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