Promotion Means Effective Communications

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Promotion Means Effective Communications

• Marketing
• Chapter 15

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Role of Promotion

• Promotion
• Any form of communication used to inform,
  persuade, or remind

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Role of Promotion

• To Inform
• First task of promotion
• Often done when product is in introduction stage
  of life cycle
• To Persuade
• Attempts to encourage customer to take specific
  action
• Important during growth stage of life cycle

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Role of Promotion

• To Remind
• Final role of promotion activities
• Frequently used in maturity stage of life cycle

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Communication Process

• The transfer of a message from sender to a
  receiver
• Sender
• Originator of the message
• Encoding
• Putting message into language or symbols that are
  familiar to the intended receiver

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Communication Process

• Message Channel
• The medium the sender chooses to transmit the
  message
• TV, radio, billboard, Internet, newspaper,
  magazine, direct mail, sales presentation
• Decoding
• Interpreting the message or converting it into
  meaning or ideas

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Communication Process

• Receiver
• Person/persons to whom the encoded message is
  directed
• Noise
• Interference that can cause the message to be
  interpreted by receiver incorrectly
• Feedback
• Receivers reactions or response to the sources
  message

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Types of Communication

• Interpersonal Communication
• Involves two or more people in some kind of
  person-to-person exchange
• Mass Communication
• Communication to a huge audience, usually through
  mass media such as magazines, radio, television,
  or newspaper.

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Types of Promotion

• Advertising
• Any paid form of non-personal communication sent
  through a mass medium by an organization about
  its product

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Types of Promotion

• Advertising
• Advantages
• Reaches millions of people
• Can reach geographically diverse people at the
  same time
• Repeats messages many times

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Types of Promotion

• Disadvantages
• High cost
• Target audience may not be at the right place to
  receive message
• Impersonal in nature

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Publicity

• Non-paid form of communication about a business
  or organization or its products
• Usually a news story
• Advantages
• Creates goodwill (positive feelings)
• Disadvantages
• Organization had little control over story
  generated by media

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Personal Selling

• Person-to-person communication with a potential
  customer in an effort to inform, persuade, or
  remind them to purchase an organizations
  product.
• Advantages
• Personal contact
• Customer feedback is immediate
• Disadvantages
• Per person cost is high
• Every sales encounter does not result in a sale

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Sales Promotion

• Activities or materials that offer consumers a
  direct incentive to buy a good or service
• Advantages
• Generates immediate short-term sales
• Used to support other parts of the promotional
  campaign
• Disadvantages
• Cost
• If the promotion does not result in a significant
  sales increase, the business will lose money.

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Advertising is a Marketing Tool

• Marketing Responsibilities
• Marketing Strategy
• Show the products value
• Stand Out in the Crowd
• Focus on features/attributes that makes product
  unique
• Target the Customer
• Focus on the type of customer most likely to
  purchase the product
• Contribute to Revenue
• Creating sales

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Advertising as a Marketing Tool

• Brand Loyalty
• Image and repeat customers
• Enhance Customer Satisfaction
• Reinforcing consumer decision to buy your product
• Life of Product
• Good advertising generates revenue and profit