Promotion Methods: Advertising, Sales, Selling, PR, Direct Marketing, Essays (high school) of Business

Download Promotion Methods: Advertising, Sales, Selling, PR, Direct Marketing and more Essays (high school) Business in PDF only on Docsity! CHAPTER 4: Developing and promotion mix WHAT IS PROMOTIONAL TOOL? • Promotional tools are tactics or activities you plan and execute to persuade consumers to buy your products or services. 5 MS OF ADVERTISING: • MISSION • MONEY • MESSAGE • MEDIA • MEASUREMENT Mission Advertising Objectives can be classified as: • TO INFORM - Informing the consumers during the development stage of a particular product. • TO PERSUADE - Most advertisements are made with the aim of persuasion. Such advertisements aim at building a selective brand. • TO REMIND - Reminding customers during the maturity stage of the product. This is to keep them in the loop, to keep them repeatedly thinking about the product. MONEY • When it comes to setting the advertising budget, the money section of 5 m’s of advertising talks about the budget allocated for advertising: a. The Product Life Cycle stage b. Consumer base and share in the market c. Competition in the market and clutter d. Frequency of advertising e. Substitutability of the Product MEDIA • The next ‘M’ to be considered while making an Advertisement Program is the Media through which the advertising message is communicated for the prospects. 1. Deciding on the reach, frequency and impact of the media 2. Choosing measure media vehicles among available media 3. Selecting specific media vehicle within consideration of all supporting factors. 4. Deciding on the timing of the media vehicle. 5. Deciding on the geographical allocation of the media vehicle. MEASUREMENT • The evaluation of the effectiveness of the advertising campaign or advertising programme is very important as it always helps in preventing the further wastage of money and help in making necessary correction that are significant and vital for the further advertising programme. The following methods can be adopted for the measurement of the advertising campaign: 1. Pre-testing - It is the measurement of effectiveness before the consumer uses the product. a. Finished Testing – Test Commercials in the form of offering trails of the product to groups of people b. Concept Testing to check the wellness of the concept of advertisement. This is done using an expert opinion. 2. Post-testing - It checks the advertisement’s effectiveness after the consumer has used the product. a. Aided recall - A technique that makes the use of clues to get answers from people regarding ads they might have seen in their schedule. b. Unaided recall - A direct technique of asking the person how much he/she remembers the particular advertisement • Personal selling is a strategy that salespeople use to convince customers to purchase a product. The salesperson uses a personalized approach, tailored to meet the individual needs of the customer, to demonstrate the ways that the product will benefit him. • Ask Questions –salesperson needs to know why the customer is interested in the product or service. • Address Concerns –salesperson should ask the customer to share any concerns he has about the product or service. • Ask for the Sale –salesperson can directly ask if the customer has decided to buy the company’s product or service. • Follow-up –a good salesperson always follow-up with both prospects and clients subsequent to making a presentation. Personal selling + / - Advantages Disadvantages High customer attention High cost Message is customised Labour intensive Interactivity Expensive Persuasive impact Can only reach a limited | Potential for development of number of customers relationship Adaptable Opportunity to close the sale tutor2u | PUBLIC RELATIONS • Public Relations - This includes ongoing activities to ensure the overall company has a strong public image.Publicrelations activities include helping the public understand the company and its products. - It involves cultivation of favorable relations for organizations and products with its key publics through the use of a variety of communications channels and tools. - Word of mouth is also a type of publicity, which transform from the person-to-person storytelling to social media influencers, or bloggers promotions today.