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MARKETING AND SALES MANAGEMENT
CHECK POINT 89: PROMOTIONAL STRATEGIES

This Check Point Is Available By Subscription Only,
But You Can Still Check Out The Menu Below.

1. what is a promotional strategy?
2. the marketing communication mix
3. steps in the promotional strategy development process
4. evaluate the promotional strategy factors
5. establish overall direction for the promotional strategy
6. analyze the existing situation in the marketplace
7. establish promotional objectives
8. prepare the promotional budget
9. develop an effective marketing communication mix
10. advertising
11. personal selling
12. sales promotion
13. public relations and publicity
14. direct marketing
15. formulate the marketing communication message
16. evaluate and control the marketing communication mix
17. for serious business owners only
18. the latest information online
 

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MARKETING AND SALES MANAGEMENT
CHECK POINT 89: PROMOTIONAL STRATEGIES

Please Select Any Topic In Check Point 89 Below And Click.

1. what is a promotional strategy?
2. the marketing communication mix
3. steps in the promotional strategy development process
4. evaluate the promotional strategy factors
5. establish overall direction for the promotional strategy
6. analyze the existing situation in the marketplace
7. establish promotional objectives
8. prepare the promotional budget
9. develop an effective marketing communication mix
10. advertising
11. personal selling
12. sales promotion
13. public relations and publicity
14. direct marketing
15. formulate the marketing communication message
16. evaluate and control the marketing communication mix
17. for serious business owners only
18. the latest information online
 

DO I NEED TO KNOW THIS CHECK POINT?

 

WELCOME TO CHECK POINT 89

TUTORIAL 1 General Management TUTORIAL 2 Human
Resources Management
TUTORIAL 3 Financial Management TUTORIAL 4 Operations Management TUTORIAL 5 Marketing
And Sales Management
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96
2 7 12 17 22 27 32 37 42 47 52 57 62 67 72 77 82 87 92 97
3 8 13 18 23 28 33 38 43 48 53 58 63 68 73 78 83 88 93 98
4 9 14 19 24 29 34 39 44 49 54 59 64 69 74 79 84 89 94 99
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100
 

HOW CAN YOU BENEFIT FROM CHECK POINT 89?

 
The main purpose of this check point is to provide you and your management team with detailed information about Promotional Strategies and how to apply this information to maximize your company's performance.
 
In this check point you will learn:
 
• What is a promotional strategy?
• About the basic steps in the promotional strategy development process.
• About evaluating the promotional strategy factors.
• About establishing an overall direction for the promotional strategy.
• About analyzing the company's existing situation in the marketplace.
• About establishing promotional objectives.
• About four methods in preparing promotional budgets.
• About marketing communication mix development factors.
• About "the five M's" of advertising and advertising media channels.
• About various types of sales promotion, public relations, publicity... and much more.
 

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 89

 
You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.
 
You and your team should adhere to basic lean management guidelines on a continuous basis:
 
Treat your customers as the most important part of your business.
Provide your customers with the best possible value of products and services.
Meet your customers' requirements with a positive energy on a timely basis.
Provide your customers with consistent and reliable after-sales service.
Treat your customers, employees, suppliers, and business associates with genuine respect.
Identify your company's operational weaknesses, non-value-added activities, and waste.
Implement the process of continuous improvements on organization-wide basis.
Eliminate or minimize your company's non-value-added activities and waste.
Streamline your company's operational processes and maximize overall flow efficiency.
Reduce your company's operational costs in all areas of business activities.
Maximize the quality at the source of all operational processes and activities.
Ensure regular evaluation of your employees' performance and required level of knowledge.
Implement fair compensation of your employees based on their overall performance.
Motivate your partners and employees to adhere to high ethical standards of behavior.
Maximize safety for your customers, employees, suppliers, and business associates.
Provide opportunities for a continuous professional growth of partners and employees.
Pay attention to "how" positive results are achieved and constantly try to improve them.
Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. WHAT IS A PROMOTIONAL STRATEGY?

PROMOTIONAL STRATEGY

Business owners and marketing managers must have good understanding about various promotional strategies to ensure effective implementation of the marketing plan within the organization.

Promotional Strategy is that portion of an organization's overall Marketing Strategy designed to communicate the nature and benefits of the organization’s products and services offered in the marketplace, usually through a set of activities. (29)

Business owners and marketing managers must communicate the information about their products and services to prospective customers to ensure that these customers are aware of the benefits and other relevant information, which will help them to make a purchasing decision. It is essential to develop a sound promotional program well in advance to help the company succeed in a competitive market environment.

ADDITIONAL INFORMATION ONLINE

Promotion By Tim Friesner.
Promotion Strategies By Learn Marketing.
4 Principles Of Marketing Strategy By Brian Tracy.
Promotion Channel Marketing By Stephen C. Campbell.
5 Promotional Strategies That Work By Theresa Delgado.

2. THE MARKETING COMMUNICATION MIX

THE MARKETING COMMUNICATION MIX

Promotional Strategy helps management educate the market about the company's products or services, their purpose, qualities, and price. This information is usually introduced to target customers through several communication elements, known as the Marketing Communication Mix.

The main purpose of the marketing communication mix, or Promotional Mix, is to develop a clear corporate identity for the company in the marketplace and to gain additional confidence and goodwill from selected market segments. Each element of the marketing communication mix has its own specific tools designed to equip the marketing manager to accomplish the company’s overall marketing objectives.

Advertising, for example, may include promoting the company’s products and services in various newspapers and magazines, on the radio, on TV, and  online. Personal Selling may include promotion of products and services through in-home personal sales presentations to potential customers.

Sales Promotions may include point-of-purchase displays, promotional discounts, trade shows, shopping malls and kiosks. Public Relations may include publication of third-party opinions about the company’s products and services in professional magazines, trade publications, and online. Direct Marketing may include promotion of the company’s products and services through telemarketing, direct mail, or website.

ELEMENTS OF THE MARKETING COMMUNICATION MIX

Advertising

Personal
 Selling

Sales
Promotion

Public
 Relations

Direct
Marketing
 

ADDITIONAL INFORMATION ONLINE

Communication Mix In Marketing By IIMTS FZE.
Effective Marketing Communications By Ken Rudich.
The Promotional Mix By Matt Alanis, Alanis Business Academy.
Marketing Communication Mix By Chris Fill, Oxford Learning Lab.
Social Media As Part Of Marketing Communications Mix By Brian K. McCarthy.

3. STEPS IN THE PROMOTIONAL STRATEGY DEVELOPMENT PROCESS

DEVELOPMENT OF A PROMOTIONAL STRATEGY

The overall development of a Promotional Strategy entails eight important steps, which are summarized below.

STEPS IN THE PROMOTIONAL STRATEGY DEVELOPMENT PROCESS

Step 1: Evaluate The Promotional Strategy Factors.

     
Promotional
 Resources
 

Nature Of
Products Or
Services

  Product Or Service Life-Cycle Stage   Nature 
Of The Market
     

Step 2: Establish Overall Direction For The Promotional Strategy.

 
Push
Strategy
  Pull
Strategy
 

Step 3: Analyze The Existing Situation In The Marketplace.

   
Demand
For Products
Or Services
  Competition   Legal 
Environment
   

Step 4: Establish Promotional Objectives.

Step 5: Prepare The Promotional Budget.

Step 6: Develop Effective Marketing Communication Mix.

Advertising

Personal
 Selling

 Sales
Promotion

Public
 Relations
And Publicity

Direct
Marketing

Step 7: Formulate The Marketing Communication Message.

Step 8: Evaluate And Control The Marketing Communication Mix.

 

ARE YOU A CHIEF CUSTOMER OFFICER?

You and your management team must always remember that your customers are the most important element of your business - without customers your business will simply cease to exist. For this reason, you must ensure that the ultimate objective of your company's promotional strategy is to satisfy your current and future customers' needs. You must, in fact, become the Chief Customer Officer (CCO) in your organization to ensure long-term success of your business. According to Curtis Bingham, "A CCO is the one who is the ultimate authority on customers within their organization and they're driving customer strategy at the highest levels of the company."

ADDITIONAL INFORMATION ONLINE

Do Companies Need Chief Customer Officer? By 1To1 Media.
The Rise Of Customer Strategy By Curtis Bingham, CCO Council.
What Is Chief Customer Officer? By Curtis Bingham, CCO Council.
What Makes A Good Chief Customer Officer? Tammy McLoud, 1To1 Media.
The Chief Customer Officer By Tom Hoffman And Doug Meyer, 1To1 Media.

4. EVALUATE THE PROMOTIONAL STRATEGY FACTORS

STEP 1: EVALUATE PROMOTIONAL STRATEGY FACTORS

The first step in the promotional strategy development process entails evaluating several Promotional Strategy Factors outlined below. The marketing manager must evaluate each factor separately in order to develop the most comprehensive marketing approach for the company’s products and services in the marketplace.

PROMOTIONAL STRATEGY FACTORS

• Promotional Resources.

These resources are usually allocated during the regular budgeting process and their size strongly depends upon the company's overall financial capabilities.

• Nature Of Products Or Services.

All products have been classified earlier as consumer goods and industrial goods. Consumer goods are offered for sale to the general public, and their promotion requires heavy advertising in the marketplace. These goods are usually low-priced and thus represent a lower risk to customers. Industrial goods, conversely, are generally high-priced and require more personal selling than consumer ones.

• Product Or Service Life-Cycle Stage.

All products undergo different stages during their life-cycle period. These stages include product introduction, growth, maturity, and decline in the marketplace. Each stage, in turn, requires development of a particular marketing mix as described in the promotional strategy during the Product Life Cycle Chart below.

• Nature Of The Market.

Various characteristics of the market influence the development of a particular promotional strategy. Consumer markets, for example, are usually spread over different geographic locations and require a strong advertising and publicity campaign. Industrial markets, on the other hand, are generally concentrated in specially-allocated areas, thus making personal selling easier.

The development of the promotional strategy also necessitates taking into consideration the specific stage of the Product or Service Life Cycle as illustrated below.

PRODUCT LIFE CYCLE - PROMOTIONAL STRATEGY

ADDITIONAL INFORMATION ONLINE

Please watch these excellent videos professionally narrated and produced by Curtis Bingham and CCO Council:

Customer Centricity: 1. Overview By Curtis Bingham, CCO Council.
Customer Centricity: 2. Goal By Curtis Bingham, CCO Council.
Customer Centricity: 3. Executive Support By Curtis Bingham, CCO Council.
Customer Centricity: 4. Choosing Audience By Curtis Bingham, CCO Council.
Customer Centricity: 5. Enlisting Allies By Curtis Bingham, CCO Council.

© 2012 Curtis Bingham and CCO Council. All rights reserved.

5. ESTABLISH OVERALL DIRECTION FOR THE PROMOTIONAL STRATEGY

STEP 2: ESTABLISH OVERALL DIRECTION FOR THE PROMOTIONAL STRATEGY

The second step in the promotional strategy development process entails establishing Direction For Promotional Strategy. The marketing manager must evaluate the influence of the promotional strategy development factors, determine the overall direction for marketing promotion, and select suitable marketing methods that can be used in the company’s promotional efforts in the marketplace.

Two different directions and methods may be considered by the marketing manager during the promotional strategy development process as illustrated below.

TWO DIRECTIONS FOR DEVELOPING THE PROMOTIONAL STRATEGY

 
Push Strategy   Pull Strategy

The prime purpose of push strategy is to stimulate each member of the distribution network to carry and promote the product. 

Push strategy
requires heavy personal selling in the marketplace and is frequently used by industrial and commercial organizations.

 

The prime purpose of pull strategy is to stimulate the consumers' demand for the product, thereby creating a profitable environment for resellers. 

Pull strategy
is based on heavy advertising in selected market segments to promote consumer products and services. This may also include promoting the company’s website online through various pro-active methods.

 

PUSH STRATEGY VERSUS PULL STRATEGY

There are several key differences between Push Strategy and Pull Strategy in promoting products and services to customers.

A "pull" promotional strategy is very effective in the following situations:

• A product or service is in a reasonably high demand in the marketplace.
• There is a fair level of brand recognition and loyalty related to a specific product or service.
• Consumers have an opportunity to make their own brand choice decisions.
• Products and services can be differentiated on the basis of real or emotional features.
• Consumers demonstrate strong involvement in purchasing a product or a service.
• Consumers select a product or a service brand before prior to making final purchasing decision

A "push" promotional strategy prescribes strong use of a company's sales people and marketing activities designed to create a stronger consumer demand for a product or a service. Products are being promoted by producers through distributors to retailers and, ultimately, to consumers.

A "push" promotional strategy entails several key elements:
 
• Finalizing overall marketing objectives regarding a company's products or services.
• Developing specific marketing communication.
• Identifying and cultivating cost-effective marketing channels.
• Communicating effective promotional messages to all channel partners.
• Managing the implementation of the promotional strategy.
• Evaluating the results of the promotional strategy implementation process.
 

ADDITIONAL INFORMATION ONLINE

Please watch these excellent videos professionally narrated and produced by Curtis Bingham and CCO Council:

Customer Centricity: 6. Including Back Office By Curtis Bingham, CCO Council.
Customer Centricity: 7. Access Channels By Curtis Bingham, CCO Council.
Customer Centricity: 8. Marketing Communications By Curtis Bingham, CCO Council.
Customer Centricity: 9. Promotions And Incentives By Curtis Bingham, CCO Council.
Customer Centricity: 10. Results By Curtis Bingham, CCO Council.

© 2012 Curtis Bingham and CCO Council. All rights reserved.

6. ANALYZE THE EXISTING SITUATION IN THE MARKETPLACE

STEP 3: ANALYZE THE EXISTING SITUATION IN THE MARKETPLACE

The third step in the promotional strategy development process entails analyzing the company’s Existing Situation In The Marketplace. The marketing manager must conduct a detailed examination of the company’s current situation in terms of demand for its products and services in the marketplace, the influence of the competition in the marketplace, and specific legal requirements, which may be imposed on the company.
 
The three prime elements of the Marketplace Analysis are outlined below.

THREE PRIME ELEMENTS OF THE MARKETPLACE ANALYSIS

1. Demand For Products Or Services In The Marketplace.





  • What type of customers would be interested in buying our products or services?
  • Where do we find potential customers?
  • What is the potential demand for our products or services in the marketplace at present?
    How long will the demand for our products or services last?

2. Existing And Potential Competition.







  • Who else is offering products or services similar to ours at present?
  • How do our products or services compare with the competition's products in terms of price, quality, and availability?
  • What advantages can we offer to potential customers to attract their attention to our products or services?
    How competitive does the marketplace look in the future?

3. Legal Environment.






  • What are the specific legal guidelines related to marketing of our products or services?
  • Are there any legal restrictions related to marketing of our products or services?
  • Do we have to apply for a patent, trademark, or service-mark to protect our products or services?
    Did we check the availability of a specific patent, or trademark for our products, or service mark for our services?

ADDITIONAL INFORMATION ONLINE

What Is Market And Market Analysis? By Kamil Ali.
Competitive Analysis Part 1 By Danny Abramovitch.
Competitive Analysis Part 2 By Danny Abramovitch.
How To Conduct Market Analysis On Facebook By Odigma.
Market Analysis - Market Segmentation By James Slocombe.

7. ESTABLISH PROMOTIONAL OBJECTIVES

STEP 4: ESTABLISH PROMOTIONAL OBJECTIVES

The fourth step in the promotional strategy development process entails establishing Promotional Objectives, which the company must pursue in order to meet its overall marketing goals. The marketplace analysis will help the marketing manager to define suitable promotional objectives that must be established in conjunction with the company's overall corporate strategy for a particular fiscal period.

A few examples of specific promotional objectives are illustrated below.

EXAMPLES OF PROMOTIONAL OBJECTIVES

1.

To penetrate five additional market segments within the next six months.

2.

To double market awareness for existing product lines within one year.

3.

To prepare an effective advertising campaign for three specific markets.

4.

To develop a website within six month and to offer the company’s products online.

5.

To improve a website ranking in order to generate more traffic online.

6.

To develop effective direct mail marketing campaign in five additional market segments.

7.

To participate in two trade shows during the next six months.

 

ADDITIONAL INFORMATION ONLINE

Setting Clear Advertising Objectives By Team Ad Boss.
Introduction To Advertising And Promotions Management By Marsha Loda.
Advertising, Public Relations And Sales Promotions By Alina Abdul, McGraw-Hill.
Marketing/Advertising/Promotions: What Are Your Objectives? By Stuart Preston.
Do Your Company Objectives Dictate Your Promotional Strategy? By The JW Media.

8. PREPARE THE PROMOTIONAL BUDGET

STEP 5: PREPARE THE PROMOTIONAL BUDGET

The fifth step in the promotional strategy development process entails preparing a Promotional Budget, which the company will be able to use in order to implement its promotional plans in the marketplace in the most cost-efficient manner.

The ultimate effectiveness of the promotional strategy developed by the marketing manager will depend upon the company’s existing financial capabilities. This, in turn, will impose certain limitations on the size of the preliminary promotional budget and it will determine the scope of marketing activities, which the company will be able to undertake in order to meet its overall marketing objectives.

There are several practical Promotional Budget Methods commonly used by marketing managers, which help in determining a suitable size of a particular promotional budget, as illustrated below.

PROMOTIONAL BUDGET METHODS

     
Percentage Of
Sales Method
  Competition Matching Method   Affordable Value Method   Objective And
Task Method

The amount of promotional expenditure is budgeted at a specified percentage rate of total planned volume of sales.

 

The value of the promotional expenditure is determined in accordance with similar dollar amounts spent by the company's competitors.

 

The value of the promotional expenditure is established in accordance with specific financial abilities of the company.

 

Promotional expenditure is budgeted in accordance with the specific tasks that promotion is to perform.

 

ADDITIONAL INFORMATION ONLINE

Promotional Budget By Christopher Hunt.
Promotion Budget By Stan Fine, Rapid e-Newsletter.
How To Set A Promotional Budget For Marketing? By Online Marketing.
How To Promote Your Business With Little Or No Money - Part 1 By Stan Fine.
How To Promote Your Business With Little Or No Money - Part 2 By Stan Fine.

9. DEVELOP AN EFFECTIVE MARKETING COMMUNICATION MIX

STEP 6: DEVELOP AN EFFECTIVE MARKETING COMMUNICATION MIX

The sixth step in the promotional strategy development process entails formulating an effective Marketing Communication Mix.

Once the promotional budget is prepared, the development of an effective marketing communication mix may begin. The communication mix development process may be influenced by several factors outlined below.

COMMUNICATION MIX DEVELOPMENT FACTORS

1.

The overall objectives of the organization.

2.

The features of the product or service.

3.

The type and size of the target market.

4.

The type and size of the company.

5.

The competition.

6.

Legal guidelines and restrictions.

An effective Marketing Communication Mix, which should be considered by the marketing manager, may include several important elements illustrated below.

ELEMENTS OF THE MARKETING COMMUNICATION MIX

Advertising

Personal
 Selling

Sales
 Promotions

Public
 Relations
And Publicity

Direct
Marketing

Each element of the marketing communication mix is discussed in detail next.

ADDITIONAL INFORMATION ONLINE

Please watch these excellent videos professionally narrated and produced by Stan Fine:

How To Promote Your Business With Little Or No Money Part 3 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 4 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 5 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 6 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 7 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 8 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 9 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 10 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 11 By Stan Fine.
How To Promote Your Business With Little Or No Money Part 12 By Stan Fine.

© 2009 Stan Fine. All rights reserved.

10. ADVERTISING

WHAT IS ADVERTISING?

Advertising, an integral element of the marketing communication mix, plays an important role in the process of promoting the company's products, services, and its corporate image in the marketplace. Advertising is frequently used to inform the market media about specific details related to the company's products and services as outlined below.

 APPLICATION OF ADVERTISING

1.

To inform potential customers about the availability of specific products and services.

2.

To describe the application of specific products and services.

3.

To explain the features and benefits of specific products and services.

4.

To inform potential customers about the price and conditions of purchase of specific products and services.

 

ELEMENTS OF ADVERTISING

One important task of the marketing manager is to develop a suitable Advertising Program in selected target markets. Preparation of the advertising program requires a detailed examination of the following elements known as “The Five M” Of Advertising.

“THE FIVE M" OF ADVERTISING

The Five M

Questions

1. Mission

  • • What is the main purpose of advertising our products or services?
  • • How do we plan to develop our product or service brand?
  • • What level of loyalty can we expect from our customers?
  • • How can we differentiate our products or services from competitors?

2. Money

  • • How much should be spent for a complete advertising program?
  • • What advertising budget can we afford at present?
  • • How much money will we be able to spend six month from now?
  • • Should we consider a low-interest loan to finance our advertising campaign?

3. Message

  • • What should be said in our message?
  • • Should we have a separate message for each market?
  • • How long should our message be?
  • • In what languages should our message be?

4. Media

  • • What advertising media should we use?
  • • Should we focus on magazines and newspapers?
  • • Should we advertise on the radio or TV?
  • • Should we focus our attention on the Internet?

5. Measurement

  • • How should the advertising be introduced?
  • • How should the advertising be maintained?
  • • What results should be expected from the advertisement?
  • • How should be advertising results measured?

It is important to ensure that the company's marketing efforts are effectively introduced to the selected Advertising Media Channels and the appropriate results are timely measured by the marketing manager. There are several advertising media channels which are frequently used by used by marketing managers to promote their company’s products and services in the marketplace, as presented below.

ADVERTISING MEDIA CHANNELS

1.

Newspapers.

2.

Trade magazines.

3.

Professional publications.

4.

Radio.

5.

TV and cable TV.

6.

Internet.

In the present market environment, some advertising channels offer substantially better results than others and marketing managers must take this into account to ensure the most cost-effective advertising campaign.

Based on the most recent statistics related to small businesses, the Internet offers the most cost-effective way of promoting products and services in the marketplace. This is particularly important because of the tremendous growth of the Internet-users’ community and additional security which is offered to consumers online. Small business owners and marketing managers are encouraged, therefore, to consider Online Marketing as one of the prime methods of promoting products and services to various market segments.

Note:

Online Marketing is discussed in detail in Tutorial 5.

ADDITIONAL INFORMATION ONLINE

Advertising By George Carlin.
The Secret Science Of Advertising By BuzzFeed Video.
How To Get Your Ideas To Spread By Seth Godin, TED.
Psychology And Advertising By Lori Benoy, Sole Lander, Mathew Desanctis.
Science Of Persuasion By Robert Cialdini And Steve Martin, Influence At Work.

11. PERSONAL SELLING

WHAT IS PERSONAL SELLING?

Personal Selling, in contrast to advertising, entails face-to-face communication of promotional information from a seller to a potential customer. Personal selling is a key feature of a Push Promotional Strategy and it offers several important advantages to the company as outlined below.

 ADVANTAGES OF PERSONAL SELLING

1.

High flexibility of the personal selling effort is possible in selected market segments.

2.

Immediate feedback is provided by potential customers.

3.

Target markets can be approached with a greater degree of accuracy.

4.

Instant sales and cash receipts can be generated.

5.

Additional services may be provided by sales people during routine sales calls.

6.

Flexible time is available to sales people during face-to-face communication with potential customers.

The current trends in the Personal Selling Process are based on adopting a more Consultative Approach, or Pull Approach, to selling versus the Traditional Selling Approach. Marketing and sales managers, therefore, need to examine various selling strategies and methods, which are currently used by their sales people to ensure that the company meets its marketing and sales goals in the most cost-effective manner.

Note:

Personal Selling is an integral part of the overall sales management process and is discussed in detail in Tutorial 5.

 

ADDITIONAL INFORMATION ONLINE

The Personal Selling Process By Randy Staus.
Personal Selling Philosophy By Michael S. Conclin.
Personal Selling And Sales Management By Classroom Video.
How To Close A Sales - 5 Reasons Clients Don't Buy By Victor Antonio.
Secrets To Becoming A Sales Power House By Grant Cardone, Entrepreneur.

12. SALES PROMOTION

WHAT IS SALES PROMOTION?

Sales Promotion is the last, but not least, important element of the marketing mix. It should, therefore, be considered by the marketing manager together with all the other marketing mix factors. American Marketing Association has defined sales promotion as:

"Those activities other than personal selling, advertising, and publicity that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and exhibitions, demonstrations, and various non-recurrent selling efforts not in the ordinary routine."(30)

The prime purpose of a sales promotion is to provide additional support to the company's products and services in the marketplace. Sales promotion is particularly important when new products or services are being introduced to potential customers, or when failing products or services are being supported. 

Various types of Sales Promotion Methods are used by manufacturers, wholesalers, and retailers. These types differ by their respective sources and markets, and are illustrated below.

TYPES OF SALES PROMOTIONS CATEGORIZED BY SOURCE AND MARKET

Source

Market

Consumers

Organizational
Buyers

Wholesalers

Retailers

Manufacturers

Free
   samples
Product
  coupons
Cash rebates
Contests
Sweepstakes

User 
   catalogues
Promotional 
   gifts
Trade shows

Contests
Trade shows
Promotional
   discounts

Contests
Advertising 
   and display
   discounts
Trade shows
Promotional
   discounts

Wholesalers

 

Promotional
   discounts

 

Promotional
   discounts

Retailers

Price reduction
Rebates
Coupons
Contests
Gifts

     
 

ADDITIONAL INFORMATION ONLINE

Sales Promotion By Jason Richea.
Close Any Deal Anytime By Grant Cardone.
Super Sales Manager Actual Live Sales Call By Grant Cardone.
Product Promotion - 5 Promotional Strategies That Work By Theresa Delgado.
Promotional Strategy By Kim Donahue, Indiana University, Kelley Business School.

13. PUBLIC RELATIONS AND PUBLICITY

WHAT ARE PUBLIC RELATIONS?

Public Relations (PR) is also an important element of the marketing mix. Public relations are an essential management function designed to promote the image of the company and its products and services in the marketplace.

Public relations duties in small and medium-sized organizations are usually performed by the company’s owners and the marketing and sales managers as part of their ordinary functional responsibilities.

WHAT IS PUBLICITY?

In addition to developing public relations activities, management should attempt whenever possible to obtain Publicity in the marketplace. Publicity is a free message about an organization, its’ products and services, and appears in the mass media.

Publicity is of particular importance to any organization because it helps to promote its image and products or services in a more believable way in the marketplace. It centers around newsworthy developments or activities in the company. Several examples of mass media frequently used for publicity purposes are outlined below.

EXAMPLES OF MASS MEDIA

1.

Magazines.

2.

Newspapers.

3.

Television.

4.

Radio.

5.

Internet.

 

ADDITIONAL INFORMATION ONLINE

The Difference Between Publicity And Public Relations By Top Story PR.
What Is Public Relations - Part 1 By Carolyn Kim, Biola University.
What Is Public Relations - Part 2 By Carolyn Kim, Biola University.
The Life Of Public Relations By Carolyn Kim, Biola University.
Ethics In Public Relations By Carolyn Kim, Biola University.

14. DIRECT MARKETING

WHAT IS DIRECT MARKETING?

Direct Marketing represents an integral part of the Marketing Communication Mix and it must be developed in a pro-active and cost-effective manner to ensure the company’s successful performance in a competitive marketplace.

Direct marketing is an interactive system of marketing which is based on a direct and indirect communication between a company and the potential customer, and includes various types of advertising, promotion, and personal selling of products and services as described below.

TYPES OF DIRECT MARKETING

1.

Telephone Marketing.
This enables the company to promote its’ products and services through a direct phone communication between its sales representative and the potential customer.

2.

Direct Mail Marketing.
This enables the company to promote its’ products and services through a direct mail communication with the potential customer.

3.

Online Marketing.
This enables the company to promote its’ products and services through an online communication with the potential customer.

4.

Direct Selling.
This enables the company to promote its’ products and services through personal sales communication between its sales representative and the potential customer.

5.

Automatic Vending.
This enables the company to offer its’ products to potential customers on a 24/7 basis without any need for direct communication.

6.

TV Infomercials.
This enables the company to demonstrate and sell its’ products to potential customers through a specially designed TV commercial program.

7.

TV Home Shopping.
This enables the company to demonstrate and sell its’ products to potential customers through a TV media bundled with other commercial offers.

8.

Postcard Decks.
This enables the company to promote its’ products and services to potential customers through a direct mail communication bundled with other commercial offers.

Direct Marketing is discussed in detail in Tutorial 5.

ADDITIONAL INFORMATION ONLINE

What Is Direct Marketing? By Troy White.
What Is Direct Marketing? By John Miglautsch.
Direct Marketing Tips By Asendia Management SAS.
Direct Marketing By Lois Geller, Doug King, Dave Frankland, And Cat Moriarty.
Direct Mail Marketing Campaign Tips By J. Ritter Kelly. Ritter's Communications.

15. FORMULATE THE MARKETING COMMUNICATION MESSAGE

STEP 7: FORMULATE THE MARKETING COMMUNICATION MESSAGE

Once all elements of an effective communication mix have been developed, the marketing manager should formulate a suitable Communication Message.

The primary purpose of the communication message is to summarize the promotional information concerning the company and its products or services and transmit this information to the marketplace. Since various messages can be transmitted through different elements of the communication mix, such messages should be properly coordinated by the marketing manager.

ADDITIONAL INFORMATION ONLINE

Video Marketing Communications By Anthony Idle.
Marketing Communications: The Scope By OxfordLearningLab.
How To Send Marketing Communication Message By CloudCreo.
Effective Mobile Marketing Strategies To Get New Customers By Alex Lessa.
How To Attract More Clients Immediately By Greg Habstritt, Engaged Entrepreneur.

16. EVALUATE AND CONTROL THE MARKETING COMMUNICATION MIX

STEP 8: EVALUATE AND CONTROL THE COMMUNICATION MIX

Finally, it is necessary to evaluate the Effect Of The Promotional Strategy adopted by the company and to ensure continuous control over all elements of the communication mix. Information Feedback related to advertising, personal selling, public relations, sales promotion and direct marketing should be incorporated into the management of promotion.

The ultimate measure for judging success or failure of the promotional strategy is the volume of sales and profitability. However, it is often difficult to identify the individual contributors toward the overall promotional effort. It is important, therefore, that the marketing manager constantly monitors the effect of the Promotional Program on the company's performance and accumulates relevant experience.

17. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

18. THE LATEST INFORMATION ONLINE

 

LESSON FOR TODAY:
Advertising Is The Fine Art Of Convincing
People That Debt Is Better Than Frustration!

Joe Griffith

Go To The Next Open Check Point In This Promotion Program Online.