Sales Promotion MIX

What is Promotional Mix?The Promotional mix is a combination of the

different types of promotion.

Promotion keeps the product in the minds of the customer and helps stimulate demand for the product.

The ongoing activities of advertising, sales promotion, Public Relations ,personal selling and direct marketing are often considered aspects of promotion.

Incentives in addition to the product’s basic benefits. Ex. Gift Coupon

Sales Promotion is more action oriented

Advertising

Ingredientsof the

PromotionMix

Ingredientsof the

PromotionMix

Sales Promotion

Personal Selling

Direct Marketing

Public Relations

AdvertisingAny paid form of non-personal

presentation and promotion of ideas, goods, or services.

Reaches large, geographically dispersed audiences, often with high frequency.

Impersonal; one-way communication

The major tools are:

Print MediaBroadcast MediaOutdoor MediaInternet & Website

Functions/Objectives of Advertising

Informative AdvertisingInform Consumers or Build Primary Demand

i.e CD Players

Comparison Advertising

Compares One Brand to Another

i.e. Avis vs. Hertz

Persuasive AdvertisingBuild Selective Demand

i.e Sony CD Players

Reminder AdvertisingKeeps Consumers Thinking

About a Producti.e. Coca-Cola

Advertising ObjectiveSpecific Communication Task Accomplished with a Specific

Target Audience During a Specific Period of Time

Plan a Message StrategyGeneral Message to Be Communicated to Customers

(The “Creative Brief” is an important document)

Develop a Message Focus on

Customer Benefits

Develop a Message Focus on

Customer Benefits Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Creative Concept“Big Idea”

Visualization or PhraseCombination of Both

Advertising AppealsMeaningfulBelievableDistinctive

Advertising AppealsMeaningfulBelievableDistinctive

Developing Advertising Strategy: Creating Ad Messages

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Program Evaluation

Sales Effects

Is the Ad Increasing Sales?

Sales Effects

Is the Ad Increasing Sales?

Evaluating Advertising

Sales PromotionShort-term incentives to encourage the

purchase or sale of a product or services.

Makes use of a variety of formats: Discounts, premiums, coupons, contests, etc.

Attracts attention, offers strong purchase incentives

Not effective at building long-term brand preferences

Stimulates quick response.

Purpose of Sales PromotionEncourage Trials: Free newspaper copies

Counter Competitor's Promotional activities

Increase short-term sales or help build long-term market share.

Attract new Customers

Ex:- khadi announces rebates on purchases during the festivals.

Get retailers to:carry new items and more inventory,advertise products, give products more shelf space, andbuy product ahead.

SampleSample

CouponsCoupons

Money RefundsMoney Refunds

Price PacksPrice Packs

PremiumsPremiums

Advertising Specialties

Advertising Specialties

Trial amount of a productTrial amount of a product

Savings when purchasing specified products

Savings when purchasing specified products

Refund of part of the purchase priceRefund of part of the purchase price

Reduced prices marked on the label or package

Reduced prices marked on the label or package

Goods offered free or low cost as an incentive to buy a product

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Articles imprinted with an advertiser’s name given as gifts

Major Consumer Sales Promotion Tools

SampleSample

Price PromotionPrice Promotion Or Price Discounting. Discount on normal Price

Or Price Discounting. Discount on normal Price

Patronage RewardsPatronage Rewards

Point-of-PurchasePoint-of-Purchase

SweepStakesSweepStakes

Consumer ContestConsumer Contest

GameGame

Cash or other rewards for the use of a certain product

Cash or other rewards for the use of a certain product

Displays and demonstrations that take place at the point of sale

Displays and demonstrations that take place at the point of sale

Consumers submit their names for a drawing. Chances of law suits are

minimal.

Consumers submit their names for a drawing. Chances of law suits are

minimal.

Consumers submit an entry to be judged

To increase the retail sales. Ex. Tambola of TOI, Name Games

Consumers submit an entry to be judged

To increase the retail sales. Ex. Tambola of TOI, Name Games

Presents consumers with something every time they buy

Presents consumers with something every time they buy

Major Consumer Sales Promotion Tools- II

Public RelationsBuilding good relationships with the

company’s various publics (stakeholders,) building up a good corporate image.

The major tools are Press Releases, Sponsorships , Special Events, Web Pages.

To enhance the positive aspects and minimize negative factors related to products and organization.

News

Speeches

Special Events

Brochures, Written

MaterialsAudiovisual Materials

Corporate Identity

Materials

Public Service

Activities

Web Site

Major Public Relations Tools

Press Relations Press Relations

Product PublicityProduct Publicity

Public AffairsPublic Affairs

LobbyingLobbying

Investor RelationsInvestor Relations

DevelopmentDevelopment

Public Relations Departments May

Perform Any of All of the Following

Functions:

Major Public Relations Functions

Personal selling

The personal presentation by the firm’s sales force for the purpose of making sales and building strong customer relationships.

Most effective tool for building buyers preferences, convictions, and actions.

Personal interaction allows for feedback and adjustments.

Relationship-oriented.

The Personal Selling Process

Pre-Sale PreparationProspecting:

The salesperson identifies qualified potential customers (called prospects).

Pre-approach: The salesperson learns as much as possible about a

prospect before making a sales call.

Approach: The salesperson meets the customer for the first time.

Presentation: The salesperson tells the “product story” to the buyer,

highlighting customer benefits.

The Personal Selling ProcessHandling Objections:

The salesperson seeks out, clarifies, and overcomes customer objections to buying.

Closing: The salesperson asks the customer for an order.

Follow-up: The salesperson follows up after the sale to

ensure customer satisfaction and repeat business.

The selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships.

Direct Marketing

Involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

Many forms: Telephone marketing, direct mail, online marketing, etc.

Slide 24 in

Chapter 16

Direct MarketingDirect marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries.

Direct marketing is growing and offers consumers key benefits.

Firms are recognizing the importance of integrated direct marketing efforts.

Slide 25 in

Chapter 16

Direct Marketing

Face-to-face selling

Direct mail

Catalog marketing

Telemarketing

Direct-response TV marketing

Kiosk marketing

E-marketing

Major Direct Marketing Tools

Direct Marketing

Steps in Developing a Direct-Mail Campaign:Step 1: Set objectivesStep 2: Identify target marketsStep 3: Define the offerStep 4: Test the elementsStep 5: Measure results