Lecture 11
- 1. Presented by Muhammad Waqas Chughtai
- 2. “Promotion is to increase the sales volume of Product through Communication Networks or Promotion Methods i.e. Personal Selling, Advertising, Sales Promotion and Public Relations” Designed By Muhammad Waqas Chughtai
- 3. 1. Personal Selling: it is a direct presentation of product to ultimate consumer by a representative of the organization. Personal selling takes place face-to-face or over the phone and it may be directed to a business personal or final consumer. 2. Advertising: It is non-personal communication paid for by a clearly identified sponsor promoting ideas, organizations or product. The most familiar outlets for ads are the Electronic and Print Media. 3. Sales Promotion: it is demand-stimulating activity designed to supplement advertising and facilitate personal selling. It is paid for by the sponsor and frequently involves a temporary incentives to encourage a sale or purchase. It includes a wide range of trade shows, contests, discounts, coupons etc. Designed By Muhammad Waqas Chughtai
- 4. 4. Public Relation: It is a wide variety of communication efforts to contribute to generally favorable attitudes and opinion toward an organization and its Products. Designed By Muhammad Waqas Chughtai
- 5. IMC is a strategic business process to plan, develop, execute and evaluate coordinated communication with an organization’s public. IMC Process Encoding Transmission Decoding Feed Back Designed By Muhammad Waqas Chughtai
- 6. A Promotional Mix is an organization’s combination of Personal Selling, Advertising, Sales Promotion and Public Relations. Promotional Mix involves a number of strategic decisions about five factors. 1. Target Audience 1. Promotion Objectives 1. Nature of Product 1. Stage in Product Life Cycle (PLC) 2. Availability of Funds Designed By Muhammad Waqas Chughtai
- 7. Target Audience may be final consumer, who could be further defined as existing customer or new prospects. Two promotional strategies are used for target audience. 1. Push Strategy: The product is pushed through the channel. 1. Pull Strategy: Promotion is directed at end user or ultimate consumer. This intention is to motivate them to ask retailers for the product. Designed By Muhammad Waqas Chughtai
- 8. Designed By Muhammad Waqas Chughtai
- 9. 1. Awareness: A seller’s task is to let the buyer knows that the product exists. 2. Knowledge: Knowledge goes beyond awareness to learning about a product’s features. 3. Liking: it refers to how the market feels about the product. 4. Preference: It involves distinguishing among brands such that the market finds your brand more attractive than alternatives. 5. Conviction: it entails the actual decision or commitment to purchase. Designed By Muhammad Waqas Chughtai
- 10. 1. Unit value of Product 1. Degree of Customization Designed By Muhammad Waqas Chughtai
- 11. Market Situation Promotion Strategy Introduction Stage Customer are not aware of the product’s Inform and educate potential customers features nor do they understand how it that the product exists. will benefit them. Growth Stage Customer are aware of the product’s Stimulate selective demand as benefits. The product is selling well and competition grows. Increase emphasis middlemen want to handle it. on advertising. Middlemen share more of the total promotional efforts. Maturity Stage Competition intensifies and sales level Advertising is used more to persuade off. rather than only to provide information. Decline Stage Sales and profits are declining. All promotional efforts are cut back substantially. The focus moves to reminding remaining customers. Designed By Muhammad Waqas Chughtai
- 12. 1. All funds available 2. Following Competition 3. Regulation of Promotion Designed By Muhammad Waqas Chughtai
- 13. Designed By Muhammad Waqas Chughtai