Tuesday, October 17, 2006

The Advent of Promotional Marketing ...

After a short holiday, I am back to blogging. This time, again with a Published Marketing Funda. The other day, I was reading the supplement of “The Economic Times“, which had this novel marketing technique named, Promotional Mktg. This post is all about the salient bullets of that article.

Promotional Mktg. was told as a tactical planning program and execution exercises for a brand, using the full mix of business & consumer communication methods. It is basically designed to re-inforce sales & build image. The field includes, gifts, value added offers, consumer contests, P-O-P displays, coupons, loyalty programs etc.

The article differentiates advertising from the above, by highlighting that, the former creates awareness about the product and gives a “ Reason to Buy “ but, the latter goes a step further by giving the consumer a “ Reason to Buy Now “.

A caveat which is to be considered in exploiting this strategy was, while a freebie offer, one should keep in mind that it should be a logical extension of the product / service being sold. An instance quoted was, Whirlpool’s association with Ariel for its washing machines is a good brand-fit unlike, offering a facial cream with a pack of tea.

Finally, some of the things which Promotional Mktg. can & can’t do were highlighted.

Can’t Do’s :

@ Overcome some of the core brand problems like,

Pricing – Product Quality – Packaging – Product Performance

@ Reverse a long term declining sales trend

@ Fix weak brand positioning

@ Compensate 4 inferior advertising executions

Can Do’s :

$ Generate awareness & trail 4 new brand

$ Encourage repeat purchases

$ Temporarily adjust pricing

$ Defend against competitive activity

$ Excite the sales force

The Indian Promotional Mktg. industry is excpected to grow from current Rs.1000 Cr. to Rs.8000 Cr. by 2010.

# Article Source : A White Paper by Kidstuff Promos & Events

Smile Always,

Raja Gopal.


At October 20, 2006 2:34 pm, Blogger Ravi Shankar said...

its realy good post .

itna to tune college me nhai padha tha.knha se seekha ye sab

At October 20, 2006 6:16 pm, Anonymous Narendra said...

I think a facial cream with a pack of tea is also logical in indian middle class (whr mass of consumer belongs)

as we observe that tea is a kichen / food item which women handle at homes most of the population thus adding a facial cream may compell women buyers for the particular tea...

At October 20, 2006 6:20 pm, Anonymous Narendra said...

sir are you somehow related with Coke. \
I mean your profile pic is promoting the coke brand

At October 21, 2006 9:48 am, Blogger Rajesh Rana said...

Happy Diwali.....


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