Tools of Sales Promotion


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Tools of Sales Promotion

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Model 4: Marketing communication tools

(Source: Marketing Management Textbook)

1.4.1. Advertising

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1.4.1.1. Concept

According to Phillip Kotler [3] : "Advertising is a form of indirect, non-personal communication, carried out through paid media and at the expense of advertisers".

1.4.1.2. Objective

An advertising objective is a specific task and level of accomplishment that needs to be accomplished by a certain audience within a specific period of time.

There are four advertising objectives based on the criteria for classifying advertising purposes, including: informational advertising aimed at creating brand awareness and knowledge about new products or new features of current products; persuasive advertising aimed at creating product preference, trust and purchase; reminder advertising aimed at stimulating repeat purchase behavior for products or services; reinforcement/reinforcement advertising aimed at convincing current buyers that they have made the right choice of product or service.

1.4.1.3. Develop advertising campaigns

In developing an advertising campaign, marketers typically go through three steps:

(1) The advertising's messaging or positioning strategy, i.e. what needs to be conveyed about the brand; (2) The creative strategy, i.e. how to convey the brand's claims; (3) Considerations of legal and social responsibilities. Developing effective advertising represents the science and art of the marketer.

1.4.1.4. Advertising media

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Advertising media are very diverse, so choosing which media to advertise effectively is not easy. People can divide advertising media into visual media (television), photo media (magazines), spoken media (radio), written media (newspapers), electronic media and outdoor media (panels, billboards, banners). Or people can classify existing advertising media into print media (newspapers, magazines, flyers, direct mail, yellow pages), electronic and digital media (television, radio, internet, social networks and other digital media), other media (outdoor, on transportation, at the point of purchase).

1.4.2. Promotion/Sales promotion

1.4.2.1. Concept

The American Marketing Association defines sales promotion as: “Sales promotion is the targeted, temporary, targeted marketing effort directed at consumers, retailers, or wholesalers to stimulate trial, increase customer demand, or improve product display or inventory.”

1.4.2.2. Objectives of sales promotion

For customers-consumers, the objectives of sales promotion are to encourage customers to try the product, buy more products, reward loyal customers, introduce new products, increase the number of users of existing products, to attract new customers. For intermediaries, the objectives of sales promotion are to persuade them to accept the distribution of the company's products, reduce the company's inventories, encourage them to display the products in more favorable locations, and reward their sales efforts.

Sales promotion also has a positive impact on the sales force. The goal of sales promotion for salespeople is to motivate the sales force to sell more.

1.4.2.3. Sales promotion tools

For consumers: A group of tools that create direct economic benefits to promote consumers: samples, gifts with products, coupons (essentially discounts), bonuses, lucky draws, .....

- Sample: Recommended for trial use.

- Voucher: A certificate that gives the customer a discount or gift when winning a prize.

- Gifts: Goods given away for free or at a low price. Gifts are often distributed with purchases, and may be packaged with merchandise.

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- Increase accompanying services: Home delivery, free repairs for a certain period of time after sale, free home instruction... For intermediaries: Commonly used forms are display at the point of purchase, organizing contests, trade shows, sales conferences, discounts, advertising subsidies, increased commissions, etc.

- Purchase financing is an amount of money or discount rate reduced when purchasing goods from a business, increasing the payment period within a specific period of time.

- Advertising sponsorship: Partially support advertising costs for large distribution intermediaries.

- Free goods: These are additional shipments given to wholesalers when they purchase a certain amount of goods.

- Customer conferences, trade fairs and exhibitions: Help businesses reach customers and the public, this is an opportunity to introduce the business

- Support displaying goods at the point of sale, using stores and product display booths: display beautifully, convenient for buyers to see and choose.

For sales force: Applicable forms such as bonuses based on sales, organizing product knowledge contests, training, etc.

1.4.3. Events and experiential marketing

Many businesses sponsor sports events, entertainment events, festivals, fairs, art events, and other socially meaningful marketing activities. Generally, sponsorship costs less than advertising budgets, but through them, businesses can still interact, expand, and strengthen relationships with their target markets.

1.4.3.1. Event objectives:

The event aims to:

- Identify a specific target market or lifestyle. Events target markets or lifestyles based on geographic, demographic, and psychographic factors.

- Increase brand awareness. Sponsorship creates opportunities for long-term and continuous contact between the brand and the market, which is an important condition for increasing brand awareness and strengthening the brand.

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- Create or enhance brand image associations in the minds of consumers.

- Create experiences and evoke emotions. The feelings created by interesting, rewarding events can make customers indirectly associate with the brand.

- Demonstrate commitment to the community or society. Sponsoring charities or non-profit organizations helps businesses demonstrate their commitment to business.

- Sales and increased promotional opportunities. Many contests are held independently or in conjunction with other marketing activities to increase sales and brand promotion opportunities.

- Entertain important customers or reward important employees.

1.4.3.2. Major funding decisions

- Select event:

Marketers are increasingly selective in their sponsorship activities because they have to consider the budget and sponsorship opportunities in the market. In general, choosing a sponsored event must meet the marketing objectives, communication strategy, the audience attending the event must be suitable for the target market, the event must be well-known and have a good image for the target market, and consumers must have a positive view of the sponsor.

- Sponsorship program design:

Many marketers believe that it is the accompanying marketing programs that determine the ultimate success of a sponsorship. These include samples, prizes, advertising, merchandising, and public relations.

- Measuring sponsorship activities:

This is a difficult task for sponsors. There are two approaches to measuring sponsorship performance: supply-side and demand-side. The supply-side approach focuses on media coverage, while the demand-side approach focuses on consumer ratings.

1.4.3.3. Creativity and experience

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Experiential marketing can be done anywhere and often feels more like home to the target audience. It not only communicates features and benefits, but also connects the product or service to unique, enjoyable experiences for consumers. Experiential marketing is not about selling a product, but about demonstrating how the brand enriches the lives of customers.

1.4.4. Public Relations (PR)

1.4.4.1. Concept

There are many different definitions of PR. Among them, 3 definitions accepted internationally are:

- According to the England Institute of Public Relations (IPR): "PR is a continuous, planned activity that attempts to establish and maintain reputation, affection, and mutual understanding between an organization and the public."

- According to Frank Jefkins: "PR includes all forms of planned communication, both internal and external, between an organization and its publics for the purpose of achieving specific objectives related to mutual understanding".

- The World Assembly of Public Relations Associates in Mexico in August 1978 stated: "PR is an art and social science of analyzing trends, predicting their consequences, counseling organization leaders, and implementing planned programs of action to serve both the organization's and the public's interests."

1.4.4.2. Objective

The goal of public relations is to establish and maintain a positive image of the business. Public relations also helps businesses build good relationships between the business and the community and other groups through the communication of information. Community activities of the business are a way to build the image, brand of the business or influence the perception of customers.

1.4.4.3. Functions

- Press relations: Provide news and information about the organization in a direct manner.

as positive as possible.

- Product publicity: Sponsorship efforts to make the public aware of the product.

- Corporate Communications: Promote understanding of the organization through internal and external communications.

-Lobbying: Working with legal and government agencies to

promote or address legal and regulatory issues.

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- Consulting: Advise managers on public issues, positions and forms.

image of the business in good and bad times.

1.4.4.4. The main tools of public relations

These are newsletters, speeches, press releases; event organization; printed, audio, visual materials; sponsorship of social, cultural, and sports activities; non-commercial activities directly with customers; websites; internal public relations. Forms of internal public relations are staff conferences, traditional anniversaries, picnics, tours, internal newsletters, voting for outstanding employees, etc.

1.4.5. Direct Marketing

1.4.5.1. Concept

According to Phillip Kotler [4] , "Direct marketing is the use of direct communication channels with customers to reach and provide goods and services without using intermediaries."

According to the Direct Marketing Association (DMA): “Direct marketing is a system of

Interactive marketing uses one or more advertising media

to generate possible customer responses and purchases in all market areas (information seeking, store visits, or direct ordering, etc.).”

1.4.5.2. Objective

Aiming for a positive response from customers: ordering products by phone, by mail, via website, etc. Direct marketing can hardly be used alone, it needs to be combined with other communication tools to sell products directly to customers without going through intermediaries. Thanks to direct marketing, businesses can regularly update information, customer databases and establish priority relationships with customers.

1.4.5.3. Means of Direct Marketing

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- Mail marketing: Is the sending of sales letters, announcements, reminders or other content to individual consumers. From a filtered mailing list, each year direct marketers send millions of letters, flyers, brochures. Some direct marketers send audio, video, CDs directly to their potential customers.

- Catalog marketing: Businesses can send product catalogs to consumers or business customers in print, CD, video or online form.

- Telemarketing: Businesses use the telephone to attract prospects, sell to current customers, provide order taking services, and answer customer inquiries. Additionally, businesses use a call center to receive phone calls from customers and proactively call current and potential customers.

- Other means: In addition to the above means, businesses can use newspapers, magazines, television, radio, internet, etc. to send offers to potential customers.

1.4.6. Interactive Marketing (IM)

1.4.6.1. Concept

Interactive marketing is a communication method that allows information to be passed back and forth easily. Customers can participate and receive information more promptly. Interactive marketing allows customers to receive, transform information, ask questions,

respond to questions and make purchases. Interactive media include CD-ROMs, interactive television, and mobile phones.

There are many different concepts of IM. Some researchers say, “IM is the process of strategy, creation, distribution, advertising and pricing of products to target customers on the Internet”. However, there is another concept, “Internet Marketing is the effort of businesses to introduce products and build relationships with customers through the Internet”, or “IM is a marketing method that uses the features of the Internet with the ultimate goal of distributing products or services to the consumer market.”

1.4.6.2. Some tools of Interactive Marketing

a. Website

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Businesses must design websites that present their purpose, history, products, and vision in a way that is compelling at the outset and interesting enough to entice subsequent visits.

b. Search advertising

As a rapidly growing industry in interactive marketing, search advertising is understood as a method of advertising using keywords on search engines. When customers query these keywords on search engines, the business website will appear in the first positions on search results.

c. Display advertising

- Display advertising or banner advertising are small rectangles containing information, static or animated images that businesses pay to appear on appropriate websites. When viewers click on the ad box, the advertising website will open for viewers to follow the information. The more customers visit the website, the higher the cost.

- Interstitial advertising is an advertisement in the form of an animated image or video, which appears when the user wants to open a website. This advertisement will display an advertised website right inside the website the user is using, thus interrupting their work. This advertisement only exists for a short time and then turns off or the user has to turn it off.

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