Marketing Management

MGT 2306

Lesson 8

Session 8 Objectives

• Definition of Promotion• List and explain the elements of the

Promotional Mix?• Introduce & describe the functions of:-

Advertising

Sales Promotion

The definition of Promotion

• Activities that support the furtherance of a cause, venture, or aim. (Aktiviti-aktiviti yang menyokong penerusan punca, usaha, atau matlamat.)

• In the case of promotion in the context of marketing, it is the “publici-zation of a product, organization, or venture to increase sales or public awareness.”

What is a promotional mix?

• The components of an individual promotional campaign, which are likely to include advertising, personal selling, public relations, direct marketing and sales promotion.

What are the elements of the promotional mix?

ADVERTISINGSALES PROMOTION

DIRECT SELLINGPUBLICITY/ PUBLIC RELATIONS

PERSONAL SELLING

Advertising (Pengiklanan)

Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Advertising tools (media/Channels)

• Broadcast Media (media penyiaran)

- TV, Radio, Internet Streaming• Print Media (media cetak)

- Newspapers, Magazines, Brochures• Indoor/Outdoor Media (media

dalaman/luaran)– Billboards, Bus Panels, Buntings, Moving

Placards, Kiosks

Setting Advertising Objectives

Objectives are classified by primary purpose:• Inform (memaklumkan)• Persuade (memujuk)• Remind (mengingati)

Objectives Defined

Informative advertising is used when introducing a new product category; the objective is to build primary demandComparative advertising directly or indirectly compares the brand with one or more other brandsPersuasive advertising is important with increased competition to build selective demandReminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product

Samples of Advertisements..

Creating the advertising message

Advertisements need to breakthrough the clutter:• To Gain attention• To Communicate wellAdvertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers

Message Strategy

A Message strategy is the general message that willbe communicated to consumers

It has to identify consumer benefits

The creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign

Creating the appeal in the advertising message

Characteristics of the appeals include:• Meaningful (bermakna)• Believable (senang dipercayai)• Distinctive (tersendiri)

Message Execution in Advertising

• Message execution is when the advertiser turns the big idea into an actual ad execution that will capture the target market’s attention and interest.

• The creative team must find the best approach, style, tone, words, and format (pendekatan, gaya, nada, perkataan dan format) for executing the message.

Creative Advertising Examples

√ Reaches large, geographically dispersed audiences

√ Low cost per exposure

√ Consumers perceive advertised goods as more legitimate

X Impersonal

X one-way communication

Advantages & Disadvantages of Advertising

Sales Promotion

Sales promotion

• Short-term incentive to encourage sale or trial – short-term strategy - buy now!

• for example:– competitions– 2 for 1 deals– price specials– premiums etc.

Free co

leslaw

with a

snack pack

Why Sales Promotion

• To increase current sales• Companies face more competition• Competing brands offer less differentiation• Advertising inefficiency due to rising costs,

clutter, and legal constraints• Consumers have become more deal-

oriented

Major Sales Promotion Tools

Samples Coupons Cash refunds Price packs

Premiums Advertising specialties

Patronage rewards

Point-of-purchase displays

Demonstrations Contests Sweepstakes Games

Samples

Samples offer a free trial from the pack

Coupons are certificates that give buyers a saving when they purchase specific products

Coupons

Cash Refunds

Are similar to coupons except that the price reduction occurs after the purchase

They offer consumers savings off the regular price of a product

Price Packs

Premiums

Are goods offered either for free or at low price

Are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers

Advertising specialties

Premiums and advertising specialities

• they mean the same; the only difference is the image it projects. (perbezaan hanya terdapat dalam imej)

• Barang yang dikeluarkan kesemuanya ada simbol ataupun jenama yang terlekat.

• Sesiapa yang menggunakannya juga membantu mengiklankan jenamanya.

Patronage Rewards

Customers become ‘Members’ of the company through subscriptions & get ‘points’ or invites to special sales, events or functions where membership is given special treatment or rewarded with premiums or offers

A company representative ‘SHOWS’ how a product works by demonstrating ‘live’ or on a recorded media for repeated playback.

Example: Chef Wan and Maggi products, Chef Ismail (Iron Chef)

Demonstrations

Point-of-purchase promotions

Include displays and demonstrations that take place at the point of sales

Require an entry by a consumer. It gives consumers the chance to win something.

Contests

ContestSweepstakes

Require consumers to submit their names for a drawing

Present consumers with something that may or may not help them win a prize

Games

So what is the difference between a contest and a sweepstake?

• Contest requires a purchase

• Proof of purchase necessary

• A panel of judges picks the winner (most correct, most complete, most desirable answer)

• Sweepstake requires NO purchase.

• Aims to collect customer database

• Winner is picked at random.

• The rest of the customers are contacted during sales or promotion periods

Sales Contests

Are effective in motivating salespeople or dealers to increase performance over a given period

Are effective to reach many customers not reached with the regular sales force

Conventions

Pro’s and Cons’

√ May be targeted at trade or consumers√ Makes use of variety of formats√ Attracts attention, offers strong purchase

incentives, dramatizes offers and boosts sagging sales

√ Stimulates quick responseX Short-livedX Not effective in building long-term brand

preferences.