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The Promotional Mix: Elements, Factors, and Effectiveness

Learn about the elements of the promotional mix and factors that affect its selection. Discover effective communication techniques such as advertising, personal selling, publicity, and sales promotion.

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The Promotional Mix: Elements, Factors, and Effectiveness

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  1. In our last lecture # 16 – we covered: 32. The Marketing Mix: Product and Price Lecture 17:33. The Marketing Mix: Promotion34. The Marketing Mix: Distribution

  2. Promotional Mix Promotion LAP 1

  3. Objectives A. Describe the elements of the promotional mix. B. Explain factors affecting the selection of a promotional mix.

  4. Objective A Describe the elements of the promotional mix.

  5. Services Goods Images Ideas Purposes of Promotion To tell consumers about a company’s …

  6. Purposes of Promotion To persuade consumers to buy

  7. Promotion’s Recipe for Success: Mix various communication activities together and serve to potential customers until desired outcome is achieved.

  8. Flynn The bikes the pros use. Traveler Magazine The Top 5 Airlines! 25% Off Coupon Zap Communication Techniques • Advertising • Personal selling • Publicity • Sales promotion

  9. Promotional Mix The Combination, or Blend, of Marketing Communication Channels Is Called the... Personal Selling Advertising Sales Promotion Publicity

  10. Elements of the Promotional Mix

  11. The most visible element of the promotional mix Advertising Any paid form of nonpersonal presentation of ideas, images, goods, or services

  12. Driving Excitement! The New Barchetta • Actual cost of advertisement is quite high. • Since many people receive the message, the per contact cost is very low.

  13. Ideas Diamonds from Desmond’s Jewelers are a girl’s best friend. Say No to Drugs. Images Services At Techco, we’re friendly to our customers and the environment. Goods The Vet for Your Pet What's Advertised?

  14. Advertising Messages can be delivered by: • Television • Radio • Newspapers • Magazines • Direct mail • Outdoor advertisements • Directories • The Internet

  15. Personal Selling Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities You might want to consider leasing computers. You can get free service and upgrade to a newer model whenever you want! My budget won’t allow me to replace them all at once, but I want them to be compatible. Are you planning on replacing all of your computers at once?

  16. Selling Disadvantage On a per contact basis, selling is the most expensive form of promotion. Selling Advantages I like the sound of this stereo, but I think it’s a little large for my dorm room. We do carry a bookshelf model with similar sound quality. • Immediate feedback • Flexibility

  17. Example: Mention of a company’s charitable activities in print or broadcast media Publicity • Any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by it • Many consumers pay close attention to publicity. • Feel publicity has more credibility because it is not a commercial message • View publicity as news

  18. “Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.” -Susie Wells, CA A company web site can be used to obtain and display positive feedback. Ways the Internet Can Be Used as a Source of Publicity

  19. OnlineNews.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. A business’s goods, services, or web site might be mentioned in an Internet newsgroup. Ways the Internet Can Be Used as a Source of Publicity

  20. LINK TO ACME.COM LINK TO ACME.COM Ways the Internet Can Be Used as a Source of Publicity A company might agree to provide a link to another business’s web site in exchange for the same consideration.

  21. Free samples Contests Novelty items Trade shows Visual merchandising or displays Coupons Product demonstrations Instant rebates Fashion shows Exhibits Sales Promotion • Promotional activities other than advertising, personal selling, and publicity which stimulate purchases • Sales promotion activities include:

  22. Importance of the Promotional Mix • Plays a key role in obtaining and keeping customers • Enables businesses to communicate effectively with customers • Informs consumers about goods/services and persuades them to buy

  23. Objective B Explain factors affecting the selection of a promotional mix.

  24. No magic formula that marketers use to help design promotional mix Marketers Try To Create theIdeal Blend of Promotional Activities for Their Businesses. Publicity Personalselling Sales promotion Must decide which methods willbest reach potential customers and communicate desired message Advertising Hard to determine effectiveness of the different promotional methods

  25. Factors Affecting the Selection of a Promotional Mix Product’s target market Must be carefully analyzed before marketers decide when and where to invest promotional funds • Good, service, image, or idea • Distribution channels • Product’s company

  26. Convenience goods Shopping goods Specialty goods Good, Service, Image, or Idea • Type of product

  27. Products which are high-tech, require demonstration, are expensive, or require installation should be promoted through personal selling. 10% OFF on all small appliances SALE! HARRY’S HARDWARE Good, Service, Image, or Idea Product nature Inexpensive and self-service products can rely on advertising and sales promotion. This computer is perfect for you. It has all the software pre-installed and a left-handed mouse!

  28. When you are on-the-go… New and Improved! …it’s Breakfast-To-Go Each pocket provides you a delicious breakfast in just two minutes! Good, Service, Image, or Idea Stage of life cycle Maturity Growth Declining Introductory

  29. Product’s Target Market Geographical Location Number of Consumers Type of Consumer Close Together Spread Over a Wide Area Few Consumers vs. Consumer Market Industrial Market Many Consumers Advertising Sales Promotion Publicity Personal Selling

  30. INTERMEDIARY BLVD. DIRECT AVE. Requires personal selling Requires personal selling and advertising Distribution Channel The promotional mix selection is affected by the path that a product takes.

  31. Product’s Company Businesses often rely on previoususe of promotional methods. Less flower. More power. Think small. 1960 1970 1980 1990 2000 Historical Perspective

  32. Wal-Mart started as one small store in Arkansas. In Wal-Mart’s early years, local newspaper advertising and personal selling were all that the small company could afford. Today, the Wal-Mart corporation has increased its promotional mix to include television, radio, newspapers, special sales bulletins, and a Wal-Mart web site in order to promote its national network. Product’s Company Example: Available Funds

  33. Tony’s Pizza Ange’s Pizza Kids eat free! Free kids’ meals! Product’s Company Competition Competing businesses use similar promotional mixes and tend to follow the leader.

  34. Promotional Mix Chapter 17.1

  35. What is promotion? • Any form of communication a business or organization uses to inform, persuade, or remind people about its products.

  36. The Promotional Mix is a combination of the different types of promotion.

  37. Two types of promotion • Product Promotion • Type of promotion that a business uses to convince potential customers to buy products from them and not their competitors. • Institutional Promotion • Type of promotion that a business uses to create a favorable image for itself.

  38. Four basic types of promotion…. • Personal selling • Advertising • Sales promotion • Public relations

  39. What is the largest form of promotion? • Personal Selling! • This type of promotion requires contact with potential buyers

  40. Advertising…. • Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertise here!

  41. Sales Promotion • All marketing activities, other than personal selling, advertising, and public relations is called….

  42. Public Relations • Any activity designed to create a favorable image toward a business, its products or its policies.

  43. Publicity • A specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media is called…..

  44. Publicity • Advantage… • It is free! • Disadvantage….. • Its contents cannot be controlled by the business

  45. Principal function of publicity… • Building an image

  46. What do they do? • Advertising • Creates awareness of a business’s product • Public Relations • Creates a favorable image for the business itself • Sales Promotion • Efforts stimulate sales • Personal Selling • Builds on all of the other efforts by helping customers complete the sale

  47. Marketing Department • Establishes a promotion budget • Allocates resources • Coordinates the campaign • Determines the right promotional mix for the company

  48. Push Policy • Promotion policy used only with the next partner in the distribution channel. Manufacturers PUSH a product to the retailers for sale….

  49. Pull Policy • Promotion policy designed to create consumer interest When a product is consumer driven or PUSHED into a store….

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