The Promotion Mix

1. The Promotion Mix Presented By: Abel Rodriguez, Adriana Pacheco, Andy Hurtado, ChyvonnePolines , and Sergio Silva

2. http://www.youtube.com/watch?v=ZUG9qYTJMsI

3. Objectives Understand what the promotion mix is Know what each promotion tool entails Relate to how companies utilize promotion mix to communicate with market

4. The Promotion Mix Also called marketing communications mix Consists of specific blend of promotion tools Companies use to communicate customer value and build customer relationships

5. 5 Major Promotional Tools Advertising Sales Promotion Personal Selling Public Relations Direct Marketing

6. Advertising Advertising- Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Can include: –Broadcasting –Print –The Internet

7. Advertising Why is advertising important? –Communicates a vivid and convincing message of value to customers Advertising objective: – Specific communication task, delivered to a specific audience at a specific time

8. Types of Advertising Informative Advertising: –Used when a company is attempting to introduce a new product to the market to make consumers aware of its existence Persuasive Advertising –Used to convince customers to purchase a company’s product as opposed to the competition’s Reminder Advertising –Used as a reminder and to maintain customer relationships

9. Advertising and the Consumer Decision Making Process PersuasiveAdvertising Informative Advertising Reminder Advertising Dollar Shave Club practices persuasive advertising

10. Developing an Advertising Strategy An advertising strategy is formed when a company creates an advertising message and picks advertising media. –Message needs to ‘break through the clutter’ –Strategy behind the message is to use an image, phrase, or a combination of both –Message execution is the tone, style, words, etc. the that company uses to attract interest and attention from customers. There are many execution styles. “Our Blades Are Fu**ing Great”

11. Developing an Advertising Strategy Selecting advertising media consists of: –Reach, frequency, and impact –Choose the major media types –Pick specific media vehicles –Media timing Dollar Shave Club did not advertise at first –Now advertise on television and the radio –Chose specific channels to run at specific times

12. Evaluating It is difficult to evaluate how effective advertising is Ways to determine: –Evaluate sales and profits –Evaluate communication effects Dollar Shave Club saw that advertising on television helped raise $9.8 million

13. Sales Promotions Trade Promotions are tools used to persuade resellers to carry a brand, provide it with shelf space, promote in advertising, and push it to customers.

14. Business Promotions Sales promotion tools used to generate business leads, create purchases, reward customers and motivate sales people.

15. Consumer Promotions Short term drop in price or an incentive to motivate the purchase of a product or service. Consumer Promotions Include- Coupons, Rebates, Samples, Price packs, Event Sponsorships, Point-of-purchase promotions, Contests, and Advertising specialties. Not as effective at building relationships and brand preference.

16. Personal Selling • Involves personal interaction • Includes sales presentations, trade shows, and incentive programs • Most effective promotion tool at certain stages of buying process but most expensive for company • Requires longer-term commitment than advertising • Size of sales force is harder to change

17. Direct Marketing

18. Ways DSC Markets Directly Direct-response television (DRTV) marketing Online marketing Viral marketing They are a click-only company They are B-to-C

19. Public Relations • Definition • Various Types of Public Relations: • Press Relations • Product Publicity • Public Affairs • Lobbying • Investor Relations • Development

20. DSC’s Public Relations

21. Public Affairs

22. What We Learned Abel: As a person who doesn’t like commercials, I learned to appreciate the advertising process. Adriana: I learned about all of the tedious components that it takes for a marketer to simply say, “Buy my product!” Andy: A company does not need to spend so much money on television advertisement to be successful. Chyvonne: How distinct each element of the promotion mix is and how important each one can be in a different way. Sergio: With creativity and pizzazz, a company can go ahead and compete with a big company like Gillette.

23. QUESTIONS?

24. References Pyra, C. (March 10, 2014). COLON CANCER ALLIANCE TEAMS UP WITH DOLLARSHAVECLUB.COM TO WIPE OUT         COLON CANCER. Globenewswire. Retrieved from http://globenewswire.com/news-release/2014/03/10/617150/10071985/en/COLON-CANCER-ALLIANCE-TEAMS-UP-WITH-DOLLARSHAVECLUB-COM-TO-WIPE-OUT-COLON-CANCER.html Del Rey, J. (October 8, 2013) Dollar Shave Club Lands 12 million Investment to Dramatically Expand Product Portfolio. All Things D. Retrieved from http://allthingsd.com/20131008/dollar-shave-club-nabs-12-million-to-dramatically-expand-product-portfolio-and-create-lifestyle-content/ Forte, D. (April 3, 2014) Dollar Shave Club Improves Mobile Conversions by 126%. MultiChannel Merchant. Retrieved from http://multichannelmerchant.com/marketing/dollar-shave-club-improves-mobile-conversions-126-03042014/ Kotler, P. (2014) Principles of Marketing. Pearson Education, Inc. Kaye, K. (2013).Why YouTube Darling Dollar Shave Club is Buying TV Ads. Retrieved from http://adage.com/article/datadriven-marketing/youtube-darling-dollar-shave-club-buying-tv-ads/242783/ Puri, R. (2013). YouTube Legend Dollar Shave Club Says TV Isn’t Dead. Retrieved from http://contently.com/strategist/2013/06/27/youtube-legend-dollar-shave-club-says-tv-isnt-dead/