promotion, advertising, and sales promotion strategies

Promotion, Advertising, and Sales Promotion Strategies

Promotion, Advertising, and Sales Promotion Strategies

Muhammad AsifSyed Abdur RehmanMuzamil Ahmed

Chapter 12

Promotion StrategyAdvertising StrategySales Promotion Strategy

Promotion Strategy

Initiating and maintaining a flow of communications between a company (brand) and its market targets.

Composition of Promotion Strategy

PromotionComponents PublicRelationsDirectMarketing

SalesPromotionPersonalSelling

Advertising

Interactive/Internet Marketing

Annual Expenditures (billions)

0

$200

$400$600

Personal Selling Sales Promotion

Advertising

DEVELOPING THE PROMOTION STRATEGY

COMMUNICATIONOBJECTIVESROLE OF PROMOTIONCOMPONENTSPROMOTIONBUDGETPROMOTION COMPONENTSTRATEGIESCoordinationwith Product,Distribution,and PriceStrategiesAdvertisingSales PromotionPublic RelationsPersonal SellingDirect MarketingInteractive/ Internet MarketingMARKET TARGETING AND POSITIONING STRATEGIESINTEGRATE AND IMPLEMENT PROMOTION COMPONENT STRATEGIES

EVALUATE EFFECTIVENESS OF PROMOTION STRATEGY

ILLUSTRATIVE COMMUNICATION OBJECTIVESNeed Recognition

Finding Buyers

Brand Building

Evaluation of Alternatives

Decision to Purchase

Customer Retention

DETERMINING THE PROMOTION BUDGETPercent of SalesFollow the CompetitionObjective and TaskAll You Can Afford

Budgeting Approaches

Promotion Strategy IssuesExpense/Response RelationshipsAllocationImpact on Brand EquityIntegration of Promotion ComponentsEvaluating Effectiveness

Syed Abdur Rehman

ADVERTISING STRATEGY

Setting Objectives and BudgetingCreative StrategyMedia/Programming StrategyRole of the AgencyProgram Implementation and Effectiveness

ADVERTISING STRATEGYTarget AudienceAdvertising ObjectivesAdvertising BudgetCreative StrategyAdvertising Media and Programming SchedulesImplement and Evaluate Strategy Effectiveness

Illustrative Advertising Objectives

Expose communication to target audienceCreate awarenessChange attitude(s)Increase SalesGenerate profits

Budget DeterminationOBJECTIVE AND TASK METHOD HAS A STRONGER SUPPORTING LOGIC THAH THE OTHER METHODS.Media/ SchedulingCreative StrategyBudget Determination

CREATIVE STRATEGYThe creative strategy is guided by the market target and the positioning strategy.ProductDistributionPricePromotion

Advertising(How to communicate intended positioning to buyers and others influencing the purchase.)

Creative StrategyProvide a unifying concept that binds together the various parts of the advertising campaign.

MEDIA / SCHEDULING DECISIONSTelevisionRadioMagazines OnlineWebsiteOutdoor

Factors Influencing Media DecisionsAccess to the target audience

Cost of reaching the target group(s)

Favorable access to costUnfavorable access to cost

Role of the Advertising Agency

Advertising AgencyTarget AudienceAdvertising ObjectivesAdvertising BudgetCreative StrategyAdvertising Media and ProgrammingEvaluate the Effectiveness of the Strategy

ADVERTISING STRATEGY IMPLEMENTATION AND EFFECTIVENESS Decide how to measure effectiveness before implementing the strategy. Assign responsibility for tracking performance. Assessing the quality of advertising is important. Exposure to advertising is not a very sensitive measure of effectiveness.

MEASURINGADVERTISINGEFFECTIVENESS

RatingServicesSales andExpense Analysis

TestMarketing

ControlledTestsRecallTests

SALES PROMOTION STRATEGYSALES PROMOTION consists of various incentives, mostly short term, intended to stimulate quicker and/or greater purchase of particular goods/services by end-user consumers or value chain organizations.The strategy process is similar to the design of advertising strategy.

Sales Promotion Activities and TargetsSALESPROMOTIONTARGETS

ConsumerBuyersSalespeopleBusinessBuyersValue ChainActivities include trade shows, contests, displays, coupons, recognition programs, and free samples.