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PROMOTIONAL MIX
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Promotional MixPromotional Mix
ObjectivesObjectives
A.A. Describe the elements of the Describe the elements of the promotional mix.promotional mix.
B.B. Explain factors affecting the selection Explain factors affecting the selection of a promotional mix.of a promotional mix.
Objective AObjective A
Describe the elements of the Describe the elements of the promotional mix.promotional mix.
Purposes of PromotionPurposes of Promotion
To tell consumers about a company’s …To tell consumers about a company’s …
GoodsGoodsServicesServicesImagesImagesIdeasIdeas
Purposes of PromotionPurposes of Promotion
To persuade consumers to buyTo persuade consumers to buy
Promotion’s Recipe for Success:
Mix various communication
activities together and serve to potential
customers until desired outcome is achieved.
The Top 5 The Top 5 Airlines!Airlines!
Traveler Magazine
FlynnFlynnThe bikesThe bikesthe prosthe prosuse.use.
25% OffCoupon
• AdvertisingAdvertising
• Personal sellingPersonal selling
• PublicityPublicity
• Sales promotionSales promotion
Communication Techniques
The Combination, or Blend, of Marketing The Combination, or Blend, of Marketing Communication Channels Is Called the...Communication Channels Is Called the...
AdvertisingAdvertisingAny paid form of nonpersonal presentation of ideas, Any paid form of nonpersonal presentation of ideas,
images, goods, or servicesimages, goods, or services
The most visible element of the promotional mixThe most visible element of the promotional mix
The New BarchettaThe New Barchetta
• Actual cost of Actual cost of advertisement is quite advertisement is quite high.high.
• Since many people receive Since many people receive the message, the per the message, the per contact cost is very low.contact cost is very low.
GoodsGoodsServicesServicesImagesImagesIdeasIdeas
The Vet for Your Pet
At Techco, we’re
friendly to our
customers and the
environment.
At Techco, we’re
friendly to our
customers and the
environment.
Say No to Drugs.Diamonds from Desmond’s Jewelers are a girl’s best friend.
Diamonds from Desmond’s Jewelers are a girl’s best friend.
AdvertisingAdvertising
Messages can be delivered by:Messages can be delivered by:
• TelevisionTelevision• RadioRadio• NewspapersNewspapers• MagazinesMagazines• Direct mailDirect mail• Outdoor advertisementsOutdoor advertisements• DirectoriesDirectories• The InternetThe Internet
Personal SellingPersonal Selling
Determines client needs/wants and responds through Determines client needs/wants and responds through planned, personalized communication that influences planned, personalized communication that influences purchase decisions and enhances future business purchase decisions and enhances future business opportunitiesopportunities
Are you planningon replacing all
of your computersat once?
My budget won’tallow me to replace
them all at once,but I want them to
be compatible.
You might wantto consider leasing
computers. You canget free service
and upgrade to anewer model whenever
you want!
Selling Advantages
• Immediate feedbackImmediate feedback
• FlexibilityFlexibility
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.
Selling Disadvantage
On a per contact basis, On a per contact basis, selling is the most expensive selling is the most expensive
form of promotion.form of promotion.
PublicityPublicity
• Any nonpersonal presentation of ideas, goods, or Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or services that is not paid for by the company or individual which benefits from or is harmed by itindividual which benefits from or is harmed by it
• Many consumers pay close attention to publicity.Many consumers pay close attention to publicity.
– Feel publicity has more credibility because it is not a Feel publicity has more credibility because it is not a commercial messagecommercial message
– View publicity as newsView publicity as news
Example: Mention of a company’s charitable activities Example: Mention of a company’s charitable activities in print or broadcast mediain print or broadcast media
Ways the Internet Can Be Used Ways the Internet Can Be Used as a Source of Publicityas a Source of Publicity
A company web site can be used to obtain and display A company web site can be used to obtain and display positive feedback.positive feedback.
“Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.”
-Susie Wells, CA
Ways the Internet Can Be Used Ways the Internet Can Be Used as a Source of Publicityas a Source of Publicity
A business’s goods, services, or web site might be mentioned in an A business’s goods, services, or web site might be mentioned in an Internet newsgroup.Internet newsgroup.
OnlineNews.comOnlineNews.com
Car shopping on the web
Buying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad.
Ways the Internet Can Be Used Ways the Internet Can Be Used as a Source of Publicityas a Source of Publicity
A company might agree to provide a link to another business’s web A company might agree to provide a link to another business’s web site in exchange for the same consideration.site in exchange for the same consideration.
LINK TO ACME.COMLINK TO ACME.COMLINK TO ACME.COMLINK TO ACME.COM
Sales PromotionSales Promotion • Promotional activities other than advertising, personal Promotional activities other than advertising, personal
selling, and publicity which stimulate purchasesselling, and publicity which stimulate purchases
• Sales promotion activities include:Sales promotion activities include:
Visual merchandising or displaysVisual merchandising or displaysCouponsCouponsProduct demonstrationsProduct demonstrationsInstant rebatesInstant rebatesFree samplesFree samplesFashion showsFashion showsContestsContestsNovelty itemsNovelty itemsTrade showsTrade showsExhibitsExhibits
Importance Importance of the of the
Promotional Promotional MixMix
• Plays a key role in Plays a key role in obtaining and keeping obtaining and keeping customerscustomers
• Enables businesses to Enables businesses to communicate effectively communicate effectively with customerswith customers
• Informs consumers about Informs consumers about goods/services and goods/services and persuades them to buypersuades them to buy
Objective BObjective B
Explain factors affecting the Explain factors affecting the selection of a promotional mix.selection of a promotional mix.
Marketers Try To Create theMarketers Try To Create theIdeal Blend of Promotional Ideal Blend of Promotional
Activities for Their Businesses.Activities for Their Businesses.
Must decide which methods willMust decide which methods willbest reach potential customers and best reach potential customers and
communicate desired messagecommunicate desired message
AdvertisingAdvertising
PersonalPersonalsellingselling
PublicityPublicity
Sales Sales promotionpromotion
Hard to determine effectiveness of the Hard to determine effectiveness of the different promotional methodsdifferent promotional methods
No magic formula that No magic formula that marketers use to help marketers use to help
design promotional mixdesign promotional mix
Factors Affecting the Selection of a Factors Affecting the Selection of a Promotional MixPromotional Mix
Product’s target Product’s target marketmarket
Good, service, Good, service, image, or ideaimage, or ideaDistribution Distribution
channelschannelsProduct’s Product’s companycompany
Must be carefully Must be carefully analyzed before analyzed before marketers decide when marketers decide when and where to invest and where to invest promotional fundspromotional funds
Good, Service, Image, or IdeaGood, Service, Image, or Idea
Convenience goodsConvenience goods Shopping goodsShopping goods
Specialty goodsSpecialty goods
• Type of product
Good, Service, Image, or IdeaGood, Service, Image, or Idea
Product natureProduct nature
Products which are Products which are high-tech, require high-tech, require demonstration, are demonstration, are expensive, or require expensive, or require installation should be installation should be promoted through promoted through personal selling.personal selling.This computer is
perfect for you. Ithas all the softwarepre-installed and a left-handed mouse!
Inexpensive and Inexpensive and self-service products self-service products can rely on advertising can rely on advertising and sales promotion.and sales promotion.
SALE!
SALE! 10% OFF
on all small appliances
HARRY’SHARDWAR
E
IntroductoryIntroductory
GrowthGrowth
MaturityMaturity
DecliningDeclining
Good, Service, Image, or IdeaGood, Service, Image, or Idea
Stage of life cycleStage of life cycle
When you are When you are on-the-go…on-the-go…
…it’s Breakfast-To-Go
Each pocket provides you a delicious breakfast in just two minutes!
New and New and Improved!Improved!
Product’s Target MarketProduct’s Target Market
vs.ConsumerConsumerMarketMarket
IndustrialIndustrialMarketMarket
Type of ConsumerType of Consumer
AdvertisingAdvertising
Sales PromotionSales Promotion
PublicityPublicity
Personal SellingPersonal Selling
Number of ConsumersNumber of Consumers
FewFewConsumersConsumers
ManyManyConsumersConsumers
Geographical LocationGeographical Location
Close Close TogetherTogether
Spread Over Spread Over a Wide Areaa Wide Area
Distribution ChannelDistribution Channel
The promotional mix selection is affected by the
path that a product takes.
INTERMEDIARY BLVD. DIRECT AVE.
Requires personal Requires personal sellingselling
Requires personal Requires personal selling and selling and advertisingadvertising
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 CompanyProduct’s Company
Available FundsAvailable Funds
Wal-Mart started as one small Wal-Mart started as one small store in Arkansas. In Wal-Mart’s store in Arkansas. In Wal-Mart’s early years, local newspaper early years, local newspaper advertising and personal selling advertising and personal selling were all that the small company were all that the small company could afford.could afford.
Today, the Wal-Mart corporation Today, the Wal-Mart corporation has increased its promotional mix has increased its promotional mix to include television, radio, to include television, radio, newspapers, special sales bulletins, newspapers, special sales bulletins, and a Wal-Mart web site in order and a Wal-Mart web site in order to promote its national network.to promote its national network.
Example:Example:
Product’s CompanyProduct’s Company
Tony’s Pizza
Kids eat free!
Ange’s Pizza
Free kids’ meals!
Competing businesses use similar promotional Competing businesses use similar promotional mixes and tend to follow the leader.mixes and tend to follow the leader.
CompetitionCompetition