Chap 17 promotion strategies

Chapter 17 Promotion Strategies 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) 113 114 CHAPTER 17: Promotion Strategies 17-1 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 CHAPTER 17: Promotion Strategies 115 17-2 PROMOTION-MIX STRATEGY Criteria for determining promotion mix: A Product Factors Nature of product Perceived risk Durable versus nondurable Typical purchase amount B Market Factors Position in its life cycle Market share Industry concentration Intensity of competition Demand perspectives C Customer Factors Household versus business customers Number of customers Concentration of customers D Budget Factors Financial resources of the organization Traditional promotional perspectives E Marketing Mix Factors Relative price/relative quality Distribution strategy Brand life cycle 116 CHAPTER 17: Promotion Strategies 17-3 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 CHAPTER 17: Promotion Strategies 117 17-4 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 ingredients of an ad Copywriting is a creative job, and its quality depends to a large extent on the creative 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 incorporated 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 118 CHAPTER 17: Promotion Strategies 17-5 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, longterm relationship over a quick sell is recommended The philosophy is to serve the customer as a consultant, not as a peddler  ... expect promotion to play and the contribution it can make toward achieving marketing objectives CHAPTER 17: Promotion Strategies 115 17- 2 PROMOTION- MIX STRATEGY Criteria for determining promotion. .. of message to be communicated, the budget, and competitors’ advertising strategies CHAPTER 17: Promotion Strategies 117 17-4 ADVERTISING-COPY STRATEGY Copy refers to the content of an advertisement... organization Traditional promotional perspectives E Marketing Mix Factors Relative price/relative quality Distribution strategy Brand life cycle 116 CHAPTER 17: Promotion Strategies 17- 3 MEDIA-SELECTION