Introduction

DEFINITION:

*    Promotion is communication with actual and potential buyers



OBJECTIVE: 

*    To convince target market of the product's differential advantage



NECESSARY PREREQUISITE:

*    Ought be guided by a promotional strategy: a plan for the optimal use of the promotional mix

                                  Elements of the Promotional Mix

                               The Effects (outcomes) of Advertising

*    Advertising influences:

  --  market share

  --  the consumers' behaviour

  --  brand loyalty

  --  perceptions of attributes

                                   Promotion and the Demand Curve

                                   Promotion and the Demand Curve



                                 Major Types of Advertising (cont)

*    Institutional advertising

  --  to establish, change or maintain the firm's identity - not an attempt to sell anything

*    Product advertising

  --  pioneering advertising

    <<   stimulate demand for a new product: primary demand

  --  competitive advertising

    <<   attempts to increase sales: brand insistence

  --  comparative advertising

    <<   directly or indirectly compares two brands

                                   Setting Advertising Objectives

                                           Choosing Media

                                    Advertising on the Internet

                                   Public Relations and Publicity

*    Public relations: shape the public's perceptions of and attitudes towards the firm

*    Communicates with stakeholders in manners other than advertising

*    Publicity: non-paid for media exposure for the firm: both positive and negative

                                          Personal Selling

*    Two people in a purchasing situation trying to influence each other

*    Each part has its own objectives

  --  buyer wants to minimise costs or buy the best quality

  --  seller wants to maximise price, sales and profits

*    Often a well-prepared presentation

*    Modern approach is relationship selling

                               Steps in the Personal Selling Process

                                          Sales Promotion

*    All marketing activities other than advertising, personal selling and public relations, that
stimulates sales and dealer effectiveness

*    Short-term, immediate stimulation of demand

*    Can be aimed at consumers, intermediaries or employees

*    Examples: free samples, coupons etc.





                                Integrated Marketing Communications

*    Ideally communication from each promotional element ought to be integrated

*    The message reaching the consumer must be consistent irrespective of the medium used

*    Organisational arrangements must ensure IMC

*    The responsibility of the marketing communications manager



                                 AIDA and the Hierarchy of Effects

                             When Elements of Promotion Are Most Useful

                               Factors that Affect the Promotion Mix

                                     Creating a Promotion Plan

                             Criteria for Setting Promotion Objectives

                                  Examples of Promotion Objectives