Promotion and pricing strategies

1. Promotional Strategy

2. • Promotion is the function of informing, persuading, and
influencing a purchase decision.
• Integrated marketing communications (IMC) is the coordination
of all promotional activities—media advertising, direct mail,
personal selling, sales promotion, and public relations—to produce
a unified customer-focused message.
Promotion

3.  Must take a broad view and plan for all form
of customer contact.
 Create unified personality and message for
the good, service, or brand.
 Elements include personal selling,
advertising, sales promotion, publicity, and
public relations.
Integrated Marketing Communication

4. •
Marketing
Communications
mix
(Promotion mix)
Advertising
Personal selling
Sale promotion
Public relations
Customer
Direct marketing
Promotion Mix

5. • Product placement - marketers pay placement fees to
have their products showcased in various media, ranging
from newspapers and magazines to television and movies.
• Guerilla marketing - innovative, low-cost marketing
efforts designed to get consumers’ attention in unusual
ways.
Promotional Planning

6. Elements in the communication process
•
Sender ReceiverEncoding Decoding
Media
Message
Feedback Response
Noise
Sender’s field of experience Receiver’s field of experience

7. Steps in Developing Effective Communication
Identifying the Target Audience
Determining the communication
objectives
Designing a Message
Choosing Media
Selecting the Message Source
Collecting Feedback

8. Choosing media
Personal
communication
channel
Word-of-mouth
influence
Non-personal
communication
channel

9. • Pushing strategy - relies on personal selling to market an item to
wholesalers and retailers in a company’s distribution channels.
– Companies promote the product to members of the marketing
channel, not to end users.
• Pulling strategy - promote a product by generating consumer
demand for it, primarily through advertising and sales promotion
appeals.
– Potential buyers will request that their suppliers—retailers or
local distributors—carry the product, thereby pulling it
through the distribution channel.
• Most marketing situations require combinations of push and
pull strategies
Promotional Strategy

10. 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

11. Integrating the promotion mix
•Audit the pockets of communications spending throughout the organization
•Identify all contract points for the company & its brands
•Team up in communications planning
•Create compatible themes,tones,and quality across all cm. media
•Create performance measures that are shared by all cm. media
•Appoint a director responsible for the company’s persuasive cm. effort
•Analyze trends that can affect the company’s ability to do business

12. Direct Marketing
• Marketing through various advertising media that
interact directly with consumers, generally calling for
the consumer to make a direct response.
Direct sales
• Selling goods to consumers without any middleman.

13. Advertising
Major Advertising Decisions
Objective
setting
Budget
decisions
Message
decisions
Media
decisions
Campaign
evaluation

14. Advertising
budget
decision
Affordable
Percentage-
of sales
Objective -
and task
Competitive
parity

15. • Advertising Evaluation
Copy
testing
Pretesting
Posttesting
Direct rating
Portfolio tests
Laboratory tests
Recall tests
Recognition tests

16. Order Processing
• Identifying customer needs, pointing out merchandise to meet
them, and processing the order.
Creative Selling
• Promoting a good or service whose benefits are not readily
apparent or whose purchase decision requires a close analysis of
alternatives.
Missionary Selling
• Representative promotes goodwill for a company or provides
technical or operational assistance to the customer.
Telemarketing
• Personal selling conducted by telephone; regulated by the Federal
Trade Commission’s 1996 Telemarketing Sales Rule.
Sales Tasks

17. Sales Promotion
• Major objects of sales promotion
Consumer
promotion
Trade
promotion
Sales force
promotion

18. Sales-promotion Tools
Consumer-Promotion Tools
Samples Coupons Cash refunds
Price packs Premiums
Patronage
reward
Contests
POP
Sweepstakes
Advertising
specialties
Demonstrations
Games

19. Premiums, Coupons, Rebates, Samples
• Coupons attract new customers but focus on price rather than
brand loyalty.
• Rebates increase purchase rates, promote multiple purchases, and
reward product users.
• Three of every four consumers who receive a sample will try it.
Games, Contests, and Sweepstakes
• Introduction of new products.
• Subject to legal restrictions.
Specialty Advertising
• Gift of useful merchandise carrying the name, logo, or slogan
of an organization.
Consumer-Oriented Promotions

20. Trade-Promotion Tools
Price-offs Allowance
Buy-back
guarantees
or
free goods

21. Business-Promotion Tools
Conventions Trade shows Sales contests

22. Public Relations :
• Build good relations with the company’s various
publics ,building up a good “corporate image "and
handling or heading off unfavorable rumors, stories
and events.
Publicity :
• Activities to promote a company or its products by
planting news about it in media not paid for by the
sponsor.

23. Personal Selling
Salesperson : An individual acting for a company by
performing one or more of the following activities:
• prospecting, communicating,
• servicing information gathering.

24. • A person-to-person promotional presentation to a potential buyer.
– Customers are relatively few in number and geographically
concentrated.
– The product is technically complex, involves trade-ins, and requires
special handling.
– The product carries a relatively high price.
– It moves through direct-distribution channels.
• Example: Selling to the government or military.
Personal Selling

25. Objectives of Promotional Strategies