PROMOTION MIX
Unit 1
DISCUSSION QUESTIONS
Define promotion Identify purposes of promotion Describe the elements of the promotional mix.
Explain factors affecting the selection of a
promotional mix.
COMMUNICATION DEFINITION
Marketing communications represent the voice of the company and its brands and are means by which it can establish a dialogue and build relationships with consumers.
Communication can be defined as the sharing of a common thing
COMMUNICATION OBJECTIVES
Marketers seek responses to their communication either in Cognitive responses
learn-feel-do
Pay attention to message & comprehend it like thinking, belief & rational aspects
do-feel-learn
Affective responses
Message lead to formation of new attitude or change in attitude
learn-do-feel
Conative or behavioral responses
Some desired change in behaviour
Elements in the Communications Process
PROMOTION
Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix.
To generate sales and profits, the benefits of products have to be communicated to customers.
In marketing this is commonly known as promotions.
OBJECTIVES FOR PROMOTION
Build awareness. Create interest. Provide information.
Stimulate demand.
Reinforce the brand
PURPOSES OF PROMOTION
To tell consumers about a companys
Ideas Services Images Goods
PURPOSES OF PROMOTION
Convince potential customers to buy Explain features/benefits of products Tell where products are sold
Advertise sales on products
Answer customers questions Introduce new products Create a favorable image of the company or product
THE COMBINATION, OR BLEND, OF MARKETING COMMUNICATION CHANNELS IS CALLED THE...
ADVERTISING
Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor Advantages
The most visible element of the promotional mix
Disadvantages
Actual cost of advertisement is quite high. Since many people receive the message, the per contact cost is very low.
ADVERTISING OBJECTIVES
Persuade
Inform
Reinforce
Remind
ADVERTISING
Messages can be delivered by:
Television Radio Newspapers Magazines Direct mail Outdoor advertisements Directories The Internet
PERSONAL SELLING
Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale
Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be faceto-face or via telephone.
ADVANTAGES OF PERSONAL SELLING
Detailed Information
Message Control
Targeted
Cost Control Closing Sales
SELLING ADVANTAGES
I like the sound of this stereo, but I think its a little large for my dorm room.
On a per contact basis, selling is the most expensive form of promotion.
Immediate feedback Flexibility
We do carry a bookshelf model with similar sound quality.
PUBLICITY
Publicity refers to non-personal communications regarding an organization , product , service , or idea not directly paid for or run under identified sponsorship It usually comes in the form of news story , editorial , or announcement about an organization and/or its products and services. Examples: Newspaper and magazine articles/reports, TV and radio presentations, Charitable contributions, speeches, issue advertising, and seminars.
SALES PROMOTION
Short term
Demand-stimulating activity designed to supplement advertising and facilitate personal selling. A variety of short term incentives to encourage trial or purchase of a product or service
Stimulate Sales
OBJECTIVES
Product trial Increase repurchase
Reward Brand switching
SALES PROMOTION
Promotional
activities other than advertising, personal selling, and publicity which stimulate purchases promotion activities include:
Sales
Visual Product merchandising Novelty Free Fashion Instant Trade Contests Coupons demonstrations Exhibits samples rebates items shows or displays
MAJOR CONSUMER PROMOTION TOOLS
Samples Coupons Cash refunds Prices off Premiums Prizes
Loyalty rewards Free trials Tie-in promotions Cross-promotions Point-of-purchase displays Demonstrations
PUBLIC RELATIONS
A planned communication effort by an organization to contribute to generally favourable attitudes and opinions toward an organization and its products.
Five Functions of PR
1. Press relations 2. Product publicity 3. Corporate communications 4. Lobbying 5. Counseling
PUBLIC RELATIONS
Promote
Monitors attitudes
Protect Image
MARKETING PUBLIC RELATIONS (MPR)
Helps
Launch new products Repositioning a mature product Building interest in a product category Influencing specific target groups Manage brand crisis Build corporate image
FACTORS AFFECTING THE SELECTION OF A PROMOTIONAL MIX
Must be carefully analyzed before marketers decide when and where to invest promotional funds
Products Distribution Products Good, service, company target channels market image, or idea
GOOD, SERVICE, IMAGE, OR IDEA
Type of product
Convenience goods
Shopping goods
Specialty goods
GOOD, SERVICE, IMAGE, OR IDEA
10% OFF on all Products which are high-tech, small appliances require demonstration, are expensive, or require installation should be promoted through personal selling.
Inexpensive and selfservice products can rely on advertising and sales promotion.
HARRYS HARDWARE
This computer is perfect for you. It has all the software pre-installed and a left-handed mouse!
Product nature
GOOD, SERVICE, IMAGE, OR IDEA
When you are on-the-go
New and Improved!
its Breakfast-To-Go
Each pocket provides you a delicious breakfast in just Maturity two minutes!
Growth
Declining
Introductory
Stage of life cycle
PRODUCTS TARGET MARKET
Consumer Market
Type of Consumer
vs.
Advertising
Sales Promotion Publicity Personal Selling
Industrial Market
PRODUCTS TARGET MARKET
Few Consumers
Number of Consumers
vs.
Advertising
Many Consumers
Sales Promotion Publicity Personal Selling
PRODUCTS TARGET MARKET
Geographical Location
Close Together
vs.
Advertising
Sales Promotion Publicity Personal Selling
Spread Over a Wide Area
DISTRIBUTION CHANNEL
INTERMEDIARY BLVD. DIRECT AVE.
The promotional mix selection is affected by the path that a product takes.
Requires personal selling Requires personal selling and advertising
Products Company
Businesses often rely on previous use of promotional methods.
Think small.
Less flower. More power.
1960
1970
1980
1990
2000
Historical Perspective
PRODUCTS COMPANY
Example:
Today, the Wal-Mart corporation has increasedWal-Mart started as one small store in its promotional mix to include television, Arkansas. In Wal-Marts early years, local radio, newspapers, special sales bulletins, and newspaper advertising and personal selling a Wal-Mart web site in order to promote its were all that the small company could afford. national network.
Available Funds
PRODUCTS COMPANY
Competition
Tonys Pizza
Kids eat free!
Anges Pizza
Free kids meals!
Competing businesses use similar promotional mixes and tend to follow the leader.
PUSH AND PULL PROMOTION STRATEGIES
PUSH STRATEGY
Manufacture r Manufacturer s Personal Selling And Trade Promotion Retailers and Wholesalers Channels Personal Selling, Advertising and Sales Promotion
Consumer
PULL STRATEGY
Demand Manufacturer Demand Consumers
Retailers and Wholesalers
Consumer advertising and sales promotion
Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses.
Publicity Personal selling Sales promotion
Advertising
Must decide which methods will best reach potential customers and communicate desired message
No magic formula that marketers use to help design promotional mix
Hard to determine effectiveness of the different promotional methods
SELECTION OF PROMOTIONAL MIX
Target
market
Readiness to buy, knowledge, liking, preference, conviction (belief) Purchase Geographic scope Type consumer or middleman Concentration
Nature
of the product
Unit value Degree of customization Presale and post sale service Stage of the product life cycle Amount of money available for promotion
Unit - 2
ADVERTISING
