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PROMOTIONAL MIX
PREPARED BY:
vArnab Chatterjee.vSphoorthy Bagalwadi. vPraveen Naraynan.
vManik Mondal.
vVarun K Nair
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Promotional Mix
A business' total marketingcommunications program is calledthe "promotional mix" and consists ofa blend of advertising, personalselling, sales promotion and public
relations tools. A successful product or service
means nothing unless the benefit of
such a service can be communicated
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Promotional Mix
An organizations promotional mixstrategy can consist of:
Advertising. Public relations.
Sales promotion
Personal selling Direct Mail Internet
Marketing
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Advertising
Any paid form of non-personalcommunication of ideas or products in
the "prime media": i.e. television,newspapers, magazines, billboardposters, radio, cinema etc.
Advertising is intended to persuadeand to inform.The two basic aspects of advertising
are: The messa e.
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Advertising: ACommunication Tool
Production: The advertiser and socialcontext determine ad content.
Reception: The context of adreception and the audiencesunderstanding of an ad result in ameaningful interpretation of the ad
Accommodation and negotiation: The
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Audience For Advertising:
HouseholdConsumers
BusinessOrganizations
Professionals Government
The TradeChannelAudience Geography:
Global advertising International
advertising
Nationaladvertising
Regional Local
advertising
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Role Of Advertising:
Information and persuasion Introduction of new brands and
extensions Building and maintaining brand
loyalty / brand equity Creating an image/meaning Building brand loyalty in the trade
channel
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Advertising By Nike
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Advertising Strategy:
Designed to make a connection to theconsumer
Seldom pitch the product directly or talkabout product attributes
Sometimes dont even mention the
companys name featuring instead onlythe swoosh logo
Making new contracts with sportsmen
Collaboration ads with another strong
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Advertising Strategy:
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Personnel Selling
Personal selling is oral communication with potential
buyers of a product with the intention of making a sale.
Personal selling mainly focuses on developing a
relationship with the potential buyer. Personal selling is
one of the oldest forms of promotion. It involves the use
of a sales force to support a push strategy (encouraging
intermediaries to buy the product) or a pull strategy
(where the role of the sales force may be limited to
supporting retailers and providing after-sales service).
Personnel Selling involves selling through a person-to-
person communication process. In an Integrated Marketing
Communications program, personnel selling is a partner
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Personnel Selling differs from other forms ofcommunication , where in the messages flowfrom a sender to a receiver directly, usually face
to face. The direct and interpersonalcommunication lets the sender immediatelyreceive and evaluate feedback from the receiver.This communication process is known as Dyadic
Communication, allows for more specific tailoringof message and more personnel communicationsthan any other media.
In Personnel Selling, the message can bechanged to address the specific needs and wants
Personnel Selling
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Examples of PersonnelSelling:
The following are the examples ofPersonnel Selling:
1. Retail Marketing2. Tele Marketing
3. Jewellery Stores4. Luxury Cars Showroom.
5. Insurance Sellers.
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Role of Personnel Selling
To determine the role of Personnel Selling, four key pointsmust be considered.
1. Determining the information to be exchanged: In viewof the objectives of the management, the sales person mayhave a variety of messages to communicate, such ascreating awareness of the product or service offered,demonstrating product benefits for evaluation, initiating a
trial, and/or closing the sale.2. Examining Promotional Mix Alternatives: Everypromotional tool used by the management must beconsidered while developing a promotional mix. PersonnelSelling is an alternative that offers distinct advantages insome situations but is less appropriate in other situations.
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Role of Personnel Selling(Contd.,)
3. Evaluating the Relative Effectiveness ofAlternatives:The effectiveness of each
program element must be evaluated based onthe target market and the objectives sought.
Personnel Selling is effective in manysituations, but other program elements may be
more attractive in many cases.4. Determining Cost-Effectiveness: One of
the major disadvantages of personnel selling is
the cost involved. The cost of a personnel callma not be rohibitive in industrial settin s
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Stages in the Evolution OfPersonnel Selling
There are five stages in the evolution of personnel selling:
1. PROVIDER STAGE: In this stage, selling activities are limited to
accepting orders for the suppliers available offering and conveying it
to the buyer.
Example: Retail Salesclerk
2. PERSUADER STAGE: In this stage, selling involves an attempt to
persuade market members to buy the suppliers offerings.
Example: Telemarketers for a new product, a new insurance or anew automobile.
3. PROSPECTOR STAGE: In this stage, activities include seeking out
selected buyers who are perceived to have a need for the offerings as
well as the resources and authority to buy it.
Example: Car Insurance calling on new car buyers.
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Process of Personnel Selling
APPROACHING THE PROSPECT
FOLLOWING UPCLOSING THE SALE
HANDLING OBJECTIONS
MAKING THE SALES PRESENTATION
Pre approach:QUALIFYING PROSPECTS
PROSPECTING: IDENTIFYING POTENTIAL
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van ages anDisadvantages of Personnel
SellingAdvantages:
1. Allows for two-way interaction.
2. Enables tailoring of the message.3. Since it is a one-to-one selling, there are
less distractions.
4. The seller becomes a partner in thedecision process of the buyer.
5. The sales force becomes a source ofinformation, by getting the information about the
competitor brands and the specific needs and
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Disadvantages:1. Though the marketing staff decides the
message to be conveyed, the sales person mayalter it to the needs of the receiver, causing a
lack of inconsistency in the messages.2. In the best of the best companies, there
are conflicts between the sales force and themarketing staff.
3. The cost involved in making the calls isalso very high.
4. Personnel Selling cannot reach as many
target audience as other elements of promotion.
van ages anDisadvantages of Personnel
Selling
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Interactive/InternetMarketing
Interactive media allows for a back and forth flow ofinformation, whereby users can participate in and modifythe form and content of the information they receive in realtime.
Interactive media allows user to perform a variety offunctions such as receive and alter information andimages, make enquiries, respond to questions and makepurchases.
The interactive medium that is having the greatestimpact on marketing is the Internet.
The Internet is changing the ways companies design andimplement their business and marketing strategies.
The Internet is a multi faceted promotional tool.
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Advantages:
The interactive nature of the internet is one of its
major advantages.It enables marketers to gather valuable
personnel information from customers andprospects and to adjust the offer accordingly.
It allows a two-way communication.
It offers the capability to more closely andprecisely measure the effects of advertising and
other types of promotion.
Interactive/InternetMarketing
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Direct mail is a way of advertising inwhich advertisers mail printed ads, lettersor other solicitations to large groups of
consumers. Direct mail use to advertise new products
or to distribute coupons.
Direct mail is a type of advertisingmedium in which messages are sent totarget customers through the mail.
Direct mail often use the terms "direct" " " "
Direct Mail
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Types of Direct Mail
PRINT MEDIA
BROADCASTING MEDIA
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Print media messages are deliveredthrough the printed word, usually in
newspapers or magazines.
Broadcast media messages are
delivered through the airwaves, ontelevision or radio. In direct mail,advertising and other types of
messages are delivered through the
Types of Direct Mail
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Direct Mail
Advantages Selective, flexible, little waste, lends itself to
testing, uses many formats Disadvantages
Direct mail is expensive May cost 15 to 20 times more to reach a person with
a direct mail piece than with a TV commercial Mail lists can be plagued with bad addresses Mail delivery dates can be unpredictable
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Direct Mail
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American Express is a global servicescompany, providing access to products,insights and experiences that enrich livesand build business success.
American Express Global Mail Solutions
offers Global Mail Disaster RecoverySolutions to ensure continuity of servicethrough a Business Continuation
partnership with
Company: American Express
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First, it help you define your targetaudience with a customer analysis ofyour top American Expresscustomers.
Then, you can use that knowledge totarget potential customers throughDirect Mail or Search Engine
Marketing.
Company: American Express
How it works:
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Steps to a Direct-Mail usedby American Express
The Strategy The List The Creative The Offer Features vs.
Benefits Ask for the Sale The Follow-Up Remain Visible
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Service Description
1. Delivery Assurance
2. Flexibility3. Get your mail out quicker and more
cost effectively.
4. Security5. Expertise
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Sales Promotion
Where advertising gives a reason tobuy, Sales Promotion gives an
incentive to buy. Internal reasons:
vTop management is more conducive to
spending on promotionsv Line managers under greater pressure
to achieve targetsvJustification of expenditure is easy
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External reasons:v Increase in number of brandsv Consumer is more price savvyv Greater pressure from trade to liquidate
stocks
v Add effectiveness declining owing torising costs, media clutter and legalconstraints
Sales Promotion
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Sales Promotion is a pushstrategy
Since it is at the last point where theconsumer is often at the point of
buying, the additional incentive makesa last ditch effort to convert thecustomer on to the incentivized brand
Sales Promotion is of two types:Trade Consumer
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Classifying Types of SalesPromotion
Promotionalpricing
Non-pricepromotions
Sampling
Price reductions Free goods Tied offers
Money off nextpurchase Loss leader pricing Cheap credit
Contests Free gifts
Self-supporting offers Multi-brand promos s Guarantees and added
services
Most effective in theearly stages of a newproduct launch (usefor coupons)
Important for foodproducts
Very expensive
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Major consumer promotiontools
Free samples:- company providessamples of the product by mail, by
retail store, attached in magazines.e.g.: Clinic plus used to give
samples of it shampoo to big bazaar
attached with times of India. Coupons:- company provide coupons
to its customers inside the pack ofthe product.
j i
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Discounts:- Companies providediscounts offers to their customers
when they buy the product, e.g.:Globus provide 50% off on itsproduct.
Combo offer :- Combo pack is tworelated products brandedtogether.e.g.: Colgate offers
toothbrush free with toothpaste
Major consumer promotiontools
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Major trade promotion tools
Free goods:- Offers of extra cases ofmerchandise to intermediaries
certain quantity or who feature acertain flavor or size
e.g.: Nestle clairs offer free goods
offers to retailers. Push money:- An extra commission
paid to retailers to push the products.
e.g.: Nokia provide their retailers
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Price Off:- A straight discount off the listprice on case purchased on limited time
period.e.g.: Nokia offers their retailers price offfacility. Allowance :- An amount offered in return
for the retailers agreeing to featuremanufactures products. An advertisingallowance & display allowance
compensates retailers for advertising
Major trade promotion tools
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Public Relations
v PR involves a variety of programsdesigned to promote or protect a
companys image or its individualproducts.
v PR is usually unsponsored and
unpaid. It acts synergistically alongwith advertising.
v It can be a very important
component of the entire
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Functions of PR
Promoting goodwill Promoting product, service,
corporate image Corporate communications Lobbying Counteracting negative publicity
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Very credible and inexpensive PR can hold down promotion costs
Advantages of PR
Disadvantages of PR
Difficult to quantify PR benefitsLack of controlDeft management required
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Uses of PR
Customer complaints and redressal It is an opportunity to cement
relations with the customer Very important in the service and
hospitality industryCombating rumors / falsehoods Confront and disclose facts in leading
media Give the positive side of the story
Capitalize on rumors to your benefit
PR t t i d b
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PR strategies used byVodafone
Advertisement:
Vodafone believes in advertisingthrough media like television and pressas people retain those things that theyview visually. Heavy amounts of
money is spent on visualadvertisements.
Corporate Advertising:
Vodafone also undertakes corporate
PR t t i d b
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Hoardings:
Vodafone uses hoardings also in order topromote their company and the new
services or tariffs plans that they arecoming up with. This strategy helps inmaking their target audience aware of their
upcoming plans.Press Releases:
They believe Press Releases help in order
to maintain very good relations with the
PR strategies used byVodafone
PR t t i d b
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Press Conference:
Vodafone uses press conferences as a very
powerful tool in handling the media andseeking consumer attention. They holdpress conferences at the launch of new
services or products of any kind. They alsohold press conferences when they aregetting into a business deal for somecompany. They also hold press conferencesfor announcin half- earl results or
PR strategies used byVodafone
PR t t i d b
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Media Interviews:
Vodafone undertakes media interviews withproper planning. It is sometimes initiatedby media while most of the time it is byVodafone. It is handled very carefully
specially during crisis or when a newservice is launched and is this used as avery good platform for promotion, building
image and even control crisis.
PR strategies used byVodafone
PR t t i d b
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Social Activities:
The Vodafone Group Foundation is
committed to providing assistance in thearea of disaster response. Its main aim is todevelop partnerships which enhance longterm disaster response and preparedness
activity, working with organizations such asthe United Nations Foundation, Oxfam andMapAction. It also seeks wherever possible
to make a direct contribution in response to
PR strategies used byVodafone
PR strategies sed b
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Sponsorships: Vodafone sponsorsmany events. Some of them are:
UEFA Champions League.
England Cricket Team.
Vodafone McLaren Mercedes.
PR strategies used byVodafone
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