PROMOTION AND ADVERTISEMENT - PowerPoint PPT Presentation

Loading...

PPT – PROMOTION AND ADVERTISEMENT PowerPoint presentation | free to download - id: 778994-NWVjY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

PROMOTION AND ADVERTISEMENT

Description:

PROMOTION AND ADVERTISEMENT Created by Jude Asongwe – PowerPoint PPT presentation

Number of Views:72
Avg rating:3.0/5.0
Slides: 53
Provided by: aart154
Learn more at: http://judeasongwe.blog.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: PROMOTION AND ADVERTISEMENT


1
PROMOTION AND ADVERTISEMENT
2
PROMOTION AND ADVERTISEMENT LEARNING 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

3
  • The importance of the Customer

4
  • 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.

5
  • ADVERTISEMENT
  • Advertisement
  • Definition This is any paid form of non-personal
  • presentation and promotion of ideas, goods or
  • services by an identified sponsor

6
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

7
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

8
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.
9
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
10
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.

11
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.
12
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

13
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

14
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.

15
ADVERTISMENT
  • The changing message environment

16
ADVERTISMENT
  • Message strategy

17
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

18
ADVERTISMENT
  • Selecting advertising media
  • Deciding on reach, frequency and impact
  • Choosing among chief media types

19
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
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.

20
ADVERTISMENT
  • Selecting Specific Media Vehicles
  • Deciding on Media timing

21
ADVERTISMENT
  • EVALUATING ADVERTISING

22
ADVERTISMENT
Repeat
Trial
Intention
Preference
Attitude
Aware
Unaware
23
ADVERTISMENT
  • Other advertising considerations
  • Organizing for advertising

24
ADVERTISMENT
  • International advertising decisions
  • Standardisation or differentiation
  • Centralisation and decentralisation

25
ADVERTISMENT
  • Worldwide advertising media

26
ADVERTISMENT
  • Media planning, buying and costs
  • International advertising regulations

27
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.
28
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.

29
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.

30
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.

31
MAJOR SALES PROMOTION TOOLS TRADE 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.

32
SALES PROMOTION MAJOR SALES PROMOTION TOOLS
  • BUSINESS PROMOTION TOOLS
  • Conventions and trade shows
  • Sales contests

33
SALES PROMOTION
  • RAPID GROWTH OF SALES PROMOTION

34
SALES PROMOTION
  • SETTING SALES PROMOTION OBJECTIVES

35
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

36
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

37
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.

38
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.

39
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).

40
PUBLIC RELATIONS
  • MAIN PUBLIC RELATIONS DECISIONS

41
PUBLIC RELATIONS
  • SETTING PUBLIC RELATIONS OBJECTIVES

42
PUBLIC RELATIONS
  • CHOOSING PUBLIC RELATIONS MESSAGES
  • AND VEHICLES

43
PUBLIC RELATIONS
  • IMPLEMENTING THE PUBLIC RELATIONS
  • PLAN

44
PUBLIC RELATIONS
  • EVALUATING PUBLIC RELATION RESULTS

45
Below the line communication
  • DIRECT MARKETING
  • It is direct communications with carefully
    targeted
  • individual customers to obtain an immediate
    response.

46
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,

47
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.

48
DIRECT MARKETING
  • FORMS OF DIERCT MARKETING
  • Telephone marketing
  • Direct-mail marketing
  • Catalogue marketing
  • Direct-response television marketing
  • Integrated direct marketing

49
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
50
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.







51
UNIT 4 THE COMMUNICATIONS MIX
Above the line advert Advantages Disadvantages

Cinema
Internet
Outdoor



52
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
About PowerShow.com