We are Going to Present

THE PROMOTIONAL PLAN

Planning the communications programme

In developing the communications programme, the marketing planner needs to take account of eight areas: 1. The nature of the target audience(s) 2. The short and long term communications objective(s) 3. The message that are to be used 4. The communication channels that will carry the message 5. The budget 6. The promotions mix 7. How the elements of the promotion mix are to be integrated and how, in turn, the promotion mix is to be integrated with the marketing mix 8. How the results of the campaign are to be measured

Stage 1: Deciding upon the target audience

The starting point in the planning of any communications programme involves a detailed information of the target audience. The planner needs to think initially about the ways in which the market might possibly categorized and how the message need to be tailored to fit the needs of each of the target group. Basis for categorization of audiences: Current or potential users Their role in the buying process Their level of knowledge Their level of loyalty

Stage 2: Setting the communications objectives

Now the planner needs to identify the objectives of communications: The planner might be aiming to put something into the consumers mind, change the consumer attitude or encourage the consumer to behave in a particular way.

Steps towards purchase:

The communication tools:

Awareness Knowledge Liking

Publicity; Simple descriptive advertising Advertorials; Sponsorship

Preference
Conviction Purchase

Informative advertisements to encourage product comparisons; the development of brand image; direct marketing Point of sales display; money off offers Direct marketing

Stage 3: Developing the message

This task involves deciding upon four issues: 1. 2. 3. 4. What to say (the content) How to say it logically (the structure) How to say it emotionally or symbolically (the format) Who should say it (the source)

In deciding upon what to say the planner is faced with the number of choices: Rational appeal To realize the customers that by buying this product you will gain this distinct and tangible benefit.

Cont..
Positive emotional appeal: The planner sets out to associate the product with an especially favorable image. Examples: The ways in which cars, perfumes and expensive watches are advertised. Negative emotional appeal It includes fear, shame, and guilt. examples: How the advertisers of toothpastes typically play upon these sorts of emotions by emphasizing bad breath or fear of tooth decay. The Source: The credibility and memorability is influenced either positively or negatively by the source of the message. It is for this reason that many campaigns features celebrities who are selected for their credibility, trustworthiness or general likability.

Stage 4: Selecting the communication channels

Now the planner needs to select the channels through which contact and communication can be made in the most effective way. These channels fall into one of two categories personal influence channels and non personal influence channels. Personal influence channels can be sub divided into: Advocate channels Expert channels Social channels Advocate channels: Consisting primarily of the sales force and others who employed by the company. Expert channels: Which consist of those whose views are seen to be independent and respected.

Cont
Social channels: Made up of neighbors, friends, business associates and reference groups. Non-personal influence channels: It includes mass media, such as, newspapers, television, magazines, the cinema and posters, which have the advantage of reaching large number of people. In doing so, they lack any personal element, with the result that the message is more easily ignored and misinterpreted.

Stage 5 Setting the Budget

Although there are various ways in ehich the communication budget might be set, the most common of these are : 1. Affordable Approach 2. Competitive approach 3. Percentage of sales 4. Objective and Task Techniques

Stage 6 and 7
Deciding upon and Integrating the elements of the Promotion Mix
In deciding upon which promotional tools should be used, the marketing planner needs to take account of 8 elements: 1. The degree of control that is needed in terms of how the message is delivered. 2. The financial resources that are available 3. The credibility f each of the tools in the eyes of the customer

4. The size of target market and their geographic spread. 5. The nature of the product and market whether it is an industrial or consumer product. 6. Push and Pull strategy 7. The stage reached by the product life cycle 8. the buyer readiness stage. Advertising and publicity are generally the most effective tools for raising levels of buyer awareness in the early stages and are most cost effective than personal selling or sales promotion.

 However as levels of awareness and readiness increases so personal selling takes on a more direct and valuable role. Closing the sale also achieved most effectively by personal selling and sale promotions while advertising then begins to increase in importance again at the re-ordering stage.

Stage 8 Measuring the Result

An important part of any marketing activity is the measurement of the result that have been achieved. In the case of communication, this can be done using two dimensions 1. Qualitative Measure 2. Quantitative Measure

Awareness
Interest Evaluation

Trial
Adoption

Advertising Objectives
Broad Objectives 1. To enhance organizational effectiveness 2. To generate greater profits 3. To improve our competitive position Specific Objectives (quantitative) 4. To increase sales from X to Y 5. To raise the level of awareness of a given product from P to Q

6. To generate N enquiries/ coupon responses Sub- objectives (qualitative) 7. To convey information 8. To create desire; 9. To improve the image of product X or brand Y 10.To mitigate the effect of a premium price

Advertising Strategies
Clear idea of audience Investment in advertising Law of diminishing returns

Deciding the Advertising Spend

Kotler and other authors show evidence that there are only 5 methods 1. Affordable Approach 2. Competitive parity 3&4. percentage of sales or profit 5. Objective and task

Affordable Approach
Weakness 1. Discourage the development of long term planning of advertisement 2. Short- term advertising opportunities are likely to b overloaded

Competitive Parity
Two ways 1. Set exactly or nearly exactly to the expenditure of the competitor. 2. Or by ratio of share of market and share of advertising. Two justification 1. Collective wisdom of industry 2. Aggressive action in minimized

Percentage of sales and profit

Two weakness 1. Circular reasoning is employed as sales act to determine advertising, rather then the other way round. 2. To limited scope for long term advertising. 3. There is no facility for engaging in counter cyclical advertising. 4. There is no logical figure which should be employed.

Objective and task

Cost of achieving the advertising objective steps 1. Establish the advertising objective 2. Select the media and determine number of insertions needed to achieve objective. 3. Calculate the cost of the media programs 4. Examine the relationship between cost and objective. 5. Revise the goal and methods to a level the company can afford.

Important factors to be considered

Degree of Empathy Way to be Paid

A flat fee A retainer Through Commission received from Media

Evaluation and Control of Advertising plan

Pre-Tracking Post Tracking Continuous Tracking Advertising can be tested by Communication effectiveness Sales Effectiveness

Sales Promotion
It is a specific activity in which we offer our products and services to customers with a specific time frame Cost-benefit analysis is high than advertising, Example. Incentives schemes Evaluating/audit activities of sales promotion It should cover following parameters
Effectiveness Variations in context to competitors Total cost Individual results

Sales Promotion.
How it helps the dealers or distributors? What sales promotion do actually?
Boost sales of product line But remember one thing.

Real benefit of good sales promotion?

Sales Promotion Trend

Sales Promotion Strategies

We use various Tactics
Consumer incentives Distributor incentives Sales force incentives Exhibitions Packaging Character merchandising Sponsorships

Sales Promotion Strategies

Sales Promotions as a push and pull strategy

Sales Promotion Tactics

Consumer incentives
Price markdown; prices reduced by giving coupons in magazines, door to door. Examples discounts on restaurants, dinner, meal coupons Premium offers; in sense of quantity of same products or by offering small gifts. Example kurkuray, Nido, Banded Packs; example, with tooth paste tooth brush in low price Free sampling; NESCAFE , Vivo in COMSATS, Prize competitions, example, Bundu khan, Jazz, Telenor, Warid Personality Promotions; example, Cricket bats with sign, win a chance to meet ABC actor by buying XYZ product. In-store demonstration; example Expo Lahore, supermalls different pharmaceuticals, electronics companies offer this Special displays: POS to attract the customers Self liquidating premiums, offer with core products, for example cake manufacturer offer cake slicer in low prices.

Sales Promotion Tactics.

Dealer Incentives
Cash bonuses Credit terms Staff incentives

Sales Promotion Tactics.

Sales force incentives Objectives
Sales volume Sale of specific products High profit products To reduce inventory Gain new customers Re-active old customers Decrease credit sales Ultimate goal is to increase market share & profit

Sales Promotion Tactics.

Exhibitions Widely used in industrial, commercial and consumer goods Companies need therefore to take decision as to;
Aim to be achieved Which exhibition need to be show Size of the stand Location of stand Layout and facilities of stand Staffing

Exhibitions..
Choice criteria would include;
Nature of exhibition Number of peoples would attend Costs Competitors showing Timing Opportunities

Sales Promotion Tactics.

Packaging It is one of the lowest cost and highest leverage area of marketing activity Expensive but gain large business Checklist for packaging development
Protection of contents Consumer convenience Trade appeal Consumer sales appeal

Sales Promotion Tactics.

Influence of packaging
Taste Value Consumption

Character merchandising It greatly enhance the sale of item for example prince biscuits, Disney characters are good example of this tactics Some companies developed their own character i.e Leopard courier

Sales Promotion Tactics.

Sponsorship This tactic is increasing Sponsorship can contribute sales promotion in following aspects;
Inspiring sales force Giving boost to the trade Providing a mean of offering greater hospitality Examples, Telenor, Coca-Cola, Warid Telecom and Bank Alfalah,

 Public Relations Or Marketing?

Eight basic publics for PR:
The community at large Employees Customers Suppliers The money market Distributors Potential employees Opinion leaders

PR strategy Needs to be Based on Decisions in Three Areas

The extent & frequency of communications with public. The degree of importance attached to the communications in terms of their ability to help organization. The effectiveness of those communications is achieving objective.

PR Evaluation & Control

Taking stock of the situation before & after the implementation of PR Campaign. Post-Campaign survey.

Measure the amount of media coverage in terms of the amount of space gained in newspapers. OR The amount of listening time gained through television or radio.

Planning Personal Selling

Important part of the firms income. A extensive & continuously monitored aspect. Identifying sales force effectiveness by Auditing Sales force.

 There might be further improvements needed after Audit.

Relative size of the sales force; Reward system and level of earnings; Rate of sales force turnover; Sales per sales person; Sales force support system; Relative level of training; Recruitment system; Control systems; Relative images of sales forces.

Major Quantified Sales Objectives

Overall Objectives Split Down By

1. Total annual volume of products 2. Total annual value of products 3. Total annual selling cost 4. Total annual profit contribution

A. Quarter, Month or Week B. Product Line C. Region and Sales Area D. Type of Customers

Planning Personal Selling....

Sales Strategy A sales strategy can be based on your business and marketing plans. It looks at how you will deliver objectives set out in your marketing plan, as well as how you have chosen to segment your target market.

For example : Dawn Bread.

Hard Selling
Hard sell strategies are aggressive and usually put a high amount of pressure on the customer. This is especially important for consumers who are ready to buy and arent looking to still shop. For Eg :

Soft Selling
Soft selling focuses on the relationshipbuilding aspect of sales. You dont put psychological pressure on potential buyers. Instead, you find passive ways to show them that you have the solutions they need. For Eg : Generations the Game Shop

Planning Personal Selling....

Sales Force The division of a business that is responsible for selling products or services. Persons responsible for selling products or services via direct contact to the customer. Sales Force compensation A sale force compensation plan can mean the difference between a company's success and failure. Sales are the lifeblood of any company, and the sales force is the engine behind sales. A company must pay close attention to the compensation plan it uses to compensate its sales force.

Methods of remuneration:
1. 2. 3. 4. 5. 6. 7. 8. Basic pay for standard hours Additional hours rewards Commission Bonuses Performance related pay Profits related pay Payment by results Piece rate reward systems

Purpose of sales force evaluation and control

To improve the sales persons performance by identifying the cause of unsatisfactory performance. To decide the increment in pay and incentives payment based on the actual performance of the salesperson. To identify the salespeople who may be promoted. To determine the training needs of the individual salesperson and the entire sales force. To identify the salespersons whose services may be terminated, after giving adequate chances for improvement? To motivate salespeople through adequate recognition and reward for good performance. To find out their strengths and weaknesses.

Procedure of sales force evaluation and control

Step1.Set policies on performance evaluation and control. Step2.Decide the bases of sales people performance evaluation Step3. Establish performance standards Step4. Compare actual performance with the standards Step5. Review performance evaluation with salespersons Step6. Decide sales management actions and control

Thanks