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What Is The Promotion Mix

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0% found this document useful (0 votes)
126 views18 pages

What Is The Promotion Mix

Uploaded by

manya sethi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is the promotion mix?

A promotion mix is a collection of marketing strategies and tools that a


company uses to communicate with customers and achieve marketing
goals.

A promotion mix is a collection of marketing strategies that a company


uses to communicate with customers about a product or service. The
goal of a promotion mix is to create an integrated message that reaches
consumers at various points in their buying journey, and ultimately
drives revenue and marketing ROI.

Factors Affecting Promotion Mix


1. Nature of the Product:
Promotion mix will vary according to the nature of the product.
Consumer goods require mass advertisement. But industrial goods
require personal selling, advertising, displays etc. Complex and technical
products like computer need personal selling.
Non-technical products require advertising as promotional device. In
case where there is no brand differentiation personal selling should be
the method of promotion. Where there is brand differentiation
advertising should be emphasized.

2. Nature of the Market:


For industrial market, advertising plays an informative role, but for
consumer market it plays as informative as well as persuasive role. The
promotion strategy varies with the target groups depending on age, sex,
education, income, religion etc.

3. Stages in the Product Life Cycle:


The marketing objectives and strategies are different at each stage of
the product in its life cycle. During the introductory stage intensive
advertising and personal selling are required for effecting product
awareness.

4. Market Penetration:
A product having good market penetration is well-known to the buyers.
In that situation, middlemen are motivated to spend more an
advertising.

5. Market Size:
It there is limited number of buyers, direct selling is enough. But if the
market size is large the promotional tool is mainly advertising.

6. Characteristics of Buyers:
Experienced buyers of industrial product need personal selling. The
experience of buyers, the time available for purchase, influence of
friends, retailers etc. are the factors affecting promotion mix.

7. Distribution Strategy:
If the products are directly sold by the manufacturer personal selling is
the tool of promotion.

Advertising is only a supporting tool. Personal selling and advertising is


required for market penetration. If the product passes through a longer
channel more importance should be given to advertising and less
importance to personal selling.

8. Pricing Strategy:
Pricing influences promotion strategy. If the brand is priced higher than
the competitor’s price, personal selling is used. If the price is
comparatively low only little promotion is needed. If the middlemen are
allowed higher profit margin, sales promotion at dealer level is
important.

9. Cost of Promotion:
The cost of the media of advertising and sales promotion tools should
also be considered while deciding the promotional mix.

10. Availability of Funds:


If the funds are adequate the firm can spend more for advertising and
sales promotion. But small firms with limited resources can depend on
personal selling.
Some elements of a promotion mix include:
 Advertising: Can include radio, magazines, television, and
newspapers.

 Personal selling: Involves a sales representative reaching out to


customers directly, either by phone, email, social media, or in
person.

 Sales promotion mix: A component of a promotion.

 Public relations: A component of a promotion mix.

 Direct marketing: A component of a promotion mix.

 Internet/digital marketing: Can include mobile phones, display


advertising, and other digital mediums.
Elements of Promotion Mix
Advertising - Any paid form of non personal communication of ideas
goods or services delivered through selected media channels.

Publicity-It involves sending a message to someone because it is


newsworthy and is published or broadcast without charge to the
sender.

Sales Promotion – A range of tactical marketing techniques


designed within a strategic marketing framework, to add value to a
product or service in order to achieve a specific sales and marketing
objective.

Public Relations - The deliberate, planned and sustained effort to


establish and maintain mutual understanding between an organisation
and its publics".
Selling and Sales Management - The personal interface
between a company and its customers, aimed at achieving a
sale.

Direct marketing - Direct communication using direct mail,


telephone response media and more recently the Internet.

What is Advertising
It is any paid form of non – personal presentation and
promotion of ideas, goods, services by an identified
sponsor.

Functions of Advertising
Advertising has become an essential marketing activity in the modern
era of large scale production and serve competition in the market. It
performs the following functions:

 Promotion of Sales. It promotes the sale of goods and services


by informing and persuading the people to buy them.

 Introduction of New Product. It helps the introduction of new


products in the market. A business enterprise can introduce itself
and its product to the public through advertising.

 Creation of Good Public Image. It builds up the reputation of


the advertiser. Advertising enables a business firm
to communicate its achievements in an effort to satisfy the
customers’ needs.
 Mass Production. Advertising facilitates large-scale production.
Advertising encourages production of goods in large-scale because
the business firm knows that it will be able to sell on large-scale
with the help of advertising.

 Research. Advertising stimulates research and development


activities. Advertising has become a competitive marketing
activity.

 Education of People. Advertising educate the people about new


products and their uses. Advertising message about the utility of a
product enables the people to widen their knowledge.

 Support to Press. Advertising provides an important source of


revenue to the publishers and magazines. It enables to increase
the circulation of their publication by selling them at lower rates.

Objectives of Advertising
The fundamental purpose of advertising is to sell something a
product, a service or an idea. In addition to this general
objective, advertising is also used by the modern business
enterprises for certain specific objectives which are listed
below:
1. To introduce a new product by creating interest for it
among the prospective customers.
2. To support personal selling programme. Advertising maybe
used to open customers’ doors for salesman.
3. To reach people inaccessible to salesman.
4. To enter a new market or attract a new group of
customers.
5. To light competition in the market and to increase the sales
as seen in the fierce competition between Coke and Pepsi.
6. To enhance the goodwill of the enterprise by promising
better quality products and services.
7. To improve dealer relations. Advertising supports the
dealers in selling he product. Dealers are attracted towards
a product which is advertised effectively.
8. To warn the public against imitation of an enterprise’s
products.

Publicity
Publicity is the communication about a brand, offering, or a
business by placing commercially significant news about it in
the media without paying for time and space directly.
In simple terms, publicity is the movement of information to
the public via media coverage and other non-paid mass media
sources.
Publicity is not a process but a result of a good public relations
strategy where the marketers succeed in providing favourable
information to media and other third-party outlets like
bloggers, vloggers, podcasters, etc.
• Responding to requests from media.
• Supplying the media with information on events and
occurences.
• Carry the information about the viewpoint of the
organization.
• Credible message.
• No media cost.
• Loss of control of publication.
• Loss of control of content.
• Loss of control of timing.

Functions of Public Relations


• Facilitates company’s overall operations.
• Aids promotion.
• Helps in tackling social and environmental issues.
• Ensures that customers are treated well.
• Helps in attracting and retaining talented employees.
• Stakeholders give it benefit of doubt.
• Develops reputation as a good supplier and customer.
• Responds effectively to negative publicity.

Objective Of Publicity
The main objective of publicity to garner public exposure,
awareness, and attention to channelise the information about a
brand or an offering to build its goodwill, stimulate demand, or
change public opinion.
Besides this, publicity aims to:
 Build Brand Image: Publicity aims at communicating brand
values, mission, and vision through trustable channels like
news outlets, blogs, and opinion leaders. This helps the
company build its brand image organically.
 Remove Misunderstanding: Often, a company may be a
victim of misunderstanding or misinformation among
the target audience. Publicity aims at removing such
misunderstanding and maintaining the goodwill of the
company.
 Stimulate Interest and Demand: When the product
information reaches the target audience organically, it
automatically stimulates their interest and increases the
product’s demand.
 Communicate Reliable Information: There are certain
information that can’t be communicated through
advertisements. Such information is often propagated
through publicity.

Sales promotion
A sales promotion is a marketing strategy in which a
business uses a temporary campaign or offer to increase
interest or demand in its product or service. There are
many reasons why a business may choose to use a sales
promotion (or ‘promo’), but the primary reason is to boost
sales. Sales boosts may be needed to reach a quota as a
deadline approaches, or to raise awareness of a new
product.

Sales promotion techniques


 Know your audience: Are you catering to new customers
or existing customers? Are you looking to promote a new
product or increase sales on an existing product? These
questions will help you choose which sales promotion is
best for your company at that time.
 Emphasize scarcity and/or urgency: Your sales promotion
should always be short-term, but it’s important to
emphasize why. Customers will be more motivated to buy
if there’s a risk of running out of time or running out of
product.
 Align your sales promotion you’re your
company: Consistency is always key in every aspect of
sales, and it’s no different with a sales promotion. If you
specialize in long-term products, such as electronics, then
it doesn’t make sense to offer customers a subscription
package when they’re only going to purchase new
products every few years.

Personal selling
Personal selling is a type of marketing strategy that involves
one-on-one interaction with prospective customers to sell a
product or service.

While personal selling is a part of marketing, there are several


key differences between the two. Personal selling and
marketing are both important components of building a brand
strategy, but they differ in their approach and objectives.

Marketing entails a broader set of activities that are designed


to create awareness of a company's products or services,
generate interest among potential customers, and ultimately
lead to sales. Marketing can involve a wide range of tactics,
including advertising, public relations, content marketing, email
campaigns, social media, and more.

Personal selling is a technique that involves face-to-face selling


between a sales rep and a prospective customer. With personal
selling, sales representatives try to persuade a potential
customer to purchase your product or service. This technique
helps to build relationships with customers and ensure
customer satisfaction.

Types of personal selling

 Retail sales
 B2B sales
 telemarketing
 direct sales
 consultative selling

Personal Selling Process

1. Prospecting
2. Pre-approach
3. Approach
4. Presentation
5. Overcoming objections
6. Closing

Public Relations
Good public relations efforts can help a firm create rapport with its
customers, promote what it has to offer, and supplement its sales
efforts. PR puts a positive spin on news stories and is often perceived as
more neutral and objective than other forms of promotion because
much of the information is tailored to sound as if it has been created by
an organization independent of the seller. Public relations materials
include press releases, publicity, and news conferences. Companies also
use PR to promote products and to supplement their sales efforts.
Functions Of Public Relation
Public relations (PR) plays a crucial role in the promotion mix,
complementing other marketing and communication efforts. Here’s how
PR functions within the promotion mix:

1. Building and Maintaining a Positive Image:


o PR helps shape and maintain a positive image of an
organization or brand through media relations, community
involvement, and strategic messaging. This positive image
can enhance customer trust and loyalty.
2. Media Relations:
o PR professionals work with journalists and media outlets to
secure coverage in newspapers, magazines, TV, and online
platforms. This earned media can be highly effective in
reaching and influencing target audiences without direct
costs.
3. Crisis Management:
o PR manages communication during crises to protect and
restore the organization's reputation. Effective crisis
communication can mitigate damage and maintain public
trust.
4. Content Creation:
o PR generates valuable content, such as press releases,
articles, and blog posts, that can be distributed through
various channels. This content often highlights achievements,
events, or initiatives that can enhance brand visibility and
credibility.
5. Event Management:
o PR organizes and manages events like press conferences,
product launches, and community outreach programs. These
events provide opportunities for direct engagement with the
media and the public, enhancing brand awareness and
generating positive coverage.
6. Stakeholder Engagement:
o PR maintains relationships with key stakeholders, including
customers, employees, investors, and the community.
Engaging these groups through targeted communication
helps build support and loyalty.
7. Reputation Management:
o PR strategies include monitoring public perception and
managing online and offline reputation. This involves
responding to reviews, handling negative feedback, and
highlighting positive aspects of the brand.
8. Brand Positioning:
o PR helps position a brand in the market by promoting its
unique values, mission, and vision. Through strategic
messaging, PR reinforces the brand’s identity and
differentiates it from competitors.
9. Influencer Relations:
o PR engages with influencers and opinion leaders to amplify
the brand's message. By leveraging influencers' reach and
credibility, PR can effectively extend the brand’s exposure.
10. Internal Communication:
o PR ensures that employees are informed, engaged, and
aligned with the organization’s goals. Effective internal
communication fosters a positive work environment and
supports organizational culture.

Objectives Of Public Relation


Public relations (PR) has several objectives within the promotion mix,
each aimed at enhancing the overall effectiveness of an organization's
marketing and communication efforts. Here are some key objectives:

1. Enhancing Brand Image and Reputation:


o Objective: Build and maintain a positive perception of the
brand or organization.
o Goal: Create a favorable image through strategic messaging,
media relations, and community engagement to foster trust
and credibility among the public.
2. Increasing Brand Awareness:
o Objective: Raise the profile of the brand or organization in
the market.
o Goal: Use PR tactics such as media placements, events, and
influencer partnerships to ensure that the target audience is
aware of and familiar with the brand.
3. Managing and Mitigating Crises:
o Objective: Protect the organization’s reputation during and
after a crisis.
o Goal: Develop and implement effective crisis
communication plans to manage negative situations and
minimize damage to the brand's reputation.
4. Building and Maintaining Relationships with Stakeholders:
o Objective: Foster strong relationships with key stakeholders
including customers, employees, investors, and the
community.
o Goal: Engage with stakeholders through various PR
activities to ensure their support and address their needs and
concerns.
5. Supporting Marketing and Sales Efforts:
o Objective: Complement and enhance other marketing and
sales strategies.
o Goal: Integrate PR initiatives with advertising, sales
promotions, and direct marketing efforts to create a cohesive
and comprehensive promotional strategy.
6. Educating the Public:
o Objective: Inform and educate the target audience about the
organization’s products, services, or initiatives.
o Goal: Provide clear and accurate information through press
releases, educational content, and media outreach to help the
audience understand and appreciate the organization’s
offerings.
7. Driving Media Coverage:
o Objective: Secure positive media coverage for the
organization or brand.
o Goal: Generate stories, interviews, and features in relevant
media outlets to increase visibility and enhance the
organization’s profile.
8. Supporting Corporate Social Responsibility (CSR) Initiatives:
o Objective: Promote and highlight the organization’s CSR
activities and commitments.
o Goal: Showcase the organization’s efforts in social
responsibility and community involvement to build goodwill
and positive associations with the brand.
9. Influencing Public Opinion:
o Objective: Shape and influence how the public perceives the
organization or brand.
o Goal: Use PR strategies to frame messages and narratives in
a way that aligns with the organization’s objectives and
resonates with the target audience.
10. Enhancing Employee Relations:
o Objective: Improve internal communication and employee
morale.
o Goal: Ensure employees are informed and engaged through
internal communications and PR initiatives, which can boost
motivation and align staff with organizational goals.
11. Generating Leads and Supporting Sales:
o Objective: Assist in lead generation and sales efforts.
o Goal: Use PR to create interest and awareness that drives
potential customers to take action, such as contacting the
sales team or engaging with promotional offers.

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