exploring the promotion mix

April 15, 2014

proprietary & confidential

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agendaelements of the promotion mix

advertising

direct marketing

public relations

personal selling

sales promotion

promotion selection

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01elements of the promotion mix

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promotion mix• Definition: A specific combination of promotional methods

used for one product or a family of products.

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PROMOTION MIX

advertising

direct marketing

public relations

personal selling

sales promotion

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02advertising

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advertising

• any paid form of non-personal communication

• television

• radio

• print ads

• billboards

• online banners

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advertisingpros & cons

+ high degree of control

+ flexibility

+ ability to reach large audiences

+ builds awareness and demand

+ attracts new customers

- expensive

- brevity necessary

- difficult to measure

- low credibility

- low persuasion to act

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03direct marketing

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direct marketing

• creates a direct relationship (1:1) between the customer and the business

• channel-agnostic form of advertising that drives a customer to respond or act

• cell phone text messaging

• email

• interactive consumer websites

• interactive online dialogue

• direct mail

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direct marketing pros & cons

+ personalization

+ measurability

+ relationship-building

- expensive (print)

- sheer volume

- production time

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04public relations

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public relations

• communication through placement of information in the media without paying for the time or media space directly

• managing communication between an organization and its publics

• press releases

• corporate identity and communications

• interactive publicity

• sponsorships

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public relations pros & cons

+ builds reputation

+ creates goodwill

+ drives awareness

+ high credibility

- non-personal

- sponsorships expensive

- lack of message control

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05personal selling

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personal selling

• the act of selling a product/service in return for compensation

• direct person-to-person sales

• sales outsourcing

• telemarketing

• retail

• ecommerce

• exhibits

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personal selling pros & cons

+ customer service orientation

+ objection handling

+ upselling potential

+ instant feedback

- expensive

- perception of high-pressure

- lack of control

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06sales promotion

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sales promotion

• tactical media and non-media communications employed for a limited time to increase demand

• contests/prizes

• sales/coupons/rebates

• freebies

• point of purchase displays

• samples

• experiential

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sales promotionspros & cons

+ ability to target smaller audience

+ drives customer response/conversion

+ encourage trial

+ creates goodwill

- limited scalability

- ineffective if competitors also employ

- low credibility

- short-term effectiveness

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07promotion

selection

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effectiveness of promotional tools¹

¹ - Adapted from Fill/Jamieson at Edinburgh Business School Heriot-Watt University Marketing Communications

advertisingdirect

marketingpublic relations personal selling sales promotion

ability to deliver a personal message

low high low high low

ability to reach a large audience

high medium medium low medium

level of interaction

low high low high low

credibility given by the target audience

low medium high medium medium

absolute costs high medium low high medium

cost per contact low high low high medium

wastage high low high low medium

size of investment

high medium low high medium

ability to target specific audiences

medium high low medium high

flexibility to adjust deployment in changing circumstances

medium high low medium high

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selection criteria• The degree of control required over the delivery of the

message

• The financial resources available to transmit messages

• The level of credibility that each element transfers to the organization

• The size and geographic dispersion of the target audiences

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element effectiveness within the purchase decision²

² Adapted from Fill/Jamieson at Edinburgh Business School Heriot-Watt University Marketing Communications

awareness consideration purchase0

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advertisingdirect marketingpublic relationspersonal sellingsales promotion

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Thank You!