1. Sales & Marketing Session 3
Kay Geronikos
(Business & Finance Faculty)
Business Studies Teacher

2. 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.
Promotion is an attempt to influence; whether a particular promotional activity is designed to inform, persuade or remind, the ultimate objective is to influence the recipient’s feelings, beliefs or behaviour.

3. PROMOTION 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.
Sales promotion—demand-stimulating activity designed to supplement advertising and co-ordinate personal selling.   

4. PROMOTION MIX
Direct Marketing – direct connections with carefully targeted individual consumers to both obtain an immediate response and develop long term customer relationships
Public relations—a planned communication effort by an organisation to contribute to generally favourable attitudes and opinions toward an organisation and its products.
Sponsorhip – an organisation provides support or funding to an event for the purposes of advertising their brand ot product   

5. THE ROLES OF PROMOTION Informing
The most useful product will be a failure if no one knows about it.
Persuading
Intensive competition exists in the market.
Reminding
Consumer’s need reminding of product’s availability.
To inform
To persuade
To remind

6. CHOOSING THE RIGHT PROMOTION STRATEGY
Marketers need to consider:
The target market – location, type & how many
The nature of the product – unit value, customisation & service required
The stage of the product’s life cycle – introduction, growth, maturity or decline.
Money available for the promotion – budget vs cost

7. INTEGRATED MARKETING COMMUNICATIONS
Integrated Marketing Communications (IMC) is about carefully integrating & coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organisation and its products.

8. INTEGRATED MARKETING COMMUNICATIONS
New marketing communications landscape – several factors are changing today’s marketing communications:
Consumers are changing: better informed and communications empowered
Marketing strategies are changing: marketers are moving away from mass marketing to focused marketing programs aimed at narrowly defined target groups
Changes in communications technology: smart phones, satellite, cable TV, internet & social media

9. INTEGRATED MARKETING COMMUNICATIONS
The new digital media has given birth to a new marketing communications model
Although television, magazines, newspapers and other mass media remain very important, their dominance is declining. Eg. Procter and Gamble still spends majority of its budget on mass media, however its digital outlay more than doubled last year – which accounts for 5% of overall advertising spend.

10. INTEGRATED MARKETING COMMUNICATIONS

11. INTEGRATED MARKETING COMMUNICATIONS
Benefits of new marketing communications:
Marketers can reach smaller groups of consumers
More interactive and engaging communications
The choices are now wider such as: cable TV, web videos, internet catalogs, , blogs, mobile phone content, online social networks.
Trend for less broadcasting and more narrowcasting

12. INTEGRATED MARKETING COMMUNICATIONS
Traditional or Digital? Have your say……….

13. INTEGRATED MARKETING COMMUNICATIONS
IMC needs to tie together all the company’s messages and images.
The company’s TV and print ads have the same message, look & feel as its and personal selling communications
Public relations material project the same image as its web site or social network presence
Different media play unique roles in attracting, informing and persuading consumers & these must be carefully coordinated under the overall IMC.

14. PROMOTION MIX STRATEGIES
The ‘PUSH’ marketing communications strategy
using normal promotion efforts to sell the marketing mix to channel members
The ‘PULL’ marketing communications strategy
getting customers to ask intermediaries for the product, usually because of promotion directed to final consumers or users
Some combination of the two methods is usually required

15. PROMOTION MIX STRATEGIES
Push strategy
Producer creates demand for product.
Aims promotional activity to channel member(s).
Each channel member promotes to next channel member.
Demand ‘pushed’ down distribution channel.
Consumer influenced by retailer’s advertising.

16. PROMOTION MIX STRATEGIES
Pull strategy
Producer creates demand for product.
Aims promotional activity directly at end user.
Consumer demands product from retailer.
Demand ‘pulled’ up the distribution channel.

17. PUSH VS PULL STRATEGY

18. PROMOTION MIX STRATEGIES

19. CASE STUDY
Watch the DVD on Specialised Marketing Services
Provides a consolidation on IMC