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Promotional strategies

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Promotional strategies

  1. 1. Promotion Strategies  Businesses use Promotion Strategies to increase the sales of a given product/service. Businesses are able to concentrate its limited resources in a concentrated way to increase sales and achieve a sustainable, competitive advantage.
  2. 2. Promotional Mix Businesses may use one or more of the following: 1. Advertising 2. Personal selling, 3. Sales Promotion 4. Publicity
  3. 3. Principal Goals of Promotion To inform. To persuade. To remind. RIP acronym = Remind - Inform - Persuade
  4. 4. Definitions of Individual Promotional Mix Elements Advertising: Any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. Personal selling: Oral conversations, either by telephone or face-to- face, between sales persons and prospective customers.
  5. 5. Definitions of Individual Promotional Mix Elements Sales promotion: Customers are given a short-term option to simulate purchase.
  6. 6. Definitions of Individual Promotional Mix Elements Public relations: All the activities that an organization engages in to maintain or improve its relationship with other organizations and individuals. The planned and sustained effort to establish and maintain goodwill and mutual understanding between the organisation and its publics.
  7. 7. Definitions of Individual Promotional Mix Elements Publicity: A Public Relations technique that involves non-paid communication of information about the business.  The purpose of Publicity is to obtain a favourable presentation of any news via a medium not paid for by the sponsor.
  8. 8. Advantages of Advertising Ability to reach potential customers where sales staff cannot. Great scope for creative versatility and dramatization of messages. Non-threatening nature of non-personal presentation. Prestige and impressiveness of mass-media advertising.
  9. 9. Disadvantages of Advertising Inability to close sales. Too many Advertisements. Potential customers may ignore the advertising messages. May not be able to get immediate response. Adjustments may take a long time. Difficulties in measuring effectiveness of the advert. The cost of the advertisement may not be recovered.
  10. 10. Advantages of Personal Selling (Sales) Ability to close sales. Ability to hold the prospect’s attention. Immediate feedback and two-way communications. Presentations can be tailored to the prospect’s needs. Ability to precisely target the prospect. Ability to get immediate action.
  11. 11. Disadvantages of Personal Selling (Sales) High cost per individual prospective customer. Inability to reach some customers in rural areas effectively. Labour intensive.
  12. 12. Advantages of Sales Promotions Ability to get quick feedback from customers. Ability to add excitement to what is being offered at the outlet/location. May be offered at varying times
  13. 13. Disadvantages of Sales Promotions Many sales promotions only provide short-term benefits. Ineffective in building long-term loyalty for the business. Not cost effective to use in the long term.
  14. 14. Advantages of Public Relations and Publicity Relatively low cost. Effective because not seen as a commercial message. Credibility and implied endorsements (e.g., articles by travel critics). Prestige and impressiveness of mass-media coverage (e.g., feature articles). Added excitement and dramatization. Maintenance of a “public” presence.
  15. 15. Disadvantages of Public Relations and Publicity Difficulties in arranging consistent coverage of the destination. Lack of control over what gets printed or said.
  16. 16. Factors that Affect the Promotional Mix Target markets Marketing objectives Competition and promotional practices Promotional budget available Nature of the Product Stage in the Product Life Cycle

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