channel.• Consumer influenced by retailer’s advertising.

PROMOTION MIX STRATEGIES

Pull strategy• Producer creates demand for product.• Aims promotional activity directly at end user.• Consumer demands product from retailer.• Demand ‘pulled’ up the distribution channel.

PUSH VS PULL STRATEGY

PROMOTION MIX STRATEGIES

CASE STUDY

• Watch the DVD on Specialised Marketing Services

• Provides a consolidation on IMC