PROMOTION AND ADVERTISEMENT

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PROMOTION AND ADVERTISEMENT
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PROMOTION AND ADVERTISEMENTLEARNING OBJECTIVES

• By the end of this module you should be able to
• Understand the meaning of sales promotion and the
  various sales promotion tools that businesses use
  in consumer and industrial markets.
• Explain the importance of promotion
• Explain the above and below the line promotion
  mix
• Discuss the advantages and disadvantages of the
  various media used in advertisement

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• The importance of the Customer

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• Why do people communicate in Business
• To build relationships internally and externally
  with individuals and groups
• To give specific instructions to others on a
  range of business matters, both procedural and
  strategic.
• To disseminate information on a range of
  corporate matters such as the mission statement,
  policy issues or, in the case of the external
  market, on price changes or new promotional
  initiatives
• To share ideas and values on work-related issues
  or procedural tasks
• To negotiate matters of policy as a joint venture
  or merger
• To discuss or negotiate on personal or
  professional matters such as remuneration and
  other higher and lower level hygiene factors
• To motivate, interest and stimulate employees for
  commitment and loyalty to the firm
• To create an awareness of the organization, its
  products or services and persuade the external
  market, for example, to make a purchase decision
  or to request further information
• To receive feedback in order to monitor whether
  the communication was understood and the reaction
  of the recipient to the message.

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• ADVERTISEMENT
• Advertisement
• Definition This is any paid form of non-personal
• presentation and promotion of ideas, goods or
• services by an identified sponsor

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Advertisement

• Forms of Advertising and their advantages and
  disadvantages
• 1. Television
• Advantages - Can reach millions of people all
  over the country and images can be seen.
• Disadvantages - Very expensive
• 2. Radio
• Advantages - Cheaper than T.V, can be used to
  reach certain listeners
• Disadvantages - Sound only (no images), smaller
  audiences
• 3. Newspapers and Magazines
• Advantages - A lot of information is known about
  the people who read certain papers
• Disadvantages - Often not in color and are static
  and silent
• 4 Yellow Pages
• Advantages Target wider audience.
• Disadvantages - A lot of your competitors are on
  the same page you are

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Advertisement

• Cinema
• Advantages - Very high visual and sound effect,
  captive audience
• Disadvantages - Are relatively expensive
• 6. Outdoor Posters, flyers and Billboards
• Advantages - High visual impact for a long time
  and will be seen by a lot of different people
• Disadvantages - Are only seen for a few seconds
  by drivers and are vulnerable to weather and
  graffiti
• 7. Leaflets and Junk mail Advantages - Cheap to
  produce and distribute
• Disadvantages - Are easy to ignore
• 8. Telephone
• Advantages - Direct to customer, interactive,
  receive instant feed back.
• Disadvantages - makes some customer feel their
  privacy has been violated, sometimes has negative
  results.
• 9. Internet/websites
• Advantages - High visual impact, interactive and
  can link directly to buying the product, is
  relatively cheap
• Disadvantages - There is a lot of competition so
  getting peoples attention may be difficult needs
  to be continually updated and can become
  expensive

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ADVERTISEMENT AND PROMOTION
Businesses need to advertise for the following
four main reasons To raise customer awareness.
To remind customers about existing facilities.
To persuade customers to switch from rival
businesses. To improve and maintain the image of
the business. The ultimate aim of these points
is to attract more customers. The places our
business will advertise from depends on three
things Its audience. The size of their market.
The size of their advertising budget.
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ADVERTISMENT

• Main Advertising Decisions

Advertising strategy
Media decision
Objectives setting
Campaign evaluation
Message decision
Budget decisions
Communication Impact Sales impact
Reach, frequency, Impact Main media
types Specific media vehicles Media timing

Message strategy
Affordable approach
Communication Objectives Sales Objectives
Percentage of sales
Message execution
Competitive parity
Objective and task
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ADVERTISMENT

• Important decisions in advertising
• Setting advertising objectives
• The first step is to set advertising objectives.
• Advertising objective is a specific communication
  task to be accomplished with a specific target
  audience during a specific period of time.

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ADVERTISMENT

• Possible Advertising Objectives

Informative advertising Telling the market about a new product Describing available services Suggesting new uses for a product Correcting false impressions Informing the market of a price change Reducing customers fears Explaining how the product works Building a company image.
Persuasive advertising Building brand preference Encouraging switching to your brand Changing customer perceptions of product attributes Persuading customers to purchase now Persuading customer to receive a sales call
Reminder advertising Reminding customers that the product may be needed in the near future Reminding customers where to buy the product Keeping the product in customers minds during off-seasons Maintaining top-of-mind product awareness.
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ADVERTISMENT

• Setting the advertising budget
• After determining its objectives, the company
  next sets its advertising budget for each
  product.
• Four methods for determining promotion budget

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ADVERTISMENT

• Specific factors that should be considered when
  setting the advertising budget
• Stage in the product life-cycle
• Market share
• Competition and Clutter
• Advertising frequency
• Product differentiation

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ADVERTISMENT

• Developing Advertising Strategy
• Creating the advertising message
• No matter how big the budget, advertising can
  succeed
• only if commercials gain attention and
  communicate
• well.

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ADVERTISMENT

• The changing message environment

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ADVERTISMENT

• Message strategy

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ADVERTISMENT

• Message Execution
• Any message can be presented in different
  execution styles such as the following
• Slice of life
• Lifestyle
• Fantasy
• Mood or image
• Musical
• Personality symbol
• Technical expertise
• Scientific evidence.
• Testimonial evidence or endorsement

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ADVERTISMENT

• Selecting advertising media
• Deciding on reach, frequency and impact
• Choosing among chief media types

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ADVERTISMENT

• Choosing among chief media types

Medium Advantages Limitations
Newspapers Flexibilitytimeliness local market coveragebroad acceptance high believability Short life poor reproduction quality small pass-along audience.
Television Good mass-market coverage low cost per exposure combines sight, sound and motion appealing to the senses. High absolute cost high clutter fleeting exposure less audience selectivity.
Radio Good local acceptance high geographic and demographic selectivity low cost. Audio presentation only low attention ( the half-heard medium) fleeting exposure fragmented audience
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• Magazines High geographic and demographic
  selectivity credibility and prestige
  high-quality reproduction long life good
  pass-along readership. Long ad purchase lead
  time high cost some waste circulation no
  guarantee of position.
• Direct mail High audience selectivity
  flexibility no ad competition within the same
  medium allows personalization. Relatively high
  cost per exposure
• Junk mail image.
• Outdoor Flexibility high repeat exposure low
  cost low message competition good positional
  selectivity. No audience selectivity creative
  limitations.
• Internet High selectivity low cost immediacy
  interactive capabilities. Small, demographically
  skewed audience relatively low impact audience
  controls exposure.

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ADVERTISMENT

• Selecting Specific Media Vehicles
• Deciding on Media timing

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ADVERTISMENT

• EVALUATING ADVERTISING

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ADVERTISMENT
Repeat
Trial
Intention
Preference
Attitude
Aware
Unaware
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ADVERTISMENT

• Other advertising considerations
• Organizing for advertising

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ADVERTISMENT

• International advertising decisions
• Standardisation or differentiation
• Centralisation and decentralisation

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ADVERTISMENT

• Worldwide advertising media

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ADVERTISMENT

• Media planning, buying and costs
• International advertising regulations

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THE PROMOTION / COMMUNICATIONS MIX

• Below the line
  communication

Corporate image Brand image Logos Packaging Poi
nt of sale display and Merchandising. Sales
promotion Trade fairs and Exhibition Sponsorship
Public relations Direct Marketing Direct
Mail Evaluating the effect of advertising Source
Priciples of Marketing by Philip Kotler and CIM
course book.
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THE PROMOTION/ COMMUNICATIONS MIX

• Below the line communication
• SALES PROMOTION
• It is a short-term incentive to encourage
  purchase or sales of a product or service.
• It consists of short-term incentives, in addition
  to the basic benefits offered by the product or
  service, to encourage the purchase or sale of a
  product or service.
• Whereas advertising offers reasons to buy a
  product or service, sales promotion offers
  reasons that would achieve immediate sales.
• Sales promotion seeks to motivate the customer to
  buy now.
• Sales promotion includes a wide variety of
  promotion tools designed to stimulate earlier or
  stronger market response.
• These tools are used by many organizations-manufac
  turers, distributors, retailers, trade
  associations and non-profit institutions-and may
  be targeted towards the consumer or final buyer,
  business customers, the trade or retailer and the
  companys sales force.
• Consumer promotion include money-off, coupons,
  premiums, contests and others.
• Trade promotion range from special discounts,
  free goods and loyalty bonuses to training.
• Business promotion include many of the same tools
  used for consumer or trade promotions such as
  conventions and trade shows, as well as sales
  contests.
• Sales force promotions include bonuses,
  commissions, free gifts and competitions.

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SALES PROMOTION

• Consumer promotion
• Sales promotion designed to stimulate consumer
  purchasing, including samples, coupons, rebates,
  price-offs, premiums, patronage rewards,
  displays, and contests and sweepstakes.
• Trade (or retailer promotion)
• Sales promotion designed to gain reseller support
  and to improve reseller selling efforts,
  including discounts, allowances, free goods,
  cooperative advertising, push money, and
  conventions and trade shows.
• Business promotion
• Sales promotion designed to generate business
  leads, stimulate purchase, reward business
  customers and motivate the salesforce.
• Sales force promotion
• Sales promotion designed to motivate the sales
  force and make sales force selling efforts more
  effective, including bonuses, contests and sales
  rallies.

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SALES PROMOTION

• MAJOR SALES PROMOTION TOOLS
• CONSUMER PROMOTION TOOLS
• Samples Offers to consumers of a trial amount of
  a product
• Coupons Certificates that give buyers a saving
  when they purchase a product
• Cash refund offers (rebates) Offers to refund
  part of the purchase price of a product to
  consumers who send a proof of purchase to the
  manufacturer
• Price packs Reduced prices that are marked by
  the producer directly on the label or package
• Premiums Goods offered either free or at low
  cost as an incentive to buy a product.
• Advertising specialities Useful articles
  imprinted with an advertisers name, given as
  gifts to consumers.
• Patronage rewards Cash or other awards for the
  regular use of a certain companys products or
  services.
• Point-of-purchase (POP) promotions Displays and
  demonstrations that take place at the point of
  purchase or sale.
• Competitions, sweepstakes, lotteries and games
  promotions that offer customers the chance to win
  something cash, goods or trips by luck or
  extra effort.

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MAJOR SALES PROMOTION TOOLSTRADE PROMOTION
TOOLS
SALES PROMOTION

• DISCOUNT A straight reduction in price on
  purchases during a stated period of time
• ALLOWANCE (1)Reduction in price on damaged
  goods.
• (2) Promotional money paid by manufacturers to
  retailers in return for an agreement to feature
  the manufacturers product in some way.

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SALES PROMOTIONMAJOR SALES PROMOTION TOOLS

• BUSINESS PROMOTION TOOLS
• Conventions and trade shows
• Sales contests

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SALES PROMOTION

• RAPID GROWTH OF SALES PROMOTION

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SALES PROMOTION

• SETTING SALES PROMOTION OBJECTIVES

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SALES PROMOTION-consumer market

• MAJOR SALES PROMOTION TOOLS
• Samples
• Offers to consumers of a trial amount a product
• Coupons
• Certificates that give a saving when they
  purchase a product
• Cash refund offers (rebates)
• Offers to refund part of the purchase price of
  the purchase price of a product to consumers
• who send a proof of purchase to the
  manufacturer
• Price packs
• Reduced prices that are marked by the producer
  directly on the label or package
• Premiums
• Goods offered either free or at low cost as an
  incentive to buy a product
• Advertising specialties
• Useful articles imprinted with an advertisers
  name, given as gifts to consumers.
• Patronage rewards
• Cash or other awards for the regular use of a
  certain companys products or services.
• Point-of-purchase (POP) promotions
• Displays and demonstrations that take place at
  the point of purchase or sale
• Competitions, Sweepstakes, lotteries and games

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Below the line communication

• PUBLIC RELATIONS
• 1.This is a planned, sustained and deliberate
  effort by an organization
• to maintain a good relationship with the public.
• 2.Public relations means building good relations
  with the companys
• various publics by obtaining favorable Publicity,
  building up a good
• corporate image, handling or heading off
  unfavourable rumours,
• Stories and events. Major PR tools include press
  relations, product
• publicity, corporate communications, lobbying and
  counselling

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PUBLIC RELATIONS

• Public relations is another mass-promotion
  technique. This concerns building good relations
  with the
• companys various publics by obtaining favourable
  publicity, building up a good corporate image'
  and
• handling or heading off unfavourable rumours,
  stories and events. Public relations (PR)
  departments
• Perform any or all of the following functions
• Press relations or press agency Creating and
  placing newsworthy information in the news media
  to attract attention to a person, product or
  service.
• Product publicity Publicising specific products
• Public affairs Building and maintaining local,
  national and international relations.
• Lobbying Building and maintaining relations with
  legislators and government officials to influence
  legislation and regulation.
• Investor relations Maintaining relationships
  with shareholders and others in the financial
  community.
• Development Public relations with donors or
  members of non-profit organisations to gain
  financial or volunteer support.

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PUBLIC RELATIONS

• Public relations is used to promote products,
  people, places, ideas, activities,
• organisations and even nations.
• Trade associations have used public relations to
  rebuild interest in declining
• commodities. Nations use public relations to
  attract more tourists, foreign investment
• and international support.
• The government uses public relations to sensitize
  the public about the consumption
• of dangerous products such as cigarettes and
  alcohol.
• The government also uses public relations to make
  the public to protect them selves
• from diseases e.g. AIDS. Steal in this light, the
  government uses PR to educate the
• public about precautionary measures to take in so
  far as Bird Flu Virus is concerned.
• Pressure groups such as the Food Standards Agency
  also uses the PR to inform customers about those
  harmful products which can damage their health.

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PUBLIC RELATIONS

• MAJOR PUBLIC RELATIONS TOOLS
• PR professionals use several tools. One essential
  tool is news . PR professionals find or create
  favourable news
• about the company and its products or people.
  Sometimes news stories occur naturally. At other
  times, the PR person can
• suggest events or activities that would create
  news.
• Speeches also create product and company
  publicity. Increasingly, company executives must
  field questions from the media or give talks at
  trade associations or sales meetings. These
  events can either build or hurt the companys
  image.
• Another common PR tool is special news, ranging
  from news conferences, press tours, grand
  openings and firework displays to laser shows,
  hot-air balloon releases, multimedia
  presentations and star-studded spectaculars, or
  educational programmes designed to reach and
  interest target publics.
• Public relations people also prepare written
  material to reach and influence their target
  markets. These materials include annual reports,
  brochures, articles and company newsletter and
  magazines.
• Audiovisual materials such as films,
  slide-and-sound programmes and video and audio
  cassettes, are being used increasingly as
  communication tools.
• Corporate-identity materials also help create a
  corporate identity that the public immediately
  recognises. Logos, stationery, brochures, signs,
  business forms, business cards, buildings,
  uniforms and even company cars and trucks make
  effective marketing tools when they are
  attractive, distinctive and memorable.
• Finally, companies might improve goodwill by
  contributing money and time to public service
  activities campaigns to raise funds for worthy
  causes- for example, to fight illiteracy, AIDS,
  Bird Flu, Tuberculosis, cancer support the work
  of a charity, or assist the aged and handicapped-
  help to raise public recognition.
• Sponsorship is any vehicle through which
  corporations gain public relations exposure.
  Corporate sponsorships have become an important
  promotional tool for companies looking to lift
  their brand image, or introduce new product lines
  or services. Worldwide spending on sponsorships
  totalled 24bn in 2002, an annual increase of 3.4
  percent according to a Chicago based research
  company (IEG).

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PUBLIC RELATIONS

• MAIN PUBLIC RELATIONS DECISIONS

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PUBLIC RELATIONS

• SETTING PUBLIC RELATIONS OBJECTIVES

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PUBLIC RELATIONS

• CHOOSING PUBLIC RELATIONS MESSAGES
• AND VEHICLES

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PUBLIC RELATIONS

• IMPLEMENTING THE PUBLIC RELATIONS
• PLAN

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PUBLIC RELATIONS

• EVALUATING PUBLIC RELATION RESULTS

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Below the line communication

• DIRECT MARKETING
• It is direct communications with carefully
  targeted
• individual customers to obtain an immediate
  response.

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DIRECT MARKETING

• THE BENEFITS OF DIRECT MARKETING TO THE
• CONSUMER
• Direct marketing benefits buyers in many ways
• First it is convenient from the comfort of their
  homes or offices, customers can browse mail
• catalogues or sellers websites at any time of
  the day or night. Buying is easy and private.
  Customer
• confront fewer buying hassles and do not have to
  face salespeople or open themselves up to
  persuasion and
• emotional pitches. Business Customers can learn
  about available products and services without
  waiting for
• and tying up time with sales people.
• 2. Direct Marketing often gives shoppers greater
  product access and selection For example, the
  worlds the
• limit for web. Cyberstores such as Amazon, CDNow
  and others can offer an almost unlimited
  selection
• compared to the more meagre assortments of
  counterparts in the bricks- and mortar world.
  Beyond a
• broader selection of sellers and products, online
  and Internet channels also give buyers access to
  a wealth of
• comparative information, information about
  companies, products and competitors, at home and
  around the
• globe. Good websites often provide more
  information in more useful forms than even the
  most solicitous
• salesclerk can. Amazon. COM and CDNow, for
  example, offer best-seller lists and reviews
• 3. Finally, direct marketing- especially online
  buying is interactive and immediate. Customers
  can often interact
• with the sellers by phone or on the sellers
  website to create exactly the configuration of
  information, products or
• services they desire, then order them on the
  spot. Furthermore, the internet and other forms
  of direct marketing give
• customers a greater measure and sense of control.
  For example, a rising proportion of car buyers
  shop online,

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DIRECT MARKETING

• THE BENEFITS OF DIRECT MARKETING TO
• THE SELLER
• Direct marketing also yields many benefits to
  sellers
• Direct marketing is a powerful tool for customer
  relationship building
• Direct marketing gives sellers access to buyers
  that they could not reach through other channels.
  For example, the internet provides access to
  global markets that might otherwise be out of
  reach.
• Finally, direct marketing can offer sellers a
  low-cost, fast and efficient alternative for
  reaching their markets. For example, direct
  marketing has grown rapidly in B2B marketing,
  partly in response to the ever-increasing costs
  of marketing through the sales force.

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DIRECT MARKETING

• FORMS OF DIERCT MARKETING
• Telephone marketing
• Direct-mail marketing
• Catalogue marketing
• Direct-response television marketing
• Integrated direct marketing

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Content of PART D Customer Communication

• UNIT 4 THE COMMUNICATIONS MIX Sources Philip
  Kotler(Priciples of Marketing

Below the line advert Advantages Disadvantages
Corporate image
Brand image
Logos
Packaging
POSDM
Sales promotion
Exhibitions
Sponsorship
Public relations
Direct marketing
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UNIT 4 THE
COMMUNICATIONS MIX
Above the line advert Advantages Disadvantages
Television Terrestrial, satellite, cable and interactive Local, national and International. Can provide movement/colour/sound and emotion. It is an intrusive medium. Viewers can identify with situations in adverts. Mass, regional or specific coverage available. Short time of adverts restricts information-passing. Can be repetitive which will result in boredom for viewer. Costly/time consuming to produce live adverts Adverts shown when many supply points are closed. Adverts not retained for review(consider home videos) Can be difficult for viewer to respond(consider tele-marketing)
Radio Local, national and international. Airtime is not very expensive. Offers sound effects and emotion. Versatile in location (Portable) It is intrusive. Non-visual Transmit only non complex info Needs repetitive advert to ensure coverage. High risk of listener intolerance due to repetition.
Press Advertising It covers all printed papers Newspapers, Magazines and directories. It may be national, regional, specialist, trade or general publications. High circulation with good opportunity to see(OTS). Audience can be easily identified Information can be saved and retrieved Advantages can include response coupons. Relatively low costs involved(both preparation and advert space) No sound and Movement If too many adverts, some will be missed. Magazines require long lead time. Printing only as good as the staff involved.







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UNIT 4 THE COMMUNICATIONS MIX
Above the line advert Advantages Disadvantages

Cinema
Internet
Outdoor



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Content of PART D Customer Communication

• UNIT 5 THE ROLE OF INFORMATION COMMUNICATION
  TECHNOLOGY IN CUSTOMER RELATIONSHIPS
• How communications with customers is changing
• The evolution of e-business
• Using ICT to improve customer communications.
• The Internet
• Websites
• Electronic Mail
• Intranet
• Extranet
• E-Commerce
• E-Business
• E-Marketing
• Signposts for the future
• Telecommunications
• Digital technology Source CIM
  course book