...item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. 24.1 Objectives After studying this lesson, you will be able to: explain the meaning of sales promotion; state the objectives of sales promotion; describe the various tools used in sales promotion; recognise the role of each tool in promoting sales; and describe the importance of sales promotion in business. 24.2 Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. 115 Business Studies There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples...
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...an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. Objectives After studying this lesson, you will be able to: explain the meaning of sales promotion; state the objectives of sales promotion; describe the various tools used in sales promotion; recognise the role of each tool in promoting sales; and describe the importance of sales promotion in business. Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. Business Studies There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets notices of “winter sale”, “summer sale”, “trade fairs”, “discount upto 50%” and many other schemes to attract customers to buy certain products. All these are incentives offered by manufacturers or dealers to increase the sale of their goods. These incentives may be in the form of free samples...
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...company’s total promotion mix also called its marketing communications mix; consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. THE FIVE MAJOR PROMOTION TOOLS The Nature of each Promotion Tool ADVERTISING Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix. Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. For example, advertising includes broadcast, print, Internet, mobile, outdoor, and other forms. Advertising Objectives The first step is to set advertising objectives. These objectives should be based on past decisions about the target market, positioning and marketing mix, which define the job that advertising must do in the total marketing program. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose – whether the aim is to inform, persuade or remind. Informative advertising – this advertising is used to inform consumer about a new product or feature or to build primary demand. Persuasive advertising – this type of advertising is used to build selective demand for a brand by persuading...
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...Marketing communication tools Coca Cola company used different types of marketing communication tools to promote the product- Light Lemon. Advertising: Advertising is a general and useful marketing communication tool. Advertising can be effectively to deliver the message to audiences. Coca Cola company used various types of advertisement to promote their products, including newspapers, magazines, radio, television and as well as internet advertisement. Newspaper is one of the most prevalent method to advertise product. And it is also usually the inexpensive way to advertise. Newspaper provides great advantage of market share in many countries. Furthermore, newspaper may need the target audiences to have certain time to read the newspaper in order to receive the message of the advertisement. Magazine is a similar advertising method with newspaper. Magazine could also show advertisement with colorful photography graphics. Newspaper and magazine are tiny and portable, can be taken to anywhere. Thirdly, radio advertising method could be affordable, wide reaching and give the selectivity to the target audience. However, the lower attentiveness and the insufficient of visual appeal in nowadays would be the concerns. Television advertising method would be the more expensive way to promote than other methods of advertising. but it also has the power to connect with the audience. Television advertisements are generally broadcast in the middle of the program of television channel...
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...Product Promotion or promotional strategies It is the duty of the manufacturers to know about & accept their products & price for this purpose, they have to communicate with, persuade, & motivate them. To achieve this, they use promotional strategies. Promotion is the means through which a company meets its prospective customers. Meaning of Promotion: Promotion is a part of an organization marketing mix that is used to inform & persuade the market regarding its products & services. Promotion Mix: It is a combination of personal selling, advertising, sales promotion, publicity & public relations that helps an organization to meet its marketing objectives. Communication Process in Marketing: Companies to be successful must communicate effectively. Effective communication is one which is received by the receiver in its original meaning as sent by the sender. In marketing, effective communication must be capable of making the consumers understand what the company is going to say. Following are the steps in communication process: 1. Identifying the Target Market: It is concerned in finding out to whom the message is being prepared. For each group of consumers or distributors a different message is required. Identifying the target, market helps a company to ascertain tastes, preferences etc of the consumers. 2. Determine the communication Objective: After analyzing target market & their characteristics, the next step is to find out what is desired from the communication...
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...then increase shareholder value in return (Luo and Donth, 2006). There are five major promotion tools which company mostly use: advertising, sales promotion, personal selling, public relations, and direct and digital marketing (Kotler and Amstrong, 2012, p. 447). Among these promotion tools, personal selling is the most effective tools as it offers two-way communications (Blythe, 2005). However, Peter Drucker (1973) urged that the aim of marketing is to make selling superfluous. He continued saying that marketing should be able to know and understand the customer very well and create the product or service fits him and sells itself. The aim of this paper is to discuss the possibility that company only need marketing and put aside sale function in particular for new product development process. The discussion is divided into three part. First, it discusses marketing contribution on New Product Development (NPD). Next, the sales function role on NPD Process will be presented. Finally, the discussion lead to the decision whether or not selling is needed. MARKETING CONTRIBUTION ON NEW PRODUCT DEVELOPMENT PROCESS It has been widely recognized that cross-functional cooperation has important role for NPD success both theoretical (Griffin and Hauser, 1996) and in empirical studies (Troy, Hirunyawipada, and Paswan, 2008). These cooperation, including marketing function, might create product or service that meet customers demand. The...
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...Module : MKT 101 Monster Energy company has brought a new product to the market, called “Monster Dragonfruit-Pomegranate”, specially designed for the teens and young adults who are especially vulnerable to insufficient energy and persistent exhaustion as well as for those extreme sports enthusiasts, hip-hop group and gamers. In the following paragraphs, we will look into how Monster Energy is planning to integrate and coordinate its promotional mix tools for maximum overall impact to win its market share. The Integrated Marketing Communication (IMC) campaign for Monster Dragonfruit-Pomegranate is “Drink and Go” The overall message of the campaign is that there are so many things around us that are amazing and inspiring which can make us feel our life offers limitless opportunities and willingness to give an attempt to achieve dreams. However all these are ignored due to tiredness we feel which are caused because of our super-charged lifestyle. Hence the campaign message is telling us to feel excited, interested and energized once again by drinking Monster Dragonfruit-Pomegranate, which will give the consumer the energy he needs to continuously work on his ambition. Monster Energy Company is going to integrate and coordinate its promotional mix tools of advertising, public relations, personal selling and consumer sales promotion by combining these elements with place, price, and product to position the firm’s offering in peoples’ minds. By doing this, Monster...
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...relationship shared with a company’s ultimate goal; profit. Within this, “study of relationships,” it also examines the effects of change on the relationships between cost, volume and profit. Utilized properly, a CVP analysis can be a company’s greatest tool (Kimmel, Weygandt, & Kieso, 2011) The Components of CVP In order for CVP to be accurate, it makes certain assumptions, all of which must remain true and accurate for the CVP analysis also to remain true and accurate. To this end, the costs and resulting revenue must remain linear throughout the life of a product or more specifically, a particular production line. Costs are established as fixed or variable and are affected only by changes in activity. Finally, if a product or product line consists of two or more items, the relationship of all items involved must remain consistent. A thorough and proper CVP analysis considers the relationships shared among the components involved in production such as volume, level of activity, unit selling price, variable cost per unit, total fixed costs and sales mix. CVP becomes a determining factor for companies when determining a break-even point. If a business needs to understand the sales requirements to profit from a particular product, a CVP...
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...main factors: product, price, promotion and placement. Understanding this marketing mix should place the company in a prime position to excel. What the company has to do is research other companies should as the company that we are starting and gather and understand what has worked for them and what hasn’t. With the research that we want to do we shouldn’t fall to the same mistakes the companies before us fell too. Our research should be more like a market survey in which we can determine where the company will do better and also give us other determining factors for an overall successful company. The company will for example say we have 1 million dollars for the marketing mix that is available. The marketing team will determine how much of the money each section will get. The company will also look at various companies that are in the same market as ours, and see if there are something’s that can be changed so that our products aren’t the same. Product modification is a very important part of starting the marketing mix. Before the company can grow we need to have a great product that will be useful for many people, weather it be personal or commercial use. The company wants our tools to be used from the everyday man/woman who wants to use tools at home, to companies who have tools available for their employees to big company tools. The tools we want to create have to be for everyone and anyone, we want to expand our market base therefore creating a tool that can be used...
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...financial statements as a tool only used by accountants and financial experts, but over the years they have grown to become a powerful tool in analyzing the financial health of organizations for anyone who is interested. According to Ruhl & Smith (2013), the motivation behind the joint FASB/IASB conceptual framework was to make accounting information useful and the two most important components of usefulness are faithful representation and relevance (p. 11). Below the 2013 Procter & Gamble Annual Report will be used to analyze the financial statements to determine P&G’s revenue recognition policy and the impact of trade promotions on their financial statements; to determine some specific examples of where they have chosen to use historical cost versus fair value; to determine their accounting policy as it pertains to advertising, and finally to conclude whether P&G’s accounting principles are consistent with those of the previous years’ statements. Revenue Recognition Policy According to P&G’s notes to consolidated financial statements sales are recognized when revenue is realized and earned, their policy is to recognize revenue when the customer has received title to the product along with the risk of loss, this can happen either on the date of the shipment or the date the customer receives the product, additionally a reduction to sales is recorded in the same period as the revenue is recognized to allow for payment discounts and product returns (CSU-Global...
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...existence of computers is one of the most important and useful technologies that we use nowadays. It is an electronic device which can be programmed to accept data (input), process into useful information (output), and store it (secondary device) for safe keeping and later reuse. The Internet is a global system of interconnected computer networks that use the standard Internet Protocol Suite (TCP/IP) to serve billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic and optical networking technologies. The Internet carries a vast range of information resources and services, such as the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support electronic mail. The internet has enabled or accelerated new forms of human interactions through instant messaging, internet forums and social networking. Since the internet has now become a primary tool for delivering of information; businesses of all sizes are using Online Marketing to increase awareness of their company’sproducts and services. In its simplest form, the term Online Marketing refers to using the power of internet advertising to generate a response from audience. Also known as Internet Marketing or Web Marketing, Online Marketing is used by companies selling goods and services directly to consumers as well as those...
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...marketing and selling 5. Marketing Functions 6. Marketing Mix – product, price, place and promotion 7. Advertising – meaning, features, merits and limitations. 8. Various media of Advertising and Media selection. 9. Objections to advertising 10. Sales promotion and Trade promotion – meaning and variety of Tools / methods used. 11. Personal selling – measuring features and steps in sales process 12. Publicity and Public Relations – meaning and methods used. LEARNING OBJECTIVES Market, Customer, Seller / Marketer – meaning Meaning Functions and Role of Marketing Marketing Management – meaning Nature and objectives Difference between marketing and selling Marketing Functions Marketing mix – concept and elements Meaning Role and Limitations of Advertising Media for Advertising, Media Selection Objections to Advertising. Sales promotions / Trade promotion – meaning and variety of Tools / Methods used Personnal selling – meaning, Features and steps in sales process. Publicity and public relations – meaning and methods used. KEY CONCEPTS IN NUTSHELL: MARKET : It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity. CUSTOMER : Customers refers to the people or organization that seek satisfaction of their needs and wants. SELLER OR MARKETEER : The sellers or marketers offer a variety of entities to customers. MARKETING : Marketing makes goods and services more useful to the society...
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...Starting any business can be very hectic, in most cases, it proves to be an uphill task especially when one is trying an idea for the fast time. Therefore with this thought in mind, I chose to adopt the upscale casual kind of restaurant, due to the diversity of the customers it is designed to serve and most importantly the location which at the city center. The restaurant will bring value to the clientele in that there is going to be a wide variety of delicacies to choose from, the idea is to bring the best dishes from most parts worldwide. The value addition does not stop there, there is going to be adequate staff to cater for the large number of customers expected. This will help to ensure that the customers will not have to wait longer than their meal takes to prepare, hence maximum customer service is ensured. The restaurant is set to benefit the common or the average citizen, which is to mean that prices will be set in a way that they are affordable to that target group. The prices in this kind of restaurant are always medium and this restaurant is no exception. I have adopted a cost-plus pricing strategy to cater for all the dishes to be included in the menu which I found to be the best and one I will be guaranteed of profits (Smith, 2012). This pricing policy is the best because before coming up with the final price for a unit of output, it takes into account various overhead costs such as the rent, wages for the staff and the power used in the rooms. The strategy also...
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...fact that a successful company not only put customers first, but put customers at the center of the organization because the changes in customer behavior determines unpredictable profitability and may be the cause for inefficient marketing planning. The main goal of CRM is the capability to handle customer interaction across different channels and functions, for building loyal and profitable customer relationships. Although cost cutting and competitive pricing strategies may attract customers from competitors, in many services industries price advantages are not a sufficient reason for customers moving between suppliers. In these situations successful competitive strategies include developing strong relationships with customers and cross-selling them other services. Data mining - techniques for exploration and analysis of large quantities of data in order to discover meaningful patterns and rules - helps businesses sift through layers of seemingly unrelated data for meaningful relationships, where they can anticipate, rather than simply react to, customer needs. 2. An overview of CRM Customer Relationship Management (CRM) is an enterprise customer-centric approach that uses different techniques to understand and influence consumer behavior. It is a process which has two objectives: • to impact all aspects to the consumer relationship (improve customer satisfaction, enhance customer loyalty or increase profitability) • to ensure that employees within an organization are using CRM...
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...takes the product and/or service to potential customers rather than waiting for them to come to a store or other point of access. It is a form of ‘non-shop’ shopping and is sometimes referred to as ‘precision marketing’ or ‘one-to-one’ marketing. Rather than the marketing firm sending out a general communication or sales message to a large group of potential customers, even if these constitute a well-defined market segment, direct marketing tends to target specific individuals or households. In a business-to-business (B2B) context this would be an individual or a specific organisation or firm. Direct marketing is not just concerned with marketing communications. It is also concerned with distribution. In using direct marketing, the firm is making a choice to cut out the use of marketing intermediaries and sell the product or service direct to customers. This has implications for both channels of distribution and logistical decisions. Direct marketing comes in a variety of forms. It is one of the fastest growing areas of marketing and is being propelled by technical advances, particularly in the field of computer technology and the www. Academics and consultants have taken up direct marketing with enthusiasm, and have helped to drive the subject forward both intellectually and practically. 1.1 Direct marketing is not new Direct marketing is not new, as many companies have sold products direct to the public for years e.g. Kleeneeze and Avon who have sold products door to door...
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