Professional Documents
Culture Documents
The Marketing Concept
The Marketing Concept
Assignment no.02
Project Advisor
Submitted By
Waseem Saeed
Roll AD-512530
Semester 1’st
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DEDICATION
2
ACKNOWLEDGMENT
3
TABLE OF CONTENTS
Thesis I
Dedication ii
Acknowledgement iii
Table of Contents iv
List of Tables viii
List of Figures ix
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CHAPTER 4: The Promotional Mix 12
4.1 Advertising 12
4.2 Personal Selling 13
4.3 Sales Promotion 13
4.4 Publicity 13
4.5 Factors That Determine Type Of Promotional Tools 15
4.5.1 Resource Availability and The Cost Of Promotional Tools 15
4.5.2 Market Size and Concentration 15
4.5.3 Customer Information Needs 15
CHAPTER 6: Advertising 26
6.1 Stage 1. Set Advertising Objectives 26
6.2 Stage 2. Set The Advertising Budget 27
6.3 Stage 3. Determine The Key Advertising Messages 27
6.4 Stage 4. Decide Which Advertising Media To Use 28
6.5 Stage 5. Evaluate The Result Of Advertising Campaign 29
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Table 10.1 Major Sales Promotion Devices 53
LIST OF FIGURES
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Fig 6.1 Advertising 2009 29
Fig 14.1 Community 87
Fig 14.2 Sponsorship 88
Fig 14.3 Event / Road Show 89
Fig 14.4 Advertising VAIO AW on Catalog 90
Fig 14.5 Advertising VAIO CS on Magazine 91
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CHAPTER 1
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1.1 The Production Concept:
The "production concept" prevailed from the time of the
industrial revolution until the early 1920's. The production concepts
was the idea that a firm should focus on those products that it could
produce most efficiently and that the creation of a supply of low-cost
products would in and of itself create the demand for the products. The
key questions that a firm would ask before producing a product were:
"Sales concept" (or selling concept), under which companies not only
would produce the products, but also would try to convince customers
to buy them through advertising and personal selling. Before producing
a product, the key questions were:
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• Can we sell the product?
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• Aligning all functions of the company to focus on those
needs
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CHAPTER 2
Introduction
Marketing decisions generally fall into the following four controllable
categories:
1. Product
2. Price
3. Place (distribution)
4. Promotion
Borden began using the term in his teaching in the late 1940's after
"Mixer of ingredients".
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Fig.2.1: MARKET MIX
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2.1 Product Decisions:
The term "product" refers to tangible, physical products as
well as services. Here are some examples of the product decisions to
be made:
• Brand name
• Functionality
• Styling
• Quality
• Safety
• Packaging
• Warranty
• Seasonal pricing
• Bundling
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• Price flexibility
• Price discrimination
• Distribution channels
• Inventory management
• Warehousing
• Distribution centers
• Order processing
• Transportation
• Reverse logistics
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• Promotional strategy (push, pull, etc.)
• Advertising
• Sales promotions
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MARKETING-MIX AND PROMOTION-MIX:
Marketing
Mix
Direct
Personal Sales
Advertising Publicity Marketin
Selling Promotion
g
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CHAPTER 3
What Is Promotion?
Introduction
It would be safe to say that most companies engage in some
form of promotional activity every day of the year. Promotion is one of
the four Ps of marketing—price, product, place, and promotion.
Promotion is generally thought of as a sequence of activities designed
to inform and convince individuals to purchase a product, subscribe to
a belief, or support a cause. All of the various tools available to
marketing managers for promotional activities constitute what is known
as the promotional mix.
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Definition 1
Generally, promotion is communicating with the public in an
attempt to influence them toward buying your products and/or
services.
Definition 2
An activity, such as a sale or advertising campaign, designed
to increase visibility or sales of a product.
But before talking about the planning process, we need to
review the tools of promotion.
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CHAPTER 4
Introduction
4.1 Advertising
Any paid form of non-personal communication of ideas or
products in the "prime media": i.e. television, newspapers, magazines,
billboard posters, radio, cinema etc. Advertising is intended to
persuade and to inform. The two basic aspects of advertising are the
message (what you want your communication to say) and the medium
(how you get your message across)
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4.2 Personal Selling
Oral communication with potential buyers of a product with
the intention of making a sale. The personal selling may focus initially
on developing a relationship with the potential buyer, but will always
ultimately end with an attempt to "close the sale".
4.4 Publicity
The communication of a product, brand or business by
placing information about it in the media without paying for the time or
media space directly. Otherwise known as "public relations" or PR.
The following table gives examples of each tool along with advantages
and disadvantages of each.
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Advantages and Disadvantages of Each Element of the
Promotional Mix
Mix Element Advantages Disadvantages
Advertising Good for building awareness Impersonal - cannot answer all a
customer's questions
Effective at reaching a wide audience
Not good at getting customers to
Repetition of main brand and product make a final purchasing decision
positioning helps build customer trust
Personal Selling Highly interactive - lots of Costly - employing a sales force
communication between the buyer has many hidden costs in addition
and seller to wages
Good short term tactical tool Too much promotion may damage
the brand image
Public Often seen as more "credible" - since Risk of losing control - cannot
Relations the message seems to be coming from always control what other people
a third party (e.g. magazine, write or say about your product
newspaper)
Table 3.1
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4.5 Factors that determine the type of promotional tools
used
Each of the above components of the promotional mix has
strengths and weaknesses. There are several factors that should be
taken into account in deciding which, and how much of each tool to
use in a promotional marketing campaign:
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4.5.3 Customer information needs
Some potential customers need to be provided with detailed, complex
information to help them evaluate a purchase (e.g. buyers of
equipment for nuclear power stations, or health service managers
investing in the latest medical technology). In this situation, personal
selling is almost always required - often using selling teams rather than
just one individual.
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CHAPTER 5
Introduction
You drive sales by promoting the benefits of your company's
goods or services to pools of potential buyers. The ways you promote
your organization will largely determine whether you successfully plant
the right messages in the minds of your target audience. This module
explains how you can establish a promotional mix best suited to your
company's needs and resources.
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• Measure the Results and Adjust
1. Advertising
3. Sales promotion
4. Direct marketing
5. Personal selling
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How you integrate these elements depends on what you're
promoting, the biases and preferences of the potential customers
you're courting, general market conditions and your promotional
budget.
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5.3 Understanding The Main Communication Channels
5.3.a. Advertising.
Advertising is any paid form of media communication. This
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5.3.e. Personal Selling.
Face-to-face communication between buyer and seller.
Beware:
In their rush to expand, some fast-growth entrepreneurs fail to
coordinate their marketing strategies with their specific promotional
efforts. A common trap: You invest heavily on advertising or sales
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promotion, but you overlook quality control for your product or price it
improperly.
Example:
If you own an upscale jewelry store, you know from your sales
history or marketing research that your target market is consumers
earning more than $75,000 per year. Any print advertising should thus
appear in publications in which readership income exceeds $75,000.
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Example:
To introduce new customers to your product, a direct-
marketing technique, such as a direct-mail letter with a money-saving
offer to first-time customers, might work. Or you can try a sales
promotion, such as two-for-the-price-of-one. If your target market has
a misconception about your product (say, that it's more expensive or
less effective than rival products), you can correct the perception by
providing comparisons or testimonials.
Content.
The content is the words and images you use to appeal to
your target market. You must give your potential customers reasons
they should respond to your message. Think of the most important
benefit a user of your product receives. That should lead you to the
central theme of your message's content.
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Format.
Each element of the promotional mix has its own format
requirements. Web advertising relies on graphics, clarity and color,
while personal selling may involve structured presentations, handouts
and diagnostic tests to engage potential customers.
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CHAPTER 6
Introduction:
The Institute of Practitioners in Advertising (IPA), the body
which represents advertising agencies, defines advertising as:
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(a) To inform - e.g. tell customers about a new product
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be carefully targeted to impact the target customer audience. A
successful advertising message should have the following
characteristics:
(b) Frequency - how many times will the target customer be exposed
to the advertising message?
(c) Media Impact - where, if the target customer sees the message -
will it have most impact? For example does an advert promoting
holidays for elderly people have more impact on Television (if so,
when and which channels) or in a national newspaper or perhaps a
magazine focused on this segment of the population?
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in media such as newspapers and specialist magazines (e.g. cottage
holidays in the Lake District) is more appropriate.
(2) The Sales Effects - has the campaign generated the intended
sales growth. This second area is much more difficult to measure.
fig1.Advertising 2009
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CHAPTER 7
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example, the leading pharmaceutical companies spend around 20% of
sales on advertising, whilst business such as Ford and Toyota spend
less than 1%. An average for fast-moving consumer goods markets
(“FMCG”) is around 8-10% of sales.
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A major problem with this approach (in addition to the
disadvantages set out for the example above) is that it encourages
businesses to ignore the effectiveness of their advertising spend – it
makes them “lazy”. It could also prevent a business with competitive
advantages from increasing market share by spending more than
average.
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objectives with levels of advertising. In a good year large amounts of
money could be wasted; in a bad year, the low advertising budget
could guarantee a further low year for sales.
CHAPTER 8
Advertising Media
Introduction:
There is a huge variety of media available through which a
business can conduct an advertising campaign. What are the main
types of media and what considerations should a business make in
choosing between them?
"An investigation into the relative effectiveness and the relative costs
of using the various advertising media in an advertising campaign"
• Potential customers
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• How great a percentage of the market they wish to reach, etc.
• Sunday newspapers
• Consumer magazines
• Specialist magazines
• Internet
• Radio
• Cinema
• Billboards
• Transport
• Direct mailing
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8.3 Why and What?
Why and what should a business advertise?
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• To support the activities of the distribution channel (e.g.
supporting a “pull” strategy)
• To support the sales force – advertising can make the job of the
sales force easier and more effective by attracting leads from
potential customers and perhaps motivate them by boosting the
profile of the business
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A unique selling proposition is a customer benefit that no
other product can claim
In reality these are rare, although that does not stop marketers from
claiming them for their products.
Secondly, does the thing that is being advertised “add value” and if so,
how?
• Seen
• Read
• Believed
• Remembered
Credibility.
By investing in a public presentation of your company and
its products, you can enhance customers' perceptions of
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legitimacy, permanence and quality that they associate with your
enterprise.
Timing.
You can repeat a message at strategic intervals.
Repeating your message increases the likelihood that your target
customer will see the message at a time where he is open to
hearing it. The right timing can maximize your awareness-building
efforts.
Drama.
The best advertising puts a human face on a company
and its products. It can convey a sense of adventure, challenge
people to test their assumptions about your business or entertain or
enlighten your audience. It can introduce consumers to images and
symbols that differentiate your company from others.
Branding.
Effective advertising enables you to create and nurture
brand equity, a vital but intangible source of goodwill that flows
from a favorable image associated with a brand name. Once your
company establishes a distinctive trademark in the public eye, you
have a competitive advantage.
Cost.
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Marketers often argue that advertising offers a cost-
effective way to reach large groups, and it's true that the cost
per contact can prove lower than with other promotional
methods. Nevertheless, many entrepreneurs lack the finances
to invest heavily in advertising. Producing and placing
professional advertisements is prohibitively expensive for
many emerging-growth companies.
Follow Through.
While attention-grabbing advertising can attract
interest, even the most innovative campaigns can become
stale over time. And entrepreneurs may grow to rely too much
on advertising at the expense of more personal, direct
appeals to niche audiences.
Lack Of Feedback.
Consumer Indifference.
As people get pelted with promotional messages
throughout the day, they become better at screening out ads.
Information overload and clutter can lead your target audience
to turn away from your best efforts to engage them.
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CHAPTER 9
Introduction:
The Institute of Public Relations defines public relations as follows:
• Employees
• Shareholders
• Trade unions
• Members of the “general public”
• Customers (past and present)
• Pressure groups
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• The medical profession
• Charities funding medical research
• Professional research bodies and policy-forming organizations
• The media
• Government and politicians
• Promotional videos
• Consumer exhibitions
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• Product launch events
• Celebrity endorsements
• Web sites
o Direct mailings
o Web site
o Trade exhibitions
Intranet
Notice boards
Employee conferences
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9.7 Financial communication
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Publicity is free advertising. You can generate publicity
through press releases, special events, sponsorships, newsletters and
community activities.
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9.8 Advantages Of Public Relations
Believability.
Most people perceive publicity as more credible and
believable than a paid advertisement. When you run an ad, you can
make any product claim you want. Consumers know this and often
react with skepticism. But reporters don't have to feature you in
their publications or on their programs and speak positively about
your business. You don't control the message when you don't pay
for it.
Employee Morale.
Your staff may work together to promote your company's
charitable activities or host special events and celebrations for the
community. The resulting publicity can boost their pride and
enthusiasm for their jobs.
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9.10 Disadvantages Of Public Relations
Cost.
While arranging publicity generally costs less than
advertising, it can prove surprisingly expensive. You may need to hire
a public relations firm to develop campaigns, write press releases and
follow up with journalists. Even if you bring these tasks in-house, the
cost of developing publicity items and staging events can stretch your
budget and divert workers from their primary responsibilities.
Lack of Control.
While you can invite the media to preview your new product
or tour your new facility, there's no guarantee that a glowing article will
result. Or information might be improperly reported or key details
omitted. What's worse, publicity can backfire if it downplays the
positives and harps on negatives.
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CHAPTER 10
Introduction
Sales promotion is one of the most loosely used terms in the
marketing vocabulary. We define sales promotion as demand.
Stimulating devices designed to supplement advertising and facilitate
personal selling. In other words, sales promotion signifies all those
activities that supplement, co-ordinate and make the efforts of
personal selling and advertising more effective. It is non recurrent in
nature which means it can’t be used continuously.
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and sales-force promotion (for example bonuses, contests, sales
rallies).
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From the marketer’s perspective, sales promotion serves
three essential roles it informs, persuades and reminds prospective
and current customers and other selected audiences about a company
and its products. The relative importance of those roles varies
according to the circumstances faced by a firm.
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Consumers also must be reminded about a product’s
availability and its potential to satisfy. Sellers bombard the market
place units hundreds of messages every day in the hope of attracting
new consumers and establishing markets for new products. Given the
intense competition for consumers’ attention, even an established firm
must constantly remind people about its brand to retain a place in their
minds. Much of a firm’s sales promotion may be intended simply to
offset competitors marketing activity by keeping its brand in front of the
market.
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iv) To help firm remain competitive
Sales promotions may be undertaken to meet competition
from a firm.
Short-term results
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Competitive Pressure
If competitors offer buyers price reductions, contest or other
incentives, a firm may feel forced to retaliate with its own sales
promotions.
Buyers’ expectations
Once they are offered purchase incentives, consumers and
channel members get used to them and soon begin expecting them.
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objectives include encouraging support of a new product or model,
encouraging more prospecting and stimulating off-season sales.
Target Audience.
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10.7 Consumer Promotion Tools
The main consumer promotion tools include samples,
coupons, cash refund offers, price packs, premiums, prizes, patronage
rewards, free trials, product warranties, tie-ins, and point of purchase
displays and demonstrations.
Samples
Samples are offers of a free amount or trial of a product to
consumers. The sample might be delivered door to door sent in the
mail, picked up in a store, found attached to another product or
featured in an advertising offer. Sampling is the most effective and
most expensive way to introduce a new product.
Coupons
Coupons are certificates entitling the bearer to a stated saving
on the purchase of a specific product. Coupons can be mailed,
enclosed in or on other products or inserted in magazine and
newspaper advertisements. Coupons can be effective in stimulating
sales of a mature brand and inducing early trial of a new brand.
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Price Packs
These are offers to consumers of savings off the regular price
of a product, flagged on the label or package. They may take the form
or a reduced-price pack which is single packages sold at a reduced
price (such as two for the price of one) or a banded pack, which is two
related products banded together (such as a tooth brush and tooth
paste). Price packs are very effective in stimulating short term sales,
even more than coupons.
Premiums or Gifts
These are merchandise offered at a relatively low cost or free
as an incentive to purchase a particular product. Sometimes the
package itself is a reusable container may serve as a premium. A self-
liquidating premium is an item sold below its normal retail price to
consumers who request it.
Prizes
These are offers of the chance to win cash, trips or
merchandise as a result of purchasing something. Pepsi-cola offered
the chance to win cash by matching numbers under the bottle cap with
numbers announced on television. Sometimes the prize is a person,
offering the winner either cash or dinner with actor.
Patronage Awards
These are values in cash or in other forms that are
proportional to one’s patronage of a certain vendor or group of
vendors. Most airlines offer “frequent flyer plans” providing points for
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miles traveled that can be turned in for free airline trips. Cooperatives
pay their members dividends according to their annual patronage.
Free Trials
Free trails consist of inviting prospective purchasers to try the
product without cost in the hope that they will buy the product. Thus,
often we see, auto dealers encourage free test drives to stimulate
purchase interest.
Product Warranties
These are an important tool, especially as consumers
become more quality sensitive. When My TVS offered a two year car
warranty, substantially longer than other competitors’ customers took
notice. They inferred that My TVS quality must be good or else the
company would be in deep trouble. Companies must carefully estimate
the sales-generating value against the potential costs of any proposed
warranty programmed.
Tie-in Promotions
These are becoming increasingly popular. In a tie in
promotion two or more brands or companies team up on coupons,
refunds and contests to increase their pulling power. Companies pool
funds with the hope of broader exposure, while several sales forces
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push these promotions to retailers, giving them a better shot at extra
display and ad space.
Point-of-Purchase Displays
These take place at the point of purchase or sale. Display of
visible mark or product at the entrance of the store is an example.
Unfortunately many retailers do not like to handle the hundreds of
displays, signs and posters they receive from manufacturers.
Hindustan Lever often uses this tool to promote its products in the
retail market.
Product Demonstrations
Products are being shown in action. Consumers can visit the
store and see the usage of product in live action so that doubts of the
consumers can be clarified in the store itself. When a new product is
introduced in the market, the sales promotional tool is often used. For
example ultra modern grinder mixer being used by the company to
demonstrate its specialty than the other product.
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i. Trade promotion can persuade the retailer or wholesaler to carry the
brand.
iii. Trade promotion can induce the retailers to promote the brand
through featuring, display, and price reduction.
iv. Trade promotion can stimulate retailers and their sales clerks to
push the product.
Price – Off
Manufacturers may offer a price – off, which is straight
discount off the list price on each case purchased during a stated
period of time. The offer encourages dealers to buy a quantity or carry
a new item that they might not ordinarily buy. The dealers can use the
buying allowance for immediate profit or price reductions.
Allowance
Manufacturers may offer an allowance in return for the
retailer’s agreeing to feature the manufacturer’s products in some way.
An advertising allowance compensates retailers for advertising the
manufacturer’s product. A display allowance compensates them for
carrying a special display of the product.
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Free Goods
Manufacturers may offer free goods, which are extra cases of
merchandise to middlemen who buy a certain quantity of items.
Push Money
Manufacturers may offer push money which is cash or gifts to
dealers or their sales force to push the manufacturer’s goods.
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10.9 Advantages Of Sales Promotions
Build Relationships.
Trade-oriented promotions give marketing intermediaries a
financial incentive to support your company's products. By offering
discounts to retailers in exchange for prominent shelf space or end-of-
the-aisle displays, for instance, you can strengthen relationships with
key players who can help stimulate sales.
Stir Excitement.
Many consumers love contests and sweepstakes. You can
turn a drab purchase into a more lively event by promising cash prizes
to lucky winners. At its best, a sales promotion adds alluring incentives
for buyer action.
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10.10 Disadvantages Of Sales Promotions
Risk Of Misfire.
Many fast-growth entrepreneurs rush to try some form of
sales promotion, only to declare such efforts a waste. But problems
often result from poor planning. You must first identify and develop
specific strategies to boost sales before you target customers and
choose sales promotion tools, rather than plunging into sales
promotions without laying the groundwork first.
Risk Of Dependency.
Business owners can grow to rely on sales promotion and
dwell on short-term marketing ploys, at the expense of more
coordinated long-range plans. Realize that sales gains from
promotions often sputter after an initial spike and you can sacrifice
long-term brand equity in the pursuit of short-term goals.
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CHAPTER 11
Introduction
Direct marketing is concerned with establishing an individual
relationship between the business offering a product or service and the
final customer.
∗ E-commerce
∗ Magazine inserts
∗ Telemarketing
∗ Door drops
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Direct marketing enables you to communicate with your
customers in a more personalized way than advertising, such as
greeting them with a letter or telephoning them directly. Telemarketing,
direct mail, catalogs and coupon mailers are all examples of direct-
marketing techniques.
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o Your Advertising Efforts Fail To Reach Your Target Market.
As the upscale jewelry store owner, you may feel that the ad
you placed in a high-end magazine isn't increasing your business. You
can try buying a list by ZIP code in an exclusive residential area. This
assures you that you're concentrating on your actual target market.
Predictability.
By staging initial tests and measuring the results, you
can roll out a direct-marketing campaign to a wider universe of
potential customers with a strong likelihood that it will succeed.
You can mitigate your risk by strategic sampling.
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Through direct marketing, you can contact narrow
market segments and customize your message to appeal to
them.
Ease Of Measurement.
Evaluating direct-marketing campaigns is
straightforward because you can measure outcomes with
quantifiable data, such as number and size of orders, leads
generated or requests for more information.
Saturation.
Many consumers are rebelling against the onslaught
of direct marketing. They're more apt to discard direct mail,
resent telemarketing calls, turn away door-to-door salespeople
and laugh off TV infomercials.
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If you rely on direct-response ads, telemarketing or
direct mail to introduce your company to shoppers, you must
deliver an even higher level of personalized service to win over
prospective customers. This requires additional investment in
staffing and customer service training and delivery that some
entrepreneurs overlook.
11.4 Why?
o The advertiser can target a promotional message down to an
individual level, and where possible personalize the message.
There are a large number of mailing databases available that allow
businesses to send direct mailing to potential customers based on
household income, interests, occupation and other variables
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o A piece of direct mail is less “interactive” than a television or radio
advert, although creative packaging can still stimulate customer
response
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tickets directly with the airlines over The Internet. Airlines capture data
that can be used for marketing research or a loyalty scheme.
Information can be processed quickly, and then categorized into
complex relational databases.
CHAPTER 12
Introduction
Personal selling occurs where an individual salesperson sells
a product, service or solution to a client. Salespeople match the
benefits of their offering to the specific needs of a client. Today,
personal selling involves the development of longstanding client
relationships. In comparison to other marketing communications tools
such as advertising, personal selling tends to:
There is some contact between buyer and seller after the sale so that
an ongoing relationship is built.
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There are exceptions of course, but most personal selling takes place
in this way. Personal selling involves a selling process that is
summarized in the following Five Stage Personal Selling Process. The
five stages are:
1. Prospecting.
4. Objection handling.
• In order to save time, rank the prospects and leave out those
that are least likely to buy.
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12.1.2 Stage Two - Making First Contact.
This is the preparation that a salesperson goes through
before they meet with the client, for example via e-mail, telephone or
letter. Preparation will make a call more focused.
• Before meeting with the client, set some objectives for the sales
call. What is the purpose of the call? What outcome is desirable
before you leave?
• To save time, send some information before you visit. This will
wet the prospect's appetite.
• Keep a set of samples at hand, and make sure that they are in
very good condition.
• Within the first minute or two, state the purpose of your call so
that time with the client is maximized, and also to demonstrate to
the client that you are not wasting his or her time.
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Focus on the real benefits of the product or service to the specific
needs of your client, rather than listing endless lists of features.
Try to be relaxed during the call, and put your client at ease.
Let the client do at least 80% of the talking. This will give you
invaluable information on your client's needs.
• 'Yes but' technique allows you to accept the objection and then
to divert it. For example, a client may say that they do not like a
particular colour, to which the salesperson counters 'Yes but X is
also available in many other colours.
• Ask 'why' the client feels the way that they do.
• 'Restate' the objection, and put it back into the client's lap. For
example, the client may say, 'I don't like the taste of X,' to which
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the salesperson responds, 'You don't like the taste of X,'
generating the response 'since I do not like garlic' from the client.
The salesperson could suggest that X is no longer made with
garlic to meet the client's needs.
• Just ask for the business! - 'Please may I take an order?' This
really works well.
• Just stop talking, and let the client say 'yes.' Again, this really
works.
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Friday, packaged accordingly, and delivered to your wife's office.'
Then ask for the order.
• The 'alternative close' does not give the client the opportunity to
say no, but forces them towards a yes. For example 'Do you
want product X in blue or red?' Cheeky, but effective.
CHAPTER 13
Introduction
An increasingly common form of promotional activity is
sponsorship. What is sponsorship?
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channels is providing many more opportunities for sponsorship of this
kind
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3. Agree the strategy: how does the sponsorship fit in with any
other promotional activity?
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operations include Sony Corporation (Sony Electronics in the U.S.),
Sony Pictures
SONY Products
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iii. Home Audio.
v. Digital Photography.
ix. Game.
x. In-Car entertainment.
SONY Promotion
Brief Introduction:
Promotion is a key element of marketing program and is
concerned with effectively and efficiently communicating the decisions
of marketing strategy, to favorably influence target customers’
perceptions to facilitate exchange between the marketer and the
customer that may satisfy the objective of both customer and the
company.
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and services it offers, their features and influence their attitudes
favorably.
Advertising
Advertising is any paid form of non-personal mass
communication through various media to present and promote
product, services and ideas etc. by an identified sponsor.
So far, SONY has advertised its products through many different ways
and media. Through TV we have seen different advertisements of its
products such as Bravia televisions or Sony wega TV. Sony also
advertise its products by targeting those favorable television programs,
like sports, series and also it has its own channel called Sony TV
channel.
Also, Sony has advertised its games like Play station 3, Play
station 2 and PSP using sports like football in England premiere
league.
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Through newspapers like DAWN, The NEWS, etc. Sony has
advertised a wide range of products it offers to its customers. And also
through Posters a message has been sent to a lot of people to be
aware of the products which Sony offers.
Sony Corporation provides the dealers (e.g. Sony World) with the
materials and guidelines to develop ads for print, television or radio
commercials. This ensures that message is in line with, what the
manufacture wants to communicate. The company and the dealers
usually share the media costs and hence, the name ‘co-operative
advertising’.
Sales Promotion
Sales promotion is a marketing discipline that utilizes a variety
of incentives techniques to structure sales – related programs targeted
to customers, trade, and/or sales levels that generate a specific,
measurable action or response for a product or service.
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Sony has promoted its products through different sales
promotional strategies. For example after the release of the Sony
BRAVIA television sets,
Sony promoted them by earl bird prizes by saying that all BRAVIA full
HD LCD
Sony Ericsson has also promoted its Sony Ericsson K550i Mid-Range
Cyber-shot Phone that if you buy it you get a free Bluetooth headset
with one year manufacturer’s warranty.
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Sony can create a mutual relationship with its customers and
ensure that it serves the wishes and demands of its customers.
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So it’s the duty of the public relation department of Sony to
solve such issues as mentioned above so as to ensure that it
maintains a good public relation with the public.
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This means that, customer buys their Sony product from the retailers
recognized by Sony, and these retailers buy the products directly from
the company itself.i.e.
Manufacturer
Retailer
Customer
SONY Price
Pricing decisions are almost always made in consultation with
marketing management. Price is the only marketing mix variable that
can be altered quickly.
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Customers directly relate price to quality, particularly in case
of products that are ego intensive of technology based. Sony being a
company which emphasizes product quality, it tends to sell its products
with price range from moderately-high to high-prices, depending on the
use and the targeted customers.
The laptops sold by Sony in India include a series of Sony VAIO, this
are VAIO SR, VAIO FW, and VAIO tokage, VAIO CR, VAIO NR, VAIO
TZ and VAIO SZ.
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VAIO TZ, boast of elite lifestyle, and high class performance.
The laptop was designed purposely for business as it is light weight,
high processing speed, and flash memory storage and longer backup
power. For all this facts Sony has priced it to be between Rs. 1,15,000
and Rs. 1,40,000.
Pull strategy
VAIO uses pull promotional strategy that attracts consumers on
advertising to buy or demand for product. Consumers receive directly
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information from the media on TV, radio, billboards, leaflet, Internet,
and mobile-ads etc. This strategy can sell the product without
suggestion of seller.
Advertising
Public relationship
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operates. Find out how Sony is contributing towards being a positive
global citizen.
Community
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stakeholders. This report summarizes the CSR activities undertaken
by Sony Group worldwide during the financial year.
Sponsorship
Push strategy
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product is accessories that are case & pouch, mouse, docking station,
and micro vault. These premiums supported absolutely VAIO users to
enhance when using it. Furthermore, VAIO uses the sale promotion of
price-off especially in Commart X'Gen Thailand or Sony Day Let's
Cheer that consumer can buy VAIO for the special price. For example,
VAIO CS series discount 2,000 Baths and pay by installments zero
presents within a year.
Personal selling
Personal selling has an importance to be inferior to advertising
campaign. In VAIO store, the sale force makes the good relationship
and will communicate well to costumer when they want to know more
information. VAIO has training the sale force to communicate VAIO
information both its product and entertainment from VAIO. They must
have the technology knowledge to relate with product to teach
consumer. Personal selling has every VAIO dealers that is a force
promotion in highly competitors.
Event / road show
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Consumers can reach the product easily by exhibiting in
event and road show. Nowadays, event and road show are very
popular because it can show the potential company though represents
decorating store that is modern, luxury, and high technology. Sony
have exhibition including VAIO notebook PC. There are presentations
about new innovation and product to consumer. VAIO has event and
road show such as Sony Day 2009 Let's Cheer, Sony Festival 2009 -
Let's Celebrate, Commart X'Gen Thailand 2009, Power Mall
Electronica Showcase @ Siam Paragon 2009 etc. Consumers have
the privilege such as, touching product, asking information, discounting
price, distributing souvenirs and other special promotions.
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Examples of advertising campaigns
VAIO AW has the unique selling point for the deluxe design.
An extraordinary VAIO deserves an extraordinary look. The design is
available for man with back color and show the smart product.
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Besides, VAIO AW emphasizes the unique selling point about the
products feature of Sony Society that can use VAIO AW to join with
Sony Alpha camera.
Advertising impact:
This advertising has the impact for desire. It is desire for
customer who wants a notebook to be perfect with an integrated color
management system to support taking photo and watching movie.
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Advertising VAIO CS on Magazine
This advertising promote VAIO CS on magazine such Student
Weekly. It uses a teenage actor who is Pattie. This advertising has the
concept of Inspired by sensuality.
Core communicative message:
To communicate to customer especially teenager and young.
There are the new products VAIO CS for five colors to separate with
the personality. For example, brown reflects artist or pink reflects
suavity. Moreover, communication about its feature has the detail of
ram, platform, screen size, hard disk etc and communication about
product positioning is modern and colorful.
Advertising campaign on TV
This is introducing the new Sony VAIO P Series on VAIO
commercial. It is very interesting for consumer who is looking for the
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second notebook to support their lifestyle. The advertising has benefit
to communicate its message to consumer. I will analysis into three
parts.
Core communicative message:
This aim advertising gives the information to audience that it
has a new revolution produce to attain in their creation. There are
more colors with the modern design. This product has the positioning
to represent the mobility to carry easily and show brand image which is
the leader of technology to be fashionable luxurious, and modern.
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Conclusion
In my opinion, I think the current marketing mix which Sony
Corporation has is satisfactory to customer needs. As it can be Cleary
seen that Sony as a company has expanded its products and services
from electronic and digital devices to television broadcasting(i.e. Sony
home entertainment) and entertainments like music (i.e. Sony BMG
music entertainment) and movie production and distribution (i.e. Sony
Picture).
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end products with low prices which can be affordable to low income
users.
Bibliography
Sony Laptop Catalogue, August 2008
http://en.wikipedia.org/wiki/Sony
http://www.sony.co.in
http://en.wikipedia.org/wiki/Sony_Pictures_Television
http://www.salespromo.co.uk/article/40
http://en.wikipedia.org/wiki/Sony_Pictures_Home_Entertainment
http://www.brandage.com/Modules/DesktopModules/Article/ArticleDeta
il.aspx? tabID=2&ArticleID=1274&ModuleID=21&GroupID=514
http://www.youtube.com/watch?v=xj_I5sUWld8
http://www.sony.co.th/section/csr?site=hp_en_TH_i
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http://www.sony.co.th/section/events
http://www.sony.co.th/section/promotions
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