Promotion mix
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The promotional mix refers to the combination of marketing communication tools used to promote a product. It typically includes advertising, sales promotions, public relations, personal selling, and direct marketing. Each tool has its own strengths and weaknesses in terms of cost, reach, ability to personalize a message, and impact on long-term brand awareness versus short-term sales. Companies must strategically select and integrate the appropriate mix of tools to promote their products effectively.
Promotion mix
- 2. What is Promotional Mix? The Promotional mix is a combination of the different types of promotion. Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. The ongoing activities of advertising, sales promotion, Public Relations ,personal selling and direct marketing are often considered aspects of promotion. Incentives in addition to the product’s basic benefits. Ex. Gift Coupon Sales Promotion is more action oriented
- 3. Advertising Ingredients of the Promotion Mix Sales Promotion Personal Selling Direct Marketing Public Relations
- 4. Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services. Reaches large, geographically dispersed audiences, often with high frequency. Impersonal; one-way communication The major tools are: Print Media Broadcast Media Outdoor Media Internet & Website
- 6. Functions/Objectives of Advertising Informative Advertising Inform Consumers or Build Primary Demand i.e CD Players Comparison Advertising Compares One Brand to Another i.e. Avis vs. Hertz Persuasive Advertising Build Selective Demand i.e Sony CD Players Reminder Advertising Keeps Consumers Thinking About a Product i.e. Coca-Cola Advertising Objective Specific Communication Task Accomplished with a Specific Target Audience During a Specific Period of Time
- 7. Plan a Message Strategy General Message to Be Communicated to Customers (The “Creative Brief” is an important document) Develop a Message Focus on Customer Benefits Creative Concept “Big Idea” Visualization or Phrase Combination of Both Advertising Appeals Meaningful Believable Distinctive Developing Advertising Strategy: Creating Ad Messages
- 8. Communication Effects Is the Ad Communicating Well? Advertising Program Evaluation Sales Effects Is the Ad Increasing Sales? Evaluating Advertising
- 9. Sales Promotion Short-term incentives to encourage the purchase or sale of a product or services. Makes use of a variety of formats: Discounts, premiums, coupons, contests, etc. Attracts attention, offers strong purchase incentives Not effective at building long-term brand preferences Stimulates quick response.
- 10. Purpose of Sales Promotion Encourage Trials: Free newspaper copies Counter Competitor's Promotional activities Increase short-term sales or help build long-term market share. Attract new Customers Ex:- khadi announces rebates on purchases during the festivals. Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead.
- 11. Sample Coupons Money Refunds Price Packs Premiums Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Major Consumer Sales Promotion Tools Sample Price Promotion Or Price Discounting. Discount on normal Price
- 12. Patronage Rewards Point-of-Purchase SweepStakes Consumer Contest Game Cash or other rewards for the use of a certain product Displays and demonstrations that take place at the point of sale Consumers submit their names for a drawing. Chances of law suits are minimal. Consumers submit an entry to be judged To increase the retail sales. Ex. Tambola of TOI, Name Games Presents consumers with something every time they buy Major Consumer Sales Promotion Tools- II
- 14. Public Relations Building good relationships with the company’s various publics (stakeholders,) building up a good corporate image. The major tools are Press Releases, Sponsorships , Special Events, Web Pages. To enhance the positive aspects and minimize negative factors related to products and organization.
- 16. News Speeches Special Events Brochures, Written MaterialsAudiovisual Materials Corporate Identity Materials Public Service Activities Web Site Major Public Relations Tools
- 17. Press Relations Product Publicity Public Affairs Lobbying Investor Relations Development Public Relations Departments May Perform Any of All of the Following Functions: Major Public Relations Functions
- 18. Personal selling The personal presentation by the firm’s sales force for the purpose of making sales and building strong customer relationships. Most effective tool for building buyers preferences, convictions, and actions. Personal interaction allows for feedback and adjustments. Relationship-oriented.
- 20. The Personal Selling Process Pre-Sale Preparation Prospecting: The salesperson identifies qualified potential customers (called prospects). Pre-approach: The salesperson learns as much as possible about a prospect before making a sales call. Approach: The salesperson meets the customer for the first time. Presentation: The salesperson tells the “product story” to the buyer, highlighting customer benefits.
- 21. The Personal Selling Process Handling Objections: The salesperson seeks out, clarifies, and overcomes customer objections to buying. Closing: The salesperson asks the customer for an order. Follow-up: The salesperson follows up after the sale to ensure customer satisfaction and repeat business. The selling process is transaction oriented; most firms go beyond this and attempt to build mutually profitable relationships.
- 22. Direct Marketing Involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Many forms: Telephone marketing, direct mail, online marketing, etc.
- 24. Slide 24 in Chapter 16 Direct Marketing Direct marketing uses consumer-direct channels to reach and deliver offerings to consumers without intermediaries. Direct marketing is growing and offers consumers key benefits. Firms are recognizing the importance of integrated direct marketing efforts.
- 25. Slide 25 in Chapter 16 Direct Marketing Face-to-face selling Direct mail Catalog marketing Telemarketing Direct-response TV marketing Kiosk marketing E-marketing Major Direct Marketing Tools
- 26. Direct Marketing Steps in Developing a Direct-Mail Campaign: Step 1: Set objectives Step 2: Identify target markets Step 3: Define the offer Step 4: Test the elements Step 5: Measure results