4P: Promotion
involves above the line and below the line activities to communicate with their potential and existing customers and improve sales.
Above the line
Below the line - activities besides advertising
ADVERTISING
definition of advertising: communicating with customers through paid media
Process of commercial promotion of goods and services in order to increase its sales =- inform customers abiut availibility of certain services/products + encourage them to buy it
types of advertising
persuasive advertising: message communicated focuses on persuading the customers to buy the product through celebrity endorsements, or use of glamour.
informative advertising
message communicated includes information about size, quantity, ingredients, composition, configuration or content of the product.
e.g phones, technological products
influence people to buy products buy showing the superiority of the product in terms of quantity or quality
medium of advertising
radio
Newspaper
Television
Posters/billboards
Leaflets/direct mail
sales promotion
methods:
free gifts with every purchase
point of sales display
demonstration
competitions
after-sales service
free samples
sponsorship - sports show, fashion show
public relations - organising press conferences giving out infor about new product/carrying social service activities
personal selling
- representative from company influences people to buy - for expensive, custom designed products
e.g sales person at car showrroom
customer service
def: a series of activities designed to ehance level of customers satisfaction
A provision of service to customers before, during and after a purchase
effective customer service
identify key service activities
deliver superior service
knowing customers' needs
follow up
def; cultivation favourable relations for organizations with its key publics through use of communication channels and tools e.g work with news media for favourable imaage, but also broader
closely monitoring numerous media channels for public comment about a company and its products
managing crises that threaten company or product image
building awareness and a favorable image for a company or client within stories + articles in relevant media outlets
building goodwill among an organization’s target market through community, philanthropic and special programs and events
key tools for Public Relations
newsletter
speaking engagement
media relations/tours
sponsorship
special events
employee relations
def: promotional method in which one partyuses skills for building personal relationships with other party - results in both obtaining values
occurs through face to face meetings or via new technologies - telephone
Pros:
effective method of promotion: interactive,builds relationships with customers in business to business market
most practical selling method to reach out to customers who are not easily reached by other methods
2 way communication
Cons:
degree to which this promotional method is misunderstood. Most people have had some bad experiences with salespeople who they perceived were aggressive to annoying
high maintainance e.g training, maintaining effort
price reduction
def: promotional method using special short term techniques to persuade members of a target market undertake certain activity
OBJECTIVES:
Providing Information
Stimulating Demand
Creating Interest
Reinforcing the Brand
Building Product Awareness
common types
Rebates: Rebates, like coupons, offer value to purchasers typically by lowering the customer’s final cost for buying the product
Promotional Pricing : short-term price reduction
Coupons: offers purchasers price savings or other incentives when the coupon is redeemed at the time of purchase
Trade-In: allow consumers to obtain lower prices by exchanging something the customer possess, such as an older product
Loyalty Programs: e.g price discounts and free products, for frequent purchasing or other activity are called loyalty programs.
Sampling / Free Trials: give customers the opportunity to experience products, often in small quantities/a short time, without purchasing it
Free Product: additional quantities of the same purchased product (e.g., buy one, get one free)
Premiums: For example, a cellphone manufacturer may offer access to free downloadable ringtones for those purchasing a cellphone.
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Demonstrations: experienced in-person or via video form, such as over the Internet
objectives
create new customers - increase brand recognition
obtain feedback of customers about products
indicate into of new prod or replace old ones
increase usage of certai products - more orders
pros
cons
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Celebrity endorsement
Point of purchase displays: designed materials intended for placement in retail stores.
Trade shows: organized events that bring both industry buyers and sellers together in one central location.