Promotion LAP 1Promotion LAP 1

Describe the elements Describe the elements of the promotional mix.of the promotional mix.

Elements of the Marketing Mix

Promotion is a form of communication that uses various methods to reach a targeted audience.

Marketing Mix

To tell consumers about a company’s …To tell consumers about a company’s …

GoodsGoodsServicesServicesImagesImagesIdeasIdeas

To persuade consumers to buyTo persuade consumers to buy

Promotion’s Recipe for Success:

Mix various communication

activities together and serve to potential

customers until desired outcome is achieved.

The Top 5 The Top 5 Airlines!Airlines!

Traveler MagazineFlynnFlynnThe bikesThe bikesthe prosthe prosuse.use.

25% OffCoupon

•AdvertisinAdvertisingg

•Personal Personal sellingselling

•PublicityPublicity•Sales Sales promotionpromotion

Any paid form of nonpersonal presentation of ideas, Any paid form of nonpersonal presentation of ideas, images, goods, or servicesimages, goods, or services

The most visible element of the promotional mixThe most visible element of the promotional mix

The New BarchettaThe New Barchetta

• Actual cost of Actual cost of advertisement is quite advertisement is quite high.high.

• Since many people receive Since many people receive the message, the per the message, the per contact cost is very low.contact cost is very low.

Messages can be delivered by:Messages can be delivered by:

• TelevisionTelevision• RadioRadio• NewspapersNewspapers• MagazinesMagazines• Direct mailDirect mail• Outdoor advertisementsOutdoor advertisements• DirectoriesDirectories• The InternetThe Internet

Planned, personalized communication that influences Planned, personalized communication that influences purchase decisions and enhances future business purchase decisions and enhances future business opportunities.opportunities.

Is there anything else I can help you fine?

• Immediate feedbackImmediate feedback• FlexibilityFlexibility

I like the soundof this stereo,

but I think it’s alittle large for

my dorm room.

We do carry abookshelf model

with similarsound quality.

Selling Disadvantage

On a per contact basis, On a per contact basis, selling is the most expensive selling is the most expensive

form of promotion.form of promotion.

Sales PromotionSales Promotion Marketing activities designed to entice customers to buy a Marketing activities designed to entice customers to buy a

productproductPromotional activities other than advertising, personal Promotional activities other than advertising, personal

selling, and publicity which stimulate purchasesselling, and publicity which stimulate purchases

Visual merchandising or displaysVisual merchandising or displays

CouponsCoupons

Product demonstrationsProduct demonstrationsInstant rebatesInstant rebates

PublicityNon personal

presentation of goods or service that is not paid for by the company or business

Free Publicity- Newsworthy activities you partake in.Press releaseCommunity project

A company web site can be used to obtain and display A company web site can be used to obtain and display positive feedback.positive feedback.

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Establish Good Will in Community

Importance Importance of the of the PromotionaPromotional Mixl Mix

Appropriate blend is Appropriate blend is essential in obtaining and essential in obtaining and keeping customerskeeping customers

Appropriate blend Appropriate blend enables businesses to enables businesses to communicate effectively communicate effectively with customerswith customers

Informs consumers about Informs consumers about goods/services and goods/services and persuades them to buypersuades them to buy

Explain factors affecting Explain factors affecting the selection of a the selection of a promotional mix.promotional mix.

Marketers Try To Create theMarketers Try To Create theIdeal Blend of Promotional Ideal Blend of Promotional

Activities for Their Businesses.Activities for Their Businesses.

Must decide which methods willMust decide which methods willbest reach potential customers and best reach potential customers and

communicate desired messagecommunicate desired messageAdvertisingAdvertising

PersonalPersonalsellingselling

PublicityPublicity

Sales Sales promotionpromotion

Hard to determine effectiveness of the Hard to determine effectiveness of the different promotional methodsdifferent promotional methods

No magic formula that No magic formula that marketers use to help marketers use to help

design promotional mixdesign promotional mix

Factors Affecting the Selection of a Factors Affecting the Selection of a Promotional MixPromotional Mix

Variety of factors effect the promotional mix:1.Product Itself2.Target Market3.Distribution channels4.Company

Good, Service, Image, or IdeaGood, Service, Image, or IdeaType of product

Convenience goodsConvenience goods

Specialty goods

Shopping Goods

IntroductoryIntroductory

GrowthGrowth

MaturityMaturity

DecliningDeclining

Does Promotion Stay the SameDoes Promotion Stay the Same

Stage of life cycleStage of life cycle

New and New and Improved!Improved!

Distribution ChannelDistribution Channel

The promotional mix selection is affected by the

path that a product takes.

INTERMEDIARY BLVD. DIRECT AVE.

Requires personal Requires personal sellingselling

Requires personal Requires personal selling and selling and advertisingadvertising

What effects PromotionWhat effects Promotion

Type of ConsumerNumber of

ConsumersGeographical

locationsAvailable fundsCompetitionPrevious Methods