Chapter 12 Promotion, Advertising, and Sales promotion Strategies
Content Promotion strategy, advertising strategy, and sales promotion strategy. Components of promotional strategy Developing promotion strategy, determining the budget, and implementing it. Advertising strategy’s objectives & budgeting. Role of advertising agency. Implementing an advertising strategy. Sales promotion strategy & activities. Advantages & limitations of sales promotion strategy.
Introduction A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. Therefore, we are going to discuss the promotion, advertising, and the sales promotion strategy which is a vital part of the positioning strategy.
strategy: consists of planning, implementing, and controlling an organization's communications to its customers and other target audiences. • Advertising strategy: any form of non personal communication communication concerning a product that has an impact on buyers, and should deliver a message for its audience. • Sales promotion strategy: aims at improving a company's sales by modifying your target customers purchasing behavior and patterns. It helps to boost sales and also helps a business to draw new customers while at the same time retaining older ones. • Promotion
Promotion strategy Components of promotion strategy
Developing a promotion strategy
Illustrative communication objective
Deciding the role of promotion components
Specify each promotion component role and contribution in the strategy.
Decide each component's part of the budget.
Communication objectives will help in deciding the role of each component.
Determining the promotion budget There are many factors that influence sales and promotion; so we need to consider these factors in determining the budget. Using the following methods: Objective & task: is a cost- effective method, where management sets the tasks necessary to achieve the objectives, and then the cost is added. Percent of sales: a method that calculates the budget as a percent of sales, but it fails to recognize the promotion efforts and results related.
Cont ,,, Competitive parity: a method that studies how much competitors spend on their strategies. Not necessarily comparable. All you can afford: top management limit all budget decision, they specify the amount should be spent. Budgeting in practice: it is a combination of rational, political, and expedient actions.
Characteristics of integrated marketing communications: Should be comprehensive Unified Targeted Coordinated with the all the components Emphasize reaching the designated targets
The advertising strategy objectives are more closely linked to the purchase decision, like:
Advertising strategy Objectives, budgeting, and creative strategy
Expose communication to target audience Create awareness Change attitudes Increase sales Generate profits
Cont ,,, Budgeting determination Like the previously mentioned methods of budgeting, the objective – task method is the best one. Creative strategy Is guided by the market target and the desired d esired positioning strategy for the product or brand. The creative theme seeks to effectively communicate the intended positioning to buyers and others influencing the purchase or brand. Provide a unifying concept that binds together the various parts of an advertising campaign.
Role of advertising agency Develop creative designs and select media. Offer a range of services including marketing research, sales promotion, & marketing planning.
The relationship with the advertising agency should be cooperative; the client briefs an idea about the company's concept and core business, so that its strategy would be effective.
Some agencies are compensated by a commission percent, depending on the results. However, some problems may rise where agencies work with competitors.
Implementing the advertisement strategy & Implementing measuring its effectiveness Decide how to measure the effectiveness of the strategy before implementing it. Assign responsibility for tracking performance(not necessarily through measuring the sales , but also through advertising research, testing the market, longitudinal studies tracking the advertising expenditures, cash register ) Assess the quality of advertising.
Sales promotion strategy Consists of various incentives that are intended to accelerate the selling process to build sales volume. The strategy process is similar to the design of advertising strategy. Its scope is difficult to identify; because the activities included are included in various departments & budgets.
Sales promotion activities & targets Activities include trade shows, specialty advertising, contests, displays, coupons, recognition programs, and free samples. Sales promotion target Consumer buyers
Sales people
Business buyers
Value chain
Advantages & limitations of sales promotion strategy
Some people may take advantage of the free coupons, free offers, and other incentives. Value – added sellers may build inventories on products manufacturers' trade discounts. Incentives & price promotional incentives need to be monitored.
Thank you for listening
Mera G. Al Horani
