PROJECT ON MARKETING

Description
PROJECT ON MARKETING

Department of Business Administration. Assignment no.02 Marketing Theory and Practice.

Project Advisor Athar Ummad Khan Submitted By Waseem Saeed Roll AD-51 5!" Semester 1#st

ALLAMA IQBAL

P!" #"I$!%&IT' I&LAMABAD( PA)I&TA".
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S$rin% ""&

D!DI*ATI "

I dedicate it to my +e,o-ed parents and respected teachers.

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A*)" .L!D/M!"T
A,, praise and thanks is due to A,,ah( the Lord of mankind and a,, that e0ists( for 1is +,essings( +ene-o,ence( and guidance at e-ery stage of our ,ife. I am deep,y gratefu, to my super-isor( Prof. Athar Ummad Khan( for his guidance( support( and patience. 1e has +een an in-a,ua+,e source of kno2,edge and has certain,y he,ped inspire many of the ideas e0pressed in this assignment. My 2ords 2i,, fai, to e0press my deepest heartfe,t thanks to my fami,y( especia,,y my parents( for a,, 2hat they did( and sti,, doing( to he,p me +e at this position and for their continuous support and encouragement. Any mistakes that remain are mine3 I thank you a,,.

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TABL!
Thesis Dedication Ackno2,edgement Ta+,e of *ontents
List of Ta+,es List of 4igures

4 * "T!"T&
I ii iii i-iii i0 1 2 2 6 7 8 8 9 9

'(AP)*R 1+ )he ,ar-etin% 'once$ts 5.5 The Production *oncept 5.2 The &a,es *oncept 5.6 The Marketing *oncept '(AP)*R + )he ,ar-etin% ,i. 2.5 Product Decision 2.2 Price Decision 2.6 P,ace Decision 2.: Promotion Decision

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5

'(AP)*R 1+ )he Promotional ,i. :.5 Ad-ertising :.2 Persona, &e,,ing :.6 &a,es Promotion :.: Pu+,icity :.7 4actors That Determine Type f Promotiona, Too,s '(AP)*R !+ What /s Promotion 0 and The *ost f Promotiona, Too,s :.7.5 %esource A-ai,a+i,ity 6.5 The Too,s f Promotion :.7.2 Market &i;e and *oncentration :.7.6 *ustomer Information "eeds '(AP)*R 5+ (o2 )o *stablish a Promotional ,i. 7.5 .hat To !0pect. 7.2 .hat 'ou &hou,d )no2 Before /etting &tarted 7.2.5 'ou De,i-er A *,ear Message 7.2.2 1uffman encode data and add header info 7.6 #nderstanding The Main *ommunication *hanne,s 7.: .hy 'ou "eed a Promotiona, Mi0 7.7 !sta+,ishing 'our Promotiona, Mi0 '(AP)*R 3+ Advertisin% =.5 &tage 5. &et Ad-ertising +>ecti-es =.2 &tage 2. &et The Ad-ertising Budget =.6 &tage 6. Determine The )ey Ad-ertising Messages =.: &tage :. Decide .hich Ad-ertising Media To #se =.7 &tage 7. !-a,uate The %esu,t f Ad-ertising *ampaign '(AP)*R 4+ Settin% )he Advertisin% Bud%et 8.5 !ffecti-eness f Ad-ertising 8.2 Approaches To &etting The Ad-ertising Budget '(AP)*R 5+ Advertisin% ,edia 9.5 Pu+,ished Media 9.2 $isua, and ra, Media 9.6 .hy and .hat 9.: .hy Ad-ertise 9.7 .hat To Ad-ertise 9.= Ad-antages f Ad-ertising 9.8 Disad-antages f Ad-ertising '(AP)*R &+ Public Relations <.5 The %o,, f Pu+,ic %e,ations <.2 Pu+,ic %e,ations Techni?ues <.6 *onsumer *ommunication <.: Business *ommunication <.7 Interna, *ommunication <.= !0terna, *ommunication <.8 4inancia, *ommunication <.9 Ad-antages f Pu+,ic %e,ations <.< Disad-antages f Pu+,ic %e,ations 6 '(AP)*R 1"+ Sales Promotions 50.5 *oncept f &a,es Promotion 50.2 Definitions f &a,es Promotion

52 52 56 56 56 57 50 57 55 57 57 59 5< 5< 20 20 25 22 26 2= 2= 28 28 29 2< 60 60 65 66 6: 6: 6: 6: 67 68 68 :0 :5 :5 :5 :2 :2 :2 :2 :7 := :8 :8 :9

6/S) 78 )AB6*S

7

Ta+,e 6.5 Ta+,e 50.5

Ad-antages and Disad-antages Ma>or &a,es Promotion De-ices

f Promotiona, Mi0

57 76

LI&T

4 4I/#%!&

8

4ig 2.5 4ig =.5 4ig 5:.5 4ig 5:.2 4ig 5:.6 4ig 5:.: 4ig 5:.7

Market Mi0 Ad-ertising 200< *ommunity &ponsorship !-ent @ %oad &ho2 Ad-ertising $AI A. on *ata,og Ad-ertising $AI *& on Maga;ine

= 2< 98 99 9< <0 <5

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'(AP)*R 1 )he ,ar-etin% 'once$t
The 9marketing concept9 is the phi,osophy that firms shou,d ana,y;e the needs of their customers and then make decisions to satisfy those needs( +etter than the competition. Today most firms ha-e adopted the marketing concept( +ut this has not a,2ays +een the case. In 1443 in )he Wealth o: ;ations( Adam Smith 2rote that the needs of producers shou,d +e considered on,y 2ith regard to meeting the needs of consumers. .hi,e this phi,osophy is consistent 2ith the marketing concept( it 2ou,d not +e adopted 2ide,y unti, near,y 200 years ,ater. To +etter understand the marketing concept( it is 2orth2hi,e to put it in perspecti-e +y re-ie2ing other phi,osophies that once 2ere predominant. .hi,e these a,ternati-e concepts pre-ai,ed during different historica, time frames( they are not restricted to those periods and are sti,, practiced +y some firms today.

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1<1 )he Production 'once$t+
The 9production concept9 pre-ai,ed from the time of the industria, re-o,ution unti, the ear,y 5<20As. The production concepts 2as the idea that a firm shou,d focus on those products that it cou,d produce most efficient,y and that the creation of a supp,y of ,o2Bcost products 2ou,d in and of itse,f create the demand for the products. The key ?uestions that a firm 2ou,d ask +efore producing a product 2ereC • *an 2e produce the productD • *an 2e produce enough of itD At the time( the production concept 2orked fair,y 2e,, +ecause the goods that 2ere produced 2ere ,arge,y those of +asic necessity and there 2as a re,ati-e,y high ,e-e, of unfu,fi,,ed demand. $irtua,,y e-erything that cou,d +e produced 2as so,d easi,y +y a sa,es team 2hose >o+ it 2as simp,y to e0ecute transactions at a price determined +y the cost of production. The production concept pre-ai,ed into the ,ate 5<20As.

1< )he Sales 'once$t+
By the ear,y 5<60As ho2e-er( mass production had +ecome commonp,ace( competition had increased( and there 2as ,itt,e unfu,fi,,ed demand. Around this time( firms +egan to practice the 9&a,es concept9 Eor se,,ing conceptF( under 2hich companies not on,y 2ou,d produce the products( +ut a,so 2ou,d try to con-ince

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customers to +uy them through ad-ertising and persona, se,,ing. Before producing a product( the key ?uestions 2ereC

• *an 2e se,, the productD • *an 2e charge enough for itD The sa,es concept paid ,itt,e attention to 2hether the product actua,,y 2as neededG the goa, simp,y 2as to +eat the competition to the sa,e 2ith ,itt,e regard to customer satisfaction. Marketing 2as a function that 2as performed after the product 2as de-e,oped and produced( and many peop,e came to associate marketing 2ith hard se,,ing. !-en today( many peop,e use the 2ord 9marketing9 2hen they rea,,y mean sa,es.

1<! )he ,ar-etin% 'once$t+
After .or,d .ar II( the -ariety of products increased and hard se,,ing no ,onger cou,d +e re,ied upon to generate sa,es. .ith increased discretionary income( customers cou,d afford to +e se,ecti-e and +uy on,y those products that precise,y met their changing needs( and these needs 2ere not immediate,y o+-ious. The key ?uestions +ecameC
1< < !<

.hat do customers 2antD *an 2e de-e,op it 2hi,e they sti,, 2ant itD 1o2 can 2e keep our customers satisfiedD

In response to these discerning customers( firms +egan to adopt the 9marketing concept9( 2hich in-o,-esC
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•

4ocusing on customer needs +efore de-e,oping the product

•

A,igning a,, functions of the company to focus on those needs

•

%ea,i;ing a profit +y successfu,,y satisfying customer needs o-er the ,ongBterm

.hen firms first +egan to adopt the marketing concept( they typica,,y set up separate marketing departments 2hose o+>ecti-e it 2as to satisfy customer needs. ften these departments 2ere sa,es departments 2ith e0panded responsi+i,ities. .hi,e this e0panded sa,es department structure can +e found in some companies today( many firms ha-e structured themse,-es into marketing organi;ations ha-ing a companyB2ide customer focus. &ince the entire organi;ation e0ists to satisfy customer needs( no+ody can neg,ect a customer issue +y dec,aring it a Hmarketing pro+,emH B e-ery+ody must +e concerned 2ith customer satisfaction. The marketing concept re,ies upon marketing research to define market segments( their si;e( and their needs. To satisfy those needs( the marketing team makes decisions a+out the contro,,a+,e parameters of the marketing mi0.

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'(AP)*R )he ,ar-etin% ,i.
=)he 1 P>s o: ,ar-etin%?

/ntroduction
Marketing decisions genera,,y fa,, into the fo,,o2ing four contro,,a+,e categoriesC
1< < !< 1<

Product Price Place =distribution? Promotion

The term 9marketing mi09 +ecame popu,ari;ed after ;eil (<
Borden pu+,ished his 1&31 artic,eG )he 'once$t o: the ,ar-etin% ,i.. Borden +egan using the term in his teaching in the ,ate 5<:0As after

Iames *u,,iton had descri+ed the marketing manager as a 9Mi0er of ingredients9. The ingredients in BordenAs marketing mi0 inc,uded product p,anning( pricing( +randing( distri+ution channe,s( persona, se,,ing( ad-ertising( promotions( packaging( disp,ay( ser-icing( physica, hand,ing( and fact finding and ana,ysis.

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*< @erome ,c'arthy ,ater grouped these ingredients into the

four categories that today are kno2n as the : PAs of marketing( depicted +e,o2C

Fig.2.1: MARKET MIX
These four PAs are the parameters that the marketing manager can contro,( su+>ect to the interna, and e0terna, constraints of the marketing en-ironment. The goa, is to make decisions that

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center the four PAs on the customers in the target market in order to create percei-ed -a,ue and generate a positi-e response.

<1 Product Decisions+
The term HproductH refers to tangi+,e( physica, products as 2e,, as ser-ices. 1ere are some e0amp,es of the product decisions to +e madeC • Brand name • 4unctiona,ity • &ty,ing • Qua,ity • &afety • Packaging • %epairs and &upport • .arranty • Accessories and ser-ices

< Price Decisions+
&ome e0amp,es of pricing decisions to +e made inc,udeC • Pricing strategy Eskim( penetration( etc.F • &uggested retai, price • $o,ume discounts and 2ho,esa,e pricing

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• *ash and ear,y payment discounts • &easona, pricing • Bund,ing • • Price f,e0i+i,ity Price discrimination

<! Distribution =Place? Decisions+
Distri+ution is a+out getting the products to the customer. &ome e0amp,es of distri+ution decisions inc,udeC • Distri+ution channe,s • Market co-erage Einc,usi-e( se,ecti-e( or e0c,usi-e distri+utionF • &pecific channe, mem+ers • In-entory management • .arehousing • Distri+ution centers • rder processing

• Transportation • %e-erse ,ogistics

<1 Promotion Decisions+
In the conte0t of the marketing mi0( promotion represents the -arious aspects of marketing communication( that is( the
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communication of information a+out the product 2ith the goa, of generating a positi-e customer response. Marketing communication decisions inc,udeC

• Promotiona, strategy Epush( pu,,( etc.F • Ad-ertising • Persona, se,,ing J sa,es force • &a,es promotions • Pu+,ic re,ations J pu+,icity • Marketing communications +udget

<5 6imitations o: the ,ar-etin% ,i. 8rame2or-+
The marketing mi0 frame2ork 2as particu,ar,y usefu, in the ear,y days of the marketing concept 2hen physica, products represented a ,arger portion of the economy. Today( 2ith marketing more integrated into organi;ations and 2ith a 2ider -ariety of products and markets( some authors ha-e attempted to e0tend its usefu,ness +y proposing a fifth P( such as packaging( peop,e( process( etc. Today ho2e-er( the marketing mi0 most common,y remains +ased on the : PAs. Despite its ,imitations and perhaps +ecause of its simp,icity( the use of this frame2ork remains strong and many marketing te0t+ooks ha-e +een organi;ed around it.
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,ARK*)/;A-,/B A;D PR7,7)/7;-,/B+

Marketing Mix

Product

Price

Place

Promotion

Adverti ing

Per onal !elling

!ale Promotion

Pu"licit#

$irect Marketin g

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8i%< < ,ARK*)/;A-,/B A;D PR7,7)/7;-,/B

'(AP)*R !

What /s Promotion0 /ntroduction
It 2ou,d +e safe to say that most companies engage in some form of promotiona, acti-ity e-ery day of the year. Promotion is one of the four Ps of marketingKprice( product( p,ace( and promotion. Promotion is genera,,y thought of as a se?uence of acti-ities designed to inform and con-ince indi-idua,s to purchase a product( su+scri+e to a +e,ief( or support a cause. A,, of the -arious too,s a-ai,a+,e to marketing managers for promotiona, acti-ities constitute 2hat is kno2n as the promotiona, mi0.

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Promotion is the acti-ities peop,e use to communicate 2ith others a+out their product or ser-ice and to con-ince them to use it. !-erything you do communicates something a+out your +usiness. Promotion in-o,-es carefu, p,anning. .hen you see or hear effecti-e promotion it is mere,y the Htip of the ice+erg.H A great dea, of 2ork 2ent into p,anning the fina, product. It is not enough to ha-e good products so,d at attracti-e prices. To generate sa,es and profits( the +enefits of products ha-e to +e communicated to customers.

De:inition 1
/enera,,y( promotion is communicating 2ith the pu+,ic in an attempt to inf,uence them to2ard +uying your products and@or ser-ices.
Promotion isC therereC about com$anies communicatin% 2ith customers<

De:inition
An acti-ity( such as a sa,e or ad-ertising campaign( designed to increase -isi+i,ity or sa,es of a product. But +efore ta,king a+out the p,anning process( 2e need to re-ie2 the too,s of promotion.

!<1 )he )ools 7: Promotion
Day in and day out( peop,e are +om+arded 2ith messages. There is no 2ay to e-a,uate and act on a,, these messages so 2e pick and choose +et2een them. This makes the choice of
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promotiona, too,s e0treme,y important. There are four main promotiona, too,sC 1< Ad-ertising < Persona, se,,ing !< &a,es promotion 1< Pu+,icity 5< &ponsorships

'(AP)*R 1 )he $romotional mi. /ntroduction
It is not enough for a +usiness to ha-e good products so,d at attracti-e prices. To generate sa,es and profits( the +enefits of products ha-e to +e communicated to customers. In marketing( this is common,y kno2n as HpromotionH. Promotion is a,, a+out companies communicating 2ith customers. A +usinessA tota, marketing communications program is ca,,ed the 9promotiona, mi09 and consists of a +,end of ad-ertising( persona, se,,ing( sa,es promotion and pu+,ic re,ations too,s. In this re-ision note( 2e descri+e the four key e,ements of the promotiona, mi0 in more detai,.
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It is he,pfu, to define the four main e,ements of the promotiona, mi0 +efore considering their strengths and ,imitations.

1<1 Advertisin%
Any paid form of nonBpersona, communication of ideas or products in the Hprime mediaHC i.e. te,e-ision( ne2spapers( maga;ines( +i,,+oard posters( radio( cinema etc. Ad-ertising is intended to persuade and to inform. The t2o +asic aspects of ad-ertising are the message E2hat you 2ant your communication to sayF and the medium Eho2 you get your message acrossF

1< Personal Sellin%
ra, communication 2ith potentia, +uyers of a product 2ith the intention of making a sa,e. The persona, se,,ing may focus initia,,y on de-e,oping a re,ationship 2ith the potentia, +uyer( +ut 2i,, a,2ays u,timate,y end 2ith an attempt to 9c,ose the sa,e9.

1<! Sales Promotion
Pro-iding incenti-es to customers or to the distri+ution channe, to stimu,ate demand for a product.

1<1 Publicity
The communication of a product( +rand or +usiness +y p,acing information a+out it in the media 2ithout paying for the time or media space direct,y. P%.
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ther2ise kno2n as 9pu+,ic re,ations9 or

The fo,,o2ing ta+,e gi-es e0amp,es of each too, a,ong 2ith ad-antages and disad-antages of each.

Advanta%es and Disadvanta%es o: *ach *lement o: the Promotional ,i.
Mix Element Adverti ing Advantage Good for building awareness $i advantage #"!ersonal $ cannot answer all a custo"er%s &uestions Effective at reaching a wide audience 'ot good at getting custo"ers to "a(e a final !urchasing decision e!etition of "ain brand and !roduct !ositioning hel!s build custo"er trust -ostl* $ e"!lo*ing a sales force has "an* hidden costs in addition to wages 'ot suitable if there are thousands of i"!ortant bu*ers

Per onal !elling )ighl* interactive $ lots of co""unication between the bu*er and seller E+cellent for co""unicating co"!le+ , detailed !roduct infor"ation and features elationshi!s can be built u! $ i"!ortant if closing the sale "a(e ta(e a long ti"e 25

!ale Promotion

-an sti"ulate &uic( increases in sales b* targeting !ro"otional incentives on !articular !roducts Good short ter" tactical tool

#f used over the long$ter". custo"ers "a* get used to the effect /oo "uch !ro"otion "a* da"age the brand i"age

Pu"lic Relation

0ften seen as "ore 1credible1 $ since is( of losing control $ cannot the "essage see"s to be co"ing fro" alwa*s control what other !eo!le a third !art* 2e3g3 "aga4ine. write or sa* about *our !roduct news!a!er5 -hea! wa* of reaching "an* custo"ers $ if the !ublicit* is achieved through the right "edia )able !<1

1<5 8actors that determine the ty$e o: $romotional tools used
!ach of the a+o-e components of the promotiona, mi0 has strengths and 2eaknesses. There are se-era, factors that shou,d +e taken into account in deciding 2hich( and ho2 much of each too, to use in a promotiona, marketing campaignC

1<5<1 Resource availability and the cost o: each $romotional tool
Ad-ertising Eparticu,ar,y on te,e-ision and in the nationa, ne2spapers can +e -ery e0pensi-eF. The o-era,, resource +udget for the promotiona, campaign 2i,, often determine 2hich too,s the +usiness can afford to use.

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1<5< ,ar-et siDe and concentration
If a market si;e is sma,, and the num+er of potentia, +uyers is sma,,( then persona, se,,ing may +e the most costBeffecti-e promotiona, too,. A good e0amp,e of this 2ou,d +e +usinesses se,,ing soft2are systems designed for supermarket retai,ers. n the other hand( 2here markets are geographica,,y disperse or( 2here there are su+stantia, num+ers of potentia, customers( ad-ertising is usua,,y the most effecti-e.

1<5<! 'ustomer inrmation needs
&ome potentia, customers need to +e pro-ided 2ith detai,ed( comp,e0 information to he,p them e-a,uate a purchase Ee.g. +uyers of e?uipment for nuc,ear po2er stations( or hea,th ser-ice managers in-esting in the ,atest medica, techno,ogyF. In this situation( persona, se,,ing is a,most a,2ays re?uired B often using se,,ing teams rather than >ust one indi-idua,. By contrast( fe2 consumers need much information a+out products such as +aked +eans or +read. Promotiona, too,s such as +rand ad-ertising and sa,es promotion are much more effecti-e in this case.

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'(AP)*R 5 (o2 to *stablish a Promotional ,i.0 /ntroduction
'ou dri-e sa,es +y promoting the +enefits of your companyAs goods or ser-ices to poo,s of potentia, +uyers. The 2ays you promote your organi;ation 2i,, ,arge,y determine 2hether you successfu,,y p,ant the right messages in the minds of your target audience. This modu,e e0p,ains ho2 you can esta+,ish a promotiona, mi0 +est suited to your companyAs needs and resources.

? .hat 'ou &hou,d )no2 Before /etting &tartedD ? #nderstanding the Main *ommunication *hanne,s

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? .hy 'ou "eed a Promotiona, Mi0 D ? !sta+,ishing 'our Promotiona, Mi0
• Determine 'our Target Market • Determine 'our +>ecti-es

• Design 'our Message • &e,ect 'our Promotiona, *hanne,s • Determine 'our Budget • Determine 'our Promotiona, Mi0 • Measure the %esu,ts and Ad>ust

5<1 What to *.$ect0
!-en a superior product doesnAt se,, itse,f. 'our customers need information a+out your product or ser-ice +efore they +uy it. The 2ays you communicate features and +enefits to your potentia, customers is ca,,ed a promotiona, mi0. This Business Bui,der 2i,, e0p,ain ho2 you can ma0imi;e your companyAs promotiona, mi0 for +est resu,ts.

5< What Eou Should Kno2 Bere Aettin% Started0
.hen you promote your +usiness( youAre engaging in persuasi-e communicationC 'ou 2ant to con-ince others to +uy from you. 'ou must se,ect the right promotiona, strategy toC
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*apture the attention of the right group of potentia, customers in a credi+,e yet catchy 2ay. !ducate them a+out your products or ser-ices. Inf,uence them to +uy from you. A promotiona, mi0 is an a,,ocation of resources among fi-e primary e,ementsC 1< Ad-ertising < Pu+,ic re,ations or pu+,icity !< &a,es promotion 1< Direct marketing 5< Persona, se,,ing

1o2 you integrate these e,ements depends on 2hat youAre promoting( the +iases and preferences of the potentia, customers youAre courting( genera, market conditions and your promotiona, +udget. The communications process 2i,, succeed ifC

5< <1 Eou Deliver A 'learC 'om$ellin% ,essa%e<
'ou may ha-e se-era, important or +eneficia, product features( +ut if you donAt emphasi;e 2hatAs most important to your target market or you o-er2he,m prospects 2ith too much data( they might re>ect your message. !0amp,eC If the targetBmarket customer

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cares most a+out sa-ing money( your message shou,d emphasi;e ho2 this 2i,, happen.

5< < Eou 'hoose )he ,ost A$$ro$riate Promotion ,ethod<
To con-ey your message effecti-e,y( you must understand the +est 2ay to reach your target market. If your key customers are manufacturers and you supp,y specia,i;ed e?uipment( communicating through an ad-ertisement in a genera, interest consumer maga;ine 2i,, 2aste time and money.

5<! Understandin% )he ,ain 'ommunication 'hannels 5<!<a< Advertisin%<
Ad-ertising is any paid form of media communication. This inc,udes print ads in maga;ines( trade >ourna,s and ne2spapers( radio and T$ announcements( .e+B+ased -isi+i,ityB+ui,ding( and +i,,+oards. Ad-ertising is a no persona, promotiona, acti-ity +ecause the se,,er has no direct contact 2ith the potentia, customer during the communication process.
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5<!<b< Sales Promotions<
InBstore demonstrations( disp,ays( contests and price incenti-es E70L off( +uyBoneBgetBoneBfreeF are sa,es promotion techni?ues

5<!<c< Public Relations<
These acti-ities promote a positi-e image( generate pu+,icity and foster good2i,, 2ith the intent of increasing sa,es. /enerating fa-ora+,e media co-erage( hosting specia, e-ents and sponsoring charita+,e campaigns are e0amp,es of pu+,ic re,ations.

5<!<d< Direct ,ar-etin%<
A form of ad-ertising aimed direct,y at target customers Eusua,,y in their homes or officesF that ask the recei-er to take action( such as ordering a product( c,ipping a coupon( phoning a to,,Bfree num+er or -isiting a store. *ata,ogs( coupon mai,ers and ,etters are common forms of direct marketing.

5<!<e< Personal Sellin%<
4aceBtoBface communication +et2een +uyer and se,,er.

5<1 Why Eou ;eed A Promotional ,i.0
If you de,i-er your message in many different 2ays( you increase your odds of reaching your target market. 1undreds of messages a day +om+ard your target market( +ut on,y a se,ect fe2 penetrate their consciousnesses. f those( an e-en sma,,er percentage e-entua,,y ,eads them to act.
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'ou may 2ant to communicate a range of messages to different markets. If you ha-e a product( such as spot remo-er( thatAs used +y genera, consumers +ut that auto mechanics app,y in a more specia,i;ed 2ay( you shou,d communicate different messages to each market -ia different media and methods. 'ou might air a T$ commercia, to reach consumers and p,ace an ad in an auto maga;ine to reach mechanics. .ithout the proper promotiona, mi0( you may s?uander your ,imited resources +y taking a scattershot approach. Promotion must ad-ance your o-era,, marketing p,an and reinforce the dia,ogue you 2ant to esta+,ish 2ith the segments of the marketp,ace you co-et most.

?

Be2are+
In their rush to e0pand( some fastBgro2th entrepreneurs fai,

to coordinate their marketing strategies 2ith their specific promotiona, efforts. A common trapC 'ou in-est hea-i,y on ad-ertising or sa,es promotion( +ut you o-er,ook ?ua,ity contro, for your product or price it improper,y.

5<5 *stablishin% Eour Promotional ,i.
!sta+,ishing the promotiona, mi0 thatAs right for your company in-o,-es se-en stepsC

5<5<a< Determine Eour )ar%et ,ar-et
The segment of peop,e that needs( or 2ou,d +enefit from( your product or ser-ice is your target market. #nderstanding these
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indi-idua,sA attitudes and +eha-iors 2i,, he,p you design the +est message and se,ect the right means to reach them. *.am$le+ If you o2n an upsca,e >e2e,ry store( you kno2 from your sa,es history or marketing research that your target market is consumers earning more than M87(000 per year. Any print ad-ertising shou,d thus appear in pu+,ications in 2hich readership income e0ceeds M87(000.

5<5<b< Determine Eour 7bjectives
'ou must determine the response you 2ant to e,icit from your target market( such as moti-ating them to c,ick on your .e+ ad or sign up for a free tria, of your product. &ome entrepreneurs fai, to define their o+>ecti-es precise,y. .hi,e you o+-ious,y 2ant to increase sa,es( you need to decide the +est 2ay to +ui,d a re,ationship 2ith shoppers. If you engage them effecti-e,y( then sa,es shou,d ine-ita+,y fo,,o2. *.am$le+ To introduce ne2 customers to your product( a directB marketing techni?ue( such as a directBmai, ,etter 2ith a moneyB sa-ing offer to firstBtime customers( might 2ork. r you can try a sa,es promotion( such as t2oBforBtheBpriceBofBone. If your target market has a misconception a+out your product Esay( that itAs more e0pensi-e or ,ess effecti-e than ri-a, productsF( you can correct the perception +y pro-iding comparisons or testimonia,s.

34

5<5<c< Desi%n Eour ,essa%e
The design of your communication incorporates t2o main factorsC content and format.

?

'ontent< The content is the 2ords and images you use to appea, to

your target market. 'ou must gi-e your potentia, customers reasons they shou,d respond to your message. Think of the most important +enefit a user of your product recei-es. That shou,d ,ead you to the centra, theme of your messageAs content. Benefits fu,fi,, a human 2ant or need. !0amp,esC The desire to enhance status( sa-e money and time( or increase safety or security. In choosing your promotiona, mi0( you must communicate ho2 your product produces a positi-e emotion or satisfies a particu,ar need. In the case of the >e2e,ry store mentioned ear,ier( the message can appea, to the target marketAs desire to gain status( a ,ike,y moti-ator that dri-es >e2e,ry shoppers. ring to pro-e it.H r your message can communicate the desire to +e ,o-edC HIf you ,o-e her( then you 2i,, +uy her this e,egant

?

8ormat< !ach e,ement of the promotiona, mi0 has its o2n format

re?uirements. .e+ ad-ertising re,ies on graphics( c,arity and co,or( 2hi,e persona, se,,ing may in-o,-e structured presentations( handouts and diagnostic tests to engage potentia, customers.

35

To determine the +est format to de,i-er your content( consider the technica, aspects of presenting your message. If you prefer to demonstrate a product to se,, it( you shou,d pro+a+,y inc,ude a +roadcast medium in your ad-ertising. That in turn 2i,, ,ead to decisions a+out sound effects( camera ang,es( ,ighting( and so on. 4ormat for print ad-ertising depends on ho2 ,ong or +ig a head,ine shou,d ,ook( ho2 to integrate graphics and 2hat types of photos reinforce your message.

5<5<d< Select Eour Promotional 'hannels
!ntrepreneurs 2ho miss re-enue goa,s often e0p,ain the disappointing resu,ts +y saying( H.e 2ere outBmarketed.H That usua,,y indicates a fai,ure to p,an and imp,ement the right promotiona, mi0. By choosing the +est methods to con-ey your message and e0tracting the most -a,ue from your financia, and creati-e resources you can de-ise an integrated marketing communications program that reinforces your companyAs distinct character in your customersA minds.

36

'(AP)*R 3

/ntroduction+
The Institute of Practitioners in Ad-ertising EIPAF( the +ody 2hich represents ad-ertising agencies( defines ad-ertising asC HThe means of pro-iding the most persuasi-e possi+,e se,,ing message to the right prospects at the ,o2est possi+,e costH. Kotler and Armstron% pro-ide an a,ternati-e definitionC HAd-ertising is any paid form of nonBpersona, presentation and promotion of ideas( goods and ser-ices through mass media such as ne2spapers( maga;ines( te,e-ision or radio +y an identified sponsorH. There are fi-e main stages in a 2e,,Bmanaged ad-ertising campaignC

3<1 Sta%e 1+ Set Advertisin% 7bjectives
An ad-ertising o+>ecti-e is a specific communication task to +e achie-ed 2ith a specific target audience during a specified period of time. Ad-ertising o+>ecti-es fa,, into three main categoriesC

37

=a? To inrm B e.g. te,, customers a+out a ne2 product =b? To $ersuade B e.g. encourage customers to s2itch to a different +rand =c? To remind B e.g. remind +uyers 2here to find a product

3< sta%e + Set the Advertisin% Bud%et
Marketers shou,d remem+er that the ro,e of ad-ertising is to create demand for a product. The amount spent on ad-ertising shou,d +e re,e-ant to the potentia, sa,es impact of the campaign. This( in turn 2i,, ref,ect the characteristics of the product +eing ad-ertised. 4or e0amp,e( ne2 products tend to need a ,arger ad-ertising +udget to he,p +ui,d a2areness and to encourage consumers to tria, the product. A product that is high,y differentiated may a,so need more ad-ertising to he,p set it apart from the competition B emphasi;ing the points of difference. &etting the ad-ertising +udget is not easy B ho2 can a +usiness predict the right amount to spend. .hich parts of the ad-ertising campaign 2i,, 2ork +est and 2hich 2i,, ha-e re,ati-e,y ,itt,e effectD ften +usinesses use Hru,esBofBthum+H Ee.g. ad-ertising@sa,es ratioF as a guide to set the +udget.

38

3<! Sta%e !+ Determine the -ey Advertisin% ,essa%es
&pending a ,ot on ad-ertising does not guarantee success E2itness the infamous Iohn *,eese campaign for &ains+uryF. %esearch suggests that the c,arity of the ad-ertising message is often more important than the amount spent. The ad-ertising message must +e carefu,,y targeted to impact the target customer audience. A successfu, ad-ertising message shou,d ha-e the fo,,o2ing characteristicsC =a? ,eanin%:ul B customers shou,d find the message re,e-ant =b? Distinctive B capture the customerAs attention =c? Believable B a difficu,t task( since research suggests most consumers dou+t the truth of ad-ertising in genera,.

3<1 Sta%e 1+ Decide 2hich Advertisin% ,edia to Use
There are a -ariety of ad-ertising media from 2hich to choose. A campaign may use one or more of the media a,ternati-es. The key factors in choosing the right media inc,udeC =a? Reach B 2hat proportion of the target customers 2i,, +e e0posed to the ad-ertisingD =b? 8reFuency B ho2 many times 2i,, the target customer +e e0posed to the ad-ertising messageD =c? ,edia /m$act B 2here( if the target customer sees the message B 2i,, it ha-e most impactD 4or e0amp,e does an ad-ert promoting ho,idays for e,der,y peop,e ha-e more impact on Te,e-ision Eif so(

39

2hen and 2hich channe,sF or in a nationa, ne2spaper or perhaps a maga;ine focused on this segment of the popu,ationD Another key decision in re,ation to ad-ertising media re,ates to the timing of the campaign. &ome products are particu,ar,y suited to seasona, campaigns on te,e-ision Ee.g. *hristmas hampersF 2hereas for other products( a regu,ar ad-ertising campaign throughout the year in media such as ne2spapers and specia,ist maga;ines Ee.g. cottage ho,idays in the Lake DistrictF is more appropriate.

3<5 Sta%e 5+ *valuate the results o: the Advertisin% 'am$ai%n
The e-a,uation of an ad-ertising campaign shou,d focus on t2o key areasC =1? )he 'ommunication *::ects B is the intended message +eing communicated effecti-e,y and to the intended audienceD = ? )he Sales *::ects B has the campaign generated the intended sa,es gro2th. This second area is much more difficu,t to measure.

40

:i%1<Advertisin% ""&

'(AP)*R 4

Settin% the advertisin% bud%et /ntroduction+
A famous comment usua,,y attri+uted to Lord Le-erhu,me goesC G/ -no2 that hal: o: my advertisin% bud%et is 2astedC but /#m not sure 2hich hal:H

41

It is notorious,y difficu,t to measure the effect of ad-ertising on a +usinessN sa,es. Ad-ertising is >ust one of the -aria+,es that might affect sa,es in a particu,ar period. These inc,udeC

? ? ?

*onsumer and +usiness confidence Le-e,s of disposa+,e income A-ai,a+i,ity of product Ee.g. does the retai,er actua,,y ha-e stock to se,,DF A-ai,a+i,ity of competing products

?

The 2eather Eoften +,amed +y retai,ers for poor sa,es3F

4<1 (o2 can a business -no2 2hether a s$eci:ic advertisin% cam$ai%n 2as e::ective0
As a percentage of sa,es( ad-ertising e0penditure -aries enormous,y from +usiness to +usiness( from market to market. 4or e0amp,e( the ,eading pharmaceutica, companies spend around 20L of sa,es on ad-ertising( 2hi,st +usiness such as 4ord and Toyota spend ,ess than 5L. An a-erage for fastBmo-ing consumer goods markets EO4M*/PF is around 9B50L of sa,es. In practice( the fo,,o2ing approaches are used for setting the ad-ertising +udgetC

42

4< A$$roaches to settin% the advertisin% bud%et 4< <1 ,ethod =1? 8i.ed $ercenta%e o: sales+
In markets 2ith a sta+,e( predicta+,e sa,es pattern( some companies set their ad-ertising spend consistent,y at a fi0ed percentage of sa,es. This po,icy has the ad-antage of a-oiding an Oad-ertising 2arP 2hich cou,d +e +ad ne2s for profits. 1o2e-er( there are some disad-antages 2ith this approach. This approach assumes that sa,es are direct,y re,ated to ad-ertising. *,ear,y this 2i,, not entire,y +e the case( since other e,ements of the promotiona, mi0 2i,, a,so affect sa,es. If the ru,e is app,ied 2hen sa,es are dec,ining( the resu,t 2i,, +e a reduction in ad-ertising >ust 2hen greater sa,es promotion is re?uired3

4< < ,ethod = ? Same level as com$etitors+
This approach has 2idespread use 2hen products are 2e,,B esta+,ished 2ith predicta+,e sa,es patterns. It is +ased on the assumption that there is an Oindustry a-erageP spend that 2orks 2e,, for a,, ma>or p,ayers in a market. A ma>or pro+,em 2ith this approach Ein addition to the disad-antages set out for the e0amp,e a+o-eF is that it encourages +usinesses to ignore the effecti-eness of their ad-ertising spend Q it makes them O,a;yP. It cou,d a,so pre-ent a +usiness 2ith competiti-e ad-antages from increasing market share +y spending more than a-erage.

4< <! ,ethod =!? )as43

The task approach in-o,-es setting marketing o+>ecti-es +ased on the OtasksP that the ad-ertising has to comp,ete. These tasks cou,d +e financia, in nature Ee.g. achie-e a certain increase in sa,es( profitsF or re,ated to the marketing acti-ity that is generated +y the campaigns. 4or e0amp,eC

? ? ?

"um+ers of en?uiries recei-ed ?uoting the source code on the ad-ertisement Increase in customer recognition @ a2areness of the product or +rand E2hich can +e measuredF "um+er of -ie2ers( ,isteners or readers reached +y the campaign

4< <1 ,ethod =1? Residual
The residua, approach( 2hich is perhaps the 2orst of a,,( is to +ase the ad-ertising +udget on 2hat the +usiness can afford Q after a,, other e0penditure. There is no attempt to associate marketing o+>ecti-es 2ith ,e-e,s of ad-ertising. In a good year ,arge amounts of money cou,d +e 2astedG in a +ad year( the ,o2 ad-ertising +udget cou,d guarantee a further ,o2 year for sa,es.

44

'(AP)*R 5

Advertisin% ,edia /ntroduction+
There is a huge -ariety of media a-ai,a+,e through 2hich a +usiness can conduct an ad-ertising campaign. .hat are the main types of media and 2hat considerations shou,d a +usiness make in choosing +et2een themD The starting point in the se,ection of appropriate ad-ertising media is a Gmedia analysisH. This can +e defined asC 9An in-estigation into the re,ati-e effecti-eness and the re,ati-e costs of using the -arious ad-ertising media in an ad-ertising campaign 9 Before committing an ad-ertising +udget it is necessary to carry out marketing research onC • Potentia, customers • Their reading ha+its( te,e-isionB2atching ha+its • 1o2 many times the ad-ertisers 2ish the potentia, customers to see an ad-ertisement • 1o2 great a percentage of the market they 2ish to reach( etc.

45

These e,ements a,, need to +e considered and +a,anced to p,an a campaign that 2i,, effecti-e,y reach its target audience at a reasona+,e cost. A usefu, distinction can +e made +et2een G$ublished mediaH and OvisualIaural mediaH<

5<1 Published media inc,udeC
• "ationa, dai,y ne2spapers • &unday ne2spapers • Loca, and regiona, ne2spapers • *onsumer maga;ines • &pecia,ist maga;ines • Trade and professiona, press • Internet

5< Jisual and aural media inc,udeC
• Te,e-ision Eterrestria, and digita,F • %adio • *inema • Bi,,+oards • Transport • Direct mai,ing

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5<! Why and What0
.hy and 2hat shou,d a +usiness ad-ertiseD Before undertaking an ad-ertising campaign( marketers shou,d +e a+,e to ans2er t2o key ?uestionsC

=1? Why are 2e advertisin%0 = ? What are 2e advertisin%0
n the face of it these seem ,ike t2o fair,y o+-ious ?uestions. But they are significant. Ad-ertising can +e a -ery e0pensi-e promotiona, too,. It is 2ide,y +e,ie-ed that much ad-ertising spend is 2asted. &o carefu, consideration a+out O.hyP and O.hatP can pay di-idends.

5<1 Why advertise0
The fo,,o2ing may +e good reasons 2hy a +usiness is ad-ertisingC • To create a2areness( customer interest or desire • To +oost sa,es Emo-ing the demand cur-e to the rightF • To +ui,d +rand ,oya,ty Eor to maintain it at the e0isting ,e-e,F • To ,aunch a ne2 product • To change customer attitudes Q perhaps trying to mo-e a product more Oup marketP or to dispe, some 2ide,y he,d perceptions a+out the product
47

• To support the acti-ities of the distri+ution channe, Ee.g. supporting a Opu,,P strategyF • To +ui,d the company or +rand image • To reminds and reassure customers • To offset competitor ad-ertising Q +usinesses may defend market share +y responding to competitorsN campaigns 2ith their o2n ad-ertising • To +oost pu+,ic standingC companies can +oost their pu+,ic standing 2ith ad-ertisements that ,ink them 2ith genera,,y appro-ed campaigns such as care for the en-ironment • To support the sa,es force Q ad-ertising can make the >o+ of the sa,es force easier and more effecti-e +y attracting ,eads from potentia, customers and perhaps moti-ate them +y +oosting the profi,e of the +usiness Take a ,ook through any maga;ine and se,ect a samp,e of ad-erts. .hich of the a+o-e reasons do you think are +ehind the ad-erts you chooseD DonNt forget that some ad-erts aim to achie-e mu,tip,e o+>ecti-es.

5<5 What to advertise0
4actors that he,p ans2er the O2hat are 2e ad-ertisingPD focus on 2hat the ad-ertising message shou,d +e. In genera,( there are rea,,y on,y t2o kinds of effecti-e ad-ertising messageC

48

4irst,y( does the +usiness@product ha-e a UniFue Sellin% Pro$osition =GUSPH? A uni?ue se,,ing proposition is a customer +enefit that no other product can c,aim In rea,ity these are rare( a,though that does not stop marketers from c,aiming them for their products. &econd,y( does the thing that is +eing ad-ertised Oadd -a,ueP and if so( ho2D 4or e0amp,e( ad-ertising for 2ashing po2ders 2i,, focus on the Oadded -a,ueP created +y 2hitening agents or the fact that a particu,ar formu,ation 2i,, ,ast ,onger than the competition Etake a ,ook at the 4airy 2e+ site to see if you can spot the other Oadded -a,ueP features c,aimed for its productsF .hate-er is ad-ertised( it is important that the message isC • &een • %ead • Be,ie-ed • %emem+ered • Action upon +y target customers

5<3 Advanta%es 7: Advertisin%

?

'redibility<

49

By in-esting in a pu+,ic presentation of your company and its products( you can enhance customersA perceptions of ,egitimacy( permanence and ?ua,ity that they associate 2ith your enterprise.

?

)imin%< 'ou can repeat a message at strategic inter-a,s. %epeating your message increases the ,ike,ihood that your target customer 2i,, see the message at a time 2here he is open to hearing it. The right timing can ma0imi;e your a2arenessB +ui,ding efforts.

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Drama< The +est ad-ertising puts a human face on a company and its products. It can con-ey a sense of ad-enture( cha,,enge peop,e to test their assumptions a+out your +usiness or entertain or en,ighten your audience. It can introduce consumers to images and sym+o,s that differentiate your company from others.

?

Brandin%< !ffecti-e ad-ertising ena+,es you to create and nurture +rand e?uity( a -ita, +ut intangi+,e source of good2i,, that f,o2s from a fa-ora+,e image associated 2ith a +rand name. you ha-e a competiti-e ad-antage. nce your company esta+,ishes a distincti-e trademark in the pu+,ic eye(

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5<4 Disadvanta%es 7: Advertisin%

?

'ost< Marketers often argue that ad-ertising offers a costBeffecti-e 2ay to reach ,arge groups( and itAs true that the cost per contact can pro-e ,o2er than 2ith other promotiona, methods. "e-erthe,ess( many entrepreneurs ,ack the finances to in-est hea-i,y in ad-ertising. Producing and p,acing professiona, ad-ertisements is prohi+iti-e,y e0pensi-e for many emergingBgro2th companies.

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8ollo2 )hrou%h< .hi,e attentionBgra++ing ad-ertising can attract interest( e-en the most inno-ati-e campaigns can +ecome sta,e o-er time. And entrepreneurs may gro2 to re,y too much on ad-ertising at the e0pense of more persona,( direct appea,s to niche audiences.

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6ac- 7: 8eedbac-< Measuring the success of ad-ertising can pro-e impossi+,e. &ome of the +est T$ commercia,s from a sty,istic standpoint may not increase sa,es for the ad-ertiser.

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'onsumer /ndi::erence<

51

As peop,e get pe,ted 2ith promotiona, messages throughout the day( they +ecome +etter at screening out ads. Information o-er,oad and c,utter can ,ead your target audience to turn a2ay from your +est efforts to engage them.

'(AP)*R &

/ntroduction+
The Institute of Pu+,ic %e,ations defines pu+,ic re,ations as fo,,o2sC GThe p,anned and sustained effort to esta+,ish and maintain good2i,, and mutua, understanding +et2een an organi;ation and its pu+,icsH .hat is meant +y the term G$ublicsH in the a+o-e definitionD A +usiness may ha-e many Opu+,icsP 2ith 2hich it needs to maintain good re,ations and +ui,d good2i,,. 4or e0amp,e( consider
52

the re,e-ant Opu+,icsP for a pu+,ic,yB?uoted +usiness engaged in medica, researchC • !mp,oyees • &hareho,ders • Trade unions • Mem+ers of the Ogenera, pu+,icP • *ustomers Epast and presentF • Pressure groups • The medica, profession • *harities funding medica, research • Professiona, research +odies and po,icyBforming organi;ations • The media • /o-ernment and po,iticians

&<1 )he role o: $ublic relations is to+
o Identify the re,e-ant pu+,ics o Inf,uence the opinions of those pu+,ics +yC o %einforcing fa-ora+,e opinions o Transforming perhaps neutra, opinions into positi-e ones o *hanging or neutra,i;ing hosti,e opinions

&< Public relations techniFues
There are many techni?ues a-ai,a+,e to inf,uence pu+,ic opinion( some of 2hich are more appropriate in certain circumstances than others.
53

&<! 'onsumer communication
• *ustomer press re,eases • Trade press re,eases • Promotiona, -ideos • *onsumer e0hi+itions • *ompetitions and pri;es • Product ,aunch e-ents • *e,e+rity endorsements • .e+ sites

&<1 Business communication
o *orporate identity design o *ompany and product -ideos o Direct mai,ings o .e+ site o Trade e0hi+itions

&<5 /nternal I em$loyee communication
? InBhouse ne2s,etters and maga;ines ? Intranet

54

? "otice +oards ? !mp,oyee conferences ? !mai,

&<3 *.ternal cor$orate communication
o *ompany ,iterature E+rochures( -ideos etc.F o *ommunity in-o,-ement programmed o Trade( ,oca,( nationa, and internationa, media re,ations

&<4 8inancial communication

? ? ? ?

4inancia, media re,ations Annua, report and accounts Meetings 2ith stock market ana,ysts( fund managers etc &hareho,der meetings Einc,uding the annua, genera, meeting /i-en the 2ide range of techni?ues used in pu+,ic re,ations(

ho2 is it possi+,e to measure the effecti-eness of pu+,ic re,ationsD It is actua,,y ?uite difficu,t to measure 2hether the key messages ha-e +een communicated to the target pu+,ic. In any e-ent( this cou,d +e ?uite cost,y since it 2ou,d in-o,-e a ,arge amount of regu,ar research. Instead( the main measures of effecti-eness concentrate on the process of pu+,ic re,ations( and inc,udeC

55

• Monitoring the amount of media co-erage o+tained Epress cuttings agencies p,ay a ro,e in keeping +usinesses informed of thisF • Measuring attendance at meetings( conferences • Measuring the num+er of en?uiries or orders recei-ed in response to specific pu+,ic re,ations efforts. .ith effecti-e pu+,ic re,ations( you can increase sa,es through fa-ora+,e( non paid media co-erage and enhance your companyAs image. Pu+,ic re,ations +ui,d good2i,, to2ard your +usiness +y raising your companyAs profi,e in the pu+,ic eye. Pu+,icity is free ad-ertising. 'ou can generate pu+,icity through press re,eases( specia, e-ents( sponsorships( ne2s,etters and community acti-ities.

The most common form of pu+,icity is press co-erage. It fits into the promotiona, mi0 on,y 2hen thereAs ne2s2orthy information a+out your company such asC • 'ouA-e de-e,oped a +reakthrough techno,ogy or ser-ice that no one e,se offers. • 'ouA-e 2on a prestigious a2ard or industry pri;e thatAs 2ide,y recogni;a+,e. • 'ouA-e made a ma>or in-estment in your community( 2hether in ramping up hiring Eespecia,,y if youAre aggressi-e,y courting
56

peop,e 2ith disa+i,ities( senior citi;ens or imp,ementing 2e,fareBtoB2ork programsF( purchasing ,and to +ui,d your ne2 head?uarters or donating goods to charities. • 'ouA-e ac?uired another company. • 'ouAre hiring ne2 e0ecuti-es or announcing the addition of ne2 +oard mem+ers. .hen pu+,icity is not appropriate and your specific o+>ecti-e is to impro-e your companyAs image 2ith the pu+,ic( then consider sponsoring a charita+,e e-ent. If your specific goa, is to increase sa,es through +etter customer ser-ice and re,ations( produce a ne2s,etter on a regu,ar +asis that pro-ides your customers 2ith usefu, information.

&<5 Advanta%es 7: Public Relations

?

Believability<
Most peop,e percei-e pu+,icity as more credi+,e and +e,ie-a+,e than a paid ad-ertisement. .hen you run an ad( you can make any product c,aim you 2ant. *onsumers kno2 this and often react 2ith skepticism. But reporters donAt ha-e to feature you in their pu+,ications or on their programs and speak positi-e,y a+out your +usiness. 'ou donAt contro, the message 2hen you donAt pay for it.

57

?

*m$loyee ,orale<
'our staff may 2ork together to promote your companyAs

charita+,e acti-ities or host specia, e-ents and ce,e+rations for the community. The resu,ting pu+,icity can +oost their pride and enthusiasm for their >o+s.

?

*ducatin% Jisitors )o Eour Web Site
Before the Internet( companies 2ou,d issue press re,eases

a+out ne2s designed to interest ne2spaper reporters. Today( you can compose press re,eases and disp,ay them on your companyAs .e+ site. .hi,e this may not reach as many peop,e as ha-ing a reporter integrate your press re,ease into a ne2s story( you can sti,, reap competiti-e -a,ue. .e+ researchers may read your companyAs press pages to get updates on your product re,eases( e0pansion p,ans or personne, mo-es.

&<1" Disadvanta%es 7: Public Relations

?

'ost<
.hi,e arranging pu+,icity genera,,y costs ,ess than

ad-ertising( it can pro-e surprising,y e0pensi-e. 'ou may need to hire a pu+,ic re,ations firm to de-e,op campaigns( 2rite press re,eases and fo,,o2 up 2ith >ourna,ists. !-en if you +ring these tasks inBhouse( the cost of de-e,oping pu+,icity items and staging e-ents can stretch your +udget and di-ert 2orkers from their primary responsi+i,ities.

58

?

6ac- o: 'ontrol<
.hi,e you can in-ite the media to pre-ie2 your ne2 product

or tour your ne2 faci,ity( thereAs no guarantee that a g,o2ing artic,e 2i,, resu,t. r information might +e improper,y reported or key detai,s omitted. .hatAs 2orse( pu+,icity can +ackfire if it do2np,ays the positi-es and harps on negati-es.

?

8ailure )o (it )ar%et<
'ou can do e-erything right in generating the kind of

fa-ora+,e pu+,icity you seek. But the message may not reach your desired audience. A ne2scast can run your segment at a time 2hen fe2er -ie2ers are 2atching( or a ne2spaper can mention your company in a short artic,e +uried in a +ack section thatAs often discarded.

'(AP)*R 1"

/ntroduction
&a,es promotion is one of the most ,oose,y used terms in the marketing -oca+u,ary. .e define sa,es promotion as demand.
59

&timu,ating de-ices designed to supp,ement ad-ertising and faci,itate persona, se,,ing. In other 2ords( sa,es promotion signifies a,, those acti-ities that supp,ement( coBordinate and make the efforts of persona, se,,ing and ad-ertising more effecti-e. It is non recurrent in nature 2hich means it canNt +e used continuous,y.

1"<1 'once$t o: Sales Promotion
&a,es promotion consists of di-erse co,,ection of incenti-e too,s( most,y shortBterm designed to stimu,ate ?uicker and @ or greater purchase of a particu,ar product +y consumers or the trade. .here as ad-ertising offers a reason to +uy( sa,es promotion offers an incenti-e to +uy. &a,es promotion inc,udes too,s for consumer promotion Efor e0amp,e samp,es( coupons( pri;es( cash refund( 2arranties( demonstrations( contestFG trade promotion Efor e0amp,e +uying a,,o2ances( free goods( merchandise a,,o2ances( coBoperati-e ad-ertising( ad-ertising and disp,ay a,,o2ances( dea,er sa,es contestsFG and sa,esBforce promotion Efor e0amp,e +onuses( contests( sa,es ra,,iesF. &a,es promotion efforts are directed at fina, consumers and designed to moti-ate( persuade and remind them of the goods and recei-es that are offered. &a,es persons adopt se-era, techni?ues for sa,es promotion. *reati-e sa,es promotion can +e -ery effecti-e. It is the marketing managerNs responsi+i,ity to specify promotion o+>ecti-es and po,icies.

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1"< De:initions o: Sales Promotion
According to American Marketing Association O Those marketing acti-ities other than persona, se,,ing ad-ertising and pu+,icity that stimu,ate consumer purchasing and dea,er effecti-eness such as disp,ay sho2s and e0hi+itions( demonstrations and -arious nonBrecurrent se,,ing efforts not in the ordinary routine.P ..I. &tanton defines sa,es promotion as a,, those acti-ities other than ad-ertising( persona, se,,ing( pu+,ic re,ations and pu+,icity that are intended to stimu,ate customer demand and impro-e the marketing performance of se,,ers.

1"<! Pur$ose o: sales Promotion
&a,es promotion too,s -ary in their specific o+>ecti-es. A free samp,e stimu,ates consumer tria,( 2hi,e a free management ad-isory ser-ice cements a ,ongBterm re,ationship 2ith a retai,er.

4rom the marketerNs perspecti-e( sa,es promotion ser-es three essentia, ro,es it informs( persuades and reminds prospecti-e and current customers and other se,ected audiences a+out a company and its products. The re,ati-e importance of those ro,es -aries according to the circumstances faced +y a firm. The most usefu, product or +rand 2i,, +e a fai,ure if no one kno2s it is a-ai,a+,e3 Because distri+ution channe,s are often ,ong( a product may pass through many ,ands +et2een a producer and
61

consumers. Therefore( a producer must inform midd,emen as 2e,, as the u,timate consumers or +usiness users a+out the product. .ho,esa,ers( in turn must inform retai,ers and retai,ers must inform consumers. As the num+er of potentia, customers gro2s and the geographic dimensions of a market e0pand( the pro+,ems and costs of informing the market increase. Another purpose of sa,es promotion is persuasion. The intense competition among different industries puts tremendous pressure on the promotiona, programmed of se,,ers. In Pakistan( e-en a product designed to satisfy a +asic physio,ogica, need re?uires strong persuasi-e promotion( +ecause consumers ha-e many a,ternati-es to choose from. In the case of ,u0ury product( for 2hich sa,es depend on the a+i,ity to con-ince consumers that the products +enefits e0ceed those of other ,u0uries( persuasion is e-en more important.

*onsumers a,so must +e reminded a+out a productNs a-ai,a+i,ity and its potentia, to satisfy. &e,,ers +om+ard the market p,ace units hundreds of messages e-ery day in the hope of attracting ne2 consumers and esta+,ishing markets for ne2 products. /i-en the intense competition for consumersN attention( e-en an esta+,ished firm must constant,y remind peop,e a+out its +rand to retain a p,ace in their minds. Much of a firmNs sa,es promotion may

62

+e intended simp,y to offset competitors marketing acti-ity +y keeping its +rand in front of the market.

1"<1 7bjectives o: Sales Promotion
The +asic o+>ecti-es of sa,es promotion areC

i? )o introduce ne2 $roducts
To induce +uyers to purchase a ne2 product( free samp,es may +e distri+uted or money and merchandise a,,o2ance may +e offered to +usiness to stock and se,, the product.

ii? )o attract ne2 customers
"e2 customers may +e attracted through issue of free samp,es( premiums( contests and simi,ar de-ices.

iii? )o induce $resent customers to buy more
Present customers may +e induced to +uy more +y kno2ing more a+out a product( its ingredients and uses.

iv? )o hel$ :irm remain com$etitive
&a,es promotions may +e undertaken to meet competition from a firm.

v? )o increase sales in o:: season
Buyers may +e encouraged to use the product in off seasons +y sho2ing them the -ariety of uses of the product.

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vi? )o increase the inventories o: business buyers
%etai,ers may +e induced to keep in stock more units of a product so that more sa,es can +e effected.

1"<5 Rationale o: sales $romotion
%ationa,e of sa,es promotion may +e ana,y;ed under the fo,,o2ing points.

??Short-term results &a,es promotion such as coupons and trade a,,o2ances produce ?uicker( more measura+,e sa,es resu,ts. 1o2e-er critics of this strategy argue that these immediate +enefits come at the e0pense of +ui,ding +rand e?uity. They +e,ie-e that an o-er emphasi;e on sa,es promotion may under mine a +randNs future.

??'om$etitive

Pressure

If competitors offer +uyers price reductions( contest or other incenti-es( a firm may fee, forced to reta,iate 2ith its o2n sa,es promotions.
??Buyers#

e.$ectations

nce they are offered purchase incenti-es( consumers and channe, mem+ers get used to them and soon +egin e0pecting them.
??6o2

Fuality o: retail sellin%
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Many retai,ers use inade?uate,y trained sa,es c,erks or ha-e s2itched to se,f ser-ice. 4or these out,ets( sa,es promotion de-ices such as product disp,ays and samp,es often are the on,y effecti-e promotiona, too,s a-ai,a+,e at the point of purchase.

1"<3 )y$es o: Sales Promotion
In using sa,es promotion( a company must fu,fi,, the o+>ecti-es of the organi;ation. &a,es promotion o+>ecti-es are deri-ed from +roader promotion o+>ecti-es( 2hich are deri-ed from more +asic marketing o+>ecti-es de-e,oped for the product. The specific o+>ecti-es set for sa,es promotion 2i,, -ary 2ith the type of target market. 4or consumers( o+>ecti-es inc,ude encouraging purchase of ,argerBsi;e units( +ui,ding tria, among non users and attracting s2itches a2ay from competitorsN +rands. 4or retai,ers o+>ecti-es inc,ude inducing retai,ers to carry ne2 items and higher ,e-e,s of in-entory( encouraging offBseason +uying( encouraging( stocking of re,ated items( off setting competiti-e promotions( +ui,ding +rand ,oya,ty of retai,ers and gaining entry into ne2 retai, out,ets. 4or sa,es force( o+>ecti-es inc,ude encouraging support of a ne2 product or mode,( encouraging more prospecting and stimu,ating offBseason sa,es. Many sa,es promotion too,s are a-ai,a+,e to accomp,ish these o+>ecti-es at the consumer ,e-e,( and at the midd,e men ,e-e,. 4or the purpose of con-enience( the types of sa,es promotion methods may +e grouped under three categoriesC
65

1< Types of sa,es promotion directed at consumers. < Types of sa,es promotion directed at dea,ers and distri+utors.

The fo,,o2ing chart sho2s ma>or sa,es promotion de-ices( grouped +y Target Audience. Business users or (ouseholds
1< *oupons < *ash re+ates !< Premiums E/iftsF 1< 4ree samp,es 5< *ontests 3< Point of purchase disp,ays 4< Product demonstrations 5< Trade sho2s and e0hi+itions &< Ad-ertising specia,ties

,iddlemen and their Sales 8orces
1< 4ree goods < Ad-ertising a,,o2ances !< *ontests for sa,es peop,e 1< Product demonstrations 5< Trade sho2s 3< !0hi+itions 4< Ad-ertising specia,ties 5< PointBofBpurchase disp,ays &< Training sa,es forces

)able 1"<1,ajor sales $romotion devices

1"<4 'onsumer Promotion )ools
The main consumer promotion too,s inc,ude samp,es( coupons( cash refund offers( price packs( premiums( pri;es( patronage re2ards( free tria,s( product 2arranties( tieBins( and point of purchase disp,ays and demonstrations.

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?? Sam$les
&amp,es are offers of a free amount or tria, of a product to consumers. The samp,e might +e de,i-ered door to door sent in the mai,( picked up in a store( found attached to another product or featured in an ad-ertising offer. &amp,ing is the most effecti-e and most e0pensi-e 2ay to introduce a ne2 product.

?? 'ou$ons
*oupons are certificates entit,ing the +earer to a stated sa-ing on the purchase of a specific product. *oupons can +e mai,ed( enc,osed in or on other products or inserted in maga;ine and ne2spaper ad-ertisements. *oupons can +e effecti-e in stimu,ating sa,es of a mature +rand and inducing ear,y tria, of a ne2 +rand.

?? 'ash Re:und 7::ers or Rebates
These are ,ike coupons e0cept that the price reduction occurs after the purchase rather than at the retai, shop. The consumer sends a specified Oproof of purchaseP to the manufacturer( 2ho in turn RrefundsN part of the purchase price +y mai,. *ash refunds ha-e +een used for ma>or products such as automo+i,es as 2e,, as for packaged goods.

?? Price Pac-s
These are offers to consumers of sa-ings off the regu,ar price of a product( f,agged on the ,a+e, or package. They may take the form or a reducedBprice pack 2hich is sing,e packages so,d at a reduced price Esuch as t2o for the price of oneF or a +anded pack(
67

2hich is t2o re,ated products +anded together Esuch as a tooth +rush and tooth pasteF. Price packs are -ery effecti-e in stimu,ating short term sa,es( e-en more than coupons.

?? Premiums or Ai:ts
These are merchandise offered at a re,ati-e,y ,o2 cost or free as an incenti-e to purchase a particu,ar product. &ometimes the package itse,f is a reusa+,e container may ser-e as a premium. A se,fB,i?uidating premium is an item so,d +e,o2 its norma, retai, price to consumers 2ho re?uest it.

?? PriDes
These are offers of the chance to 2in cash( trips or merchandise as a resu,t of purchasing something. PepsiBco,a offered the chance to 2in cash +y matching num+ers under the +ott,e cap 2ith num+ers announced on te,e-ision. &ometimes the pri;e is a person( offering the 2inner either cash or dinner 2ith actor.

?? Patrona%e A2ards
These are -a,ues in cash or in other forms that are proportiona, to oneNs patronage of a certain -endor or group of -endors. Most air,ines offer Ofre?uent f,yer p,ansP pro-iding points for mi,es tra-e,ed that can +e turned in for free air,ine trips. *ooperati-es pay their mem+ers di-idends according to their annua, patronage. Le Meridian adopted an Ohonored guestP p,an that a2ards points for users of their hote,s.
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?? 8ree )rials
4ree trai,s consist of in-iting prospecti-e purchasers to try the product 2ithout cost in the hope that they 2i,, +uy the product. Thus( often 2e see( auto dea,ers encourage free test dri-es to stimu,ate purchase interest.

?? Product Warranties
These are an important too,( especia,,y as consumers +ecome more ?ua,ity sensiti-e. .hen My T$& offered a t2o year car 2arranty( su+stantia,,y ,onger than other competitorsN customers took notice. They inferred that My T$& ?ua,ity must +e good or e,se the company 2ou,d +e in deep trou+,e. *ompanies must carefu,,y estimate the sa,esBgenerating -a,ue against the potentia, costs of any proposed 2arranty programmed.

?? )ie-in Promotions
These are +ecoming increasing,y popu,ar. In a tie in promotion t2o or more +rands or companies team up on coupons( refunds and contests to increase their pu,,ing po2er. *ompanies poo, funds 2ith the hope of +roader e0posure( 2hi,e se-era, sa,es forces push these promotions to retai,ers( gi-ing them a +etter shot at e0tra disp,ay and ad space.

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?? Point-ourchase Dis$lays
These take p,ace at the point of purchase or sa,e. Disp,ay of -isi+,e mark or product at the entrance of the store is an e0amp,e. #nfortunate,y many retai,ers do not ,ike to hand,e the hundreds of disp,ays( signs and posters they recei-e from manufacturers. 1industan Le-er often uses this too, to promote its products in the retai, market.

?? Product Demonstrations
Products are +eing sho2n in action. *onsumers can -isit the store and see the usage of product in ,i-e action so that dou+ts of the consumers can +e c,arified in the store itse,f. .hen a ne2 product is introduced in the market( the sa,es promotiona, too, is often used. 4or e0amp,e u,tra modern grinder mi0er +eing used +y the company to demonstrate its specia,ty than the other product.

1"<5 )rade Promotion )ools
More sa,es promotion rupees are directed to the trade than to consumers. Manufacturers seek the fo,,o2ing o+>ecti-es in a2arding money to the tradeC

i< Trade promotion can persuade the retai,er or 2ho,esa,er to carry the +rand.

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ii< Trade promotion can persuade the retai,er or 2ho,esa,er to carry more than it norma,,y carries. iii< Trade promotion can induce the retai,ers to promote the +rand through featuring( disp,ay( and price reduction. iv< Trade promotion can stimu,ate retai,ers and their sa,es c,erks to push the product. Manufacturers use se-era, promotion too,s. &ome of 2hich are mentioned +e,o2C

?? Price K 7::
Manufacturers may offer a price Q off( 2hich is straight discount off the ,ist price on each case purchased during a stated period of time. The offer encourages dea,ers to +uy a ?uantity or carry a ne2 item that they might not ordinari,y +uy. The dea,ers can use the +uying a,,o2ance for immediate profit or price reductions.

?? Allo2ance
Manufacturers may offer an a,,o2ance in return for the retai,erNs agreeing to feature the manufacturerNs products in some 2ay. An ad-ertising a,,o2ance compensates retai,ers for ad-ertising the manufacturerNs product. A disp,ay a,,o2ance compensates them for carrying a specia, disp,ay of the product.

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?? 8ree Aoods
Manufacturers may offer free goods( 2hich are e0tra cases of merchandise to midd,emen 2ho +uy a certain ?uantity of items.

?? Push ,oney
Manufacturers may offer push money 2hich is cash or gifts to dea,ers or their sa,es force to push the manufacturerNs goods.

?? S$ecialty Advertisin% /tems
Manufacturers may offer free specia,ty ad-ertising items to the retai,ers that carry the companyNs name such as pens( penci,( ca,endars( paper 2eights( and memo pads. As the num+er of competiti-e sa,es promotions ha-e increased( friction has +een created +et2een the companyNs sa,es force and its +rand managers. The sa,es force says that the retai,ers 2i,, not keep products on the she,f un,ess they recei-e more trade promotion money( 2hi,e the +rand managers 2ant to spend their funds on consumer promotion and ad-ertising.

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1"<& Advanta%es 7: Sales Promotions

?

Build Relationshi$s< TradeBoriented promotions gi-e marketing intermediaries a

financia, incenti-e to support your companyAs products. By offering discounts to retai,ers in e0change for prominent she,f space or endB ofBtheBais,e disp,ays( for instance( you can strengthen re,ationships 2ith key p,ayers 2ho can he,p stimu,ate sa,es.

?

Stir *.citement< Many consumers ,o-e contests and s2eepstakes. 'ou can

turn a dra+ purchase into a more ,i-e,y e-ent +y promising cash pri;es to ,ucky 2inners. At its +est( a sa,es promotion adds a,,uring incenti-es for +uyer action.

?

Aau%e Price Sensitivity< #sing coupons or re+ates can he,p you measure to 2hat

e0tent your shopperNs +ase their +uying decisions on price. 'ou can a,so co,,ect their addresses and other consumer profi,e data that can pro-e -a,ua+,e in su+se?uent marketing campaigns.

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1"<1" Disadvanta%es 7: Sales Promotions

?

Ris- 7: ,is:ire< Many fastBgro2th entrepreneurs rush to try some form of

sa,es promotion( on,y to dec,are such efforts a 2aste. But pro+,ems often resu,t from poor p,anning. 'ou must first identify and de-e,op specific strategies to +oost sa,es +efore you target customers and choose sa,es promotion too,s( rather than p,unging into sa,es promotions 2ithout ,aying the ground2ork first.

?

Ris- 7: De$endency< Business o2ners can gro2 to re,y on sa,es promotion and

d2e,, on shortBterm marketing p,oys( at the e0pense of more coordinated ,ongBrange p,ans. %ea,i;e that sa,es gains from promotions often sputter after an initia, spike and you can sacrifice ,ongBterm +rand e?uity in the pursuit of shortBterm goa,s.

?

Ris- 7: )rivialiDin% Eour Brand< /i-ing out coupons or samp,es can undermine the image of

e0c,usi-ity or prestige that you 2ish to associate 2ith your product or company. PriceBconscious consumers may a,so 2ithho,d purchases in the a+sence of sa,es promotions.

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'(AP)*R 11

/ntroduction
Direct marketing is concerned 2ith esta+,ishing an indi-idua, re,ationship +et2een the +usiness offering a product or ser-ice and the fina, customer. Direct marketing has +een defined +y the Institute of Direct Marketing asC The p,anned recording( ana,ysis and tracking of customer +eha-iors to de-e,op a re,ationa, marketing strategies The process of direct marketing co-ers a 2ide range of promotiona, acti-ities you may +e fami,iar 2ith. These inc,udeC

? ? ? ? ?

DirectBresponse ad-erts on te,e-ision and radio Mai, order cata,ogues !Bcommerce Maga;ine inserts Direct mai, Esometimes a,so referred to as O>unk mai,PF
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? ?

Te,emarketing Door drops

Direct marketing ena+,es you to communicate 2ith your customers in a more persona,i;ed 2ay than ad-ertising( such as greeting them 2ith a ,etter or te,ephoning them direct,y. Te,emarketing( direct mai,( cata,ogs and coupon mai,ers are a,, e0amp,es of directBmarketing techni?ues. &uccessfu, direct marketing depends on 2hether you can ac?uire and maintain a data+ase of your target market. &ome marketers find this a,one >ustifies the cost of ad-ertising in a nationa, consumer pu+,ication instead. *onsider using direct marketing in your promotiona, mi0 ifC o Eour Primary ,eans 7: Distributin% Eour Product /s )hrou%h )he ,ail 7r Directly )o 'ustomers< .ith the gro2th of the Internet( many companies donAt use retai, out,ets at a,,. thers supp,ement their retai, efforts +y se,,ing through the .e+( the mai, or te,ephone. *ompanies that distri+ute products through the mai, must assem+,e and maintain data+ases and mai,ing ,ists. Direct mai, is a particu,ar,y costBeffecti-e communication -ehic,e for them. o Eou Are Sellin% Products With ,any Bene:its< 'our product may ha-e mu,tip,e +enefits to the user( +ut space ,imitations in an ad-ertisement may pre-ent you from
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mentioning a,, +ut the most prominent ones. A directBmai, ,etter ,ets you communicate all your +enefits. ItAs a,so a good 2ay to announce sa,es promotions or specia, discounts.

o Eour Advertisin% *:rts 8ail )o Reach Eour )ar%et ,ar-et< As the upsca,e >e2e,ry store o2ner( you may fee, that the ad you p,aced in a highBend maga;ine isnAt increasing your +usiness. 'ou can try +uying a ,ist +y SIP code in an e0c,usi-e residentia, area. This assures you that youAre concentrating on your actua, target market. o Eou Are Sellin% An *.$ensive Product 7r Service< .hen youAre engaging in highBticket sa,es( you must e0pend more effort to con-ince potentia, customers to +uy. A directB mai, ,etter gi-es you more opportunity to e0pand your appea, than an ad-ertisement 2ith ,imited space. o Eour Business De$ends 7n Reorders AndIor Jolume< Maga;ine pu+,ishers use te,emarketing +ecause su+scri+ers often put off rene2ing their su+scriptions. A sa,es repAs reminder ca,, often spurs a rene2a, sa,e.

11<1 Advanta%es 7: Direct ,ar-etin%

? Predictability<
By staging initia, tests and measuring the resu,ts( you can ro,, out a directBmarketing campaign to a 2ider
77

uni-erse of potentia, customers 2ith a strong ,ike,ihood that it 2i,, succeed. 'ou can mitigate your risk +y strategic samp,ing.

? *::ectiveness /n Reachin% )he Ri%ht )ar%et<
Through direct marketing( you can contact narro2 market segments and customi;e your message to appea, to them.

? *ase 7: ,easurement<
!-a,uating directBmarketing campaigns is straightfor2ard +ecause you can measure outcomes 2ith ?uantifia+,e data( such as num+er and si;e of orders( ,eads generated or re?uests for more information.

11< Disadvanta%es 7: Direct ,ar-etin%

? Saturation<
Many consumers are re+e,,ing against the ons,aught of direct marketing. TheyAre more apt to discard direct mai,( resent te,emarketing ca,,s( turn a2ay doorBtoBdoor sa,espeop,e and ,augh off T$ infomercia,s.

? Reliance 7n 7bsolete Direct-mail 6ists<
In this transient society( increasing num+ers of peop,e re,ocate more fre?uent,y or use t2o addresses. Despite ad-ances in techno,ogy that update mai,ing ,ists( it
78

remains difficu,t to +uy re,ia+,e ,ists that reach the market segment you 2ant. Incorrect ,ist se,ection can 2ipe out the appea, of a great product( a great package or a great offer.

? (ei%htened ;eed 8or 'ustomer Service<
If you re,y on directBresponse ads( te,emarketing or direct mai, to introduce your company to shoppers( you must de,i-er an e-en higher ,e-e, of persona,i;ed ser-ice to 2in o-er prospecti-e customers. This re?uires additiona, in-estment in staffing and customer ser-ice training and de,i-ery that some entrepreneurs o-er,ook.

11<! Direct mail
f the a+o-e direct marketing techni?ues( the one in most 2idespread use is direct mai,. Direct mai, is 2ide,y thought of as the most effecti-e medium to achie-e a customer sa,es response.

11<1 Why0
o The ad-ertiser can target a promotiona, message do2n to an indi-idua, ,e-e,( and 2here possi+,e persona,i;e the message. There are a ,arge num+er of mai,ing data+ases a-ai,a+,e that a,,o2 +usinesses to send direct mai,ing to potentia, customers +ased on househo,d income( interests( occupation and other -aria+,es

79

o Businesses can first test the responsi-eness of direct mai,ing E+y sending out a test mai,ing to a sma,,( representati-e samp,eF +efore committing to the more significant cost of a ,arger campaign o Direct mai,ing campaigns are ,ess -isi+,e to competitors Q it is therefore possi+,e to +e more creati-e( for ,onger 1o2e-er( direct mai, has se-era, 2ea-nessesC o A piece of direct mai, is ,ess Ointeracti-eP than a te,e-ision or radio ad-ert( a,though creati-e packaging can sti,, stimu,ate customer response o Lead times to produce direct mai,ing campaigns can +e ?uite ,ong o There is increasing customer concern 2ith O>unk mai,P Q the receipt of unso,icited mai, 2hich often suggests that the right to indi-idua, pri-acy has +een +reached.

11<5 )he Direct mar-etin% database
Direct mai,ing is +ased on the Omai,ing ,istP Q a critica, part in the direct marketing process. The mai,ing ,ist is a data+ase 2hich co,,ects together detai,s of past( current and potentia, customers. A proper,y managed mai,ing data+ase ena+,es a +usiness toC ? 4ocus on the +est prospecti-e customers ? *rossBse,, re,ated products ? Launch ne2 products to e0isting customers

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The Internet and "e2 Media Ee.g. mo+i,e phones or PDAAsF are perfect for direct marketing. *onsumers ha-e ne-er had so many sources of supp,y( and supp,iers ha-e ne-er had access to so many markets. There is e-en room for niche marketers B for e0amp,e &cottish sa,mon cou,d ordered on,ine( packed and chi,,ed( and sent to customers in any part of the 2or,d +y courier. Many companies use direct marketing( and a current e0amp,e of its use( as part of a business model, is the 2ay in 2hich it is used +y ,o2Bcost air,ines. There is no intermediary or agentG customers +ook tickets direct,y 2ith the air,ines o-er The Internet. Air,ines capture data that can +e used for marketing research or a ,oya,ty scheme. Information can +e processed ?uick,y( and then categori;ed into comp,e0 re,ationa, data+ases.

'(AP)*R 1

/ntroduction
Persona, se,,ing occurs 2here an indi-idua, sa,esperson se,,s a product( ser-ice or so,ution to a c,ient. &a,espeop,e match the +enefits of their offering to the specific needs of a c,ient. Today( persona, se,,ing in-o,-es the de-e,opment of ,ongstanding c,ient

81

re,ationships. In comparison to other marketing communications too,s such as ad-ertising( persona, se,,ing tends toC #se fe2er resources( pricing is often negotiated. Products tend to +e fair,y comp,e0 Ee.g. financia, ser-ices or ne2 carsF. There is some contact +et2een +uyer and se,,er after the sa,e so that an ongoing re,ationship is +ui,t. *,ient@prospects need specific information. The purchase tends to in-o,-e ,arge sums of money. There are e0ceptions of course( +ut most persona, se,,ing takes p,ace in this 2ay. Persona, se,,ing in-o,-es a se,,ing process that is summari;ed in the fo,,o2ing 4i-e &tage Persona, &e,,ing Process. The fi-e stages areC

1< Prospecting. < Making first contact. !< The sa,es ca,,. 1< +>ection hand,ing.

5< *,osing the sa,e.

12.1 A Five Stage Personal Selling Process. 12.1.1 Stage One - Prospecting.
Prospecting is a,, a+out finding prospects( or potentia, ne2 customers. Prospects shou,d +e A?ua,ified(A 2hich means that they
82

need to +e assessed to see if there is +usiness potentia,( other2ise you cou,d +e 2asting your time. In order to ?ua,ify your prospects( one needs toC • P,an a sa,es approach focused upon the needs of the customer. • Determine 2hich products or ser-ices +est meet their needs. • In order to sa-e time( rank the prospects and ,ea-e out those that are ,east ,ike,y to +uy.

12.1.2 Stage Two - Making First ontact.
This is the preparation that a sa,esperson goes through +efore they meet 2ith the c,ient( for e0amp,e -ia eBmai,( te,ephone or ,etter. Preparation 2i,, make a ca,, more focused. • Make sure that you are on time. • Before meeting 2ith the c,ient( set some o+>ecti-es for the sa,es ca,,. .hat is the purpose of the ca,,D .hat outcome is desira+,e +efore you ,ea-eD • Make sure that youA-e done some home2ork +efore meeting your prospect. This 2i,, sho2 that you are committed in the eyes of your customer. • To sa-e time( send some information +efore you -isit. This 2i,, 2et the prospectAs appetite. • )eep a set of samp,es at hand( and make sure that they are in -ery good condition.
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• .ithin the first minute or t2o( state the purpose of your ca,, so that time 2ith the c,ient is ma0imi;ed( and a,so to demonstrate to the c,ient that you are not 2asting his or her time. • 1umour is fine( +ut tries to +e sincere and friend,y.

12.1.! Stage T"ree - T"e Sales Presentation$.

all #or Sales

It is +est to +e enthusiastic a+out your product or ser-ice. If you are not e0cited a+out it( donAt e0pect your prospect to +e e0cited. 4ocus on the rea, +enefits of the product or ser-ice to the specific needs of your c,ient( rather than ,isting end,ess ,ists of features. Try to +e re,a0ed during the ca,,( and put your c,ient at ease. Let the c,ient do at ,east 90L of the ta,king. This 2i,, gi-e you in-a,ua+,e information on your c,ientAs needs. %emem+er to ask p,enty of ?uestions. #se open ?uestions( e.g. T!DAs( and c,osed ?uestions i.e. ?uestions that 2i,, on,y gi-e the ans2er AyesA or the ans2er Ano.A This 2ay you can dictate the direction of the con-ersation.

"e-er +e too afraid to ask for the +usiness straight off.

12.1.% Stage Four - Ob&ection 'andling.
+>ection hand,ing is the 2ay in 2hich sa,espeop,e tack,e o+stac,es put in their 2ay +y c,ients. &ome o+>ections may pro-e too

84

difficu,t to hand,e( and sometimes the c,ient may >ust take a dis,ike to you. 1ere are some approaches for o-ercoming o+>ectionsC • 4irst,y( try to anticipate them +efore they arise. • A'es +utA techni?ue a,,o2s you to accept the o+>ection and then to di-ert it. 4or e0amp,e( a c,ient may say that they do not ,ike a particu,ar co,our( to 2hich the sa,esperson counters A'es +ut T is a,so a-ai,a+,e in many other co,ours. • Ask A2hyA the c,ient fee,s the 2ay that they do. • A%estateA the o+>ection( and put it +ack into the c,ientAs ,ap. 4or e0amp,e( the c,ient may say( AI donAt ,ike the taste of T(A to 2hich the sa,esperson responds( A'ou donAt ,ike the taste of T(A generating the response Asince I do not ,ike gar,icA from the c,ient. The sa,esperson cou,d suggest that T is no ,onger made 2ith gar,ic to meet the c,ientAs needs. • The sa,es person cou,d a,so tactfu,,y and respectfu,,y contradict the c,ient.

12.1.( Stage Five -

losing t"e Sale.
ften sa,espeop,e 2i,, ,ea-e

This is a -ery important stage. the ski,,s of c,osing.

2ithout e-er successfu,,y c,osing a dea,. Therefore it is -ita, to ,earn

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• Iust ask for the +usiness3 B AP,ease may I take an orderDA This rea,,y 2orks 2e,,. • Look for +uying signa,s Ei.e. +ody ,anguage or comments made +y the c,ient that they 2ant to p,ace an orderF. 4or e0amp,e( asking a+out a-ai,a+i,ity( asking for detai,s such as discounts( or asking for you to go o-er something again to c,arify. • Iust stop ta,king( and ,et the c,ient say Ayes.A Again( this rea,,y 2orks. • The Asummary c,oseA a,,o2s the sa,esperson to summaries e-erything that the c,ient needs( +ased upon the discussions during the ca,,. 4or e0amp,e( A'ou need product T in +,ue( +y 4riday( packaged according,y( and de,i-ered to your 2ifeAs office.A Then ask for the order. • The Aa,ternati-e c,oseA does not gi-e the c,ient the opportunity to say no( +ut forces them to2ards a yes. 4or e0amp,e ADo you 2ant product T in +,ue or redDA *heeky( +ut effecti-e.

'(AP)*R 1!

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/ntroduction
An increasing,y common form of promotiona, acti-ity is sponsorship. .hat is sponsorshipD &ponsorship can +e defined as fo,,o2sC &upporting an e-ent( acti-ity or organi;ation +y pro-iding money or other resources that is of -a,ue to the sponsored e-ent. This is usua,,y in return for ad-ertising space at the e-ent or as part of the pu+,icity for the e-ent. There are many kinds of sponsorshipC

1!<1 )elevision and radio $ro%rammed s$onsorshi$+
E!.g. *ad+uryNs sponsor +roadcasts of *oronation &treetF. The increasing fragmentation of te,e-ision in the #) through ne2 digita, channe,s is pro-iding many more opportunities for sponsorship of this kind

1!< S$orts s$onsorshi$+
Ma>or sporting e-ents ha-e the ad-antage of +eing attended and Emore important,yF 2atched +y ,arge num+ers of peop,e. They a,so attract significant media co-erage.

1!<! Arts s$onsorshi$:
Arts e-ents or organi;ations are not as 2e,, attended as sports e-ents +ut are often regarded as more O2orthyP and more in keeping 2ith the image of certain +usinesses and +rands.

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1!<1 *ducational s$onsorshi$+
This can take se-era, forms from the sponsoring of indi-idua, students at co,,ege through to the pro-ision of +ooks and computers nation2ide using the redemption of product or storeBre,ated -ouchers.

1!<5 What is involved in develo$in% a s$onsorshi$ $romotion0
&mith suggests a si0Bstage process to decide 2hat and ho2 to sponsorC 1< AnalyDe the current situation+ ,ook at 2hich other +usinesses are sponsoring in the target area. Are competitors a,ready doing this and is it pro-iding them 2ith an ad-antageD < De:ine the s$onsorshi$ objectives+ e.g. raise a2areness of the +randG +ui,d an imageG promote a ne2 product !< A%ree the strate%y+ ho2 does the sponsorship fit in 2ith any other promotiona, acti-ityD 1< Develo$ the tactics+ agree the detai,s of 2hat to sponsor( price( timing etc 5< De:ine the tar%et audience 3< 'onsider 2hat resources are needed to make the sponsorship a success.

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Sony Corporation is a mu,tinationa, cong,omerate corporation head?uartered in Tokyo( Iapan( and one of the 2or,dAs ,argest media cong,omerate 2ith re-enue of #&M99.8 +i,,ion Eas of 2009F +ased in Minato( Tokyo. &ony is one of the ,eading manufacturers of e,ectronics( -ideo( communications( -ideo game conso,es and information techno,ogy products for the consumer and professiona, markets. Its name is deri-ed from &onus( the /reek goddess of sound. &ony *orporation is the e,ectronics +usiness unit and the parent company of the &ony /roup( 2hich is engaged in +usiness through its fi-e operating segmentsKe,ectronics( games( entertainment Emotion pictures and musicF( financia, ser-ices and other. These make &ony one of the most comprehensi-e entertainment companies in the 2or,d. &onyAs principa, +usiness operations inc,ude &ony *orporation E&ony !,ectronics in the #.&.F( &ony Pictures !ntertainment( &ony *omputer !ntertainment( &ony BM/ Music !ntertainment( &ony !ricsson and &ony 4inancia, 1o,dings. As a semiconductor maker( &ony is among the .or,d2ide Top 20 &emiconductor &a,es Leaders. The companyAs s,ogan is Son) li-e no other.

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S7;E Products
The first market mi0 e,ement is Product. A product is anything that can +e offered to a market for attention( ac?uisition( use or consumption that might satisfy a need or 2ant. Product decision norma,,y +ase on +rand name( 4unctiona,ity( &ty,ing( Qua,ity( &afety( Packaging( %epairs and &upport( .arranty( accessories and &er-ices. These product attri+utes can +e manipu,ated depending on 2hat the target market 2ants. A,so( customers a,2ays ,ook for ne2 and impro-ed things( 2hich are 2hy marketers shou,d impro-e e0isting products( de-e,op ne2 ones( and discontinue o,d ones that are no ,onger needed or 2anted +y the customer. &ony has a -ariety of products ranging from e,ectronic de-ices( games and entertainment. &o( +rief,y &ony products can +e categori;ed in the fo,,o2ing ma>or product categoriesC i< ii< iii< iv< v< vi< vii< Te,e-ision and Pro>ectors. 1ome -ideo. 1ome Audio. 1ome Theatre system. Digita, Photography. 1and cam -ideo camera. *omputer Periphera,.

viii< Porta+,e Audio.

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i.< .< .i< .ii<

/ame. InB*ar entertainment. Mo+i,e phones. &torage and %ecording media.

.iii< Batteries and *harger. .iv< ther Accessories.

S7;E Promotion Brie: /ntroduction+
Promotion is a key e,ement of marketing program and is concerned 2ith effecti-e,y and efficient,y communicating the decisions of marketing strategy( to fa-ora+,y inf,uence target customers6 perceptions to faci,itate e0change +et2een the marketer and the customer that may satisfy the o+>ecti-e of +oth customer and the company. A company6s promotiona, efforts are the on,y contro,,a+,e means to create a2areness among pu+,ics a+out itse,f( the products and ser-ices it offers( their features and inf,uence their attitudes fa-ora+,y.

Sony ,ar-etin% 'ommunication ,i.+
&ony Pakistan 2i,, spend %s 200 crore in this financia, year on ad-ertising and promotion EPromotiona, BudgetF of the entire range of consumer e,ectronics( out of 2hich %s =0 crore 2i,, +e spent on,y on digita, imaging products.
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The ma>or e,ements of promotion mi0 inc,ude ad-ertising( persona, se,,ing( sa,es promotion( direct marketing( and pu+,icity. &ony *orporation has used a,, of these marketing communication mi0 e,ements.

Advertisin%
Ad-ertising is any paid form of nonBpersona, mass communication through -arious media to present and promote product( ser-ices and ideas etc. +y an identified sponsor. &o far( & "' has ad-ertised its products through many different 2ays and media. Through T$ 2e ha-e seen different ad-ertisements of its products such as Bra-ia te,e-isions or &ony 2ega T$. &ony a,so ad-ertise its products +y targeting those fa-ora+,e te,e-ision programs( ,ike sports( series and a,so it has its o2n channe, ca,,ed &ony T$ channe,. A,so( &ony has ad-ertised its games ,ike P,ay station 6( P,ay station 2 and P&P using sports ,ike foot+a,, in !ng,and premiere ,eague. Through ne2spapers ,ike DA."( The "!.&( etc. &ony has ad-ertised a 2ide range of products it offers to its customers. And a,so through Posters a message has +een sent to a ,ot of peop,e to +e a2are of the products 2hich &ony offers. &ony a,so uses direct – response advertising. This is type of ad-ertising that encourages the consumer to respond either +y pro-iding feed+ack to the ad-ertiser or p,acing the order

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2ith the ad-ertiser either +y te,ephone( mai, or the internet. &uch ad-ertising is done through direct mai, or cata,ogues. &ony incorporates co-operative advertising in its ad-ertising process. &ony *orporation pro-ides the dea,ers Ee.g. &ony .or,dF 2ith the materia,s and guide,ines to de-e,op ads for print( te,e-ision or radio commercia,s. This ensures that message is in ,ine 2ith( 2hat the manufacture 2ants to communicate. The company and the dea,ers usua,,y share the media costs and hence( the name 7coBoperati-e ad-ertising6.

Sales Promotion
&a,es promotion is a marketing discip,ine that uti,i;es a -ariety of incenti-es techni?ues to structure sa,es 8 re,ated programs targeted to customers( trade( and@or sa,es ,e-e,s that generate a specific( measura+,e action or response for a product or ser-ice. &a,es promotions for e0amp,e inc,udes free samp,es( discount( re+ates( coupons( contents and s2eepstakes( premiums( scratch cards( e0change offers( ear,y +ird pri;es( etc. &ony has promoted its products through different sa,es promotiona, strategies. 4or e0amp,e after the re,ease of the &ony B%A$IA te,e-ision sets( &ony promoted them +y ear, +ird pri;es +y saying that a,, B%A$IA fu,, 1D L*D

93

T$s purchased during Iu,y 2009 and registered 2ithin t2o 2eeks of purchase ?ua,ify for a Bonus P,ay station 6 as ,ong as the customer c,aims is one of the first 67(000 recei-ed and -a,idated +y &ony. A,so &ony has promoted its &ony !ricsson P5i phones +y inc,uding a scratch card 2hich gi-es the customer the offer to do2n,oad 50 free soft2are app,ications for that mo+i,e phone. &ony !ricsson has a,so promoted its &ony !ricsson )770i MidB %ange *y+erBshot Phone that if you +uy it you get a free B,uetooth headset 2ith one year manufacturer6s 2arranty.

Public Relations and Publicity
Pu+,ic re,ations is a +road set of communication acti-ities emp,oyed to create and maintain fa-ora+,e re,ationship 2ith emp,oyees( shareho,ders( supp,iers( media( educators( potentia, in-estors( financia, institutions( go-ernment agencies and officia,s and society in genera,. Through its 2e+site( &ony *orporation has its pro-ided contacts for those customers 2ho 2i,, +e in need of any information from the company. In this 2ay &ony can create a mutua, re,ationship 2ith its customers and ensure that it ser-es the 2ishes and demands of its customers. #np,easant situations arising as a resu,t of negati-e e-ents may precipitate unfa-ora+,e pu+,ic reactions for an organi;ation. To
94

minimi;e the negati-e effect of such situations ,eading to unfa-ora+,e co-erage( the company has po,icies and procedures in p,ace to manage he,p any such pu+,ic re,ation pro+,ems. 4or e0amp,e( &ony re,eased an ad depicting a man smi,ing to2ards the camera and 2earing on his head a cro2n of thorns 2ith +utton sym+o,s EU( ( T( 9F. At the +ottom( the copy read as HTen 'ears of PassionH. This supposed,y took ad-antage of the pu+,icity from the Me, /i+son fi,m The Passion of the *hrist. The ad-ertisement outraged the $atican as 2e,, as many ,oca, *atho,ics( prompting comments such as H&ony 2ent too farH and H$atican e0Bcommunicates &onyH. After the incident( the campaign 2as ?uick,y discontinued. Another e0amp,e is that( In Iu,y 200=( &ony re,eased a Dutch ad-ertising campaign featuring a 2hite mode, dressed entire,y in 2hite and a +,ack mode, gar+ed in +,ack. The first ad featured the 2hite mode, c,utching the face of the +,ack mode,. The 2ords H.hite is comingH head,ined one of the ads. The ad has +een -ie2ed as racist +y critics. A &ony spokesperson responded that the ad does not ha-e a racist message( saying that it 2as on,y trying to depict the contrast +et2een the +,ack P&P mode, and the ne2 ceramic 2hite P&P. ther pictures of the ad campaign inc,ude the +,ack mode, o-erpo2ering the 2hite mode,. &o it6s the duty of the pu+,ic re,ation department of &ony to so,-e such issues as mentioned a+o-e so as to ensure that it maintains a good pu+,ic re,ation 2ith the pu+,ic.

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S7;E Place =Distribution?
Decisions 2ith respect to distri+ution channe, focus on making the product a-ai,a+,e in ade?uate ?uantities at p,aces 2here customers are norma,,y e0pected to shop for them to satisfy their needs. Depending on the nature of the product( marketing management decides to put into p,ace an e0c,usi-e( se,ecti-e or intensi-e net2ork of distri+ution( 2hi,e se,ecting the appropriate dea,ers or 2ho,esa,ers. &ony +eing the company 2hich positions itse,f as a se,,er of dura+,e and highBend products( it is practicing selective distribution of its products from the se,ecti-e dea,ers i.e. & "' .or,d. Apart from this there are grey-markets in Pakistan and other countries 2here a practice of intensive market coverage is practiced( and the products in these kinds of markets norma,,y do not posses a,, the features and +enefits 2hich &ony offers e.g. 2arranty and guarantee. &ony distri+utes its products in -arious channe,s. It uses SeroB,e-e, channe,( one ,e-e, channe, and t2oB,e-e, channe,. In Pakistan( &ony has used the method of one-level distri+ution channe,. This means that( customer +uys their &ony product from the retai,ers recogni;ed +y &ony( and these retai,ers +uy the products direct,y from the company itse,f.i.e.

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,anu:acturer

Retailer

'ustomer

Through the internet( &ony has he,ped its customers to find the nearest retai, shop 2here they can +uy the &ony products. A,, you ha-e to do is to go to their 2e+site e.g. 222.sony.co.in@section@shop and specify the product and ,ocation. Then it 2i,, disp,ay a,, the nearest retai, shop a-ai,a+,e.

S7;E Price
Pricing decisions are a,most a,2ays made in consu,tation 2ith marketing management. Price is the on,y marketing mi0 -aria+,e that can +e a,tered ?uick,y. Price -aria+,es such as dea,er price( retai, price( discounts( a,,o2ances( credit terms etc. inf,uence the de-e,opment of marketing strategy( as price is a ma>or factor that inf,uences the assessment of -a,ue o+tained +y customers. *ustomers direct,y re,ate price to ?ua,ity( particu,ar,y in case of products that are ego intensi-e of techno,ogy +ased. &ony +eing a company 2hich emphasi;es product ?ua,ity( it tends to se,, its
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products 2ith price range from moderate,yBhigh to highBprices( depending on the use and the targeted customers. 4or e0amp,e( ,etNs consider &ony series of $AI ,aptops.

&ony has tried to categori;e the ,aptops according to sty,e( user( purpose( mo+i,ity and performance( and each a corresponding price. The ,aptops so,d +y &ony in India inc,ude a series of &ony $AI ( this are $AI $AI &%( $AI 4.( and $AI &S. tokage( $AI *%( $AI "%( TS and $AI $AI

&%( +oast on the e0ce,,ence in mo+i,ity and perfection

in performance. This ,aptop 2as designed for +usinessmen and its price is around %s. 87(000@B $AI 4.( +oast of theatrica, e0perience and 2or,d c,ass

performance. This mode, 2as designed main,y for home user or casua, user of ,aptops 2ho aims on media p,ay+ack. The price of it is around %s. 90(000 and %s.5( 27(000. $AI *%( +oast on sty,e and te0ture. Depending on the

configuration( the prices are from %s. :0(000 to %s. =7(000.. $AI "%( +oast of natura,( chic design. It 2as designed to meet

customerNs am+iance and ,ifesty,e. 4or this reason the &ony *orporation has decided the price of the ,aptop to +e %s. :0(000 and %s. 70(000 depending on the configuration. $AI TS( +oast of e,ite ,ifesty,e( and high c,ass

performance. The ,aptop 2as designed purpose,y for +usiness as it is ,ight 2eight( high processing speed( and f,ash memory storage

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and ,onger +ackup po2er. 4or a,, this facts &ony has priced it to +e +et2een %s. 5(57(000 and %s. 50(000. $AI &S( +oast of premier mo+i,ity and e0ecuti-e

e0ce,,ence. This ,aptop 2as de-e,oped +y &ony to target e0ecuti-es and +usiness peop,e 2ho are mo+i,e. The ,aptop is fitted 2ith hy+rid hard disk dri-e and motion eye camera and B,uetooth compati+,e headset 2ith app,ications for increasing mo+i,ity and -ideo conferencing. Its price is a+out %s. 5( 2000.

Promotion Strate%y o: Sony JA/7 Promotion Strate%y
Promotion is the communicated process to the market +et2een +uyer( se,,er( retai,er or others. /i-ing the information such as persuasion is recogni;ed a+out +rand and product 2e,,. Promotion is -ery inf,uence to change the attitude( +e,ief( fee,ing and target marketNs +eha-ior. According to &ony $AI to communicate of its promotion( $AI gi-es importance is a +rand that is successfu,

in term of promotion +ecause it chooses the right key promotion strategy. & ( 2hat is key promotion strategy of $AI D Making +rand is accepted and p,eased not on,y in term of product +ut a,so promotion.

Pull strate%y
$AI uses pu,, promotiona, strategy that attracts consumers on ad-ertising to +uy or demand for product. *onsumers recei-e direct,y information from the media on T$( radio( +i,,+oards( ,eaf,et(

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Internet( and mo+i,eBads etc. This strategy can se,, the product 2ithout suggestion of se,,er.

Advertisin%
$AI uses ad-ertising to communicate to consumers.

Moreo-er( it c,assifies its segmentation to communicate direct,y 2ith each ages or ,ifesty,es of consumers. Message on ad-ertising must c,assify to depend on target group +ecause they are different such as teenager or young. Those target groups 2ant note+ook to ref,ect to their ,ifesty,es. #sing message to make recognition a+out functiona,( smart( coo,( and modern is a-ai,a+,e for teenage or young. Besides( the o+-ious promotiona, strategy is taken an emotiona, ad-ertising instead of representing performances. "o2adays( $AI is entering to a stage of an emotiona, +enefit. uses %epresenting on,y an ad-ance techno,ogy isnNt enough( $AI

the emotiona, ad-ertising to make consumer fee,ing accompany 2ith $AI . An emotiona, aspect is made consumer to +e proud 2hen they use $AI and fee, re?uired to possess it. 4or e0amp,e of $AI ad-ertising campaign( O&ho2 It 2ith 'our $AI P this ad-ertising emphasi;es fee,ing and pride to possess and use $AI .

Public relationshi$
*orporate socia, responsi+i,ity is pu+,ic re,ationship. &ony $AI has ad-antages of pu+,ic re,ationship from the corporate +rand to take the good +rand image. The &ony /roup recogni;es that its +usinesses ha-e direct and indirect impact on the communities in
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2hich it operates. 4ind out ho2 &ony is contri+uting to2ards +eing a positi-e g,o+a, citi;en.

'ommunity
The goa, of supporting positi-e re,ationships 2ithin the communities in 2hich 2e 2ork in( &ony engages in a myriad of acti-ities to address appropriate,y the ,oca, needs and a,so encourages emp,oyees to p,ay an acti-e ro,e in their communities. 4or e0amp,e( &omeone "eeds 'ou is a g,o+a,( inBhouse -o,unteer program designed to enhance community re,ationships.

*nvironment
&ony recogni;es the importance of preser-ing the natura, en-ironment in order to create a supported society for the future generations. &ony is committed to achie-ing this goa, +y seeking to com+ine nonstop inno-ation in en-ironmenta, techno,ogy coup,ed 2ith en-ironmenta,,y sound +usiness practices.

'SR Re$ort
The annua, *&% report is one of the efforts +y &ony in ensuring accurate disc,osure and effecti-e communications 2ith its
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stakeho,ders. This report summari;es the *&% acti-ities undertaken +y &ony /roup 2or,d2ide during the financia, year.

S$onsorshi$
&ony is an acti-e sponsor. &ony understands that sponsorship is its responsi+i,ity to assist ,ikeBminded organi;ations to he,p them achie-e their goa,s. 4or e0amp,e of sponsorship( &ony supports the Insight ut pro>ect( &ony Thai support &ho2room T$ Program( and &ony Thai supported the 6=th *harity Ba;aar. EInformation from httpC@@222.sony.co.th@F

Push strate%y
Besides $AI uses pu,, strategy( it a,so uses push strategy to

enhance its promotion more and more. Push strategy is a promotiona, strategy that is used for increasing consumer to demand the product +y trade promotion acti-ities. Moreo-er( using sa,e promotion or persona, se,,ing is kinds of persuasion consumer.

Sale $romotion
&a,e promotion is a marketing discip,ine that uti,i;es a -ariety of the incenti-e techni?ues to structure sa,e. &ony has promoted its product through different sa,e promotiona, strategies. 4or e0amp,e(

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distri+uting a premium product is a standard promotion. The premium product is accessories that are case J pouch( mouse( docking station( and micro -au,t. These premiums supported a+so,ute,y $AI users to enhance 2hen using it. 4urthermore( $AI for uses the sa,e promotion of priceBoff especia,,y in *ommart TA/en Thai,and or &ony Day LetAs *heer that consumer can +uy $AI the specia, price. 4or e0amp,e( $AI and pay +y insta,,ments ;ero presents 2ithin a year. *& series discount 2(000 Baths

Personal sellin%
Persona, se,,ing has an importance to +e inferior to ad-ertising campaign. In $AI to kno2 more information. $AI communicate $AI store( the sa,e force makes the good has training the sa,e force to re,ationship and 2i,, communicate 2e,, to costumer 2hen they 2ant information +oth its product and entertainment dea,ers

from $AI . They must ha-e the techno,ogy kno2,edge to re,ate 2ith product to teach consumer. Persona, se,,ing has e-ery $AI that is a force promotion in high,y competitors.

*vent I road sho2

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*onsumers can reach the product easi,y +y e0hi+iting in e-ent and road sho2. "o2adays( e-ent and road sho2 are -ery popu,ar +ecause it can sho2 the potentia, company though represents decorating store that is modern( ,u0ury( and high techno,ogy. &ony ha-e e0hi+ition inc,uding $AI consumer. $AI note+ook P*. There are presentations a+out ne2 inno-ation and product to has e-ent and road sho2 such as &ony Day 200< LetAs *heer( &ony 4esti-a, 200< B LetAs *e,e+rate( *ommart TA/en Thai,and 200<( Po2er Ma,, !,ectronica &ho2case V &iam Paragon 200< etc. *onsumers ha-e the pri-i,ege such as( touching product( asking information( discounting price( distri+uting sou-enirs and other specia, promotions.
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!0amp,es of ad-ertising campaigns

Advertisin% JA/7 AW on 'atalo%
This ad-ertising is ad-ertising on $AI distri+utes in $AI cata,og that it store( e-ent( and road sho2. *ustomers can read

its information on cata,og +efore purchasing. This ad-ertising is -ery ,ooked the professiona, performance. Let ana,ysis this ad-ertising.

'ore communicative messa%e+
This $AI $AI ad-ertising emphasi;es to gi-e its information to customer. There is the information a+out its performance such as A. is perfect for +oth professiona, photographers and photo A. incredi+,y smooth. enthusiasts and the characteristic of product is high definition -ideo on $AI

Product uniFue sellin% $oint+
$AI A. has the uni?ue se,,ing point for the de,u0e design. deser-es an e0traordinary ,ook. The design is

An e0traordinary $AI

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a-ai,a+,e for man 2ith +ack co,or and sho2 the smart product. Besides( $AI A. emphasi;es the uni?ue se,,ing point a+out the A. to >oin 2ith products feature of &ony &ociety that can use $AI &ony A,pha camera.

Advertisin% im$act+
This ad-ertising has the impact for desire. It is desire for customer 2ho 2ants a note+ook to +e perfect 2ith an integrated co,or management system to support taking photo and 2atching mo-ie.

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Advertisin% JA/7 'S on ,a%aDine
This ad-ertising promote $AI the concept of Inspired +y sensua,ity. *& on maga;ine such &tudent .eek,y. It uses a teenage actor 2ho is Pattie. This ad-ertising has

'ore communicative messa%e+
To communicate to customer especia,,y teenager and young. There are the ne2 products $AI
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*& for fi-e co,ors to

separate 2ith the persona,ity. 4or e0amp,e( +ro2n ref,ects artist or pink ref,ects sua-ity. Moreo-er( communication a+out its feature has the detai, of ram( p,atform( screen si;e( hard disk etc and communication a+out product positioning is modern and co,orfu,.

Product uniFue sellin% $oint+
The design to ref,ect the ,ifesty,e is the uni?ue se,,ing point 2ith the co,orfu, design. #sing co,or ref,ect not on,y persona,ity +ut a,so fee,ing and inspiration. There are fi-e co,ors 2ith the +eautifu, design. The second uni?ue se,,ing point is the presenter 2ho is -ery famous for teenage and young person to ref,ect +rand positioning.

Advertisin% im$act+
This ad-ertising has the preference for teenager and young 2ho are ,ooking for the +eautifu, co,or note+ook design. Ad-ertising has an emotion aspect that target group 2ant to +uy and possess it.

Advertisin% cam$ai%n on )J
This is introducing the ne2 &ony $AI P &eries on $AI commercia,. It is -ery interesting for consumer 2ho is ,ooking for the second note+ook to support their ,ifesty,e. The ad-ertising has +enefit to communicate its message to consumer. I 2i,, ana,ysis into three parts.

'ore communicative messa%e+
This aim ad-ertising gi-es the information to audience that it has a ne2 re-o,ution produce to attain in their creation. There are more co,ors 2ith the modern design. This product has the positioning
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to represent the mo+i,ity to carry easi,y and sho2 +rand image 2hich is the ,eader of techno,ogy to +e fashiona+,e ,u0urious( and modern.

Product uniFue sellin% $oint+
The outstanding of this ad-ertising represent the ,ifesty,e that users are the modernist to concentrate 2ith using a con-enient note+ook +ecause there are popu,arity a+out using note+ook to +e the ne2 accessory. "e0t( ha-ing the unusua, design that it is the 2or,d ,ightest note+ook 2ith consist of feature or co,or differs form competitors. The premium design has a g,ittering co,or and a key+oard.

Advertisin% im$act+
This ad-ertising is easi,y understood in the message. It ref,ects to consumer 2ants in no2adays. It +ui,ds an emotiona, aspect for this product to 2ant to process or to +uy especia,,y 2orking 2oman.

'onclusion
In my opinion( I think the current marketing mi0 2hich &ony *orporation has is satisfactory to customer needs. As it can +e *,eary seen that &ony as a company has e0panded its products and ser-ices from e,ectronic and digita, de-ices to te,e-ision +roadcastingEi.e. &ony home entertainmentF and entertainments ,ike music Ei.e. &ony BM/ music entertainmentF and mo-ie production and distri+ution Ei.e. &ony PictureF.
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In pro-iding a 2ide range of products and services 2ith high ?ua,ity( &ony has +y far inf,uenced most of the customerNs perception fa-ora+,y to2ards its products. 4rom time the company 2as created ti,, no2( the ?ua,ity of the products that &ony offers is impro-ing each year( a,though there are some occurrence of defects ,ike that of defect on ,aptop +atteries 2hich 2ere so,d and got e0p,oded and caught fire in Iapan has caused the company a great ,oss as it had to reca,, a mi,,ion of those defected +atters( and a,so this issue degraded the company6s reputation. But the o-era,, products offered +y &ony to my opinion 2i,, sti,, +e of +est ?ua,ity. !-en though the prices imposed +y &ony seems to +e fair 2ith consideration of the ?ua,ity of the products and ser-ices offered ( The on,y pro+,em is that( &ony has priced its products too e0pensi-e,y for a midd,e or ,o2er c,ass customer to afford to +uy those products. Apart from that &ony has targeted its market main,y to ur+an customers as are the on,y customers 2ho can afford such e0pensi-e products. In my opinion( I think &ony has to create a,so some of ,o2 end products 2ith ,o2 prices 2hich can +e afforda+,e to ,o2 income users. As I ha-e mentioned a+o-e( In the case of place Edistri+utionF( &ony has targeted its markets in the ur+an areas( in +ig cities ,ike )arachi( Mu,tan( Lahore( %a2a,pindi( and Is,ama+ad. !tc. In most of a,, this p,aces( &ony has more than four different distri+utors ,ike &ony 2or,d and a,so they ha-e &ony ser-ice centers. &o( 4or the customers in ur+an areas the supp,y seem to +e satisfactory( though the rura, areas are ,eft out.
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Biblio%ra$hy
&ony Laptop *ata,ogue( August 2009 httpC@@en.2ikipedia.org@2iki@&ony httpC@@222.sony.co.in httpC@@en.2ikipedia.org@2iki@&onyWPicturesWTe,e-ision httpC@@222.sa,espromo.co.uk@artic,e@:0 httpC@@en.2ikipedia.org@2iki@&onyWPicturesW1omeW!ntertainment httpC@@222.+randage.com@Modu,es@DesktopModu,es@Artic,e@Artic,eDe tai,.asp0D ta+IDX2JArtic,eIDX528:JModu,eIDX25J/roupIDX75: httpC@@222.youtu+e.com@2atchD-X0>WI7s#.,d9 httpC@@222.sony.co.th@section@csrDsiteXhpWenWT1Wi httpC@@222.sony.co.th@section@e-ents httpC@@222.sony.co.th@section@promotions 5. Ad-ertising Management Q concepts and cases Mahendra Mohan. 2. Marketing Management Q Phi,ip )ot,er 6. Branding Q /eoffrey %ando,, :. &trategic Brand Management Q )apferer 7. Ad-ertising and &a,es Promotion Management Q &.L./upta( $.$.%atra

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=. Princip,es and Practice of Marketing Q *.B. Memoria and %.L.Ioshi 8. Ad-ertising and &a,esmanship Q P.&ara-ana-e,.

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