Advertising and Sales promotion techniques

ADVERTISING 

“ANY PAID FORM OF NON PERSONAL PRESENTATIONS AND PROMOTION OF IDEAS, GOODS, AND SERVICES BY AN IDENTIFIED SPONSOR” 

                                                                                                        BY PHILIP KOTLER

CONCEPTS OF ADVERTISING

Advertising professionals are responsible for development and implementation of creative strategy.

Rich concepts serve as a foundation for advertising.

Concepts include –creative idea, creative execution, and media use.

4 elements of advertising are:

1. Advertising strategy:

    *Logic planning gives direction and focus.

    *Every effective ad implements a sound strategy.

     *Advertisers develop a creative ad to reach the specific set of audience and runs it in available or selected media .

2. Creative idea:

     *Creative is the critical word that  drives entire field of advertising.

     *Buying and placing of ads requires creative thinking.

3. Effective executions:

      *Effective ads are well executed.

    *Photography, printing, writing style, explaining the product  will all determine the value of industry standards.

4. Creative media use:

     *Every message has to be reached somehow.

     *Advertisers use communication media such as tv/radio/print media /magazines to reach the target audience..

Role of Advertising:

1. Marketing role -To sell the product.

2. Economic role -Creating demand for the product.

3. Communication role-Reaching and educating customers about the product.

4. Societal role  -Educational role on regular basis.

FUNCTIONS OF ADVERTISING:

1. BUILDING AWARNESS OF THE PRODUCT AND BRAND.

2. CREATES BRAND IMAGE.

3. PROVIDES PRODCUT AND BRAND INFORMATION.

4. PERSUADES PEOPLE.

5. PROVIDES INCENTIVES TO ACTION.

6. PROVIDES BRAND INFORMATION.

7. REINFORCES PAST PURCHASES AND EXPERIENCES.

SALES PROMOTION

Promotion: Refers to the activities to push forward or to  advance an idea to gain its approval and acceptance.

Telling and selling :It includes advertising, personal selling, sales promotion and other selling tools.

Promotion:

Aim,

1. To inform prospective buyers about the existence of a product and want its-satisfying capabilities.

2. To remind the users of past and present to its various roles on consumption.

3. To persuade the prospective buyers in a most effective manner.

Definition :( Promotion)

           “The co-ordination of all seller initiated efforts to set up channels of information and persuasion to facilitate the sale of goods or service or the acceptance of an idea”

·         Selling-transfer of title from seller to the buyer.

·         Promotion-Advertising, Personal selling, Sales promotion.

·         Sales promotion-steps taken for the purpose of obtaining or increasing sales.

Note:

   *Sales promotion is a part of promotion activity.

Promotion:

1. Personal selling.                              

2. Advertising.

3. Sales promotion.

4. Publicity.

5. Public relation.

6. Point of purchase display.

7. Packaging.

8. Direct mail

SALES PROMOTION

·         Sales promotion methods aim to capture the market and increase the sales volume.

·         One among the pillars of promotional mix.

·         Its an important and specialized function of marketing.

·         Provides some inducement that provides an extra incentive to buy.

 Definition :(Sales promotion)

         “those marketing activities other than personal selling ,advertising, and publicity ,that stimulates consumer purchasing and dealer effectiveness such as display shows ,exposition,demonstration,and various non-recurrent selling efforts not in ordinary routine” by AMA.

·         It serve as a connecting link or a bridge between advertising and personal selling.

·         Can promote the product sales.

·         Stimulates the customer to buy the product.

·         It inform ,remind or stimulate the buyer at the point of purchase.

Objectives:

1.To increase buying response at customer level.

2.To increase the sales effort of dealers and sales personal.

3.To attract new customers.

4.To inform the public about new product and its specialities ,attraction and advantages.

5.To create favourable attitude towards the product.

6.To create brand image.

Advantages:

1.Stimulate the consumer an attitude towards a product.

2.Create a better incentive in the minds of consumer to make purchase.

3.Create direct inducement in the minds of customer.

4.Leads to low unit cost.

5.Effective supporter of sales.

Limitation:

1.          Are temporary and having short life.
2.         Brand image is affected by too many sales promotion activities.
3.          Used  to sell inadequate and second grade products. 

                                              TYPES     OF SALES PROMOTION   TECHNIQUE:

Consumer oriented                                                               Trade oriented

1. Samples                                                                            1.Contest and dealer incentives.

2. Coupons                                                                              2.Trade allowances.

3. Premiums                                                                           3.Point of purchase display.

4. Contest/sweepstakes.                                                         4. Training programme.

5. Refunds/debates.                                                               5.Trade shows.

6. Bonus pack                                                                       6.Cooperative advertising.

7. Price off

8. Loyalty programme

9. Event marketing

Sampling:

 1. Consumers are given some quantity of a product for no charge to induce trial.

 2. Used to introduce a new product or brand into the market.

Who will use?  

Manufactures of,,…….

1. Packaged good products,

2. Food, cosmetics and

3. Toiletries.

 Criteria for effective sampling:

1. Products of low unit volume.

2. Products are divisible-broken into small sizes.

3. Purchase cycle is relatively short-immediate purchase of the product

Sampling methods:

1. Door-to –door sampling.

2. Mail

3. In-store sampling.

4. On-package sampling.

5. Event sampling.

Benefits:

1. Induce trial –risk free way to try new products.

2. Higher trial rates.

3. Experience the brand directly.

Coupons:

1. Supplied along with the product.

2. Certificate to reduce prices.

3. To attract customers and bringing the to a particular shop.

Benefits:

1. To increase sales.

2. To introduce new product.

Coupon:

1. Bounce –back coupon-an inducement to repurchase same brands.

2. Cross-ruff coupon-redeemable on the purchase of another company product.

3. Instant-coupon-redeem immediately at the time of purchase.

4. In store couponing-distributed in retail store environment.

Premiums:

·         It’s the temporary price reduction which increases the instinct .

·         Products are offered at a reduced cost as an inducement for purchasing.

·         Offered for FMCG goods.

Premium:

Types:

1. Direct premium-within the pack.

2. Reusable container.

3. Free-in mail.

4. Self-liquidating premium-item sold to its customer below its normal price

Contest-Consumers compete for prizes or money on the basis of skills or ability.

Sweepstakes-Promotion where winners are purely determined by a chance.

Refund –Manufactures return a portion of the product price after customer shows proof.

Bonus –pack-Providing consumer an extra amount of product at the same price.

Price-off deal-Reducing the price of the brand.

Loyalty programs- Accumulates points on frequent purchase of company's product.

Event marketing-Company brand is linked to particular event.

Marketers associate their product with some popular activity like sporting event, movies etc.

TRADE- ORIENTED PROMOTIONS:

1. Contest and incentives-For managers, retailers.

   -Manufactures prepare an contest or incentive programme for stimulating the resellers or the dealers in order to support the sales of their product.

2. Trade allowances-deal offered to retailers to encourage them to stock ,promote, display manufacturers product.

Allowances types,

*Off –Invoice allowance-Fee reduction offered by the manufacturer to the retailer for purchasing their product.   

*Slotting allowance –Fee charged by the retailer for providing the place for accommodating the product.

  *Failure Fee –charged by the retailer for not sale of the product and for the space it occupies.

TRADE- ORIENTED PROMOTIONS:

1. Contest and incentives-For managers, retailers.

   -Manufactures prepare an contest or incentive programme for stimulating the resellers or the dealers in order to support the sales of their product.

2. Trade allowances-deal offered to retailers to encourage them to stock ,promote, display manufacturers product.

Allowances types,

*Off –Invoice allowance-Fee reduction offered by the manufacturer to the retailer for purchasing their product.   

*Slotting allowance –Fee charged by the retailer for providing the place for accommodating the product.

  *Failure Fee –charged by the retailer for not sale of the product and for the space it occupies.