MARKETING - CHAP 7

PROMOTION

have been defined as the coordination of all

“Seller initiated efforts to set up channels of informations

and persuasion to sell goods and services or promote an

idea”.

1. ADVERTISING

2. DIRECT MARKETING

3. PERSONAL SELLING

4. PUBLIC RELATIONS

5. SALES PROMOTION

ENUMERATE THE DIFFERENT PROMOTIONAL TOOLS

ADVERTISING

is defined as any paid form of non-personal communication

about an organization, product, service, or idea by an identified sponsor. It

can reach the largest number of prospects very quickly.

is viewed as a way to create and

maintain awareness of the company, property, or destination.

1. INFORMATIVE

2. PERSUASIVE

3. REMINDER

OBJECTIVES OF

ADVERTISING

1. SLICE OF LIFE

2. LIFESTYLE

3. FANTASY

4. MOOD OR IMAGE

5. MUSICAL

6. PEROSNALITY

7. TECHNICAL EXPERTISE

8. SCIENTIFIC EVIDENCE

9. TESTIMONIAL EVIDENCE

TYPES OF ADVERTISING EXECUTION

INFORMATIVE

Advertising is used to introduce a new product or to

build up primary demand for the product.

Companies employ aggressive tools to ensure that a

new product creates excitement and demand within

its target market.

PERSUASIVE

Advertising is used when competition is stiff.

Companies rely on persuasive advertising to be

able to keep their market share.

REMINDER

Advertising is very important for products that

have reached the maturity stage. Products attempt

to maintain market position even if they are

already top of mind.

SLICE OF LIFE

Shows how people use the product in a normal setting.

LIFESTYLE

Shows how the product fits with one’s way of life.

FANTASY

Creates a “wonder” world around the product or its

use.

MOOD OR IMAGE

Build positive images or moods around the products

such as beauty, love, fun, and serenity.

MUSICAL

Uses simple but catchy music effectively through

product jingles or songs.

PERSONALITY

Creates a character that represents the product such as

jollibee, the friendly bee.

TECHNICAL EXPERTISE

Reveals the company’s expertise with the product or

service.

SCIENTIFIC EVIDENCE

Presents research or scientific evidence that the brand

is better than competing brands.

TESTIMONIAL EVIDENCE

Features a highly credible person such as a celebrity

endorsing the product.

CELEBRITY ENDORSEMENT

plays an important role in helping products

become more tangible and creates differentiation. The use of

THESE may become a preffered atrategy for promoting a

product or service because the ________ lends his/her credibilty to the

product, helps attract attention, provides a persuasive message, and

targets the audience based on the celebrity’s demographic profile.

DIRECT MARKETING

Is an interactive system of marketing that uses one or

more advertising media to affect a measurable response.

It seeks to establish continuing relationships between a

company and its regular customers. Offers are sent to a

customer satabase of people who are most able, willing,

and ready to buy the product (Kotler et. al. 2017)

1. PRECISION TARGETING

2. PERSONALIZED MESSAGES

3. PRIVACY

4. FASTER SALES

5. VARIETY OF PACKAGING OPTIONS

6. MEASURABILITY

7. LESS COMPETITION

8. IMMEDIATE RESULT

ADVNATGAES OF DIRECT MARKETING

PRECISION TARGETING

Having a good database can help pinpoint prospects based

on the prospect’s lifestyle, demographics, purchasing

pattern, etc. The direct mail campaign can be very precise

in specifying its target market.

PERSONALIZED MESSAGES

A person’s name is the sweetest word in the world.

Prospective customers will definitley read through the

material when their name is on it. Addressing specific

customer personally will better capture their attention than

generic and random messages.

PRIVACY

The company’s offer is not visible to competitors since it

is personalized. The competition will not be able to

monitor what the offer is. Hence, they will not be able to

match it.

FASTER SALES

Direct marketing can yield faster sales since it is

targeted to actual users of the product.

VARIETY OF PACKAGING OPTIONS

A variety of packaging options are available for

direct mail campaigns limited only by the

marketer’s creativity and budget.

MEASURABILITY

`The company knows the number of direct mailers

issued; hence, it will be easy to determine response

rate.

LESS COMPETITION

A letter or package that is opened by the prospects

wll have less competition from other media content

compared to bilboards, TV commercials, and the

like. The receiver would take more time reading

through your content because it is personalized and

unique.IO

IMMEDIATE RESULT

A response from or action is normally solicited

from the prospective customer; hence, results can

be immediate.

1. LIST

2. MESSAGE

3. OFFER

ELEMENTS OF A DIRECT MARKETING CAMPAIGN

LIST

Contains all the namees and

contact information of your

target market. This list should be

accurate, updated, and narrowed

down based on the

characteristics of the market who

you think would most likely be

intersted in your product

offering.

MESSAGE

The messgae needs to be

customized and personalized.

Marketers estimate that

prospective customers have very

limited attention span and it will

only take few seconds for them

to make a judgment on whether

to continue reading your

message of for them to proceed

to do other things

OFFER

should be inteesting

and worthy of the prospective

customer to consider making a

purchase. It should move the

prospective client into action.

MEASURABILITY

One of the advantages of direct marketing as a

promotional tool is its __________

A properly

executed direct marketing campaign can be

measured in several ways namely:

1. The number of inquiries

generated

2. The ratio of conversasions or

purchase realized from inquiries

generated

3. Its communication impact

PERSONAL SELLING

selling can be defined as the person-to-person

communication between a salesperson and a prospective

customer in which`

1. PROSP[ECTING

2. TARERGETING

3. COMMUNICATING

4. SELLING

5. SERVICING

6. ALLOCATING

PRIMARY TASK OF SALES PROFESSIONALS

PROSPECTING

The sales professionals is tasked to look into potential

customers or prospects. A good and active database

should be maintained as well as networking skills.

TARGETING

Sales professionals need to determine how to prioritize

their limited time and resources to tap customers from

their list of prospects.

communicating

A constant stream of communication should flow from

customer to client and vice versa. Sales personnel need

to find ways and means to keep in touch with clients.

SELLING

Sales Personnel are trained to do product presentations,

to negotiate, to overcome objectives, and to close the

sale.

SERVICING

Sales person should not remain as order takers. Instead,

they should shift becoming customer consultants -

helping clients solve problem.

INFORMATION GATHERING

Sales representatives assist the company in gathering

intelligence information such as what the competition

is doing or what the company’s needs are.

ALLOCATING

When there are product shortages or overbookings,

salespeople assist in deciding which clients to prioritize

based on past and future business.

PUBLIC RELATIONS

is the process of creating a positive

image and customer preference through third party

endorsement. This is by far the most important promotional

tool available to entrepreneurs. This can be done using various

activities all aimed to generate a positive image through what

others say about one’s establishment.

PUBLIC RELATIONS

banks on the idea that if a

credible persons - not related to your business -

says something good about your product or

service, then consumers may be more certain that

it is really good.

1. PRESS/MEDIA RELATIONS

2. PRODUCT PUBLICITY

3. CORPORATE COMMUNICATION

4. LOBBYING

5. COUNSELING

MAJOR PUBLIC RELATION ACTIVITIES

PRESS/MEDIA RELATIONS

Mass media channels help generate publicity and

awareness for huge audience. If managed well,

news about the product or service can be made

available to the mass market with very minimal

expense.

PRODUCT PUBLICITY

This involves efforts to introduce or publicize new

products, special events, or new developments

within the business through product endorsements

or mentions in various channels.

CORPORATE COMMUNICATION

This covers internal and external communications

that promotes understanding of the organization

using tools such as newsletter, bulletins, and email

blasts. Corporate communications address various

audiences such as employees, stockholders, and

clients.

LOBBYING

Public relations also includes building good

relations with the public sectors namely, local

government units where your business operate and

legislators who may pass bills that will have an

impact - whether positive or negative on one’s

business.

COUNSELING

Employees involved in PR play the role of advisers

with regard to public issues that may have an effect

on the company’s position and image. In times of

crisis, the PR manager serves as the official

spokesperson of the company.

SALES PROMOTION

are direct inducement that offer extra

value or incentive for the product to the sales force,

distributors, or the ultimate consumer, with the primary

objective of creating an immediate sale. It consist of

short-term incentives to encourage the purchase or sale

of a product or service. It involves variety of

techniques that serves to accelerate the purchase of

product or services.

1. SAMPLES

2. COUPONS

3. PACKAGES

4. PREMIUMS

5. PATRONAGE R EWARDS

6. POINT OF PURCHASE PROMOTION

7. CONTEST AND GAMES

SALES PROMOTIONAL TOOLS

SAMPLES

are offers of a trial amount

of product.

Sampling can also be made

to influential

decision-makers such as

company executives and

salespeople in the belief that

trial will improve product

knowledge, which will

eventually lead to a sale.

COUPONS

Are certificates that offer

buyers savings when they

purchase specific products.

This tool should be used

carefully to avoid a price or

coupon war that detracts

consumers from the intrinsic

value of the product or service.

PACKAGES

Involve putting together a

set of complementing

products to come up with

one bundle at a special

price.

This help increasing per

capita revenue and selling

products that may

otherwise be unsold.

PREMIUMS

Are goods offered either for

free or at low cost to

provide an incentive for

consumers to buy a

product.

Some establishments create

novelty item that can be

brought home as a symbol

of the product bought.

PATRONAGE REWARDS

Are bonuses in the form of cash

or items of value that can be

redeemed for regular purchase

made.

These kinds of rogram create

more frequency of purchase,

positive word of mouth, and

possibly larger purchases.

POINT OF PURCHASE PROMOTION

Includes displays and

promotions that take place

at the point of sale.

Some hotels display

brochures of their other

branches at the lobby or

front desk.

CONTEST AND GAMES

Give consumers a chance to win something

such as a trip or cash upon the purchase of

products and services.

Raffle entries are given to consumers based

on the total amount of consumption.