Promotional MixPromotional Mix

Promotion LAP 1Promotion LAP 1

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

MarkED

Acknowledgements

Original DeveloperChristopher C. Burke, MarkED

Version 1.0

Copyright 2000MarkED Resource Center

Digital-based photography sources:

ADOBE IMAGE LIBRARY;RetailObj. A: #RET_050

Photos copyright Eyewire Inc.833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada

ART EXPLOSION 250,000;Obj. A: #MODEL005

Nova Development Corporation23801 Calabasas Road, Suite 2005Calabasas, CA 91302

Digital-based photography sources:

PHOTODISC, INC.;Business & Occupations Vol. 7Obj. A: #7067

Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121

T/Maker Company;ClickArtObj. A: #PRFTOT007

Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright 1984-1994 by T/Maker Company. All rights reserved.

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