CHAPTER 10:PROMOTION STRATEGIES

10.1 Objectives of promotion and promotion strategies:

10.1.1 Objectives
10.1.2 Promotion strategies

10.2 Models of communication process

10.2.1 General model of communication and elements in the
communication process
10.2.2 Other promotion and communication models

10.3 Promotion mix tools

10.3.1 Advertising
10.3.2 Public Relations (PR)
10.3.3 Sales promotion
10.3.4 Personal selling
10.3.5 Direct marketing
Q&A: List several promotion tools?
 Promotion tools
Ø Advertising: Any paid form of nonpersonal presentation
and promotion of ideas, goods, services by an identified
sponsor

Ø Public Relations (PR): Building good relations with the

company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events.
Ø Sales promotion: Short-term incentives to encourage the
purchase or sale of a product/service

Ø Personal selling: Personal presentation by the firm’s sales

force for the purpose of making sales and building customer
relationships
Ø Direct marketing: Direct connections with carefully targeted
individual customers to both obtain an immediate response
 Promotion tools
Ø Advertising: includes broadcast, print, internet, outdoor…
Ø Public Relations (PR): includes press releases, sponsorships,
special events and webpages.
Ø Sales promotion: includes discounts, coupons, displays and
demonstrations.
Ø Personal selling: includes presentations, trade shows, and
incentive programs

Ø Direct marketing: includes catalogs, telephone marketing,

kiosks, internet, mobile marketing, email marketing…
Integrated marketing communications (IMC): Carefully
integrating and coordinating the company’s many
communications channels to deliver a clear, consistent, and
compelling message about the organization and its products.
10.1.Objectives of promotion and promotion strategies:
10.1.1 Objectives:

Ø Create awareness about products

and businesses

Ø Communicate information about

products and businesses to the
market.

Ø Create interest

Ø Create demand of product

Ø Create competitive advantages for

your business

Ø Maintain or protect an image of

your organization.
10.1. Objectives of promotion and promotion strategies
10.1.2. Promotion strategies :
10.1. Objectives of promotion and promotion strategies
10.1.2. Promotion strategies :

Push strategy Pull Strategy

“Pushing” the product Induce final customers

through marketing to buy products, create a
channels to final demand that “pulls” the
customers product through channel

Directs its marketing Direct its marketing

strategies toward strategies toward final
channel members customers

Tools: primary personal Tools: primary

selling and trade advertising and
promotion consumer promotion
10.1. Objectives of promotion and promotion strategies
10.1.2. Promotion strategies:

Q&A: Should a company use only push or only pull strategy?

10.2. Models of communication process
10.2.1 General model of communication
10.2. Models of communication process
10.2.1. General model of communication:

§ Sender: The party sending the message to another party

§ Encoding: The process of putting thought into symbolic

form

§ Message: The set of symbols that the sender transmits

§ Media: The communication channels through which the

message moves from the sender to the receiver

§ Decoding: The process by which the receiver assigns

meaning to the symbols encoded by the sender

§ Receiver: The party receiving the message sent by another

party
10.2. Models of communication process
10.2.1. General model of communication :

§ Response: The reactions of the receiver after being exposed

to the message

§ Feedback: The part of the receiver’s response communicated

back to the sender

§ Noise: The unplanned static or distortion during the

communication process, which results in the receiver
getting a different message than the one the sender sent
10.2. Models of communication process
10.2.1. General model of communication:

ü For a message to be effective, the sender’s encoding process

must mesh with the receiver’s decoding process.
ü The best messages consist of words and other symbols that
are familiar to the receiver.
ü The more the sender’s field of experience overlaps with that
of the receiver, the more effective the message is likely to be.
10.2. Models of communication process
10.2.2. Other promotion and communication models:

AKLPCP Model (Buyer-Readiness stages)

10.2. Models of communication process
10.2.2. Other promotion and communication models :

AKLPCP Model (Buyer-Readiness stages)

Firstly, the communicator must build awareness and knowledge

as the target market may be totally unaware of the product.

Once potential buyers know about the product, marketers

should move them through successively stronger stages of
feelings toward the product including liking (feeling
favorable), preference (preferring the product to other brands)
and conviction (believing the product is the best to them).

Finally, some of target market might not quite get around to

making the purchase. The communicator must lead these
customers to take the final step. Actions might include
offering special promotional prices, rebates, or premiums.
10.2 Models of communication process
10.2.2. Other promotion and communication models :
10.2. Models of communication process
10.2.2. Other promotion and communication models :

AIDA Model
Suitable for low-priced and highly used products. Customers
get used to that kind of product/service.
10.2. Models of communication process
10.2.2 Other promotion and communication models:
10.2. Models of communication process
10.2.2. Other promotion and communication models:

ACCA MODEL

Suitable for new product/service.

10.2. Models of communication process
10.2.2. Other promotion and communication models:

PACAPOS Model

Potential Customer

Awareness

Comprehension

Acceptance

Preference

Ownership
Satisfacti
on
10.2. Models of communication process
10.2.2 Other promotion and communication models:

PACAPOS MODEL

Suitable for brand new product/service that has high

technology and it is necessary to train customers before using.
10.2. Models of communication process

10.2.2. Other promotion and communication models :

AKLPCP AIDA ACCA PACAPOS

Cognit Awareness Attention Awareness Potential

ive Knowledge Comprehensio Customer
n Comprehensio
n

Affecti Liking Interest Conviction Acceptance

on Preference Desire Preference
Conviction

Behavi Purchase Action Action Ownership

or Satisfaction
10.3. Promotion mix tools
10.3.1 Advertising

Advertising is any paid form of non-personal presentation and

promotion of ideas, goods, or services by an identifiedsponsor.
 ADVERTISING
PROS CONS

§ Can reach masses of geographically § Impersonal and cannot be as

dispersed buyers at a low cost per directly persuasive as can
exposure company salespeople
§ Enables the seller to repeat a § Can be very costly (e.g: TVC)
message many times
§ Large scale advertising says § Carry on only a one-way
something positive about the seller’s communication with an
size, popularity, and success audience
à Consumers tend to view advertised
products as more legitimate
§ Expressive: artful use of visuals,
print, sound, and color
§ Can be used to build up a long-term
image for a product or can trigger
quick sales.
Possible Advertising Objectives
 Profile of major media types

* Media: The vehicles through which advertising messages are delivered to their
intended audiences.
10.3. Promotion mix tools
10.3.2 Public Relations

Public relations (PR) involves building good relations with the

company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events..
10.3. Promotion mix tools
10.3.2 Public Relations
Major PR tools:
ü P (Publications): annual reports, brochures, articles,
company newletters and magazines
ü E (Events): press release, speeches, trade association, sales
meetings, news conferences, press tours, grand openings,
fireworks displays, hot air balloon releases, multimedia
presentations …
ü N (News): scandals
ü C (Community involvement): public service activities,
sponsorships, blood donation...
ü I (Identification media): logos, stationery (raincoat, helmet,
calendar...), signs, business forms, business cards, uniforms,
company cars and trucks
ü L (Lobby): building and maintaining relationships with
legislators and government officials.
10.3. Promotion mix tools
10.3.3 Sales promotion

Sales promotions consists of short-term incentives to encourage

the purchase or sales of a product or service. Whereas advertising
offers reasons to buy a product or service, sales promotion offers
reasons to buy now.
 Major Sales Promotion Tools

Consumer promotions are sales promotion tools used to boost

short-term customer buying and involvement or enhance long-
term customer relationships.

Samples Coupons Cash refunds Price packs

Advertising Patronage Point-of-

Premiums purchase
specialties rewards
displays

Demonstrations Contests Surftakes Games

10.3. Promotion mix tools
10.3.3 Sales promotion
Major sales promotion tools:
ü Samples are offers of a trial amount of a product: most
effective but most expensive
ü Coupons are certificates that give buyers a saving when they
purchase specified products: can promote early trial of a
new brand or stimulate sales of a mature brand
ü Cash refunds are certificates that give buyers price reduction
after purchase.
ü Price packs offer consumers savings off the regular price of a
product
ü Premiums are goods offered either free or at low cost as an
incentive to buy a product.
ü Contests, surftakes and games give consumers the chance to
win something, such as cash, trips or goods, by luck or
through extra effort.
10.3. Promotion mix tools
10.3.3 Sales promotion

Factors contributing to the rapid growth of sales promotion

² Inside the company, product managers face greater

pressures to increase current sales and they view promotion
as an effective short-run sales tool
² Externally, competitors are increasingly use sales promotion
to help differentiate their offers
² Advertising efficiency has declined because of rising costs,
media clutter and legal restraints.
² Consumers have become more and more deal oriented.
They are demanding lower prices and better deals
 10.3. Promotion mix tools
10.3.4 Personal selling
Personal selling consists of interpersonal interactions with
customers and prospects to make sales and maintain customer
relationships.

The people doing personal selling go by many names including

salespeople, sales representatives, agents, sales consultants,
account executives.
10.3. Promotion mix tools
10.3.4 Personal selling
Salespeople are an effective link between the company and
its customers to produce customer value and company
profit by:
§ Representing the company to customers
§ Representing customers to the company
§ Coordinating marketing and sales
10.3. Promotion mix tools
10.3.4 Personal selling
Personal selling process:
v Prospecting
v Pre-approach
v Approach
v Demonstration
v Handling objections
v Close the sales
v Follow-up
10.3. Promotion mix tools
10.3.5 Direct marketing

Direct marketing consists of connecting directly with carefully

targeted consumers, often on a one-to-one, interactive basis.
Using detailed databases, companies tailor their marketing
offers and communications to the needs of narrowly defined
segments or individual buyers.
Forms of Direct Marketing