VILNIAUS GEDIMINO TECHNIKOS UNIVERSITETAS

VERSLO VADYBOS FAKULTETAS

Tema: “Promotional tools”

Atliko: Simona Aškelovičiūtė, ĮV-2/1

Tikrino: J. Mickonis

Vilnius

2003

Promotional tools

Companies have to develop good products or services, price them

attractively, and make them accessible to their target customers. But this

is no enough: they also have to use various promotional tools to generate

sales. Promotion is one of the four P’s in the marketing mix. It is used to

inform the consumers about a product and to persuade them to buy it.

According tto a classification used in most marketing textbooks there are

four major promotional tools:

1. Advertising

2. Public relation

3. Sales promotion

4. Personal selling

Advertising

Advertising is a paid form of promoting the products and/or image of

the enterprise in a non-personal way to a mass audience. The other

definition: advertising is limited to paid, non-personal communication

through various media by organizations and individuals who are in some way

identified in the advertising message. Advertising may be in the form of :

1. A simple aadvertisement in for example the local press informing the

public where the business is situated, and what type of products or

services they offer.

2. An advertising campaign, which combines a number of methods to promote

the firm and its pproducts.

Advertisements consists of four main elements, namely:

1. Sender, the advertiser

2. Message, i.e. the advertisement

3. Medium, i.e. the method through which the advertisement is sent

4. Receiver, i.e. the consumers

Firms will often approach advertising consultants to design

advertisements and plan advertising campaigns. Advertising agencies will

employ people with the required skills to design and write advertisements.

Artists to draw illustrations or frames to represent a visual

advertisement.

Copywriters to write the text for the advertisement.

Designers responsible for the total outlay of the advertisement.

Market research analysts who are responsible for selecting the appropriate

advertising media for the advertisement to be placed in

Advantages of advertising:

1. Advertising may lead to increased sales, which leads to mass

production and therefore cheaper prices.

2. Advertising informs tthe consumer about the various products on the

market, which leads to a better choice.

3. It leads to greater competition and therefore better quality and lower

prices.

4. Lower prices of media in which advertisements appear for example

magazines, newspapers, etc.

5. Improves standard of living, because consumer goods become more

affordable.

Disadvantages of advertising:

1. Advertising is expensive and if it fails to increase sales, prices

will increase.

2. Consumers are tempted to purchase goods and services, which they do

not really need.

3. Advertising can be unethical. Accused by some of promoting sexism and

greed.

4. Pollution. Billboards can for example deface natural features.

Leaflets may be thrown away when handed out in public, which adds to

pollution.

The public benefits from advertising in the following ways:

Advertising is informative.

Advertising provides us with free TV and radio programs, because

advertisers cover most of the production costs.

TV has many advantages to national advertisers, but it is expensive.

However, there are few ways to reach as many people with such impact.

Marketers must choose which media and which programs can best be used to

reach the audience they desire.

Non-network stations and alternative forms of media are less expensive.

Public relation

Publicity is the firm’s solicitation of verbal and written public

discussion and recognition. The message can therefore be positive or

negative and is not paid for. Also known as public relations. Larger firms

often have their own public relations department, with a public relations

officer in charge. The main task of the PR department is to present a

positive image of the firm and its products to the public. Also to make

news and thereby gain free and favorable publicity. A variety of methods

are usually employed to create a favorable image wwith the public:

10. Good customer relations.

11. Sponsorship of sporting, cultural, community and charitable

events and organizations.

12. Endorsements from celebrities.

13. Free gifts promote both image of firm, and its products.

PR is the management function that evaluates public attitudes,

identifies the policies and procedures of an individual or an organization

with the public interest, and executes a program of action to earn public

understanding and acceptance. Public relations are responsible for the

company image and use a variety of methods such as sponsorships to enhance

it. The public relations department has responsibility for maintaining

close relationships with the media, community leaders, government

officials, and other stakeholders. Idea is to establish and maintain a

dialogue with those stakeholders so that the company can respond to

inquiries, complaints and suggestions quickly.

Three Steps in a Good PR Program:

Listen to the public.

Develop policies and procedures in the public interest.

Inform people of the fact that you’re being responsive to their needs.

Publicity – Any information about an individual, a product, or an

organization that is distributed to the public through the media, and that

is not paid for, or controlled by, the seller.

Advantages of Publicity :

It’s free.

It reaches people who do not read advertising messages.

It may be placed in a prominent place ((like the front page.)

A story in the newspaper is treated as news, and news is more believable

than advertising.

Disadvantages of Publicity:

No control over how, when, or if the media will use the story.

The story can be altered.

There is such a thing as bad publicity.

Stories are not likely to be repeated; advertising can be repeated as often

as needed.

Sales promotion

The primary objectives of sales promotions are to predict and modify

customers purchasing behavior, most often to improve sales. These are sales

promotion items:

Free samples:

26. A sample of the product is given to the customer in the hope

that he/she will like it and then purchase the real product.

Free gifts:

28. Stickers, pens, caps, calendars, etc. that are given away at

point of sale or in, for example, cereal packets.

Discounts:

30. 15% off this weekend only, low prices!, etc.

Special offers:

32. buy one get one free (BOGOF)

33. 10% extra shampoo free, etc.

Money off coupons:

35. provided as part of packaging, available at shelves in store

with products.

Customer loyalty points:

37. Customer collects points electronically and then receives a cash

coupon.

Competitions:

39. Customer encouraged buying product by entering competition to

win the product or a holiday.

Point of sale displays:

41. The product is demonstrated

for consumer to see its

possibilities, or displayed attractively and prominently in

store to encourage sales.

As I have mentioned, sales promotion applies to the various techniques

employed by a firm to persuade consumers to buy, such as discounts and free

samples. Stimulates consumer purchasing and dealer interest by means of

short-term activities. Sales promotion programs are designed to supplement

personal selling, advertising, and public relations by creating enthusiasm.

Components of sales promotion:

Get salespeople and other relevant employees enthusiastic.

Promote to distributors and dealers.

Promote tto final consumers.

Personal selling

Personal selling is an oral presentation by a salesperson to a customer

with the aim of clinching the sale. The advantage of personal selling is

that technical detail can be given to customer and the product can be

demonstrated if necessary. Arrangements can also be made for installation

and delivery of the product. Sales promotion material such as samples and

competition forms can also be passed on to interested customers.

Personal selling is face-to-face presentation and promotion of

products and services. Also iinvolves searching out prospects and providing

follow-up service. Effective selling today is more than persuading others

to buy; it is helping them to satisfy their wants and needs. Nearly 10% of

the total labor force is employed in personal selling.

Table of content

Promotional tools 2

Advertising 2

Advantages of advertising: 3

Disadvantages of advertising: 3

Public relation 4

Advantages of Publicity : 4

Disadvantages of Publicity: 5

Sales promotion 5

Personal selling 6

Table of content 7

Literature 8

Literature

1. http://www.learn.co.uk

2. http://www.bls.gov

3. http://www/wrigley.com

4. http://marketing.about.com

5. http://www.ama.org

6. http://www.offce.com

7. http://marketing.kub.nl

8. http://www.iusb.edu