Chap 17 promotion strategies

Promotion-Expenditure Strategy TM17-1B.. Promotion-Mix Strategy TM 17-2 C.. Media-Selection Strategy TM 17-3 D.. Advertising-Copy Strategy TM 17-4 E... PROMOTION-EXPENIDITURE STRATEGY Br

A Promotion-Expenditure Strategy (TM17-1)

B Promotion-Mix Strategy (TM 17-2)

C Media-Selection Strategy (TM 17-3)

D Advertising-Copy Strategy (TM 17-4)

E Personal Selling Strategy (TM 17-5)

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PROMOTION-EXPENIDITURE STRATEGY

Break-down method:

 Percentage-of-sales approach

 Spend-as-much-as-can-be-afforded approach

 Return-on-investment approach

 Competitive-parity approach

Build-up method:

 Forces managers to analyze scientifically the

role they expect promotion to play and the

contribution it can make toward achieving

marketing objectives

Criteria for determining promotion mix:

A Product Factors

1 Nature of product

2 Perceived risk

3 Durable versus nondurable

4 Typical purchase amount

B Market Factors

1 Position in its life cycle

2 Market share

3 Industry concentration

4 Intensity of competition

5 Demand perspectives

C Customer Factors

1 Household versus business customers

2 Number of customers

3 Concentration of customers

D Budget Factors

1 Financial resources of the organization

2 Traditional promotional perspectives

E Marketing Mix Factors

1 Relative price/relative quality

2 Distribution strategy

3 Brand life cycle

MEDIA-SELECTION STRATEGY

Selection of an advertising medium is influenced

by such factors as the product or service itself, the

target market, the extent and type of distribution,

the type of message to be communicated, the

budget, and competitors’ advertising strategies

ADVERTISING-COPY STRATEGY

Copy refers to the content of an advertisement In

the advertising industry, the term is sometimes

used in a broad sense to include the words,

pictures, symbols, colors, layout, and other

ingre-dients of an ad Copywriting is a creative job, and

its quality depends to a large extent on the

crea-tive ability of writers in the advertising agency or in

the company However, creativity alone may not

produce good ad copy A marketing strategist

needs to have his or her own perspectives

incorpo-rated in the copy (what to say, how to say it, and to

whom to say it) and needs to furnish information

on ad objectives, product, target customers,

competi-tive activity, and ethical and legal

considerations

PERSONAL SELLING STRATEGY

There was a time when the problems of selling

were simpler than they are today Recent years

have produced a variety of changes in the selling

strategies of businesses The complexities involved

in selling in the 1990s are different than those in

the 1980s As an example, today a high-principled

style of selling that favors a close, trusting,

long-term relationship over a quick sell is

recom-mended The philosophy is to serve the customer

as a consultant, not as a peddler