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Consumer Trade Promotion and Advertising

Promotion and Advertising

Push, Pull and
Combination Strategies
Consumer Trade Promotion and Advertising

Push and Pull

Pull Synergy
Push

Succes
s
depend
s on
the
perfect
synerg
Advertising

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Advertising
Includes all activities involved in
presenting a non-personal, sponsor-
identified, paid-for message about a
product or organization.
Can classify it by:
The target audience: consumers or businesses
Product/service vs. organization/company
Objective: Primary or selective demand

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 The Nature of Advertising
Advertising is distinguished from
other forms of promotion as
follows
it has a verbal and/or visual message
the sponsor of the message is identified
delivery is through recognizable media
there is payment by the advertiser to the
media for carrying the message
advertisers are increasingly being able to
reach specific audiences with tailor-made
messages
Consumer Trade Promotion and Advertising
Consumer Trade Promotion and Advertising
 Advertising to Target
Audiences
Advertising can be classified by the
target audience to which it is directed

consumer advertising generally

appears in mass media and is directed
to end consumers: may be product or
institutional in nature

business-to-business advertising is
often called trade advertising and is
directed to a business market
Consumer Trade Promotion and Advertising
 Consumer Trade Promotion and Advertising

Approaches to setting the ad budget

Affordability Base the ad budget on what business can afford after all
other expenditures. In a bad year, the low advertising
budget could guarantee a further low year for sales.
Percentage of sales Setting the advertising spend consistently at a fixed
percentage of sales. When sales are declining, the result
will be a reduction in advertising ,just when greater sales
promotion is required!
Competitive parity It is based on the assumption that there is an industry
average spend that works well for all major players in a
market.Share of Voice need not be equal to Market Share
Objective and Task The tasks could be financial in nature (e.g. achieve a
certain increase in sales, profits) or related to the
marketing activity that is generated by the campaigns
Profit maximization A firm continues to advertise until its incremental profit
just equals the additional amount spent on advertising
Companys individual situation and goals should help dictate its
budgeting strategy
The Campaign Budget

A budget must be allocated among

the various activities comprising the
overall promotional program.
Promotional budgets can be extended
with co-operative advertising.
Consumer Trade Promotion and Advertising

Media planning refers to the process of

selecting media time and space to disseminate
advertising messages in order to accomplish
marketing objectives.

Which media to use for message

dissemination

When and where to use media to in order to

reach the desired audience
Choosing Media
Objectives of the ad.

Audience coverage.

Requirements of the message.

Time and location of the buying decision.

Media cost (CPM)

Media characteristics.
Characteristics of Key Media
Newspapers: flexible, timely, local
orientation , wide coverage and low cost
Television: versatile, powerful but costly,
fragmented,reaches mass audiences
Direct Mail: personal, selective, efficient,
targets certain audience
Radio: strong locally, cheap but single
medium
Magazines: top quality, little flexibility
 Characteristics of Key Media

out-of-home advertising
specialty advertising
emerging media:
World Wide Web
infomercials
place-based media
videos and CD-ROMs
yellow pages
The Changing Nature of
Media
media are becoming less mass, more targeted
cable TV offers many specialty channels
direct-to-home TV adds to fragmentation
lots of new out-of-home media
Yellow Pages and other directories on CD-ROM
place-based media where they shop and live
advertising on the Web works as Yellow Pages
does -- the customer seeks out the advertiser
 Consumer Trade Promotion and Advertising

An idea about how to creatively and persuasively

communicate a brand message to a target
audience motivating them to respond

Purpose Capture the attention of target audience

Communicate the message in the manner that the
target audience is interested in hearing
Retention
Relevant and creative
Ad- Medium chosen
Structuring Target audience specific
and Language
Formatting Artwork and Layout
Images, storyline
 Consumer Trade Promotion and Advertising

Measuring advertising effectiveness

CPM Cost per thousand impressions.Does not take the type of
viewership/readership into account

REACH Refers to the percentage of people of households exposed to the

advertisement at least once during the specified time period.

FREQUENCY Refers to the number of times within a specific time period an

average person or household is exposed to the advertisement

GRP Gross Rating Points measures the total number of exposures

produced by a specific medium during a specified time. GRP=Reach
X Frequency

The appropriateness of a media vehicles audience in light of the product

being marketed should be the important consideration
Evaluating Advertising
It is difficult to measure the sales
effectiveness of advertising because:
Ads have different objectives.
Ads can have an effect over time period.
Measurement problems.

Effectiveness can be tested:

Before an ad is presented.
While it is being presented.
After it has completed its run.
What is Being Advertised?
product advertising is designed to
promote the sale of a specific product or
service:
may be direct-action,
direct-action quick-response
may be indirect-action over a longer
time
institutional advertising promotes the
firm or tries to create a positive image:
may promote customer service
or send a public service message
What are the Objectives?
primary-demand advertising is
intended to stimulate use of a
category of products
selective-demand advertising is
intended to encourage purchase of
a particular brand or the products
and services of a specific firm
 Comparative Advertising

Selective-demand advertising
Involves comparing a product to its competing
brand
May be:
Direct, naming competitors outright
Less direct, alluding to competitors (e.g.,
leading brand, Brand X) but not naming
them
 Co-operative Advertising

co-operative advertising involves the

sharing of the cost of advertising by
two or more sponsors:
a manufacturer and retailers (vertical),
vertical or
a group of retailers (horizontal)
(horizontal
Organizing for Advertising
Develop an internal
advertising department.
Many large retailers do this.
Use an outside advertising
agency.
Specialized,
skilled professionals.
Experienced, many services offered

Do both.
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 Sales Promotion consists of
short-term incentives to
encourage the purchase or
"Salessales of aincludes
promotion product.marketing
activities, other than personal selling,
advertising such as displays, shows
and expositions, demonstrations and
various non-recurring selling efforts
not in the ordinary routine.
 Why Sales Promotion?
Stimulating end-user demand.
Sampling program for new/improved product
Improving the marketing performance of middlemen and
salespeople.
Sell more, win a holiday trip.
Supplementing advertising and facilitating personal selling.
Displays, promotional giveaways

Increase short-term sales or help build long-term market share.

Get consumers to try a new product
Lure customers away from a competitor
In general, sales promotion should focus on consumer relationship
building.
 Types of sales promotion
Customer Based Trade Based
Samples Price-Off
Coupons Allowance
Discount or price off Free Goods:
Cash Refund offers
Store administration
(Rebates)
Price Packs Trade Shows
Premiums or Gift Offer Trade Incentives
Prizes (Contests, Contests
Sweepstakes, Games)
Exchange offer
Fair Exhibition/Events
Sample Trial
Trial amount
amount of
of aa product
product
Sample
Savings
Savings when
when purchasing
purchasing specified
specified
Coupons
Coupons products
products
Bundling
Bundling products,
products, for
for example
example aa
Packages
Packages room
room and
and dinner
dinner
Products
Products offered
offered free
free or
or low
low cost
cost as
as
Premiums
Premiums an
an incentive
incentive to
to buy
buy aa product
product

Displays or demonstrations
Patronage Cash
Cash or
or other
other rewards
rewards for
for the
the use
use of
Patronage Rewards
Rewards aa certain
of
certain product
product
Point-of-Purchase Displays
Displays and
and demonstrations
demonstrations thatthat
Point-of-Purchase take
take place
place at
at the
the point
point of
of sale
sale
Contests Consumers
Consumers submit
submit anan entry
entry toto be
be
Contests judged
judged
Sweepstakes Consumers
Consumers submit
submit their
their names
names forfor aa
Sweepstakes drawing
drawing
Game Presents
Presents consumers
consumers withwith something
something
Game every
every time
time they
they buy
buy
Sales Promotion

Demand-stimulating devices
designed to supplement advertising
and facilitate personal selling.
Sales promotions include such
things as coupons, in-store displays,
premiums, trade shows, in-store
demonstrations, and contests.
The target for these activities may
be middlemen, end users, or the
producers own salesforce.
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Big Bazaar the
discount store was
launched in the year
2001, to meet the
aspirations of the
middle class. In the
span of two years, it
has added a Food
Bazaar and Gold
Bazaar to its range of
offering

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Sales promotions
The main idea behind every effort is to make
a bulk purchase
Saal ke sabse saste 3 din

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Hafte ka sabse sasta din Wednesday bazaar
For generating sale apart from weekends.

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Exchange Offers Junk swap offer
Its a unique offer which only few companies
adopt.

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Junk swap offer
The customer can bring anything old, such as
newspaper, and get coupons issued in exchange of
the junk. The customer can redeem the coupons
before the due date on the condition that he/she
shops four times the value of the coupon.
The prices fixed by Big Bazaar are: clothes (Rs 200
per kg), newspaper (Rs 25 per kg),
plastics/utensils/leather goods (Rs. 75 per kg),
footwear/luggage (Rs. 100 per kg), Pet/beer bottles
(Rs 15 per kg), tyres (Rs 50 per kg), furniture (Rs 75
per kg) and others (Rs 20 per kg).
"This offer will help the housewife clean out the junk
while getting a good value for it," says Mr. Sanjeev
Agarwal, President (Marketing), Pantaloon Retail
(India) Ltd.
Latest Promotion technique in Diwali is Gift
Idea 2009
It comes under Premium or gift offers,
Seasonal offers to attract more customers
43
Eva Free sampling
Activity
Free Sampling
activity for Eve
Moisturiser at
various colleges in
Punjab,Delhi,Gurga
on,faridab-ad,Noida
& Ghaziabad
covering almost
100 colleges &
institutes.
Zee Business Tax Doctor
Promotion
Promotion for Zee
Business Serial Tax
Doctor involving the
host Mr.R.N.Lakhotia at
various Add agencies
& Corporates in Delhi
& Mumbai.
Lifebuoy School
Promotion
Indiatimes Kiosk
Promotion
Escorts Rural Promotion
Promoting Escorts
Power Track in rural
india covering
M.P,Chattisgarh,U.P
,Bihar and
Jharkhand for three
months reaching
out to masses.
Haywards 5000 beer
promotion
Sher Ka Punja

Promotional Campaign
for Haywards 5000
beer spread across
nine cities of Haryana
covering about 100
beer outlets & 200
promoters stretched
over a period of 3
months.
ITC Classmate day school activity
X-hale mint corporate
promotion
Idea Mall Promotion
An introductory
promotion for idea
Copy-a- Dialer Tone
product across nine
cities in India
covering 14 Malls
for four weekends
reaching out to
right TG
Musst bite promo in Delhi Malls
Milano mall promotion
Welspun rwa activity
Hide & Seek inter college dance
competition
Tilda rice rwa promotion
Idea Mygang Mall
Promotion
An introductory
promotion for idea
My-Gang Card
across Ten cities in
India covering 18
Malls for four
weekends reaching
out to the Youth.
Sony play station mall
promo.
Sony Play station
mall
Promotion delhi &
Bombay ,Across 8
malls 32 days
Tata Sumo Grande Display
Tata Exibition
 Price packs are among the most
essential sales promotional tool of Big
Bazaar.

FUTURE CARD (Discount Up to 3%)

SHAKTI CARD for the regular customers,
to give them extra wait age for their loyalty
towards Big Bazaar.
Advantages of Sales Promotion

It can produce short-term results.

Competitors are using sales
promotions.
Sales promotions are attractive
to price-conscious consumers.
Can enhance/facilitate retail
salesmanship which is often of
low quality.
Managing Sales Promotion
Select from wide range of techniques,
depending on your objectives
Select promotional devices based on:
Nature of target audience
Your promotional objectives: Push vs. Pull.
Cost of device-- sampling can get costly.
Current economic conditions-- coupons,
rebates work best in recessionary period.
Evaluating Sales Promotion:
Much easier than with advertising.
Usually clear start, finish, goal.
Benefits for seller
It helps to increase sales in a competitive
market and thus, increases profits;
It helps to introduce new products in the
market by drawing the attention of potential
customers;
Existing stocks can be quickly disposed off;
Benefits for
Buyer/Consumer
The consumer gets the product at a cheaper rate;
It gives financial benefit to the customers
The consumer gets all information about the
quality, features and uses of different products;
Certain schemes like money back offer creates
confidence in the mind of customers about the
quality of goods;
It helps to raise the standard of living of people. By
exchanging their old items they can use latest
items available in the market.
 Differen
ce
Advertisement
By using a variety of persuasive
appeals, it offers reasons to buy a
product or service.
e.g. Good Network, Promises and
Delivers.
Appeals are emotional or functional in
nature.
e.g. endorsed by Madhvan & Vidya
Balan, Shreyas Talpade, new ad of
Shahrukh.
Time-frame is long term.
The primary objective is to create
an enduring brand image.
Indirect and subtle approach
towards persuading customers to
buy a product or service.
(e.g. Airtel)
Sales Promotion
Besides giving reasons in the form of
different appeals, they offer incentive
to the consumers to buy the product or
service now.
e.g. Extra balance, tariff, Free calling.
Appeals are rational
It justifies whatever it says.
Time frame is short term.
To get sales quickly or to induce
trial.
Direct in approach to induce
consumers to buy a product or
service
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Essential elements for an effective
SP programme
Significant value before promotion is effective
Promotions must be part of an overall plan
Every brand must have a promotion objective
and a strategy statement
A written tactical plan time frame, costs,
evaluation yardsticks
Factual knowledge must be gathered to plan
Specialised professional skill and knowledge
must be applied to every promotion operations
Final considerations
Dont promote if the product is not good
Promotions rarely stop a declining sales curve
It is very easy to lose the promotional gains
made if your promotion has not been
effective in retaining new customers. So the
product has to speak for itself.
The objective of the promotion is to wean
away users from competition and create new
users.
Excessive promotions lead to diminishing
returns and may devalue the brand
Contd
Promotions may be used in conjunction with
advertising and other marketing communication
tools
It should be novel and attractive
Ensure supply lines are good and adequate stock
is available right through the promotion
Cater for contingencies. Have escape routes built
into the plan
Trade has to be handled tactfully
Reimburse incentives/ rewards/ gifts promptly
Must be within the legal boundaries
Public Relations Involves Building
Good Relations With the
Companys Various Publics by
Obtaining Favorable Publicity,
Building Up a Good Corporate
Image, and Handling or Heading
Off Unfavorable Rumors, Stories,
and Events.
Publicity

Publicity is a form of public

relations that includes any
communication about an
organization or its products that
is presented by the media but is
not paid for by the organization.
Public Relations

Financial
FinancialCommunity
Community Customers

Suppliers
Suppliers Government

Citizen
CitizenAction
ActionGroup
Group Media
 Public Relations Cont.
Local Publics - Community
Local Area Marketing
General Public
Corporate Citizen
Internal Publics
Employees
Board of Directors
Stockholders
Mountain dew Road Show

Done mountain dew

road show for three
month across india
in state:
Punjab,Haryana,Him
achal,Delhi,Gurgaon,
UP,Rajastaan,Bihaar.
Jharkhand
The Public Relations Process
Research
Establishing the
Marketing Objective
Build Awareness
Build Credibility
Stimulate the Sales
Force and Channel
Intermediaries
Hold Down Promotion
Costs
The Public Relations Process
-Continued
Defining the Target
Audience
Choosing the PR
Message and Vehicles
Event Creation
Publicity

Product Related Publicity

Assist in the Launch of New
Products.
Assist in Repositioning a Mature
Product
Build Up Interest in a Product
Category
Strengths of Publicity
Can announce new products, recognize
employees, report good results, breakthroughs.
Key Benefits:
Lower cost than advertising or personal selling.
Increased readership; advertising ignored
often.
More information.
Timeliness.
Weaknesses of Publicity
Some loss of control over message.
Limited exposure; only happens once.
Not free; preparation costs.
Implementing the Marketing
PR Plan
Evaluating PR Results
Exposures
Awareness/Com-
prehension/Attitude
Change
Sales-and-Profit
Contribution
Major Tools in Marketing PR

Identity Publications
Media Events

News Speeches Public Service

Activities
Review and
Recap

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 Assignment

For the next one year

1.What are the sales promotional activities you

could launch for trade and consumers

2.Explore the various PR options that you will be

able to initiate

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Thank You

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