1.

Overview of promotion
2. Communication process
3.Set up promotion budget
4.Decide promotion-mix
5.Promotion strategy
6.Control promotion
1.1 Concept

 Promotion – P4
Promotion-P4 is the efforts of enterprise to
inform, persuade, remind and encourage
customers to buy products as well as
understand about enterprise. Thanks to
promotion, enterprise can sell more and
faster.
1.2 The role of promotion in Marketing-mix

Marketing-
- Product
mix
- Price Target
Promotion-mix - Place market
- Promotion
- Advertisement
- Direct sales
- Promotion
- Public relations
- Direct marketing
1.3 Target of promotion
In the market mechanism, media is a means of
affecting to consumers. Three major objectives of
promotion are:
 Notification, provide information about the product
and its benefits when the customer does not
understand the product.
 Convince customers that the benefits of the product
outweigh the cost so they decided to buy the
company's products.
 Create a good image and confidence in products
when customers don’t know anything about the
product and not entirely on the value of the product.
 Unknown
Enlargement Forget
Know about
the product Not
Information Understand
Understand the
product
Trust Doubt
Believe in the
product
Awareness Not
the benefit Concerned
Purchase
1.4 Significant role of promotion.
 Makea difference for the product, market segment,
promote consumption, branding
 With these new products, they may need information
about styles and features to building good customer’s
attitude to the products
 Forthose products that customer can identify, the
company should persuade to change the perception to
be preferred.
 For
the most commonly used products that need a
reminder to increase the reliability of multi-consumer.
1.5 Benefits of promotion
1. Build an image for the company and products
2. Give information about the characteristics of the product
3. Build awareness of the new product
4. Promote existing products
5. Relocate the image or the concept of the slow or saturated
products
6. Create enthusiasm for distribution of members
7. Introduction of sales locations
8. Convince customers to change products.
9. Promote other product purchases
10. Prove the reasonableness of the price
11. Build strong relationships with customers
12. Provide good after sales service for customers
13. Maintain brand loyalty.
14. Create advantage for the company from the
competitors.
 2.1 Factors of communication process

Sender Encoding Message Decoding Receiver

Media

Noise

Feedback Response
2.2 The task of the sender in the needed field of
marketing.
 Find out target customers
 Determine wanted response.
 Select information.
 Select means of communication
 Select characteristics of information.
 Collect information from different channels.
2.3 Steps of making an effective communication
process
1. Determine target audience: are individuals or
groups of customers which have influence on sender’s
decision
- Select display problems
- Select presentation methods
- Select the time of presentation.
- Select presentation position
- Select presentation’s object
2.4 Determine purpose of communication :
- Sometimes, because of subjectivity, customers
don’t have reaction as expected and have not
decided to buy products.
- Promotion must change consumer attitude of
customer in the way that can bring benefit for us.
Understand the reaction of customers in order to
receive worthy important information
 Model of customers response
Steps AIDA Scale of Initiative-
reaction accepted

Awareness Attention Know Awareness

Knowlegde

Emotion Interest Satisfied Interest

Desire Interest Evaluation

Trust
Behavior Action Trial
Purchase
Adoption
 AIDA Model
- Attention: create attention to brand name.
- Interest: like the product
- Desire: want to buy and own the product
-Action: search information, feel and take
action
 Moâ hình “thang hieäu öùng”
- Awareness: show target market necessary information:
product name, brand name, logo…
- Knowledge: information about products
- Liking: level of satisfaction and desire
-Preference: show features, values, characteristics of
product to customers to make the product be more
preferable
- Conviction: change from liking to conviction
- Purchase: change from believe to purchase product
 Moâ hình “saùng kieán-chaáp nhaän”
- Awareness: let the target market know about the
product
- Interest: make customers be interested in the
product
- Evaluation: good assessment about the product
- Trial: try the product.
- Adoption: come to a decision that want to buy
and own the product.
3. Design communication content
- Content: based on unique selling propositions,
rationality, emotion, spirit, …
* Rationality: outstanding quality, economic,
high-value…
* Emotion: negative (tooth decay, bone
thinning..) or positive (proud, interesting…)
* Spirit: Ford, Sony-always think of
environment. Pomina Steel-Dream house,
Honda-Traffic safety
- Content of communicative structure:
* Represent in order.
* Convincing argument
* Give an conclusion for customers to think and decide
themselves.
- Forms: suitable to each specific cases
* Edition: title, text, illustration, colors
* Radio: language, words, how to read, sound
* Televison: face, body, gesture, clothes
* Package: color, materials, size, shape
 Unique selling proposition:
- - As point emphasized with customers.
- Not all functions of the product.
- The independent and unique features of products
which competitors do not have.
 For example:
 Cosmetics: hope
 Fertilizers, pesticides: higher profit
 Tourism: higher level of knowledge
 Channels of information communication
1. Direct communication to customers
2 or 3 persons communicate face to face or
through telephone, mail… It is knowledgeable and
quickly response. There are 3 following channels:
* Advocate channels: salesman and target customers
* Expert channels: people with professional
knowledge.
* Social channels: friends, neighbor, brothers and
sisters
2. Indirect communication to customers
- There are 3 following channels:
* Public media channel: newspapers, radio, television, ...
* Environment: school, agency, organization…
* Events : Introduction, funding, the fair…
1. Some people believe that "trade is to buy cheap and
sell dear, and actually don’t make products for
society." Discuss about that point of view.
2. Represent the importance of distribution strategy for
two new products: shampoo oriented to normal social
class and skin cream oriented to upper social class.
Describe in detailed about 2 distribution systems?
1. Method according to the financial ability:
According to reality, not considered as investment
capital so it is not clearly determined and there is
no identifiable strategy

2. Method according to percentage revenue

Is part of the cost and often in the ratio of turnover.
Notes : relationship between revenue-promotion is
not based on marketing conditions, but depends
on the marketing budget and sales fluctuations.
3. Setup a budget equivalent to competitors
Notice human resource, financial ability, brand,
opportunity, different goals and targets.

4. Method according to the objectives and

missions Determine specific objectives and
missions in order to achieve goals and predict the
cost.
Notes: measure the cost which depends on stages
of product and advantage over competitors.
4.1 Advertising
Concept: Advertising is using means of public media in order to
communicate good information or advantages of the product to
customers. To do this, enterprises have to spend a certain amount.
Characteristics:
- Public presentation
- Amplified expressiveness
- Impersonality
4.2 Sales promotion
Concept: is short-term encourage to foster
the purchase of one product or service
Characteristics:
- Communication
- Incentive
- Invitation
  Tools:
Intermediate Final consumers Industrial
deliverables consumers
- Discount - Give product sample - Fair
- Award - Give coupons - Documents
- Gifts - Gifts - Convention sales
- Exhibit at the point - Increase the number - Product
of sale of products presentation
- Training staff - Lottery - Whittle down
- Product - Competition, winning
presentation games
- Sales support - Free trial
- Product presentation
- VIP card
4.3 Direct Sales
Direct sales:
Using salesman to inform and persuade potential
customers buying products or services of company
(Fair, exhibition, samples…).
Missions of salesman:
Explain advantages of the product
Introduce and show special characteristics, useful
feature of the product
Provide after-sales service to please customers
Collect information from the market in order to
improve marketing strategy.
4.4 Public relation
Concept: using means of public media to inform
good information about the product or enterprise.
Characteristics:
 Management

 Evaluate the public’s attitude to product and company

 Enlist the public's understanding for the product.
 Tools:
Articles in the press
Speech
Workshop
Convention customer
Annual Report
Charity donation
Sponsor events
Publications/ Magazines
Community Relations
4.5 Direct Marketing
Concept:
Using telephone, mail, email and other tools (not using
human) to contact and communicate with potential customers
Goals:
 Make potential customers buy the product
 Have an influence on awareness and buying plan of
customers later.
 Create opportunity for salesman
 Send messages to impact company’s image
 Inform and guide customers for the next purchase
 According to the period of buyer’s availability

Effectiveness

Sales promotion

Direct sales

Advertising

Biết Hiểu Tin Mua Mua tiếp

Buyer availability stages
 According to the product’s life cycle

Effectiveness

Sales promotion

Quảng cáo/
Khuyến mãi

Direct sales

Introduction Growth Maturity Decline

Stages of product’s life cycle

 Current market Life cycle of the product
Customers don’t notice  Introduction
features and advantages  Introduce and persuade potential customers
of the product to believe advantages of the product.
 Stimulate the early need.
Customers notice  Growth
advantages of the product  Stimulate selected needs when
and its consumption competition is increasing.
increasing  Strengthen advertising

Higher competition, not  Maturity

increased revenue.  Persuaded advertising has higher cost
so the profit decreases.
Revenue and profit both  Decline
decrease, new product  Cut down promotion, only hold at stable
start to enter the market. level to maintain customer’s relationships
1. Analysis the buying decision process of yourself for
a specific product that he / she has bought recently.
What are benefits of the purchase decision process
for administrator?
2.

"Manufacturers need to select the lowest-cost

distribution channels." he / she may agree with this
statement? Explain the choice?