Air Asia Marcom - PPT 2
Air Asia Marcom - PPT 2
Air Asia Marcom - PPT 2
AG ZAMRI OSMAN MASRUL HAYATI KAMARULZAMAN NOOR AL-WANI ALIAS WAN RAMLAH WAN NAWANG
SALES PROMOTION
All those promotional activities which are undertaken to stimulate interest, trial or purchase of a product by the end user or other intermediaries in between. The main methods of sales promotion are: Money off coupons customers receive coupons, or cut coupons out of newspapers or a products packaging that enables them to buy the product next time at a reduced price for example; Tesco price cut.
Competitions Buying the product will allow the customer to take part in a chance to win a prize e.g. Coca Cola ring pulls, Power root: everyone can be the millionaire.
Discount vouchers a voucher like a money off coupon. Free gifts a free product when buy another product such as Scott emulsion at Watson, free bag with the purchase of Scott emulsion. Point of sales materials e.g. Milo posters and display stands ways of presenting the product in its best way or show the customer that the product is there. Loyalty cards e.g. Nectar and Air Miles; where customers earn points for buying certain goods or shopping at certain retailers that can later be exchanged for money, goods or other offers.
Increase product usage by loading consumers. Sales promotion is to encourage consumer stockpiling, it is to influence consumers to purchase more of a particular brand than they normally buy. Consumers tend to use more of certain products when more of the product is in their homes.
Preempt competition by loading consumers. When consumers are loaded with one companys brand, they are temporarily out of the marketplace for competitive brands. Hence, one brands promotion serves to preempt sales of competitive brands. Reinforce advertising. A final can do capability of sales promotion is to reinforce advertising. An advertising campaign can be strengthened greatly by a well- coordinated sales promotion effort.
Obtain trial purchases from consumers. Many consumers would never try new products without the inducement of free samples or coupons.
Hold current users by encouraging repeat purchases. The strategic use of certain forms of promotion can encourage at least short run repetitive purchasing. Such as refunds, premium programs and so on that useful for encouraging repeat purchasing.
Increase on- and off-shelf merchandising space. Enable the manufacturer to obtain extra shelf space or more desirable space for a temporary period.
Neutralize competitive advertising and sales promotion. Sales promotion can effectively offset competitors advertising and promotions efforts.
Air Asia also offers fares promotion with flight from Melbourne, Perth and the Gold Coast of Australia to Malaysia available from just A$ 119 one way . Air Asia also offer rebate for their customers, for example; Air Asia X yet to see 50percent landing rebate for the customers Air Asia also gives the free seats to the customers as the services trial. For example, Air Asia gives the 8,888 free seats to Hangzhou; Air Asia offers 1,000,000 free seats in a bid to boost domestic travel, Air Asia offers the no fuel surcharges to the passenger
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The objectives include:1) Increasing distribution of new packages or sizes 2) Building retailer inventories 3) Maintaining or increasing the manufacturers share of shelf space 4) Obtaining displays outside normal shelf location 5) Introducing new or revised products 6) Reducing excess inventories and increasing turnover 7) Achieving product features in retailers advertisements 8) Countering competitive activity 9) Selling as much as possible to final consumer
TRADE ALLOWANCES
Used by manufacturers, in theory, to reward wholesalers and retailers for performing activities in support the manufacturers brand. Also called trade deals, encourage retailers to stock the manufacturers brand, discount the brand price to consumers, feature it in advertising, or provide special display or other point-of-purchase support. Manufacturers hope to accomplish two interrelated objectives:a) Increasing purchases of the manufacturers brand by wholesalers and retailers b) Augment consumers purchases of the manufacturers brand from retailers. This latter objectives is based on expectations that consumer are receptive to price reductions and that retailer will in fact pass along to consumers the discount they receive from manufacturers.
b) Bill-back allowances
c) Slotting allowances
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Everyday Low Pricing (EDLP)
a form of pricing whereby a manufacturer charges the same price for a particular brand day in day out. Involves charging the same price over an extended period.
Pay-for-Performance Programs
A form of trade allowance that rewards retailers for performing the primary function that justifies a manufacturers offering a trade allowance. Are designed to reward retailer for selling the manufacturers brand supported with a trade allowance rather than for merely buying the brand at an off-invoice price.
SAMPLING
The definition: Any method used to deliver an actual or trial-sized product to consumers for purposes of generating trial or retrial and leveraging trade support.
DISTRIBUTION METHODS
Direct Mail Newspapers and Magazines Door-to-Door sampling by Distribution Crews On-or In-pack Sampling High-Traffic locations and events Sampling at unique venues In-store Sampling
EXAMPLE
Air Asia give offer free seats to their customers as sample on their services. The free seats are offers through the others sales promotion methods.
OTHER EXAMPLES
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COUPONING
A coupon is a promotional device that rewards consumers for purchasing the coupon-offering brand by providing either cents-off savings or free merchandise.
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Coupons are delivered through : Newspapers Magazines freestanding inserts direct mail in or on package Online point of purchase shelf electronic delivery services.
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PREMIUM
Premium can be define as a charge paid in addition to normal payments or a marketing term for a something given free with the purchase of a product or service. Premium include in several forms : Free with purchase premiums Mail in offers In,on,near-pack premiums Self liquidating offers Phone cards
Mail in offers
The offer are premium promotions in which the customer collects one or more proofs of purchase and sends them in for the item on offer entirely free or at no cost beyond postage. The benefits is delayed and not immediately. It is also subject to action on the part of the consumer after purchasing the item.
Mail-in offer
In,on,near-pack premiums
In-pack premium A small, often low value, gift placed inside a product package to encourage purchase or reward the purchaser on-pack offer the offer is a form of premium promotion in which the premium is physically attached to the product.
Pick a seat
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Now you can pick your favourite seat when you fly with us! You don't have to worry about rushing for your favourite spot onboard anymore.
Phone cards
Phone cards is a unique type of premium offer that give the promotions incentive that focus on repeat purchasing objective and provide with delayed reward.
E-Gift Voucher
If youve recently purchased E-Gift Vouchers, heres how you can redeem your voucher.
E-Gift voucher
Price off
Price off A stated reduction in the price of a product generally offered by the manufacturer and printed directly on the product package.
Bonus packs
Bonus packs are the extra quantities of a product that a company give to consumer at regular price.
Baggage supersize
Games
Games that provide consumers with an instant reward that encourage repeat purchasing from existing brands users.
contest
AirAsia's Photos - Send Me Back to Chengdu Photo Voting Contest CIMB Bank AirAsia Savers Account
Continuity promotions
Continuity promotions that promotions sometimes reward consumer repeat purchaseing of a particular brand by awarding point leading to reduces prices or free merchandise and referred to as loyalty or point programs. This program will encourage consumer to stick with a particular company to accumulate requisite numbers of points as quickly as possible.
1. 2. 3.
Sponsorships marketing
Sponsorship is the financial or in-kind support of an activity, used primarily to reach specified business goals. That means, sponsorships involve investments in events or causes for the purpose of achieving various goals
Types of sponsorships
1. Television and radio programme sponsorship for example; Cadburys sponsor broadcasts of Coronation Street. 2. Sports sponsorship: 3. Arts sponsorship;
Benefits of sponsorship
Enhancing Image/Shaping Consumer Attitudes Driving Sales Enhancing business, consumer and VIP relations Creating positive publicity/heightening visibility Differentiating from competitors
AIR ASIA PRACTICES OF MARKETING ORIENTED: PUBLIC RELATIONS, SPONSORSHIPS AND CAUSE RELATED MARKETING PROACTIVE PUBLIC RELATIONS
services release, for example; AirAsia to launch two new services to Singapore.. Executive-statement. For example; Air Asia to see higher profit in 2009, this statement show that Air Asia release the future forecast of sale
AirAsia chip in RM500, 000 for Asia Cup. Friday May 1, 2009
AirAsia sponsors BIM running vests, Friday 25 September 2009 Soccer-Malaysia's Air Asia ponders Man Utd shirt sponsorship
Air Asia involve in sponsorship and Cause related marketing is to enhancing Air Asia Image..
Air Asia also wants to driving the sales or to create the brand awareness and increase brand image. For example; AirAsia sponsors BIM running vests, Friday 25 September 2009,
Air Asia also wanted to create positive publicity of their brand. Air Asia Company wants differentiating their company from the competitors such as MAS. Air Asia Company helping with good "Corporate Citizen" role. Air Asia wants to be seen supporting the community and contributing to its economic development.
References
Sales promotion : how to create, implement and integrate campaigns By Roddy Mullin, Julian Cummins http://www.airasia.com http://www.youtube.com/amazingairasia http://www.flickr.com/photos/airasia http://twitter.com/airasiadotcom http://www.facebook.com/AirAsia http://blog.airasia.com/
TQ FOR LISTENING
1. First, consumers have accepted sales promotion as part of their buying decision criteria 2. Second, the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion, which can provide an immediate boost in sales. 3. Third, the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. 4. Finally, an increase in the size and power of retailers has also boosted the use of sales promotion
HOW CAN SALES PROMOTION REINFORCE A BRANDS IMAGE? IS THIS A MAJOR OBJECTIVE OF SALES PROMOTION (3C APRIL 03)
Reinforcing the Brand Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or preferred customers with special promotions, such as email special deals and surprise price reductions at the cash register.
Enhance your sales. Increased exposure in the media makes people want to find out more about you, your company and your products and services. Position you as an expert in your field. When you are quoted by the media, your expert opinion can put your name, and your companys name, in the spotlight. Public relations will build your reputation and earn you credibility with clients and potential clients. Increase visibility. Once you begin to appear in the mediaquoted in articles, on television, on radiopotential clients and customers will begin to associate you and your company as a leader in the field. Why? Because they saw you or heard you or read your name in the media.
Get product reviews. Increase your perceived worth. Whether you are a public company or a private company, media placementsinterviews on radio and TV and in print increase your perceived worth, and the worth of your company, in the eyes of your customers, clients and your industry. All because of media exposure. Tell your side of the story. Politicians arent the only ones who have opinions on issues. In every industry, including politics, there are issues that need to be aired. If your competitor tells one side of the story, public relations makes sure you voice your opinion.
Outwit your competition. How often have you seen a guest being interviewed over and over again, even though their products or services arent necessarily the best in the business? Thats effective public relations. Shouldnt you be quoted in articles and interviewed on TV and radio so you have a leg up on your competition? Avert a crisis. There are times when bad things happen to good people. How do you manage a crisis? With persistent, consistent public relations. Tell the truth, tell it all, tell it fast, is Gaye Carletons motto for crisis management.
DISCUSS THE STREGHTS AND LIMITATIONS OF SALES PROMOTION FOR THE MARKETING COMMUNICATOR (4BOCT03)
The strengths of sales promotion Stimulate sales force enthusiasm for a new, improved, or mature product. Exciting sales promotion gives salespeople persuasive ammunition when interacting with buyers, revive enthusiasm, and make the job easier and more pleasant. Invigorate sales of a mature brand. Sales promotion cannot reverse the sales decline for an undesirable product, but can invigorate sales of a sound although mature product.
Facilitate the introduction of new products to the trade. To achieve sales and profit objectives, marketers continually introduce new products and add news brands to existing categories, so the sales promotions allows the introduction of the new products to the market. Increase on- and off-shelf merchandising space. Enable the manufacturer to obtain extra shelf space or more desirable space for a temporary period. Neutralize competitive advertising and sales promotion. Sales promotion can effectively offset competitors advertising and promotions efforts.
Obtain trial purchases from consumers. Many consumers would never try new products without the inducement of free samples or coupons.
Hold current users by encouraging repeat purchases. The strategic use of certain forms of promotion can encourage at least short run repetitive purchasing. Such as refunds, premium programs and so on that useful for encouraging repeat purchasing. Increase product usage by loading consumers. Sales promotion is to encourage consumer stockpilling, it is to influence consumers to purchase more of a particular brand than they normally buy. Consumers tend to use more of certain products when more of the product is in their homes.
Preempt competition by loading consumers. When consumers are loaded with one companys brand, they are temporarily out of the marketplace for competitive brands. Hence, one brands promotion serves to preempt sales of competitive brands.
Reinforce advertising. A final can do capability of sales promotion is to reinforce advertising. An advertising campaign can be strengthened greatly by a well- coordinated sales promotion effort.
Inability to permanently stop an established brand's declining sales trend or change the basic nonacceptance of an undesired product. Declining sales of a brand over an extended period indicate poor product performance or the availability of a superior alternative. Promotion cannot reverse the basic no acceptance of an undesired brand. A declining sales trend can be reversed only through product improvements or perhaps an advertising campaign that breathes new life into an aging brand. Promotions used in combination with an advertising efforts or product improvements may reverse the trend, but sales promotion itself would be a waste of times and money when a brands is in a state of permanent decline.