unit - 1 promotion mix
TRANSCRIPT
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