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 themattractively, and make them accessible to their target customers. But thisis no enough: they also have to use various promotional tools to generatesales. Promotion is one of the four P’s in the marketing mix. It is used toinform the consumers about a product and to persuade them to buy it.According to a classification used in most marketing textbooks there arefour 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 ofthe enterprise in a non-personal way to a mass audience. The otherdefinition: advertising is limited to paid, non-personal communicationthrough various media by organizations and individuals who are in some wayidentified 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 or 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 designadvertisements and plan advertising campaigns. Advertising agencies willemploy people with the required skills to design and write advertisements.Artists to draw illustrations or frames to represent a visualadvertisement.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 consumer 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, becauseadvertisers cover most of the 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 toreach 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 publicdiscussion and recognition. The message can therefore be positive ornegative and is not paid for. Also known as public relations. Larger firmsoften have their own public relations department, with a public relationsofficer in charge. The main task of the PR department is to present apositive image of the firm and its products to the public. Also to makenews 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 organizationwith the public interest, and executes a program of action to earn publicunderstanding and acceptance. Public relations are responsible for thecompany image and use a variety of methods such as sponsorships to enhanceit. The public relations department has responsibility for maintainingclose relationships with the media, community leaders, governmentofficials, and other stakeholders. Idea is to establish and maintain adialogue with those stakeholders so that the company can respond toinquiries, 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 anorganization that is distributed to the public through the media, and thatis 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 believablethan 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 oftenas needed.

Sales promotion

The primary objectives of sales promotions are to predict and modifycustomers purchasing behavior, most often to improve sales. These are sales

promotion items:Free samples: 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 techniquesemployed by a firm to persuade consumers to buy, such as discounts and freesamples. Stimulates consumer purchasing and dealer interest by means ofshort-term activities. Sales promotion programs are designed to supplementpersonal 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 customerwith the aim of clinching the sale. The advantage of personal selling isthat technical detail can be given to customer and the product can bedemonstrated if necessary. Arrangements can also be made for installationand delivery of the product. Sales promotion material such as samples andcompetition forms can also be passed on to interested customers. Personal selling is face-to-face presentation and promotion ofproducts and services. Also involves searching out prospects and providingfollow-up service. Effective selling today is more than persuading others

to buy; it is helping them to satisfy their wants and needs. Nearly 10% ofthe 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.uk2. http://www.bls.gov3. http://www/wrigley.com4. http://marketing.about.com5. http://www.ama.org6. http://www.offce.com7. http://marketing.kub.nl8. http://www.iusb.edu