Strategic Marketing Management
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Chapter 17 : Advertising and Sales Promotion Strategies
Promotion Strategy
Components of Promotion
Developing a Promotion Strategy
Budgeting Approaches
Advertising Strategy
Developing an Advertising Strategy
Advertising Objectives
Advertising Budgeting
Creative Strategy
Media Strategy
Role of Advertising Agency
Sales Promotion Strategies
Nature and Scope of Sales Promotion
Planning and Managing Sales Promotion
Sales Promotion Activities
Evaluating the Effectiveness of Sales Promotions
Chapter Summary
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Promotion is an important component of the marketing mix, the other
components being price, product, and place. The key components of promotion
include personal selling, direct marketing, advertising, sales promotion,
and public relations. Developing a promotion strategy involves deciding on
the objectives of marketing communication, deciding the role of each of the
components of the promotion mix, budgeting, and strategy development for the
promotion mix components. Promotion objectives determine the role of each of
the components of the promotion mix in the marketing objectives of the
organization. The role of the promotion mix components depends on the type
of organization, nature of products, and so on. Budgeting for promotion
makes use of various approaches like the top-down approach (percentage of
sales, affordable method, arbitrary allocation, and competitive parity) and
bottom-up approach (pay out planning, objective task method, and
mathematical models). Integrated Marketing Communication is a concept which
recognizes the advantages of having a complete plan to find better ways of
understanding and connecting with consumers. |
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An advertising strategy is a statement which provides information on the
competitive framework, target market, and messages to be used in an
advertising campaign for a specific product or service and so on.
Advertising objectives help to fix advertisement expenditure, type of
advertisements to be used, most suitable media, frequency of the ad
campaign, method for evaluating the effectiveness of advertisements, etc.
Various methods of budgeting like percentage of sales method, competitive
level method, task method, and the breakeven method are commonly used in
organizations for advertising budgeting.
Creativity plays an important role in advertising and various creative
strategies like information, argument, image, emotion, and entertainment are
used in advertising. Media strategy involves developing a media plan and
media objectives. Advertising agencies are organizations that design,
create, and also manage the production of advertisements for their clients.
These will ultimately help to enhance the profits of the clients. Sales
promotion is aimed at increasing sales in the short term. Two types of sales
promotion – consumer sales promotion and trade sales promotion are generally
used. Sales promotions make use of various tools like price promotions,
coupons, sweepstakes, competitions, gifts, and so on.
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