Promotional tools

VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS

VERSLO VADYBOS FAKULTETAS

Tema: “Promotional tools”

Atliko: Simona Aškelovičiūtė, ĮV-2/1

Tikrino: J. Mickonis

Vilnius

2003

Promotional tools

Companies have to develop good products or services, price them
attractively, and make them accessible to their target customers. But this
is no enough: they also have to use various promotional tools to generate
sales. Promotion is one of the four P’s in the marketing mix. It is used to
inform the consumers about a product and to persuade them to buy it.
According to a classification used in most marketing textbooks tthere are
four major promotional tools:

1. Advertising

2. Public relation

3. Sales promotion

4. Personal selling

Advertising

Advertising is a paid form of promoting the products and/or image of
the enterprise in a non-personal way to a mass audience. The other
definition: advertising is limited to paid, non-personal communication
through various media by organizations and individuals who are in some way
identified in the advertising message. Advertising may be in the form of :

1. A simple advertisement in for example the local press informing the

public where the business is situated, and what type of products oor

services they offer.

2. An advertising campaign, which combines a number of methods to promote

the firm and its products.

Advertisements consists of four main elements, namely:

1. Sender, the advertiser

2. Message, i.e. the advertisement

3. Medium, i.e. the method through which the advertisement is sent

4. Receiver, i.e. the consumers

Firms

will often approach advertising consultants to design
advertisements and plan advertising campaigns. Advertising agencies will
employ people with the required skills to design and write advertisements.
Artists to draw illustrations or frames to represent a visual
advertisement.
Copywriters to write the text for the advertisement.
Designers responsible for the total outlay of the advertisement.
Market research analysts who are responsible for selecting the appropriate
advertising media for the advertisement to be placed in

Advantages of advertising:

1. Advertising may lead to increased sales, which leads to mass

production and therefore cheaper prices.

2. Advertising informs the consumer about the various products on the

market, which leads to a better choice.

3. It leads to greater competition and therefore better quality and lower

prices.

4. Lower prices of media in which advertisements appear for example

magazines, newspapers, etc.

5. Improves standard of living, because cconsumer goods become more

affordable.

Disadvantages of advertising:

1. Advertising is expensive and if it fails to increase sales, prices

will increase.

2. Consumers are tempted to purchase goods and services, which they do

not really need.

3. Advertising can be unethical. Accused by some of promoting sexism and

greed.

4. Pollution. Billboards can for example deface natural features.

Leaflets may be thrown away when handed out in public, which adds to

pollution.

The public benefits from advertising in the following ways:
Advertising is informative.
Advertising provides us with free TV and radio programs, because
advertisers cover most of th

he production costs.
TV has many advantages to national advertisers, but it is expensive.
However, there are few ways to reach as many people with such impact.
Marketers must choose which media and which programs can best be used to
reach the audience they desire.

Non-network stations and alternative forms of media are less expensive.

Public relation

Publicity is the firm’s solicitation of verbal and written public
discussion and recognition. The message can therefore be positive or
negative and is not paid for. Also known as public relations. Larger firms
often have their own public relations department, with a public relations
officer in charge. The main task of the PR department is to present a
positive image of the firm and its products to the public. Also to make
news and thereby gain free and favorable publicity. A variety of methods
are usually employed to create a favorable image with the public:

10. Good customer relations.

11. Sponsorship of sporting, cultural, community and charitable

events and organizations.

12. Endorsements from celebrities.

13. Free gifts promote both image of firm, and its products.

PR is the management function that evaluates public attitudes,
identifies the policies and procedures of an individual or an organization
with the public interest, and executes a program of action to earn public
understanding and acceptance. Public relations are responsible for the
company image and use a

variety of methods such as sponsorships to enhance
it. The public relations department has responsibility for maintaining
close relationships with the media, community leaders, government
officials, and other stakeholders. Idea is to establish and maintain a
dialogue with those stakeholders so that the company can respond to
inquiries, complaints and suggestions quickly.

Three Steps in a Good PR Program:
Listen to the public.
Develop policies and procedures in the public interest.
Inform people of the fact that you’re being responsive to their needs.

Publicity – Any information about an individual, a product, or an
organization that is distributed to the public through the media, and that
is not paid for, or controlled by, the seller.

Advantages of Publicity :

It’s free.
It reaches people who do not read advertising messages.
It may be placed in a prominent place (like the front page.)
A story in the newspaper is treated as news, and news is more believable
than advertising.

Disadvantages of Publicity:

No control over how, when, or if the media will use the story.
The story can be altered.
There is such a thing as bad publicity.
Stories are not likely to be repeated; advertising can be repeated as often
as needed.

Sales promotion

The primary objectives of sales promotions are to predict and modify
customers purchasing behavior, most often to improve sales. These are sales
promotion items:
Free sa

amples:

26. A sample of the product is given to the customer in the hope

that he/she will like it and then purchase the real product.
Free gifts:

28. Stickers, pens, caps, calendars, etc. that are given away at

point of sale or in, for example, cereal packets.
Discounts:

30. 15% off this weekend only, low prices!, etc.
Special offers:

32. buy one get one free (BOGOF)

33. 10% extra shampoo free, etc.
Money off coupons:

35. provided as part of packaging, available at shelves in store

with products.
Customer loyalty points:

37. Customer collects points electronically and then receives a cash

coupon.
Competitions:

39. Customer encouraged buying product by entering competition to

win the product or a holiday.
Point of sale displays:

41. The product is demonstrated for consumer to see its

possibilities, or displayed attractively and prominently in

store to encourage sales.

As I have mentioned, sales promotion applies to the various techniques
employed by a firm to persuade consumers to buy, such as discounts and free
samples. Stimulates consumer purchasing and dealer interest by means of
short-term activities. Sales promotion programs are designed to supplement
personal selling, advertising, and public relations by creating enthusiasm.

Components of sales promotion:
Get salespeople and other relevant employees enthusiastic.
Promote to distributors and dealers.
Promote to final consumers.

Personal selling

Personal selling is an oral presentation by a salesperson to a customer
with the aim of clinching the sale. The advantage of personal selling is
that technical detail can be given to customer and the product can be
demonstrated if necessary. Arrangements can also be made for installation
and delivery of the product. Sales promotion material such as samples and
competition forms can also be passed on to interested customers.

Personal selling is face-to-face presentation and promotion of
products and services. Also involves searching out prospects and providing
follow-up service. Effective selling today is more than persuading others
to buy; it is helping them to satisfy their wants and needs. Nearly 10% of
the total labor force is employed in personal selling.

Table of content

Promotional tools 2

Advertising 2

Advantages of advertising: 3

Disadvantages of advertising: 3

Public relation 4

Advantages of Publicity : 4

Disadvantages of Publicity: 5

Sales promotion 5

Personal selling 6

Table of content 7

Literature 8

Literature

1. http://www.learn.co.uk
2. http://www.bls.gov
3. http://www/wrigley.com
4. http://marketing.about.com
5. http://www.ama.org
6. http://www.offce.com
7. http://marketing.kub.nl
8. http://www.iusb.edu

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