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AMITY SCHOOL OF BUSINESSBBA, II SemPRINCIPLES OF MARKETING IIModule-4What is Promotion Mix?The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.It consists of a specific blend of advertising, public relations, personal selling, sales promotion and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships.Definitions of the five major promotion tools are as follows:Advertising – Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.Sales Promotion- Short-term incentives to encourage the purchase or sale of a product or service.Personal Selling- Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.Public relations- Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events .Direct Marketing- Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships- the use of direct mail, the telephone, direct- response television, e-mail, the internet, and other tools to communicate directly with specific customers.Integrated Marketing CommunicationsCarefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.Steps in Developing Effective Marketing CommunicationIdentify the target audienceDetermine the communication objectivesDesign the messageChoose the mediaSelect the message sourceCollect feedbackIdentify the target audienceMarketing communications begins with a clear target audience to answer these questions:What will be saidHow it will be saidWhen it will be saidWhere it will be saidWho will say itDetermine the communication objectivesMarketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readinessAwarenessKnowledgeLikingPreferenceConvictionPurchaseDesigning a MessageAIDA ModelGet AttentionHold InterestArouse DesireObtain ActionDesigning includes the message content and structureMessage content—what to sayMessage structure and content—how to say itChoosing MediaPersonal communicationNon-personal communicationPersonal communication involves two or more people communicating directing with each otherFace-to-facePhoneMailE-mailInternet chatNon-personal communication is media that carry messages without personal contact or feedback— including major media, atmospheres, and events—that affect the buyer directlyMajor media include print, broadcast, display, and online mediaAtmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a productEvents are staged occurrences that communicate messages to target audiencesPress conferencesGrand openingsExhibitsPublic toursSelecting the Message sourceThe message’s impact on the target audience is affected by how the audience views the communicatorCelebritiesAthletesEntertainersProfessionalsHealth care providersCollecting FeedbackInvolves the communicator understanding the effect on the target audience by measuring behavior resulting from the behaviorSetting the Total Promotion BudgetAffordable budget methodPercentage-of-sales methodCompetitive-parity methodObjective-and-task methodAffordable budget method sets the budget at an affordable levelIgnores the effects of promotion on salesPercentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales priceEasy to use and helps management think about the relationship between promotion, selling price, and profit per unitWrongly views sales as the cause than the result of promotionCompetitive-parity method sets the budget to match competitor outlaysRepresents industry standardsAvoids promotion warsObjective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes:Defining promotion objectivesDetermining tasks to achieve the objectivesEstimating costs Objective-and-task method forces management to spell out its assumption about the relationship between outlays and results but is difficult to useShaping the overall Promotion MixAdvertisingPersonal sellingSales promotionPublic relationsDirect marketingAdvertising reaches masses of geographically dispersed buyers at a low cost per exposure and enables the seller to repeat a message many timesAdvertising is impersonal, cannot be directly persuasive as personal selling, and can be expensivePersonal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, and actions and developing customer relationshipsSales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase. It can be used to dramatize product offers and to boost sagging sales.Public relations is a very believable form of promotion that includes new stories, features, sponsorships, and eventsDirect marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketingPromotion Mix Strategies Push strategy involves pushing the product to the consumers by inducing channel members to carry the product and promote it to final consumersUsed by B2B companies Pull strategy is when the producer directs its marketing activities toward the final consumers to induce them to buy the product and create demand from channel membersUsed by B2C companiesIntegrating the Promotion MixChecklistAnalyze trends—internal and externalAudit the pockets of communication spending throughout the organizationIdentify all customer touch points for the company and its brandsTeam up in communications planningCreate compatible themes, tones, and quality across all communications mediaCreate performance measures that are shared by all communications elementsAppoint a director responsible for the company’s persuasive communications effortsMajor Sales Promotion ToolsConsumer Promotions- Sales promotion tools used to boost short-term customer buying and involvement or to enhance long-term customer relationships.SamplesCouponsCash refundsPrice packsPremiumsPromotional productsPoint-of-purchase promotionsContests, sweepstakes and games Event marketing ................
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