Sales promotions. Target audience. Main tools of sales promotions. Pro and cons of Sales promotions

Sales promo consists of a diverse collection of intensive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.

While advertising offers a reason to buy, sales promo – an intensive to buy. Sales promo includes tools for consumer promotion (samples, coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross promotions, point-of-purchase displays, and demonstrations); trade promotion (prices off, advertising and display allowances, free goods) and business- and sales force promotion (trade shows and conventions, contests for sales reps and specialty advertising).

Sales promo tools are used by most organizations, including manufacturers, distributors, retailers, trade associations, and non-profit organization. 10 years ago, and advertising-to-sales promo ratio was about 60:40. Today in many companies the sales promo accounts for 65-75 % of the combined budget.

Why is there a rapid growth of sales promotions?

1) internal factors: Promotion is now more accepted by top-management as an effective sales tool; more product managers qualified to use sales-promo tools; and products managers are under grater pressure to increase current sales.

2) External factors: Number of brands has increased; competitors use promo often; many brands are seen as similar; consumers are more price-oriented; trade has demanded more deals from manufacturers; and advertising efficiency has declined because of rising costs, media clutter, and legal restraints.

 

Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker or greater purchase of a particular products by a consumer or the trade.

- contests, games lotteries

- premiums and gifts

- sampling

- fairs and trade shows

- exhibits

- demonstrations

- coupons

- entertainment

- trade-in allowances

- price packs

- Free trials

 

 

PR and their role in the overall marketing strategy.

Public relations is a form of communication management that seeks to influence the image of an organization and its products and services. Publicity tools- tools for obtaining non-personal presentation of an organization, good, or service without direct cost.

- News release- objective is to inform a newspaper, radio station, or other medium of an idea for a story,

- News conference- representatives of the media are invited top the conference and advanced material regarding the content are sent. Often used to when negative publicity occurs, in order to improve the image of the company.

- PSA (public service announcement) – free space or time donated by the media.

PR involves a variety of programs designed to promote or protect a company’s image or its individual products. PR should perform the following 5 function:

1) Press relations – presenting news and information about the organization in the most positive light

2) Product publicity – sponsoring efforts to publicize specific products

3) Corporate communication - promotion understanding of the organization through internal and external communication.

4) Lobbying – dealing with legislators and government officials to promote or defeat legislation and regulation.

5) Counselling - advising management about public issues and company positions and images.

The old name of MPR (marketing PR) was publicity, now it has become MPR, therefore it has new tasks:

• Assisting in the launch of a new product
• Assisting in repositioning of mature product
• Building interest in a products category
• Influencing specific target groups
• Defending products that have encountered public problems
• Building the corporate image in a way that reflects favourably on its products.

PR can contribute to the following marketing objectives:

1) build awareness

2) build credibility

3) stimulate the sales-force and dealers

4) hold down promotion costs

Major tools in marketing PR:

1) publications – annual reports, brochures, articles, company newsletters, magazines, audiovisual materials.

2) Events – news conferences, seminars, outgoings, exhibits, contents, competitions, anniversaries, sport and cultural sponsorships that will reach the target publics

3) News

4) Speeches

5) Public-service activities – contributing money and time to good causes to build a good will

6) Identity media – company logos, stationery, brochures, signs, business cards, uniforms, dress codes – visual identity that the public immediately recognises.

 

 

Organization of marketing function within management structure. Marketing specialists job descriptions.

The most common form of marketing organization consists of functional specialists reporting to a marketing vice president, who coordinates their activities. Specialists are:

Advertising manager - Director of a firm's advertising program. Determines media, copy, size of budget, advertising frequency, and the choice of an advertising agency.

Sales manager -Supervisor of the sales force, responsible for recruitment, selection, training, motivation, evaluation, compensation and control.

Market research manager-Person who develops the research project supervisor methodology, evaluates the accuracy of different sample sizes, analyzes data, and assesses statistical errors.

Marketing manager - Executive who plans, directs, and controls (vice-president of the entire marketing functions of the marketing) company. The manager (vice president) oversees all marketing decisions and personnel.

Product-or brand- management organization

Companies producing a variety of products and brands often establish a product- (or brand-) management organization. The product management org. does not replace the functional org., but serves as another layer of management. Product and brand manager have these tasks:

· Developing a large-range and competitive strategy for the product

· Preparing an annual marketing plan and sales forecast

· Working with advertising and merchandising agencies to develop copy, programs, and campaigns

· Stimulating support of the product among the sales force and distributors

· Gathering continuous intelligence on the product’s performance, customer and dealer attitude, and new problems and opportunities.

The marketer’s basic skill lies in influencing the level, timing, and composition of demand for a product, service, organization, place, person, or idea.

 

International marketing. Main peculiarities of marketing strategies on the international markets

International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm.[1] It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets.

An international firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

A multinationa l firm views the world as consisting of unique parts and markets each part differently. Multinationals use the multidomestic marketing strategy, which means that they have as many different product variations, brand names and advertising programs as countries in which they do business. Ex.: Unilever fabric softener

A transnational firm views the world as the one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences. They employ a global market strategy – the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ. Coca-Cola, Gillette, McDonald’s