unit - 1 promotion mix

PROMOTION MIXUnit – 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 Pay attention to message & comprehend it like

thinking, belief & rational aspects Affective responses

Message lead to formation of new attitude or change in attitude

Conative or behavioral responses Some desired change in behaviour

learn-feel-do

do-feel-learn

learn-do-feel

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 PROMOTIONTo tell consumers about a

company’s …

GoodsServicesImagesIdeas

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 OBJECTIVESPersuade

Remind

Inform

Reinforce

ADVERTISING

Messages can be delivered by:

TelevisionRadioNewspapersMagazinesDirect mailOutdoor

advertisementsDirectoriesThe 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 face-to-face or via telephone.

ADVANTAGES OF PERSONAL SELLING

Cost Control

Message Control

Targeted

Detailed Information

Closing Sales

SELLING ADVANTAGES

• Immediate feedback• Flexibility

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.On a per contact basis,

selling is the most expensive form of promotion.

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

Stimulate Sales

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

OBJECTIVES

Product trial

Reward

Increase repurchase

Brand switching

SALES PROMOTION Promotional activities other than advertising,

personal selling, and publicity which stimulate purchases

Sales promotion activities include:

Visual merchandising or displaysCouponsProduct demonstrationsInstant rebatesFree samplesFashion showsContestsNovelty itemsTrade showsExhibits

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 PR1. Press relations2. Product publicity3. Corporate

communications4. Lobbying5. Counseling

PUBLIC RELATIONS

Monitors attitudes

Promote

Protect Image

MARKETING PUBLIC RELATIONS (MPR)

Launch new productsRepositioning a mature productBuilding interest in a product categoryInfluencing specific target groupsManage brand crisisBuild corporate image

Helps…

FACTORS AFFECTING THE SELECTION OF A PROMOTIONAL MIX

Product’s target market

Good, service, image, or ideaDistribution

channelsProduct’s company

Must be carefully analyzed before marketers decide when and where to invest promotional funds

GOOD, SERVICE, IMAGE, OR IDEA

Convenience goods Shopping goods

Specialty goods

Type of product

GOOD, SERVICE, IMAGE, OR IDEA

Product nature

Products which are high-tech, require demonstration, are expensive, or require installation should be promoted through personal selling.

This computer isperfect for you. It

has all the softwarepre-installed and a left-handed mouse!

Inexpensive and self-service products can rely on advertising and sales promotion.

SALE! 10% OFF on all small appliances

HARRY’SHARDWAR

E

Introductory

Growth

Maturity

Declining

GOOD, SERVICE, IMAGE, OR IDEA

Stage of life cycle

When you are on-the-go…

…it’s Breakfast-To-Go

Each pocket provides you a delicious breakfast in just two minutes!

New and Improved!

PRODUCT’S TARGET MARKETType of Consumer

ConsumerMarket

IndustrialMarket

Advertising

Sales Promotion

Publicity

Personal Selling

vs.

PRODUCT’S TARGET MARKETNumber of Consumers

Advertising

Sales Promotion

Publicity

Personal Selling

FewConsumers Many

Consumersvs.

PRODUCT’S TARGET MARKET

Advertising

Sales Promotion

Publicity

Personal Selling

Geographical Location

Close Together

Spread Over a Wide Areavs

.

DISTRIBUTION CHANNEL

The promotional mix selection is affected by the path that

a product takes.

INTERMEDIARY BLVD. DIRECT AVE.

Requires personal sellingRequires personal selling and advertising

Businesses often rely on previoususe of promotional methods.

Product’s Company

1960 20001980

Historical Perspective

1970 1990

Think small. Less flower. More power.

PRODUCT’S COMPANY

Available Funds

Wal-Mart started as one small store in Arkansas. In Wal-Mart’s early years, local newspaper advertising and personal selling were all that the small company could afford.

Today, the Wal-Mart corporation has increased its promotional mix to include television, radio, newspapers, special sales bulletins, and a Wal-Mart web site in order to promote its national network.

Example:

PRODUCT’S COMPANY

Tony’s Pizza

Kids eat free!

Ange’s PizzaFree kids’

meals!

Competing businesses use similar promotional mixes and tend to follow the leader.

Competition

PUSH AND PULL PROMOTION STRATEGIESPUSH STRATEGY

PULL STRATEGY

Manufacturer

Retailers and

Wholesalers

Consumer

ManufacturerDemand Retailers

and Wholesalers

DemandConsumers

Consumer advertising and sales promotion

Channel’s Personal Selling,

Advertising and Sales Promotion

And Trade Promotion

Manufacturer’s Personal Selling

Marketers Try To Create theIdeal Blend of Promotional

Activities for Their Businesses.

Must decide which methods willbest reach potential customers and communicate

desired message

Advertising

Personalselling

Publicity

Sales promotion

Hard to determine effectiveness of the different promotional methods

No magic formula that marketers use to help design promotional mix

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

ADVERTISINGUnit - 2