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Wednesday, September 10, 2008

Promotional Decisions

The 3rd "P" of the marketing mix deals with promotional activities.

Promotional activities in the agribusiness are designed to do one thing – communicate the value of the firm’s products and services. Any marketing strategy incorporates variety methods for informing customers of the value of the firm’s products and services and convincing them to buy from the firm. This part of the marketing strategy is basically a communication process intended to modify customer behavior and encourage a positive buying decision.

Methods of promoting our product or service can be a combination of Advertising, Sales Promotions, Personal Selling, and Public Relation (PR). However, to determine which methods of promoting our product or service must consider the life stage of the product, the stage of product adoption in the marketplace, competitors’ actions, and available budget. The agribusiness company also should follow the promotion strategy process.

Five steps/process to develop a promotion strategy:
1. Identify the target audience – could be specific groups of prospects, a group of key influencers, or a group of former customers.
2. Determine the communications objective – the firm decides the action they want as a result of purchase, such as to remind customers of something, or to change a noncustomer’s attitude – i.e. product adoption.
3. Design the message- here the marketer creates a message consistent with the communication objective. Ideally the message will get the audience’s attention and elicit the desired action.
4. Select the communication channel – there are a variety of channels available to the agribusiness marketers – television advertising, coupons in the print media, personal sales calls to food retailers, and in-store merchandising support such as signs and display racks.
5. Manage the implementation of the program – this step involves allocating the promotional budget to the various activities, coordinating the market communication process, and measuring the results of the process.

Why Agribusiness Company need Promotional Activities?
1. Our promotions are designed to create demand.
2. Key market communications channels are: Advertising, Sales Promotion, Personal Selling, and Public Relation (PR).

a) Advertising
Different Methods of promoting your product or service
First Method - Advertising
i) Advertising - are aimed at Making potential customers aware of the existence of your business, your product and services and to encourage them to buy from you.
ii) Purpose of advertising - is to inform people how best they can satisfy their needs and wants, and how they can benefit by buying your goods and services.
iii)Communication medias for advertising – television (used by national food manufacturers), radio (by local agribusiness – why?), magazines, newspaper, direct mail, internet (entertaining websites to encourage frequent access to the sites).

What advertising can do?
Principle of AIDA
A - Attention
I - Interest
D - Desire
A - Action

Advertising Options:
 Local Press
 General Press
 Brochures
 Catalogues/Letterbox drops
 Direct Mail
 Trade Journals
 Magazines
 Directories
 Yellow Pages Directory
 Radio
 Television
 Cinema
 Telephone
 Outdoor Advertising
 Billboards
 Business Cards
 Internet

b) Sales Promotions
Second Methods of promoting your product or service.
Sales Promotions – i.e. programs and special offerings designed to encourage interested customers into making a positive buying decision. Examples of sales promotion activities are: Giving prospects and customers hats, pens, note pads etc.;
Food shoppers will get free samples, coupons, special offers (buy 1, get 1 free), contests, and rebate; and Regional trade shows such as MAHA Exhibitions – numbers of suppliers attract thousands of farmers.

c) Personal Selling
The third Method of promoting your product or service is Personal Selling. For this method, the company will use salesperson - provide flexible and highest impact, through knowing individual needs of the customer

d) Public Relations
The fourth Method of promoting your product or service is Public Relation activity.
Through Public Relations activities - the company will establish a favorable image – typically influence the target audience in an indirect way. For examples:
a) favorable news stories that create positive image for the firm such as food Company expenditures on nutritional education programs for school children,
b) getting news stories carrying the company’s desired message publicized through the television, radio, and print media – fund raising story, the message may be that the local firm really cares about the local community.

4 comments:

Anonymous said...

assalamualaikum Dr,
pada pendapat saya, diantara 4 kaaedah yang digunakan dalam keputusan promosi iaitu pengiklanan,promosi jualan,hubungan awam dan jualan persendirian...Pengiklanan memainkan peranan yang amat besar kerana melalui kaedah ini, barangan yang dipasarkan dapat diperkenalkan kepada pengguna dengan lebih meluas..bukan setakat di kawasan bandar tetapi juga di luar bandar. Pelbagai medan yang boleh digunakan untuk kaedah ini. diantaranya ialah televisyen,surat khabar, radio dan majalah. Jadi masyarakat atau pengguna akan lebih cepat mengetahui barangan yang ingin di pasarkan melalui keputusan promosi dengan kaedah ini..

From: 102157

AMIR SYAFFIQ HAMZAH said...

Assalamualaikum WBT Dr. Jamal Ali dan semua

tidak dapat dinafikan,salah satu skop promosi yang perlu dititikberatkan adalah pengiklanan. pengiklanan memainkan peranan yang cukup besar pentingnya bagi sesebuah syarikat pengeluar produk mahupun syarikat yang berorientasikan perkhidmatan.

selain memainkan peranan untuk memberitahu kewujudan sesuatu produk baru di pasaran, pengiklanan juga bertujuan untuk mengingatkan orang ramai agar terus membeli produk mereka.

Jika kita lihat, produk "ridsect" telah berada di pasaran sejak berpuluh - puluh tahun dahulu, namun mereka tetap memperuntukkan sejumlah besar kos untuk pengiklanan agar orang ramai terus peka dan sedar dengan kehadiran produk "ridsect". Begitu juga dengan lain - lain syarikat seperti Maggi, ubat gigi jenama Darlie, Fresh n White, Zaitun, Minyak rambut brylcream, Code 10, follow me dan sebagainya.

Dengan pengiklanan seperti ini, mereka akan dapat menambat pengguna yang setia dan telah membeli produk mereka agar terus membeli.

Selain itu, pengiklanan turut berfungsi untuk menarik minat pengguna baru yang berpotensi untuk membeli produk keluaran mereka.

Justeru, pengiklanan adalah penting sepanjang kitar hayat sesuatu produk itu. Pengiklanan yang berkesan adalah perlu agar dapat menambat hati para pengguna

-AMIR SYAFFIQ HAMZAH-
-105744-
-s105744@student.uum.edu.my-

Anonymous said...

104970

Antara pelbagai jenis promosi yang telah Dr. jelaskan, saya berpendapat yang promosi melalui pengiklanan merupakan kaedah yang paling dapat memainkan peranan dalam kehidupan manusia. Ini adalah kerana pengiklanan adalah lebih meluas seperti iklan di televisyan, radio, surat khabar, papan kenyataan dan lain- lain lagi. Selain itu, promosi melalui pengiklanan juga boleh menyampaikan maklumat walaupun di kawasan luar bandar. Ini dapat menyebabkan pengguna dapat menerima maklumat dengan lebih cepat dan tepat. Maka pengguna dapat membuat keputusan yang rasional sebelum membeli sesautu produk pertanian. promosi pengiklan yang baik dapat meninggalkan image yang mendalam kepada pengguna dan selepas itu mereka akan membeli barang tersebut.

Anonymous said...

104800
Saya berpendapat aktiviti pengiklanan merupakan suatu proses yang sangat penting dalam pengeluaran sesuatu produk. Oleh kerana terdapat pengiklanan yang sangat kreatif dan dapat menarik perhatian pelanggan untuk membeli produk tersebut. Aktiviti pengiklanan boleh melalui televisyen, radio, majalah, suratkhabar untuk memcapai target tertentu. Maka kita akan menerima maklumat yang lebih lanjut mengenai produk tersebut. Dengan maklumat tersebut, yang paling pentingnya ialah produk tersebut dapat memberi keyakinan kepada pelanggan. Jadi pelanggan akan memilih untuk membeli produk itu. Promosi pengiklanan yang baik akan memberi imej yang baik kepada pelanggan dan mengingati iklan dan produk tersebut.