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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
http://www2.coca-cola.com/presscenter/img/imagenews/downloads/lg_americas_cocacola_c2_launch.jpghttp://www2.coca-cola.com/index.html


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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
http://www.carlsjr.com/


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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

promotion mix new

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