Promotion Strategies
Promotion (Marketing Communications) Mix Advertising any paid form of nonpersonal presentation of ideas, goods or services by an identified sponsor Personal Selling a paid form of personal presentation of ideas, goods or services by an identified sponsor Publicity any unpaid form of nonpersonal presentation of ideas, goods or services Sales Promotion an activity and/or material that acts as a direct inducement, offering added value or incentive for the product, to resellers, consumers or employees
Promotional Elements Used in IMC
Promotion-Expenditure Strategy Percentage-of-Sales Per-Unit Expenditure All You Can Afford Competitive Parity Research Approach Objective and Task
Promotion Mix Strategy Several factors affect the promotional mix: Nature of the Product Stage in the PLC Target of the Promotion Promotion Budget Nature of the Competition Marketing mix factors
Advertising Campaign Strategy 1. Identify and analyze the target market 2. Define advertising objectives A. Specific, obtainable, measurable B. Communication and sales 3. Create the advertising platform 4. Determine the advertising appropriation 5. Develop the media plan A. Type of media B. Specific vehicles C. Reach and frequency D. Message content 4. See appropriation methods message content - affects the type of media (wordy vs pictures)
Advertising Campaign Strategy - Continued 6. Create the advertising message A. Consider type of media and platform B. Copy and artwork 7. Execute the advertising campaign 8. Evaluate the effectiveness of the advertising A. Extent of reaching objectives B. Testing procedures
Spending on National Advertising: 2003 Projections
Top Ten Fortune 500 Online Advertisers
Top Ten Web Properties Hosting Online Advertising
Publicity Strategy 1. Types A. Press release B. Feature article C. Captioned photograph D. Press conference E. Letters to editor/editorials F. Films/tapes/videos 2. Requirements 3. Limitations
Sales Promotion Strategy Objectives Resellers Consumers Employees Use with other mix elements Sales promotion can not: generate long-term buyer commitment stop (except temporarily) declining sales compensate for lack of advertising or sales support convince buyers to purchase an unacceptable product
Personal Selling Strategy The Sales Process Sales Strategy account targeting strategy relationship strategy selling strategy sales channel strategy Sales Management Strategy Account targeting strategy - classify accounts within a target market into categories for the purpose of developing strategic approaches for selling to each account (e.g., classify by size, complexity, growth rate, govt vs nongovt, etc.) For purpose of employing different relationship, selling, and sales channel strategies for different groups. Relationship strategy - determine type of relationship: transaction solutions partnership - preferred supplier position collaborative - work for mutual benefit of both businesses Selling strategy - stimulus-response; mental states; need satisfaction; problem-solving; consultative. These correspond with relationship strategy listed above. Sales channel strategy - company salesforce, industrial distributors, independent representatives, team selling, telemarketing, trade shows Sales Management Strategy - plan, lead, control (management functions)