Promotion Management By P.Muralidhar B.Com-Logistics

1. Promotion Management By P.Muralidhar B.Com-Logistics

2. What is a 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.

3. The promotional 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.

4. The promotional mix (cont.) • Sales promotion:demand-stimulating activity designed to supplement advertising and co-ordinate personal selling. • Publicity:a non-paid form of advertising that uses mass communication to stimulate demand.

5. The Promotional Mix • Public relations:a planned communication effort by an organisation to contribute to generally favourable attitudes and opinions toward an organisation and its products.

6. Choosing the right form of promotion • Marketers need to consider: • The target market. • The nature of the product. • The stage of the product’s life cycle. • Money available for the promotion.

7. Reaching the target market • Marketers need to identify whom they are trying to influence. • Determine customer’s readiness to buy. • Awareness • Knowledge • Liking • Preference • Conviction • Purchase

8. Nature of the product • Unit value of the product. • Amount of product customisation. • Amount of pre-sale and post-sale service required.

9. Push vs pull strategy • Push Strategy • Producer creates demand for product. • Aims promotional activity to channel member(s) • Each channel member promotes to next channel member • Demand ‘pushed’ downdistribution channel. • Consumer influenced by retailer’s advertising.

10. Push vs pull strategy (cont.) • Pull Strategy • Producer creates demand for product • Aims promotional activity directly at the consumer • Consumer demands product from retailer • Demand ‘pulled’ upthe distribution channel.

11. Push vs pull strategy (cont.) PUSH STRATEGY Wholesaler Consumer Retailer Producer PULL STRATEGY Wholesaler Retailer Consumer Producer Product flow Promotion effort

12. The promotional budget Did I spend too much? • Percentage of sales method • Company may determine past or anticipated sales and apply a percentage of sales as the promotional budget. • All available funds • Company uses all available funds on the promotional campaign .

13. The promotional budget (cont.) • Matching the competition (also known as competitive parity). • Promotional expenditure based on market share of competitors, or actual expenditure if known. • Task or objective method • Determine what tasks or objectives the promotion must accomplish. • Determine what it will cost to perform the task or meet objective.

14. Skills of the sales person • A good sales person requires various attributes: • Time management. • Organising ability. • Consulting skills. • Communication skills. • Problem-solving skills. • Credibility (also a positive attitude).

15. Managing the sales team • Recruitment and selection • Decide who the right person is for the job and what attributes and qualifications they should have. • Choose the right people • Various methods used are interview, references, psychological and aptitude tests, also physical examinations.

16. Managing the sales team (cont.) • The induction • A method used to familiarise a new employee with their new working environment. • The training • Determine who should train new sales person. • A training program should be developed to meet company objectives which outline philosophy, company and product overview.

17. Managing the sales team (cont.) • Sales people need: • Coaching • Spending time with a sales person to observe and assist with their work practice, outcomes and to develop knowledge and skills. • Motivation • Managers should find out what motivates an individual. • These include financial and non-financial rewards.

18. Compensation • There are various forms of compensation: • Straight salary. • Straight commission. • A third from of compensation used in business is a combination of both methods. This is used to motivate sales team members with financial incentives.

19. Types of advertising • Consumer versus business advertising • Emotional and rational vs informational. • Product versus institutional advertising • Focus on particular product or brand and information and goodwill to company. • Primary-demand and selective-demand advertising • Stimulate demand for generic or specific brands

20. Which media should we use? • To Choose the right medium for a promotional message, we need to consider the following. • What do we want our ads to do? • Who are we trying to reach? • What message do we want to communicate? • How much will each medium cost?

21. Media characteristics • Newspapers • Television • Radio • Magazines • Direct Mail • Outdoor advertising • Yellow pages • Internet

22. Did our advertising work? • Here are some of the factors that make it difficult to measure the sales impact of advertising • Ads have different objectives • Ads can have an effect over time • The effects of ads are difficult to measure

23. Methods used to measure effectiveness include • Direct tests: these measure or predict the sales volume stemming from an advertising campaign • Tabulating the number of inquiries from a direct-response campaign • Indirect tests: these measure something other than actual sales (e.g. recall tests)

24. Choosing the rightsales promotion • What are our promotional objectives? • Who is our target market? • Can our product be sampled? • What will it cost to use the right promotional tool? • What is the current economic condition?

25. Managing public relationsand publicity • P.R. can be achieved by: • Supporting charitable projects • Supplying volunteers or other resources • Participating in community-service events • Sponsorship • Providing information to customers via newsletters.

26. Managing public relationsand publicity (cont.) • Publicity can be achieved by: • structured news-release to the media • co-ordinating personal communication with a group • co-ordinating one-to-one personal communication (lobbying)

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