fERA LUFHIDARANI PRANITA
3 EB 23
22210722
Promotion is a form of corporate communication that uses
various methods to reach a targeted audience with a certain message in order to
achieve specific organizational objectives. Nearly all organizations, whether
for-profit or not-for-profit, in all types of industries, must engage in some
form of promotion. Such efforts may range from multinational firms spending
large sums on securing high-profile celebrities to serve as corporate
spokespersons to the owner of a one-person enterprise passing out business
cards at a local businessperson’s meeting.
Like most marketing decisions, an effective promotional
strategy requires the marketer understand how promotion fits with other pieces
of the marketing puzzle (e.g., product, distribution, pricing, target markets).
Consequently, promotion decisions should be made with an appreciation for how
it affects other areas of the company. For instance, running a major
advertising campaign for a new product without first assuring there will be
enough inventory to meet potential demand generated by the advertising would
certainly not go over well with the company’s production department (not to
mention other key company executives). Thus, marketers should not work in a
vacuum when making promotion decisions. Rather, the overall success of a
promotional strategy requires input from others in impacted functional areas.
In addition to coordinating general promotion decisions
with other business areas, individual promotions must also work together. Under
the concept of Integrated Marketing Communication marketers attempt to develop
a unified promotional strategy involving the coordination of many different
types of promotional techniques. The key idea for the marketer who employs
several promotional options (we’ll discuss potential options later in this
tutorial) to reach objectives for the product is to employ a consistent message
across all options. For instance, salespeople will discuss the same benefits of
a product as mentioned in television advertisements. In this way no matter how
customers are exposed to a marketer’s promotional efforts they all receive the
same information.
Sales
promotion is one of the seven aspects of the
promotional mix. (The
other six parts of the promotional mix are
advertising,
personal selling,
direct marketing,
publicity/
public relations,
corporate image and
exhibitions.) Media and
non-media marketing communication are employed for a pre-determined, limited
time to increase consumer demand, stimulate market demand or improve product
availability. Examples include
contests,
coupons,
freebies,
loss leaders,
point of purchase
displays,
premiums,
prizes,
product samples, and
rebates
Sales promotions can be directed at either the
customer, sales staff, or
distribution
channel members (such as
retailers).
Sales promotions targeted at the
consumer
are called
consumer sales promotions.
Sales promotions targeted at retailers and
wholesale are called
trade sales promotions. Some sale
promotions, particularly ones with unusual methods, are considered
gimmicks by many.
Sales promotion includes several communications
activities that attempt to provide added value or incentives to consumers,
wholesalers, retailers, or other organizational customers to stimulate
immediate sales. These efforts can attempt to stimulate product interest,
trial, or purchase. Examples of devices used in sales promotion include
coupons, samples, premiums, point-of-purchase (POP) displays, contests,
rebates, and sweepstakes
Promotion includes all activities designed to inform, persuade and
influence people when they are making the decision to buy. Promotion is made up
of:
Advertising
• non-personal communication
transmitted through mass media
Publicity
• free promotion through news
stories in newsletters, newspapers, magazines and television
Sales Promotion
• all forms of communication
not found in advertising and personal selling, including direct mail, coupons,
volume discounts, sampling, rebates, demonstrations, exhibits, sweepstakes,
trade allowances, samples and point-ofpurchase displays In designing a
promotional plan, clearly spell out:
• Which objectives to use. It
is possible to have more than one objective, but it is recommended that a
company target its audience or run the risk of losing focus.
• What to say
• Who to say it to
• Criteria used to measure
success
Suggestions for Inexpensive Promotion
Some inexpensive, appropriate
and effective methods of promotion for the new food processor include
advertising through:
• Personal selling
• Product demonstrations
• Direct mail
• Business cards
• Yellow Page listing
• Seminars
• Newsletters
• Contests
• Flyers
• Statement stuffers
• Window banners
• Greeting cards
• Sports team sponsor
• Home parties
• Ethnic services—languages
spoken
Of course, one of the best free
methods of promotion is good “word of mouth."
Promotion Objectives
The promotion objectives need to be clearly stated and measurable.
They must be compatible with the objectives of the company, as well as the
competitive and marketing strategies. Objectives vary for different products and
different situations. For example, producers must promote differently to
brokers than to wholesalers. When promoting to a broker, the producer must
promote what he/she wishes the broker to present to the wholesaler. When
promoting to a wholesaler, the producer simply wants the wholesaler
to purchase the product. There
are five general promotional objectives to choose from. The five types of
objectives for promotional activities are1:
• to provide information
• to increase demand
• to differentiate the product
• to accentuate the value of
the product
• to stabilize sales
Promotional Strategy
Once the producer has reviewed
all the possible promotional tools, he/she must devise a promotional strategy.
A
promotional strategy should
address the following issues:
• What is the goal of the
promotion?
• What types of promotion
should be used?
• What effect should the
promotion have on the customer?
• Which promotion is working?
• Which promotion is not
working?
• What are the costs of the
promotion compared to the benefits?
Promotions are for people who
give the extra amount of work. They consider the company’s needs almost above
their own to the extent possible. A person who shows maturity and loyalty to
the company is always noticed. So is an employee who provides a constant
seamless quality of work.
Kinds Of Promotion
Marketers have at their
disposal four major methods of
promotion. Taken together these comprise the promotion mix. In this section a basic definition of
each method is offered while in the next
section a comparison of each method based on the characteristics of promotion is presented.
a. Advertising
Involves non-personal; mostly
paid promotions often using mass media
outlets to deliver the marketer’s message. While historically Sales promotion is designed to
be used as a short-term tactic to boost sales, the advent of computer technology and, in
particular, the Internet has increased
the options that allow customers to provide quick feedback.
b. Public Relations and
Sponsorship
Also referred to as publicity,
this type of promotion uses third-party
sources, and particularly the news media, to
offer a favorable mention of the marketer’s company or product without
direct payment to the publisher of the
information.
c. Personal Selling
As the name implies, this form
of promotion involves personal contact
between company representatives and those
who have a role in purchase decisions (e.g., make the decision, such
as consumers, or have an influence on a
decision, such as members of a company
buying center). Often this occurs face-to-face or via telephone, though
newer technologies allow this to occur
online via video conferencing or text chat.
d. Sales Promotion
Involves the use of special
short-term techniques, often in the form
of incentives, to encourage customers to respond or undertake some activity. For instance, the
use of retail coupons with expiration
dates requires customers to act while the incentive is still valid.
e. Direct marketing
A channel-agnostic form of
advertising that
allows businesses and nonprofits organizations to communicate straight to the
customer, with advertising techniques that can include
Cell Phone Text messaging,
email, interactive consumer websites, online display ads, fliers, catalog
distribution, promotional letters, and outdoor advertising.
Direct marketing messages
emphasize a focus on the customer, data, and accountability. Characteristics
that distinguish direct marketing are:
- Marketing messages are
addressed directly to the customer and/or customers. Direct marketing relies on
being able to address the members of a
target market.
Addressability comes in a variety of forms including email addresses, mobile
phone numbers, Web browser cookies, fax numbers and postal addresses.
- Direct marketing seeks to drive
a specific "call to action." For example, an advertisement may ask
the prospect to call a
free phone number or click on a link to a
website.
- Direct marketing emphasizes
trackable, measurable responses from customers — regardless of medium.
Why Do We Need Promotion ?
Promotion is benefit for
customer, activities have a variety of aims:
- To inform
current and potential customers about the existence of products
- To explain
the potential benefits of using the product
- To
persuade customers to buy the product
- To help
differentiate a product from the competition
- To develop
and sustain a brand
- To
reassure customers that they have made the right choice
Present Tense
- Promotion is a form of corporate communication
that uses various methods
- Promotions are for people who give the extra
amount of work
- Addressability comes in a variety of forms
including email addresses
- Direct marketing seeks to drive a specific
"call to action."
- This type
of promotion uses third-party sources
- Promotions are for people who give the extra
amount of work
- Promotion is benefit for customer
- Promotion is good “word of mouth."
- So is an employee who provides a constant
seamless quality of work.
Past Tense
- Sales promotion can be directed at either the customer
- Media and non-media marketing communication employed
for a pre-determined
- Examples of devices used in sales promotion
include coupons
- Sales promotions targeted at retailers and wholesale
are called trade sales promotionsnon-personal
communication transmitted through mass media
- Marketing messages addressed directly to the
customer and/or customers.
- Sales promotion designed to be used as a
short-term tactic to boost sales,
- Once the producer reviewed all the possible
promotional tools
- Promotion
includes all activities designed to inform
- In this way no matter how customers exposed to a
marketer’s
- In this section a basic definition of each
method offered while in the next section
