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Promotions : How they aredone?
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Promotion Mix
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Learning Objectives: the Promotional Mix andAdvertising
1.Define the term promotional mix.
2. List and explain the nine elements of thecommunications process.
3. Explain the relationship of the promotionalmix and the marketing mix.
4. Define the terms advertising, personal
selling, sales promotion, merchandising,public relations and publicity.
5. Identify the factors that affect the
promotional mix.
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What is promotion?
Any form of communication a business ororganization uses to inform, persuade, orremind people about its products.
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The Promotion Mixis a combinationof the different types of promotion.
OrThe combination of promotion types
represents a products PROMOTIONAL
MIX
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Two types of promotion
Product Promotion
Type of promotion that a business uses toconvince potential customers to buy products
from them and not their competitors.
Institutional Promotion
Type of promotion that a business uses to
create a favorable image for itself.
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Promotion mix is also known as marketingcommunication mix
Consists of 5 major tools-
Advertising
Sales Promotion
Publicity
Personal selling
Public relations
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What is the largest form ofpromotion?
Personal Selling!
This type of promotion requirescontact with potential buyers
The PERSONAL presentation of a product or
company to one or more potential buyers
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Prospecting & qualifying
Promotional mixpersonal selling
Pre-approach
Approach
Presentation/demonstration
Overcoming objections
Closing
Follow-up
7steps
in
effectiveselling
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Advertising.
Any paid form of non-personal presentationand promotion of
ideas, goods, orservices by anidentified sponsor.
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Five MS OF ADVERTISING
MISSION
MONEY
MESSAGE MEDIA
MEASUREMENT
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Product advertising Sells a particular good or service
Retail advertisingInitiated by retailers and directed
at consumers via papers,television
Institutional advertising Intended to promote a firms imagerather than sell product
Trade advertisingInitiated by manufacturers and
directed to retailers andwholesalers
Industrial advertisingInitiated by manufacturers anddirected to other manufacturers
Advocacy advertisingPromote view to influence public
opinion or legislation
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Harcourt, Inc. items and derived itemscopyright 2001 by Harcourt, Inc.
Promotional mixadvertisingmedia
Different mediaand theiradvantages
Easily ignored, low readershipLow cost, interactive, 24-hour
Long ad-purchase lead time,
high other-ad competition
Low cost, excellent local
coverage, wide consumer use
High cost, junk mail image,
need accurate mailing list
Very flexible, targets specific
audience, complete information
Brief exposure, limited
audience selectivity
High repeat exposure, low cost,
local market focus
Long ad-purchase lead time,
lack of flexibility
Long life, quality reproduction,
high demographic selectivity
Fleeting exposure, audio
presentation only
Low cost, high geographic &
demographic selectivity
High cost, fleeting exposure,
limited audience selectivity
Mass coverage, high attention
with sight, sound,& motion
Competition from other
features, limited selectivity
Good local coverage, broad
acceptance, believable
WeaknessesStrengths
Internet
Yellowpages
Direct mail
Outdoor
Magazines
Radio
Television
Newspaper
Media
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All marketingactivities, other thanpersonal selling,
advertising, andpublic relations iscalled.
Sales Promotion
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Sales Promotion
2 for 1 Sale
Buy One,Get OneFree
20 Rs offafter 8PMon Tuesday
stimulate purchasesincrease store trafficAre short term direct inducements toencourage the sales of the products andservices
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Promotional mixsales promotion
Samples
Coupons
Point-of-purchase
Rebates
PrizesPremiums
Sales
contests
Trade showsconventions
Price-offdiscount
Allowances
Consumer-oriented Trade-oriented
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Public Relations
Any activity designedto create a favorableimage toward a
business, its productsor its policies.
Marketers engage inpublic relations to
develop a favorableimage of their productor organization
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A specific kind of public relations thatinvolves placing positive andnewsworthy information about abusiness, its products, or its policies inthe media is called..
Non personal stimulation of demandfor a product or service by puttingcommercially significant news inmedia to create a favorable image, itsnot paid by the sponsor
Creating demand for a business orproduct by placing wsabout itin the media
Publicity
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Publicity
Advantage
It is free!
Disadvantage.. Its contents
cannot be
controlled by thebusiness
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Principal function of publicity
Building an image
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Promotional mixcomparison
Tool Strengths Weaknesses
AdvertisingLarge audience, low cost percontact, can modify message
Overall expensive, difficult tomeasure effectiveness
Direct mailEffective when using targeted
and current mailing listReaches disinterested parties
and considered junk
Personal sellingTailored to each buyer,
immediate buyer responseExpensive
TelemarketingImmediate feedback and
immediate buyer responseOften seen as intrusive
Word of mouthInexpensive, has high
credibilityDifficult to manage
Sales promotionInexpensive, short-term sales
increasesNon-personal appeal
Public relationsCreates positive attitude
about product/firmNon-personal appeal, hard ot
measure effectiveness
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Push Policy
Promotion policy usedonly with the nextpartner in the
distribution channel.
Manufacturers PUSH
a product to theretailers for sale.
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Pull Policy
Promotion policydesigned to createconsumer interest
When aproduct isconsumer
driven orPUSHED into astore.
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PushConvince retailersand wholesalersto market the
products
PullConvince
consumers to askintermediaries for
the products
Consumers
Retailers
Wholesalers