Chapter 12

Promotion, Advertising,
and Sales promotion
Strategies
 Content

Promotion strategy, advertising strategy, and sales

promotion strategy.
Components of promotional strategy
Developing promotion strategy, determining the
budget, and implementing it.
Advertising strategy’s objectives & budgeting.
Role of advertising agency.
Implementing an advertising strategy.
Sales promotion strategy & activities.
Advantages & limitations of sales promotion strategy.
 Introduction

A successful product or service means

nothing unless the benefit of such a
service can be communicated clearly to
the target market.
Therefore, we are going to discuss the
promotion, advertising, and the sales
promotion strategy which is a vital part
of the positioning strategy.
•Promotion strategy: consists of planning,
implementing, and controlling an organization's
communications to its customers and other target
audiences.
•Advertising strategy: any form of non personal
communication concerning a product that has an
impact on buyers, and should deliver a message for its
audience.
•Sales promotion strategy: aims at improving a
company's sales by modifying your target customers
purchasing behavior and patterns. It helps to boost
sales and also helps a business to draw new customers
while at the same time retaining older ones.
Promotion
strategy

Components of
promotion
strategy
Developing a promotion strategy
Illustrative communication objective
Deciding the role of promotion components

Specify each promotion component role

and contribution in the strategy.

Decide each component's part of the

budget.

Communication objectives will help in

deciding the role of each component.
 Determining the promotion budget

There are many factors that influence sales and

promotion; so we need to consider these factors
in determining the budget. Using the following
methods:
Objective & task: is a cost- effective method,
where management sets the tasks necessary to
achieve the objectives, and then the cost is added.
Percent of sales: a method that calculates the
budget as a percent of sales, but it fails to
recognize the promotion efforts and results
related.
 Cont ,,,

Competitive parity: a method that studies

how much competitors spend on their
strategies. Not necessarily comparable.
All you can afford: top management limit all
budget decision, they specify the amount
should be spent.
Budgeting in practice: it is a combination of
rational, political, and expedient actions.
Characteristics of integrated marketing
communications:

Should be comprehensive
Unified
Targeted
Coordinated with the all the components
Emphasize reaching the designated targets
 The advertising strategy objectives
are more closely linked to the
purchase decision, like:
Advertising
strategy Expose communication to target
audience
Objectives, Create awareness
budgeting, Change attitudes
and creative Increase sales
strategy Generate profits
 Cont ,,,
Budgeting determination
Like the previously mentioned methods of
budgeting, the objective – task method is the best
one.
Creative strategy
Is guided by the market target and the desired
positioning strategy for the product or brand.
The creative theme seeks to effectively
communicate the intended positioning to buyers
and others influencing the purchase or brand.
Provide a unifying concept that binds together the
various parts of an advertising campaign.
 Role of advertising agency

Develop creative designs and select media.

Offer a range of services including marketing research,
sales promotion, & marketing planning.

The relationship with the advertising agency should be

cooperative; the client briefs an idea about the
company's concept and core business, so that its
strategy would be effective.

Some agencies are compensated by a commission

percent, depending on the results. However, some
problems may rise where agencies work with
competitors.
Implementing the advertisement strategy &
measuring its effectiveness
Decide how to measure the effectiveness of
the strategy before implementing it.
Assign responsibility for tracking
performance(not necessarily through
measuring the sales , but also through
advertising research, testing the market,
longitudinal studies tracking the advertising
expenditures, cash register )
Assess the quality of advertising.
 Sales promotion strategy

Consists of various incentives that are

intended to accelerate the selling process to
build sales volume.
The strategy process is similar to the design
of advertising strategy.
Its scope is difficult to identify; because the
activities included are included in various
departments & budgets.
 Sales promotion activities & targets

Activities include trade shows, specialty advertising,

contests, displays, coupons, recognition programs,
and free samples.

Sales
promotion
target
Consumer Sales people
buyers

Business
buyers Value chain
Advantages & limitations of sales promotion
strategy

Some people may take advantage of the

free coupons, free offers, and other
incentives.
Value – added sellers may build
inventories on products manufacturers'
trade discounts.
Incentives & price promotional
incentives need to be monitored.
Thank you for listening

Mera G. Al Horani