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MGST 391 (29)
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Chapter 28 .docx

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Department
Management Studies
Course
MGST 391
Professor
Ahmad Ali Sohrabi
Semester
Winter

Description
Chapter 28 : Promotion Two basic strategies of Promotion: Push strategy using sales force to push the product through the channels, the producer promotes the product to wholesalers, the wholesalers promote to the retailers, and the retailers promote to the final consumers. Pull strategy spending a lot on advertising and consumer promotion to build up consumer demand; if successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. Communication media 1. Personal communication channels, through which people communicate directly with each other. i. Face to face ii. Person to audience iii. Over telephone iv. Through mail v. Through internet chat 2. Nonpersonal communication channels, media that carry messages without personal contact or feedback. i. Print media (newspapers, magazines) ii. Broadcast media (radio, television) iii. Display media (signs, posters) iv. Online media (online services, Websites) Marketing communication mix or Promotional mix It is a blend of A. Advertising B. Personal selling C. Sales promotion D. Direct Marketing and E. Public relations tools That a company uses to communicate with its customers. A range is better than only one. A) Advertising: “Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor” Advertising objectives (AIDA) are as follows: 1. Informative advertising a. To communicate information b. To create awareness c. In Early stage of PLC or on modification 2. Persuasive advertising a. To create a desire for a product and to stimulate actual purchase b. In growth stage of PLC 3. Reminder advertising a. Reinforcing knowledge and b. Reminding of benefits c. In Maturity stage of PLC Advertising media  Above the line (Press, Radio, TV, Cinema)  Below the line (Direct mail, Exhibition, Package design, Merchandizing) Advantages (Vs. Personal selling):  Mass communication  Expressive advertisement  Standardization and legitimacy  Seller is able to repeat a message many times Disadvantages (Vs. Personal selling)  Costly  One way communication  Impersonal  Not so persuasive B) Personal Selling (face to face via sales force): “ Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships i.e. paid form of personal communication” Sales force structures: 1. Salary only 2. Salary with bonus 3. Commission only C) Sales Promotion: “Marketing activities other than personal, selling & advertising that stimulates customer purchasing” “ Short-term incentives to encourage the purchase or sale of a product or service”. Major tools are: 1. Samples 2. Coupons 3. Rebates 4. Premiums (buy 2 get 1 free) 5. Contests, sweepstakes, and games 6. Free gifts Objectives of sales promotion:  To increase in sales revenue  To launch a new product  To attract new customers  To attract resellers to stock  To clear out old stock  Counteraction for competitors D) Direct Marketing: (one to one marketing) “Direct connections with carefully targeted individual consumers to obtain and immediate response and cu
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