PROMOTIONAL MIX

Promotion is one of the four elements of marketing mix (product, price, promotion, place).

It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision

Above the line promotion: Promotion in mass media. TV, radio, newspapers, internet, mobile phones.

Below the line promotion: All other promotion.sponsorship, product placement, testimonials, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

The specification of five elements creates

a promotional mix or promotional plan. These

elements are personal selling, advertising, sales

promotion, direct marketing, and publicity

A promotional mix specifies how much attention to

pay to each of the five subcategories, and how

much money to budget for each.

A promotional plan can have a wide range of

objectives,

sales increases, new product acceptance, creation

of brand equity, positioning, competitive advantage,

or creation of a corporate image.

Fundamentally, there are three basic objectives of

promotion.

To present information to consumers as well as

others

To increase demand

To differentiate a product.

FACTORS INFLUENCING PROMOTION MIX.

Nature of the product.

Marketing strategy.(push or pull).

Buyer readiness stage.

Product life cycle stage.

SALES PROMOTION.

Sales promotion is one of the four aspects

of promotional mix.

Media and non-media marketing communication

are employed for a pre-determined, limited time to

increase consumer demand, stimulate market

demand or improve product availability.

Collectively comprises the tools used to promote

sales in a specific territory and time.

They are short-term in nature, and are designed

stimulate quick sales.

Sales promotions can be directed at either

the customer, sales staff, or distribution channel

members (such as retailers).

Sales promotions targeted at the consumer are

called consumer sales promotions.

Sales promotions targeted at retailers

and wholesalers are called trade sales

promotions.

OBJECTIVES AND TYPES OF SALES

PROMOTION.

Generate consumer interest(which finally reach to

trial).

Methods- coupons, discount sales, free

samples,contests,demonsrations(in-store).

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Generate enquiry from the target customer group.

Methods- gifts, mail-in

coupons,catalougue,brochures.

Hotels,asian paints,

Build consumer traffic.

Methods-special events, festival sales, annual

sales.

Big-bazzar Wednesday bazzar, year end sale.

Motivate customers to repeat purchase.

Methods-on pack coupons, continuity promotions,

loyalty cards.

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Increasing rates of purchase or usage.

Methods-multi pack, special rate for more than one,

new usage situations.

Other methods.

Price deal: A temporary reduction in the price, such

as happy hour. Free-standing insert (FSI): A coupon

booklet is inserted into the local newspaper for

delivery.

On-shelf couponing: Coupons are present at the

shelf where the product is available.

Checkout dispensers: On checkout the customer is

given a coupon based on products purchased.

On-line couponing: Coupons are available online.

Consumers print them out and take them to the

store.

Mobile couponing: Coupons are available on a

mobile phone. Consumers show the offer on a

mobile phone to a salesperson for redemption.

Online interactive promotion game: Consumers

play an interactive game associated with the

promoted product. Interactive Internet Ad for tomato

ketchup.

Point of displays.

TRADE PROMOTION.

Trade allowances: short term incentive offered to induce

a retailer to stock up on a product.

Dealer loader: An incentive given to induce a retailer to

purchase and display a product.

Trade contest: A contest to reward retailers that sell the

most product.

Point-of-purchase displays: Used to create the urge of

"impulse" buying and selling your product on the spot.

Training programs: dealer employees are trained in

selling the product.

Push money: also known as "spliffs". An extra

commission paid to retail employees to push products.

DISADVANTAGES OF SALES PROMOTION.

Increased price sensitivity.

Quality image may be affected.

Merchandising support.

Dealers will take up undue advantage.

Short term sales orientation.

ADVERTISEMENT.

It is any paid form of nonpersonal presentation of

ideas,goods,or services by an identified sponsor.

It should be based on target market and buyer

motives.

Five “M”s in advertising.

Mission-objectives

Money-budget

Media-what media

Message-what message

Measurement-evaluation

SETTING THE OBJECTIVES(MISSION.)

It should follow with the decisions of target market

and brand positioning.

Objectives can be classified according to their aim.

Informative.

Aims to create brand awareness and knowledge of

new products or new features of existing products.

Persuasive.

Aims to create liking,preference,conviction,and

purchase of a product.

Reminder.

Repeat purchase of products and services.

Re- inforcement

Convince current purchasers that they made the

right decision.

DECIDING ON THE ADVERTISEMENT

BUDGET.(MONEY)

How much a firm should spend on advertising its

brand?

Percent of sales.

Sales decides advertisement budget.

Plc stages denies this method.

Based on affordability.

If something left after the entire expenses, it will be

allocated for the advertisement.

Based on competitive parity.

Follow the crowd method.

Some firms may well utilize the situation.

Difference in the firm size is another problem.

Based on the objective and task.

Most proactive approach.

Decides the objective, plan the task, understand

cost and then decide the budget.

FACTORS AFFECTING BUDGET DECISIONS.

Stage in the plc.

Market share and consumer base.

Competition and.

Advertising frequency.

Products substitutability.

DEVELOPING THE CAMPAIGN(MESSAGE).

Message generation and evaluation.

What the ad says?

Evaluating the various messages and choosing

one.

Creative development and execution.

How the ad says?

How it can be executed?

Legal and social issues.

DECIDING ON MEDIA(MEDIA)

Deciding on reach, frequency and impact.

Media selection-is finding the most cost effective

media to deliver the desired number and type of

exposures to the target audience.

Exposures-specified advertising objective and its

response from the target audience.

Reach-the number of different persons or

households exposed to a particular media schedule

at least once during a specified time period.

Frequency-the number of times within the specified

time period that an average person or household

exposed to the message.

Impact-the qualitative value of an exposure through

a given medium.

(automobile advertisement impact will be higher in

automobile magazines than in fashion magazines.)

If the reach, frequency and impact is high the

advertisement will have an effectiveness but the

budget will be high.

Reach-introducing products.

Frequency-if the competition ifs high

DECIDING ON MEDIA TYPES.

Each media will differ in their power of

reach,frequency,and impact.

Media planners should find out the right mix of

media for reach,frequency,and impact.

Target audience media habits-

youth,elders,rich,middleclass,geographical

differences.

Product characteristics-high-tech products requires

audio-video visualization, paints

Message characteristics-timeliness and information

content will influence media choice.

Limited period offer –radio,t.v,newspaper.

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ALTERNATIVE ADVERTISING OPTIONS.

PLACE ADVERTISING.

PUBLIC SPACE ADVERTISEMENT.

Product placement in movies and t.v shows.

Point of displays.

Ads can be anywhere, even in toilets where a

customer spends some time.

SELECTING SPECIFIC MEDIA VEHICLE.

Circulation.

Audience-readership.

Effective audience

Effective ad-exposed audience.

DECIDING ON MEDIA TIMING AND ALLOCATION.

Macro scheduling.

Micro scheduling.

Buyer turnover.

Purchase frequency.

Forgetting rate.

Continuity.

Concentration.

Flighting.

Pulsing.

EVALUATING ADVERTISING EFFECTIVENESS.

The potential effect on awareness,knowledge,or

preference. also to measure the ad’s sales effect.

Brand awareness, knowledge about the brand,

preference for the brand, sales effect

Communication-effect research.

Consumer – feedback method

What is the main message that you get from this ad?

What do you think they want you to know,believ,or do?

How likely is that this ad will influence you to undertake

the decision?

What works well and what works poorly?

How does the make you feel?

Portfolio tests-ask customers to view or listen to a

portfolio of advertisements, then they are asked to

recall the ads and the content.

Laboratory test-measure physiological reactions of

the customer.

Attention getting power can be identified but not

beliefs,attitudes,or intentions.

Sales effect research.

Historical method- comparison with the old data.

Experimental-consumer panel are created and their

purchase behavior linked with a particular ad.

In-store tests.

MANAGING THE DISTRIBUTION FUNCTION.

Marketing channels are sets of independent

organizations involved in the process of making a

product or service available for the customer.

Role and functions of middlemen.

Information.

Price-stability.

Promotion.

financing.

Title.

Type and nature of middlemen.

Merchant middlemen.

Take titles of the product and resell them.

Retailers,wholesalers,dealers.

Agents.

Title and risk will not be shared, they will help the firm in identifying potential customers.

Commission based on their work.

Facilitors.

Independent business units, without holding the title of the product.

Service charges can be collected.

Railway tickets and western union money transfer in muthoott.

MAJOR DISTRIBUTION ALTERNATIVES.

Intensive distribution.

All the possible outlets that can be distributed the

product.

Soft drinks and candy.

Easy availability.

Selective distribution.

Some selective outlets for the distribution.

Good relationship with the channel members.

Optimum market coverage, good control, less cost.

Consumer durables.

Exclusive distribution.

One or two major outlets in a particular area. these

outlets will only sell one brand.

High prestigious image.

Woodland shoes,loui Philippe.