Promotion Strategy

Manoj Joshi
Professor- Strategy, Entrepreneurship & Innovation Amity Business School, Amity University, Lucknow Campus
BE(Mech), MIE(Mech), PGDFM, MBA, MIMA, Ph.D (Innovation) Chartered Engineer [India] mjoshi@lko.amity.edu, manoj.joshi.m@gmail.com Phone: +91-522-2330934, Handy: +91-9415017498 1. Asia Editor: International Journal of Entrepreneurship & Innovation, IP Publishing 2. Editorial Board: Business Strategy & Environment, Interscience Willey 3. Editorial Board: Entrepreneurship Theory & practice, Family Business Review, Asia Pacific Journal of Management

The Components of Promotion Strategy

Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Personal Selling: Personal selling is the oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale. Sales Promotion: Sales promotion consists of various promotional activities including trade shows, contests, samples, point-ofpurchase displays, trade incentives, and coupons.

Publicity: Publicity is non-personal stimulation of demand for a product, service, or idea by means of commercially significant new planted in the mass media and not paid for directly by a sponsor.

Developing a Promotion Strategy

Communications objectives

Strategy for each mix component

Market target(s) and positioning strategy

Role of promotion mix components

Promotion budget

Developing the Promotion Strategy

Market targets and positioning strategy guide promotion decisions. Promotion strategy includes deciding: Communications objectives The role of the components that make up the promotion mix The promotion budget A strategy for each mix component. Strategies are selected for advertising, personal selling, sales promotion, and public relations.

Communications Objectives

Need Recognition Gathering Information Evaluation of Alternatives Decision to Purchase Product Use

Illustrative promotion objective include: Creating or increasing buyers awareness of a product or brand. Influencing buyers attitudes toward a company, product, or brand.

Increasing the level of brand preference of the buyers in a targeted segment.

Achieving sales and market-share increases for specific customer or prospect targets. Generating repeat purchases of a brand. Encouraging trial of a new product.

Attracting new customers.

Role of the Promotion-Mix Components

(Advertising, Sales Promotion, Personal selling etc)

Budgeting Approaches Objective and Task Percent of Sales

Competitive Parity
All You can Afford

Budgeting Models
Integrating Promotion Strategies

Factors Affecting Promotion Strategy

Advertising/sales promotion driven

Large Low Small Channel Low

Balanced

Personal selling driven

Small High Large Direct High

Number and dispersion of buyers

Buyers information needs

Size and importance of purchase

Distribution
Product complexity Post purchase contact required

No

Yes

Integrated marketing communications (IMC) strategies are replacing fragmented advertising, publicity, and sales programs. These approaches differ as follows: IMC programs are comprehensive. Advertising, personal selling, retail atmospherics, behavioral-modification programs, public relations, investor-relations programs, employee communications, and other forms are all considered in the planning of an IMC. IMC programs are unified. The messages delivered by all media, including such diverse influences as employee recruiting and the atmospherics of retailers upon which the marketer primarily relies, are the same or supportive of a unified theme.

IMC programs are targeted. The public relations program, advertising programs and dealers/distributor programs all have the same or related target markets. IMC programs have coordinated execution of all the communications components of the organization. IMC programs emphasize productivity in reaching the designated targets when selecting communication channels and allocating resources to marketing media.

ADVERTISING STRATEGY Advertising strategy development begins by identifying and describing and describing the target audience. Next, it is important to establish the role and scope of advertising, decide on the advertising budget, and set specific objectives.

The selection of the creative strategy follows. It determines how the objectives will be accomplished. Advertising media and programming schedules are used to implement the creative strategy.
The final step is implementing the advertising strategy and evaluating its effectiveness. We examine each of these activities, highlighting important features and strategy issues.

Alternative Levels for Setting Advertising Objectives

Exposure

Awareness
More relevant to decision making Attitude change Sales Profit More difficult to measure

Setting Advertising Objectives and Budgeting

Advertising Objectives Budget Determination Creative Strategy Media/Programming Strategy

IBMs Advertising Campaign Research Measurement Model

Campaign tracking benchmark Developmental research Pre-test

Campaign tracking waves

Optional post-tests Market response

Post-test

Creative development

Advertising

The Role of Selling in Promotion Strategy

Illustrative Roles for the Sales Force New Business Strategy. This selling role involves obtaining sales from new buyers. The buyers may be one-time purchasers or repeat buyers. Trade Selling Strategy. This form of selling provides assistance and support to middlemen rather than obtaining sales. Missionary Selling Strategy. A strategy similar to trade selling is missionary selling. Consultative/Technical Selling Strategy. Firms that use this strategy sell to an existing customer base, and provide technical and application assistance.

Defining the Selling Process

Several activities are involved in moving from identifying a buyers needs to completing the sale and the post sale relationships between buyer and seller. This selling process includes: (1) Prospecting for customers

(2) Opening the relationship

(3) Qualifying the prospect (4) Presenting the sales message

(5) Closing the sale

(6) Servicing the account.