Promotion Strategies

What is a promotion?

 Promotion is the element in an

organisation’s marketing mix that
serves to inform, persuade and remind
the market about the organisation
and/or its products.

9-1
The promotional mix
 Personal selling: the presentation of a
product to a prospective customer by a firm’s
sales executive.

 Advertising: paid, non-personal mass

communication, in which the sponsor is
clearly identified.

9-2
The promotional mix (cont.)

 Sales promotion: demand-stimulating activity

designed to supplement advertising and co-
ordinate personal selling.

 Publicity: a non-paid form of advertising that

uses mass communication to stimulate
demand.

9-3
 The Promotional Mix

 Public relations: a planned communication

effort by an organisation to contribute to
generally favourable attitudes and opinions
toward an organisation and its products.

9-4
 Choosing the right form
of promotion
 Marketers need to consider:
 The target market.
 The nature of the product.
 The stage of the product’s life cycle.
 Money available for the promotion.

9-5
 Push vs pull strategy
(cont.)
PUSH STRATEGY

Producer Wholesaler Retailer Consumer

PULL STRATEGY

Producer Wholesaler Retailer Consumer

Product flow Promotion effort

Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
9-10
The promotional budget

 Percentage of sales method

 Company may determine past or anticipated sales
and apply a percentage of sales as the
promotional budget.
 All available funds
 Company uses all available funds on the
promotional campaign .

9-11
The promotional budget
(cont.)
 Matching the competition (also known as
competitive parity).
 Promotional expenditure based on market share of
competitors, or actual expenditure if known.
 Task or objective method
 Determine what tasks or objectives the promotion
must accomplish.
 Determine what it will cost to perform the task or
meet objective.

9-12
Skills of the sales person
 A good sales person requires various
attributes:
 Time management.
 Organising ability.
 Consulting skills.
 Communication skills.
 Problem-solving skills.
 Credibility (also a positive attitude).

9-13
 Compensation
 There are various forms of compensation:
 Straight salary.
 Straight commission.
 A third from of compensation used in
business is a combination of both methods.
This is used to motivate sales team
members with financial incentives.

9-17
Which media should we use?

 To Choose the right medium for a

promotional message, we need to consider
the following.
 What do we want our ads to do?
 Who are we trying to reach?
 What message do we want to
communicate?
 How much will each medium cost?

9-19
Media characteristics
 Newspapers
 Television
 Radio
 Magazines
 Direct Mail
 Outdoor advertising
 Yellow pages
 Internet

9-20
Did our advertising work?

 Here are some of the factors that make it

difficult to measure the sales impact of
advertising
• Ads have different objectives
• Ads can have an effect over time
• The effects of ads are difficult to
measure

9-21