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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

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.

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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