CHAPTER9 PROMOTION MIX ADVERTISING SALES PROMOTION PUBLIC RELATIONS

CHAPTER-9 PROMOTION MIX ADVERTISING, SALES PROMOTION , PUBLIC RELATIONS, PERSONAL SELLING & DIRECT MARKETING

ADVERTISING- Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor. Although advertising is used mostly by business firms, it also is used by a wide range of not for profit organizations, professionals and social agencies that advertise their causes to various target audience.

Advertising is a good way to inform and persuade, whether the purpose is to sell Coca-Cola worldwide or to get attention of the people to a social cause. ADVERTISING OBJECTIVE: An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.

Advertising objectives can be classified by primary purpose- whether the aim is to inform, persuade or remind. INFORMATIVE ADVERTISING: is used heavily when introducing a new product category. In this case, the objective is to build primary demand. Example- The early producers of DVD players first had to inform consumers of the image quality and convenience benefits of the product.

PERSUASIVE ADVERTISING becomes more important as competition increases. Here the company’s objective is to build selective demand. Example- Once DVD players became established, Sony began trying to persuade consumers that its brand offered the best quality for their money. Procter & Gamble ran an ad comparing its Tide with bleach to Oxy 10.

REMINDER ADVERTISING is important for mature products. It keeps consumers thinking about the product. Example- Expensive television ads of Coca-cola primarily remind people about Coca-cola rather than informing or persuading them.

o Setting the Advertising Budget-After determining its advertising objectives, the company next sets its advertising budget for each product. A brand’s advertising budget often depends on its stage in the product life cycle.

DEVELOPING ADVERTISING STRATEGYAdvertising strategy consists of two elements, creating advertising messages and selecting advertising media. The first step in creating effective advertising messages is to plan a message strategy, to decide what general message will be communicated to consumers. The purpose of advertising is to get consumers to think about or react to the product or

Company in a certain way. Thus developing an effective message strategy begins with identifying customer benefits that can be used as advertising appeals. SELECTING ADVERTISING MEDIA The major steps in media selection are; (1) Deciding on reach, frequency and impact.

(2) Choosing among major media types (3) Selecting specific media vehicles and (4) Deciding on media times. SALES PROMOTION short term incentives to encourage the purchase or sale of a product or service.

Advertising often works closely with another promotion tool, sales promotion. Sales promotion consists of short term incentives to encourage purchase or sales of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now. Examples of sales promotion are found everywhere.

Many tools can be used to accomplish sales promotion objectives. Consumer promotion tools include samples, cash refund, price packs, premiums, displays, demonstrations etc. Trade promotion can persuade resellers to carry a brand, give it shelf space, promote it in advertising and push it to consumers.

Business promotion includes motivate sales people reward customers etc. Business promotion tools also include conventions and trade shows and sales contests. PUBLIC RELATIONS public relations are used to promote products, people, places, ideas, activities, organizations and even nations.

Another major mass- promotion tool is public relations- building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off un favorable rumors, stories and events

Public relations department in an organization performs any or all the following functions: Ø Press relations and press agency Ø Product publicity Ø Public Affairs Ø Investor relations.

o PERSONAL SELLING -Selling is one of the oldest professions in the world. The people who do the selling go by many names; Sales representatives, Sales consultants, Sales engineers, sales agents, marketing executives, sales managers, territory managers etc. o Personal selling is the interpersonal arm of the promotion mix. Advertising consists of one-way, nonpersonal communication with target consumer groups. In contrast, personal selling involves two-way, personal communication between salespeople and individual customers.

o DIRECT MARKETING Direct Marketing consists of direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Direct marketers communicate directly with customers, often on a one-to-one, interactive basis. Using detailed databases, they tailor their marketing offers and communications to the needs of narrowly defined segments or even individual buyers.

Test your Learning 1)Define advertising. 2) What is an advertising objective? 3) Classify the advertising objective. 4) What are two element involved in developing an advertisement strategy? 5) What are the steps involved in selecting advertising media? 6) Define sales promotion.

7) Define Public relations 8) What is Personal Selling? 9) What is direct marketing?