1 / 12

Elements of the Promotional Mix

Elements of the Promotional Mix. Advertising Sales Promotion Personal Selling Public Relations. Advertising. About 25% of each promotional dollar is spent on advertising Advertising objectives Awareness Reminder to use Change attitudes about use of the product

mdelong
Download Presentation

Elements of the Promotional Mix

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Elements of the Promotional Mix • Advertising • Sales Promotion • Personal Selling • Public Relations Kelley Fall 2001 Marketing Management

  2. Advertising • About 25% of each promotional dollar is spent on advertising • Advertising objectives • Awareness • Reminder to use • Change attitudes about use of the product • Change perceptions of importance of brand attributes Kelley Fall 2001 Marketing Management

  3. Advertising • Advertising objectives • Attitude reinforcement • Product-line or corporate image building • Obtain a direct response • Budgeting • Establish baseline budget - historical • Set advertising objectives • Estimate message design and media costs Kelley Fall 2001 Marketing Management

  4. Advertising • Budgeting • Run experiments to obtain estimate of proposed advertising campaign • Revise budget • Evaluation • CPM = cost of ad x 1000/circulation • Rating = program audience/total audience Kelley Fall 2001 Marketing Management

  5. Advertising • Evaluation • Reach - percentage of the target audience that will be exposed to the message • Frequency - average number of times a member of the target audience is exposed to the message • Gross Rating points - reach percentage x number of exposures Kelley Fall 2001 Marketing Management

  6. Advertising • Evaluation • Recognition tests • Recall tests • Theater tests Kelley Fall 2001 Marketing Management

  7. Sales Promotion • About 50% of each promotional dollar is spent on sales promotion • Short-term results • Objectives • Inquiries - free gifts, mail-in coupon for information, catalog offers, exhibits • Trial - coupons, free samples, contests, premiums, demonstrations Kelley Fall 2001 Marketing Management

  8. Sales Promotion • Objectives • Repurchase - on-pack coupons, mail-in rebates • Traffic building - special sales, weekly specials, entertainment events, retailer coupons • Increase rate of purchase - multipacks, special price on twos Kelley Fall 2001 Marketing Management

  9. Sales Promotion • Objectives • Inventory building - return allowances, slotting allowances • Promotional support - reusable display cases, sales contests, merchandise allowances Kelley Fall 2001 Marketing Management

  10. Sales Promotion • Evaluation • Redemption rates • Acquisition rates • Displacement rates • Conversion rates • Stock-up rates • Product-line effects Kelley Fall 2001 Marketing Management

  11. Personal Selling • About 25% of each promotional dollar is spent on personal selling activities • Recruitment • Compensation • Evaluation Kelley Fall 2001 Marketing Management

  12. Public Relations • Less than 1% of each promotional dollar is spent on public relations • Difficult to control and evaluate • Process • Set objectives • Identify target audience • Design message • Reach media that serves target audience • Evaluate results Kelley Fall 2001 Marketing Management

More Related