Promotional Mix

Promotion LAP 1
Objectives
A. Describe the elements of the
promotional mix.
B. Explain factors affecting the selection
of a promotional mix.
Objective A
Describe the elements of the
promotional mix.
Purposes of Promotion
To tell consumers about a companys
Goods Services Images
Ideas
Purposes of Promotion
To persuade consumers to buy
Promotions Recipe
for Success:
Mix various
communication
activities together and
serve to potential
customers until desired
outcome is achieved.
The Top 5
Airlines!
Traveler Magazine
Flynn
The bikes
the pros
use.
25% Off
Coupon
Advertising
Personal selling
Publicity
Sales promotion
Communication Techniques
The Combination, or Blend, of Marketing
Communication Channels Is Called the...
Advertising
Any paid form of nonpersonal presentation of ideas,
images, goods, or services
The most visible element of the promotional mix
The New Barchetta
Actual cost of advertisement is
quite high.
Since many people receive the
message, the per contact cost
is very low.
Goods
Services
Images
Ideas
The Vet for Your
Pet
At Techco,
were
friendly to
our
customers
and the
environment.

Say No to Drugs.
Diamonds from
Desmonds
Jewelers are a girls
best friend.
Advertising
Messages can be delivered by:
Television
Radio
Newspapers
Magazines
Direct mail
Outdoor advertisements
Directories
The Internet
Personal Selling
Determines client needs/wants and responds through
planned, personalized communication that influences
purchase decisions and enhances future business
opportunities
Are you planning
on replacing all
of your computers
at once?
My budget wont
allow me to replace
them all at once,
but I want them to
be compatible.
You might want
to consider leasing
computers. You can
get free service
and upgrade to a
newer model whenever
you want!
Selling Advantages
Immediate feedback
Flexibility
I like the sound
of this stereo,
but I think its a
little large for
my dorm room.
We do carry a
bookshelf model
with similar
sound quality.
Selling Disadvantage
On a per contact basis,
selling is the most expensive
form of promotion.
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
Example: Mention of a companys charitable activities
in print or broadcast media
Ways the Internet Can Be Used
as a Source of Publicity
A company web site can be used to obtain and display
positive feedback.
Tae-Bo has really changed my life. Ive lost
weight, toned-up, and feel better than ever.
-Susie Wells, CA
Ways the Internet Can Be Used
as a Source of Publicity
A businesss goods, services, or web site might be mentioned in an
Internet newsgroup.
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.
Ways the Internet Can Be Used
as a Source of Publicity
A company might agree to provide a link to another businesss web
site in exchange for the same consideration.
LINK TO ACME.COM LINK TO ACME.COM
Sales Promotion
Promotional activities other than advertising, personal
selling, and publicity which stimulate purchases
Sales promotion activities include:
Visual merchandising or displays Coupons Product demonstrations Instant rebates Free samples Fashion shows Contests Novelty items Trade shows Exhibits
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
Objective B
Explain factors affecting the
selection of a promotional mix.
Marketers Try To Create the
Ideal Blend of Promotional
Activities for Their Businesses.
Must decide which methods will
best reach potential customers and
communicate desired message
Advertising
Personal
selling
Publicity
Sales
promotion
Hard to determine effectiveness of the
different promotional methods
No magic formula that
marketers use to help
design promotional mix
Factors Affecting the Selection of a
Promotional Mix
Products target
market
Good, service,
image, or idea
Distribution
channels
Products
company
Must be carefully
analyzed before
marketers decide when
and where to invest
promotional funds
Good, Service, Image, or Idea
Convenience goods Shopping goods
Specialty goods
Type of product
Good, Service, Image, or Idea
Product nature
Products which are
high-tech, require
demonstration, are
expensive, or require
installation should be
promoted through
personal selling.
This computer is
perfect for you. It
has all the software
pre-installed and a
left-handed mouse!
Inexpensive and
self-service products
can rely on advertising
and sales promotion.
10% OFF
on all small
appliances
HARRYS
HARDWARE
Introductory
Growth
Maturity
Declining
Good, Service, Image, or Idea
Stage of life cycle
When you are on-the-go
its Breakfast-To-Go
Each pocket provides
you a delicious
breakfast in just
two minutes!
New and
Improved!
Products Target Market
vs.
Consumer
Market
Industrial
Market
Type of Consumer
Advertising
Sales Promotion
Publicity
Personal Selling
Number of Consumers
Few
Consumers
Many
Consumers
Geographical Location
Close
Together
Spread
Over a
Wide Area
Distribution Channel
The promotional
mix selection is
affected by the
path that a
product takes.
INTERMEDIARY BLVD. DIRECT AVE.
Requires personal selling
Requires personal
selling and advertising
Businesses often rely on previous
use of promotional methods.
Products Company
1960 2000 1980
Historical Perspective
1970 1990
Think small.
Less flower. More power.
Products Company
Available Funds
Wal-Mart started as one small
store in Arkansas. In Wal-Marts
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.
Example:
Products Company
Tonys Pizza
Kids eat
free!
Anges Pizza
Free kids
meals!
Competing businesses use similar promotional
mixes and tend to follow the leader.
Competition
MarkED

Acknowledgements
Original Developer
Christopher C. Burke, MarkED
Version 1.0
Copyright 2000
MarkED Resource Center
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