promotion topic for imc
Download as PPTX, PDF0 likes944 views
This document discusses various aspects of promotion including definitions, objectives, tools, and methods. It defines promotion as activities that communicate the benefits of a product or service to customers and generate sales. The key tools of promotion discussed are advertising, personal selling, sales promotion, direct marketing, publicity, and public relations. Both conventional methods like brochures and unconventional methods like emotional branding are covered. The document also outlines some advantages and disadvantages of promotions, particularly sales promotions which can increase price sensitivity and forward buying from dealers.
promotion topic for imc
- 1. GURSIMRAN SINGH 15115 RAMANDEEP SINGH NITISH SHAHI SUNIL KAKKAR MANI SINGH ANAND KULLAR 15119 AMITOZ SINGH
- 3. • Promotion is one of the market mix elements or features, and a term used frequently in marketing. • Promotion refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty.
- 5. Promotion cont. • Promotion is also found in the specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. Fundamentally, there are three basic objectives of promotion. These are: • To present information to consumers as well as others. • To increase demand. • To differentiate a product
- 6. • There are different ways to promote a product in different areas of media. • Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts (i.e., coupons), free items, or a contest. This method is used to increase the sales of a given product.
- 7. • The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. • An example of a fully integrated, long-term, and a large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My Coke Rewards is Coke Zone
- 10. • Promotions are also held in physical environments at special events such as concerts, festivals, trade shows, and in the field such as in grocery or department stores. Interactions in the field (i.e., grocery and department stores), allow customers to purchase the brand or product immediately. • The interactions among the brand and the customer are performed by brand ambassadors or promotional models [ that represent the products and brands in physical environments.
- 11. • Brand ambassadors or promotional models are hired by marketing companies that are hired by the brand to represent the product and/or service. Person-to- person interaction, as opposed to media-to-person involvement, establishes connections that add another dimension to promotion. Building a community through promoting goods and services can lead to brand loyalty.
- 13. Social media • Promotional activities to push a brand enabling social media channels to spread content making something viral such as the advertising by Coke using the release of a new bond film creating a huge amount of attention which then gets promoted across all social channels by people spreading the information due to excitement. Social media, as a modern marketing tool, offers opportunities to reach larger audiences in an interactive way. These interactions allow for conversation rather than simply educating the customer. Facebook, Twitter, LinkedIn, Google Plus, Tumbler and Instagram are rated as some of the most popular social networking sites
- 15. • Promotion can be done by different media, namely print media which includes 1. Newspaper and magazines, 2. Electronic media which includes radio and television, 3. Digital media which includes internet, 4. social networking and social media sites and lastly outdoor media which includes banner ads, 5. OOH (out of home). Digital media is a modern way of brands interacting with consumers as it releases news, information and advertising from the technological limits of print and broadcast infrastructures. • Mass communication has lead to modern marketing strategies to continue focusing on brand awareness, large distributions and heavy promotions.
- 17. Importance of promotion • Owners of small and medium-sized businesses need to be keenly aware of the importance of promotional and marketing strategies. Promotional and marketing strategies help your organization utilize the skills of your employees and stakeholders and can help you develop creative approaches to sales and customer service.
- 18. • The Marketing Plan • Promotional and marketing strategies are often first brainstormed and written as part of an organization's marketing plan. If your small business doesn't have a marketing plan, you should seriously consider developing one. • Most marketing plans include the current or expected strategies you have for your products, the price points of those products, how you intend to distribute the products, and your advertising and marketing tools. • A marketing plan is also important for developing a promotional strategy as it helps your business identify its target markets and to set measurable goals. • It is vital to the success of the organization that you implement a marketing plan that aims for growth and positive change in the bottom line.
- 19. Understanding Your Clients • Promotional and marketing strategies can also assist your business in understanding and connecting with clients and customers. If your marketing plan is loosely structured, you might not have much success at targeting products to the "right" demographics • If you operate an ice cream business in a neighborhood where no other ice cream shops exist, it might be easier to attract clients than in a town where there are other ice cream options. • In this case, understanding that your clients want sprinkles and waffle cones might help you sell more ice cream and keep your customers coming back for more. • .
- 21. • Developing Financial Goals • Promotional and marketing strategies are also important for guiding your business into the development of financial goals. • Financial goals are two-fold: • They are related to your sales targets and also to your expenses budget. • Sales targets are initially set as part of the marketing plan but might change over time according to changing market conditions, increases in product price, or increases or decreases in consumer demand. • Monitoring expenses is also part of financial goal development. If your business tends to spend more than it brings in, you'll have a serious problem maintaining long-term business viability. However, if the business is able to closely monitor its outflows, only spending what it absolutely needs to, you'll be better equipped to increase the profit margins.
- 22. Strategic Planning • Strategic planning is a concept that encompasses marketing, promotion, sales, and financial goals and is essentially about developing goals for your business. • Having a strategic plan for your business means having plans in place to deal with both expected and unexpected situations. If you know that your mortgage will balloon by 5 percent next year, a strategic plan will outline how you'll increase sales or decrease expenses to meet this additional outflow. • This means having a plan B for months when profits are down or expenses are unusually high. Sales and promotional strategies are important here because they allow you to ramp up marketing and to increase the bottom line without sacrificing efficiencies or service
- 24. Tools of promotion ADVERTISING SELLING SALES PROMOTION PUBLIC RELATIONS
- 26. What is advertising? • Advertising is a form of communication designed to persuade potential customers to choose your product or service over that of a competitor • Successful advertising involves making your products or services positively known by that section of the public most likely to purchase them. • It should be a planned, consistent activity that keeps the name of your business and the benefits of your products or services uppermost in the mind of the consumer.
- 29. Why advertise? • The objective of advertising is to increase your profit by increasing your sales. Advertising aims to: • Make your business and product name familiar to the public • Create goodwill and build a favourable image • Educate and inform the public • Offer specific products or services • Attract customers to find out more about your product or service
- 30. The rules of advertising • There are four rules to consider when planning any advertising activity – ie: before you prepare and book any form of advertising. • Aim - What is the primary purpose of the advertisement? Is it to inform, sell, produce listings or improve the image of your business? • Target - Who is the target? From which sector of the public are you trying to achieve a response? For example is it male, female, adult, teenager, child, mother, father etc. • Media – Bearing the aim and target in mind, which of the media available to you is the most suitable – ie: TV, radio, press or Internet? • Competitors – What are your competitors doing? Which media channel do they use? Are they successful? Can you improve on their approach and beat them in competition?
- 31. Good advertising generally elicits the following four responses: Attention – It catches the eye or ear and stands out amid the clutter of competing advertisements. Interest – It arouses interest and delivers sufficient impact in the message or offering. Desire – It creates a desire to learn more or crave ownership. Action – It spurs an action which leads to achievement of the ad’s original objective – it prompts potential customers to purchase or use your product or service.
- 32. What is selling? • . Selling is a particularly important element if you are marketing services because the purchaser of a professional service is in fact buying the capabilities of the seller. So he or she would be closely evaluating the behaviour and characteristics of your sales person, your business, its reputation, facilities and appearance.
- 33. • Put simply, selling is the exchange of goods or services for an agreed sum of money • Depending on the circumstances, a sales transaction can include one, some or all of the following stages. • Prospecting and qualifying – identifying qualified prospects ie: those that are likely to want or need your product or service and can afford to pay for it. • Pre-approach – undertaking research about prospects to assist in the actual selling process. • Approach – making actual contact with the prospect in person, by phone or in writing. • Presentation and demonstration – presenting and demonstrating the features and benefits of your product or service in order to convince the prospect that their want or need can be satisfied. • Handling objections – demonstrating the product or service value to overcome real or perceived objections or misunderstandings that are impeding the purchase decision. • Closing – bringing the selling process to a successful conclusion by either asking for the order or responding to a positive decision from the prospect. • Follow-up – proactive or reactive contact with the purchaser to establish their satisfaction level and to address any problems that may exist.
- 35. Sales promotion relates to short term incentives or activities that encourage the purchase or sale of a product or service. Sales promotions initiatives are often referred to as “below the line” activities.
- 36. • What are the major sales promotion activities? • Sales promotion activities can be targeted toward final buyers (consumer promotions), business customers (business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales force promotions). • Here are some typical sales promotion activities: Consumer promotions • Point of purchase display material • In-store demonstrations, samplings and celebrity appearances • Competitions, coupons, sweepstakes and games • On-pack offers, multi-packs and bonuses • Loyalty reward programs Business promotions • Seminars and workshops • Conference presentations • Trade show displays • Telemarketing and direct mail campaigns • Newsletters • Event sponsorship • Capability documents
- 37. • Trade promotions • Reward incentives linked to purchases or sales • Reseller staff incentives • Competitions • Corporate entertainment • Bonus stock • Sales Force Promotions • Commissions • Sales competitions with prizes or awards
- 39. What is public relations? Public Relations is to do with reputation management - informing people all about your business so that they understand your brand, products and services and view these key elements in a positive light. Performed well, it can be one of the most successful ways to grow a business. In its most basic form, the aim of PR is to communicate messages to a target audience. It getting news or information about your business or products published in magazines and newspapers in the form of features, profiles, reviews, competitions and news items. Publicity opportunities also exist within the realms of television, radio and online media as well as at live events.
- 40. PR can also assist with the following areas : a) Communicating a Company's Identity and Reputation b) Build and increase Brand/ Product Awareness c) Promoting Changes in Direction or Consolidation d) Creating a Competitive Advantage e) Communicating differences from Competitors f) Protecting Businesses in Times of Crisis g) Creating a premium Value for Products/ Services h) Opening up New Markets i) Establishing Business Partnerships j) Attracting Potential Employees k) Gaining Attention of Customers, Suppliers & Distributors l) Enhancing Access to Funding/ Investors
- 42. Benefits of PR • PR is substantially cheaper than advertising and is widely accepted as being more effective. • Because PR is viewed as 'editorial' material (supplied by journalists) it has greater credibility and more impact than advertising. Predominantly, as the media space it inhabits is not overtly bought, PR material is perceived as being 'true' in the eyes of readers and viewers who place trust in the objective nature of the press. • PR can be a low cost way of getting your message across, it is a vital weapon in your business' marketing armoury. Positive publicity can help you to overcome problems and form a mutually beneficial, long term relationship with the media, which is essentially the golden path leading to your audience, customers and clients.
- 44. Leaflets, Brochures, carry home menus Carry Home Bags from Stores Ads on T-shirts and caps Conventional Promotion METHODS
- 45. • Relationship Promotion : Emphasis is placed on the whole relationship between suppliers and customers. The aim is to provide the best possible customer service and build customer loyalty. E.g. ICICI new ad which says that they involve relationships with the customer and not transactions alone • Societal Promotion : Curtailment of any harmful activities to society, in either product, production, or selling methods. • Social Media Marketing : Marketing done through Facebook, Twitter, LinkedIn etc.. Unconventional Promotion
- 46. • Co-Branding : This involves promoting your product by branding it another product.. Eg : Free Maggie Tomato ketchup with Maggie Noodles • IMC or Integrated Marketing Communications : Integrating all the methods of brand promotion to promote a particular product or service among target customers. In integrated marketing communication, all aspects of marketing communication work together for increased sales and maximum cost effectiveness. • Emotional Branding : Emotional branding is a term used within marketing communication that refers to the practice of building brands that appeal directly to a consumer's emotional state, needs and aspirations. Emotional branding is successful when it triggers an emotional response in the consumer, that is, a desire for the advertised brand Unconventional methods of Promotion
- 47. • DISADVANTAGES OF SALES PROMOTIONS While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. In fact, a promotion is speed up the killing of a bad product. • Increased price sensitivity Frequently promoted brands in the product category, especially on the basis of price, make consumers and traders more price sensitive not only for the promoted brands but for other brands as well in the same product category. Consumers wait for the promotion deals to be announced and then purchase the product. This is true even for brands where brand loyalty exists. Customers wait and time their purchases to coincide with promotional offers on their preferred brands. • Quality image may become tarnished If the promotions in a product category have been rare, or the product happens to be of high involvement category, the promotions could have a negative effect about its quality image. Consumers may start suspecting that perhaps the product has not been selling well, the quality of the product is true compared to the price or the product is likely to be discontinued because it has become outdated.
- 48. DRAWBACK
- 49. • • Dealers forward buy and divert stocks In case of deals for the trade, many dealers forward buy, in excess of their inventory requirements. This is particularly happens if a product is low bulk, much in demand and the inventory holding costs are favourably low. This is true both for wholesalers as well as retailers. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non-deal areas. Forward buying of excessive stocks on deals or quantity discounts can lead to diversion of some of the stocks in non- deal areas. Wholesalers and retailers do not hesitate in selling these excess stocks in non- deal areas on prices that are less than the list price, but keeping some reasonable margin for themselves. This is likely to have a negative effect on price discrimination efforts of the company as dealers and those areas would not be buying even the normal requirements from the company.
- 50. • • Merchandising support from dealers is doubtful One of the trade promotions tool is to offer promotional allowances to trade people to motivate them to provide merchandising support and to pass on some benefit to consumers. This generally is the condition attached with such promotional allowances. In many cases, the dealers do not cooperate in providing the merchandising support nor do they pass on any benefit to consumers. The retailer might not be willing to give support because he does not have the place, or the product does not sell much in his shop, or may be he thinks the effort required is more than the commission/benefit derived. • Short-term orientation Sales promotions are generally for a short duration. This gives a boost to sales for a short period. This short-term orientation may sometimes have negative effects on long-term future of the organization. Promotions mostly build short-term sales volume that is not maintained. Heavy use of sales promotion, in certain product categories, may be responsible for causing brand quality image dilution. The argument given in favour is that companies should develop superior products or services which are better than competitors and consumer should be convinced through appropriate and focused advertising about the superiority of the product and its image. This will result in lasting brand identities reflecting consumer values. Then there will be no need to offer any extra benefits; only the lasting brand image will keep customers loyal to the brand.
- 51. PUSH and PULL
- 52. What is Push? In push marketing, a company tries to push its products through the distribution channel. It advertises to intermediaries, such as wholesalers and retailers, who then try to generate demand from end users. Sometimes, companies may push information and promotional material directly to end users through email or fliers to generate demand a All private labels send mobile SMS for any new offer and discount. b Push marketing reaches potential customers directly. c A company could create an email database of potential customers and send them product announcements and promotions directly Supermarkets often employ push promotional tactics by giving away samples of new products.
- 53. What is Pull? In pull marketing, the company tries to draw in customers through different kinds of advertising, such as TV ads, online banner ads and social media. Some companies use both push and pull marketing to generate demand. a A more creative pull marketing strategy might be to advertise in social media literary forums and build online communities around authors. c A company could create an email database of potential customers and send them product announcements and promotions directly b Grocery stores often advertise leader items in the weekend fliers to attract customers hoping that they would then buy some of the higher-priced items. d Online banner ads, and radio and TV ads are other forms of pull marketing.
- 54. Push Basics Push marketing is so-named because suppliers effectively try to push their products through the distribution channel by inducing their buyers to purchase them for resale. Trade buyers generally want to buy at a low price, add a markup and resell to their buyers to earn a profit. When a manufacturer offers a wholesaler a sales promotion or a volume discount, it enables the wholesaler to earn a higher profit margin if it can resell effectively to retailers. Wholesalers can then offer similar inducements to retailers to give them profit advantages. Pull Basics Pull marketing is so-named because marketers try to stimulate demand at the end customer level by promoting the benefits or value of products to consumers. This includes brand building advertising as well as consumer sales promotions that given consumers a better price for the same benefits. The premise is that if end customers demand products in the marketing place, all businesses in the distribution channel benefit because of strong demand and likely higher price points.
- 55. Push and pull marketing both rely on conveying benefits to customers. Using Push and Pull A company may use both push and pull marketing to drive sales growth. 1. A major commercial insurance company, uses push marketing to create awareness in a new or existing product, and then targets banner ads to pull in customers when they search online for more information on the product. 2. 2. A pizza restaurant may use newspaper ads to pull in customers and fliers to push information about its menus directly into customer mailboxes.
- 56. What is pull marketing? Pull marketing is where you develop advertising and promotional strategies that are meant to entice the prospect to buy your product or service. Some classic examples are "half off!" or "bring in this coupon to save 25%" or "buy one get one free", etc. With pull marketing, you are trying to create a sense of increased, time limited value so that the customer will come into your store to buy.
- 58. Push marketing is where you develop advertising and promotional strategies geared toward your marketing and distribution channels to entice them in promoting your product. As consumers, you rarely see this type of marketing when it is directed to the distributors. It might include wholesale discounts, kickbacks, bonuses, and other types of support. It's all designed to have the retailer promote your product to the end users over a different product. When companies encourage happy customers to spread the word to their friends and families, that's a type of push marketing. Or, when companies make ads that are controversial, cheeky, or downright shocking, they create a little buzz - that's another type of push marketing.
- 60. Advertising as Both Push and Pull Retailers and manufacturers sometimes cooperate in joint advertising campaigns, utilizing both push and pull strategies. A manufacturer may push a new product, for example, along with a retailer by both agreeing to pay for TV and print ads promoting the new product as available at retailer X now,” Advertising can be viewed as both a push and a pull retailer strategy. Ads attempt to pull the customer into the store, ideally asking by name for the very products that appeared on TV or in newspaper ads. But the technique also pushes a manufacturer's products directly to consumers. In addition, TV commercials that create buzz --- annual Super Bowl ads are a good example --- often provide good word-of-mouth push advertising while simultaneously creating a pull-advertising effect on recipients of such second-hand renditions. Retailers utilizing a push-pull strategy must divide their efforts and money between promotions and end-user advertising, according to "Marketing Help!"
- 61. Difference Between Promotional Push Strategies & Promotional Pull Strategies? Push versus pull are two prominent marketing strategies used by companies to market their products. Pull marketing means marketing to end customers to create demand, while push marketing means enticing trade buyers to purchase and carry your product by offering promotions and price inducements that give them better profit potential.
- 62. Distribution Process To understand the implications of push and pull marketing you need familiarity with the distribution or trade channel. This is the systematic process products typically go through as they flow from initial product and development at the manufacturing level to final purchase at the consumer level. Along the way, distributors traditionally buy products from manufacturers and resell them to retailers. Retailers then hold products in inventory and offer them for sale to the end customer.
- 63. 1. A pull strategy has the communication directed at the end users — primarily consumers. 2. a pull strategy directs promotion at the end consumer 3. most consumer products would rely more heavily on a pull strategy where promotion is directed at the consumer to stimulate demand 1. A push strategy is directing the communication primarily at the middlemen that are the next link forward in the producer’s distribution channel. 2. a push strategy directs communication efforts at channel members 3. many products, such as business products, are promoted with a push strategy, involving personal selling and use of trade promotions PUSH STRATEGY PULL STRATEGY
- 64. Push and Pull Manufacturing Push type" means make to Stock in which the production is not based on actual demand. "Pull type" means make to Order in which the production is based on actual demand. In supply chain management, it is important to carry out processes halfway between push type and pull type or by a combination of push type and pull type. Push manufacturing Pull manufacturing
- 65. Pull type production or Make to order MTO (Make to Order) is a manufacturing process in which manufacturing starts only after a customer's order is received. Forms of MTO vary, for example, an assembly process starts when demand actually occurs or manufacturing starts with development planning. Manufacturing after receiving customer's orders means to start a pull-type supply chain operation because manufacturing is performed when demand is confirmed, i.e. being pulled by demand. The opposite business model is to manufacture products for stock MTS (Make to Stock), which is push-type production. There are also BTO (Build to Order) and ATO (Assemble To Order) in which assembly starts according to demand. Assembling after receiving a customer's orders is "ATO (Assemble To Order)" and starting with development designing is "ETO (Engineer To Order)". Construction by general contractors and plant construction by engineering companies are categorized as ETO.
- 66. From the viewpoint of supply chain management, it has been proven that those who can satisfy due dates promised with customers and can shorten lead times will have an competitive advantage. Even if the production quantity increases, if push- type products that are manufactured by MTS can be manufactured by pull-type production such as MTO and ATO models using SCM software or information technology, then there will be greater business opportunities. ATO (Assemble to Order) of computers by Dell Inc. and production of sports bicycle by National Bicycle Industrial Co., Ltd. are examples of creating a new business model by matching the diversification of products with ATO, BTO, ETO, and with new-style marketing. National Bicycle Industrial Co., Ltd. says "We can deliver a custom-made bicycle to you within two weeks." Solectron Corporation says "We can assemble the computer you requested and deliver it within a week." These are examples of business models in which new supply chain models are created as marketing models. Pull type production or Make to order Pull-type production, such as MTO, BTO, ATO, and ETO, is a business model of the assembly industry in which the quantity to produce per product specification is one or only a few. For example, construction, plant construction, aircraft, vessels, bridges, and so on.
- 67. Make to Stock: In MTS (Make to Stock); products are manufactured based on demand forecasts. Since accuracy of the forecasts will prevent excess inventory and opportunity loss due to stock out, the issue here is how to forecast demands accurately. MTS (Make to Stock) literally means to manufacture products for stock based on demand forecasts, which can be regarded as push-type production. MTS has been required to prevent opportunity loss due to stockout and minimize excess inventory using accurate forecasts. In the industrialized society of mass production and mass marketing, this forecast mass production urged standardization and efficient business management such as cost reduction.
- 68. Push versus pull promotion strategy Producer Retailer & wholesalers Consumers Producer Retailer & wholesalers Consumers Producer marketing activities Reseller marketing activities DemandDemand Producer marketing activities Push strategy Pull strategy
- 69. PLAY FOR COMPANY PRODUCT PROMOTION