Promotion Strategies

Class # 27-29
What is a promotion?

Promotion is the element in an

organisations marketing mix that
serves to inform, persuade and
remind the market about the
organisation and/or its products.
The promotional mix
Personal selling: the presentation of a
product to a prospective customer by a
firms sales executive.

Advertising: paid, non-personal mass

communication, in which the sponsor is
clearly identified.
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.
 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.
 Choosing the right form
of promotion
Marketers need to consider:
The target market.
The nature of the product.
The stage of the products life
cycle.
Money available for the
promotion.
 Reaching the target
market
Marketers need to identify whom they
are trying to influence.
Determine customers readiness to buy.
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Nature of the product
Unit value of the product.

Amount of product customisation.

Amount of pre-sale and post-sale

service required.
 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 down distribution
channel.
Consumer influenced by retailers
advertising.
 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 up the distribution
channel.
 Push vs pull strategy
PUSH STRATEGY
(cont.) Wholesaler Retailer Consumer
Producer

PULL STRATEGY

Producer Wholesaler Retailer Consumer

Product flow Promotion effort

The promotional budget

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 .
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.

9-12
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).
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.
 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.
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
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?
Media characteristics
Newspapers
Television
Radio
Magazines
Direct Mail
Outdoor advertising
Yellow pages
Internet
 Choosing the right
sales 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?
Managing public relations
and publicity
P.R. can be achieved by:
Supporting charitable projects
Supplying volunteers or other resource
Participating in community-service
events
Sponsorship
Providing information to customers via
newsletters.
Managing public relations
and 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)