Module 5
Module 5
Advantage to Consumer
Facility of Purchasing
Improvement in Quality
Elimination of unnecessary intermediaries
Consumer’s Surplus
Education of Consumers
Multiplication of Needs
Misrepresentation of facts
Consumer’s Deficit
Increased Cost
Barriers to Entry
Product Proliferation
Inefficient Manufacturers Stay in Business
Propensity to consume
Deferred Revenue Expenditure
Managerial Difficulties
Sales promotion is a marketing strategy in
which a business uses a temporary campaign
or offer to increase interest or demand in its
product or service.
Middleman Promotion
Buying Allowance Discounts
Buy Back allowance
Display and advertisement allowance
Dealer listed promotion
Push money or PM’s
Sales contests
Advertising Material
Credit Facility
Getting New Customers for Exiting Product
Stimulating Middlemen
Motivating Demand during off-season
Motivating the sales representatives
Facing the competition
Extra Benefits
Information of latest Products
Helps in managing budget
Increased Price sensitivity
Quality image may become tarnished
Merchandising support from dealers is
doubtful
Short-term orientation
Attracting new customers at the cost of
Existing ones
Easy Imitation
Lowers Margins
According to Richard R Alford
Extra Income
Raises Standards
Status
Career Security
PR involves communicating with your market
to raise awareness of your business, build
and manage your business's reputation and
cultivate relationships with consumers. While
marketing focuses on promoting actual
products and services, public relations
focuses on promoting awareness, attitudes
and behaviour change
Objective
Message
Targeting
Low cost form of communication
Credibility
Uncontrollable
Press, Radio and TV
Media Tour
Newsletters
Special Events
Sponsorship
Employee Communication
Opinion Building
Market Monitoring
Customer Services
Strengths of PR
-Credibility
-Low Cost
-Effective
Weakness of PR
-May not appear in media
-Incapable to Link message
-Fail to achieve objective
-Brief Life
-Incapable of changing perception
Personal Communications
Specific Objectives
Prospecting
Targeting
Communicating
Selling
Servicing
Information Gathering
Allocating
Other Objective
Allocating the product
Counselling the unhappy customers
Company plans for remedying shortages
Selling company products that are not in shortage
During product abundance trying to win customer preference