The Promotional Mix / Chapter 17 Section 1

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The Promotional Mix / Chapter 17 Section 1

• Promotion in Marketing
• Promotion is one of the four Ps of the Marketing
  Mix ( Product, Place, Price, Promotion)
• It is any activity that helps in the exposure or
  sale of a product
• Promotion is persuasive communication
• Companies use promotional techniques to enhance
  their public image and reputation, and to
  persuade people to value their products

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Promotion in Marketing

• The goals of promotional activities are
  summarized by the phrase for the acronym AIDA
• First attract Attention
• Then build Interest and Desire
• And finally ask for Action.

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Promotion in Marketing

• Product promotion is a promotional method used by
  businesses to convince prospects to select their
  goods or services instead of a competitors
  brands.
• Promotional activities explain the major features
  and benefits of the product, identify where it is
  sold, advertise sales, answer customer questions,
  and introduce new offering
• Product promotion also helps businesses foster
  good relations with existing customer

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Promotion in Marketing

• Institutional promotion is a promotional method
  used to create a favorable image for a business,
  help it advocate for change, or take a stand on
  trade or community issues.
• As part of institutional promotional efforts
  businesses maintain Web sites to provide news,
  product and general information, and to answer
  questions.
• Institutional promotions do not directly sell a
  product. However, these activities do build
  goodwill.

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TYPES OF PROMOTION IN THEPROMOTIONAL MIX

• The promotional mix is the cost-effective
  combination of personal selling, advertising,
  direct marketing, sales promotion, and public
  relations.
• Through advertising, direct marketing, sales
  promotion, and public relations, companies
  communicate with customers in many ways other
  than direct contact.
• Personal selling, on the other hand, requires
  direct personal contact with the customer.

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PERSONAL SELLING

• Personal selling requires sales representative to
  generate and maintain direct contact with
  prospects and customers.
• Direct contact like this can take the form of
  personal meetings, in-home demonstrations, e-mail
  and telephone correspondence.

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PERSONAL SELLING

• Personal selling is one of the most expensive
  forms of promotion.
• Typically, personal selling takes place after
  other promotional activities have been tried.

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ADVERTISING

• Advertising is a form of nonpersonal promotion in
  which companies pay to promote ideas, goods, or
  services.
• Advertising can be found everywhere, on
  billboards, business cards, brochures,
  Internet,magazines, newspapers, phone
  directories, grocerystore receipts, radio,
  television, sports arenas, cars and buses,
  restaurant menus, and Web sites.
• With advertising, a company engages in a one-way
  communication to the customer and prospective
  customer.

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DIRECT MARKETING

• Direct marketing is a type of promotion that
  companies use to addresses individuals directly
  and not through a third party medium (such as
  television, radio, or the Internet).
• Examples Direct mail, telemarketing

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DIRECT MARKETING

• E-Marketing-is any promotion that is delivered
  via the Internet.
• It includes search engine marketing (paid
  search), Web site optimization, e-mail
  marketing, mobile phone applications (apps), and
  the use of social media
• Social media is electronic media that allows
  people with similar interests to participate in a
  social network. Social networks, such as
  Facebook, MySpace, LinkedIn, YouTube,and
  Twitter, help businesses reach prospective
  customers.

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DIRECT MARKETING

• The goals of direct marketing are to generate
  sales or leads for sales representatives to
  pursue.
• Direct marketing gives recipients an incentive to
  respond by visiting a store or Web site, calling
  a toll-free number, returning a form, or sending
  an e-mail.
• Targeted customers receive special offers or
  incentives, such as money-off coupons, limited
  time sales, special merchandise offers, loyalty
  points for future purchases, and free delivery.
• Both print and electronic direct marketing allow
  a business to engage in one-way communication
  with its customers

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SALES PROMOTION

• Sales promotion represents all marketing
  activitiesother than personal selling,
  advertising, and public relationsthat are
  directed at business or retail customers to boost
  sales.
• Examples coupons, money-off promotions,
  competitions, product samples, and
  point-of-purchase displays.
• The objectives of sales promotions are to
  increase sales, inform potential customers about
  new products, and create a positive business or
  corporate image.

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PUBLIC RELATIONS

• Public relations (PR) are activities that help
  an organization to influence a target audience.
• Public relations campaigns try to influence
  general opinion and create a favorable public
  image for a person, organization, or a company,
  its products, or its policies
• Public relations staff try to cultivate a
  positive image with reporters who may cover a
  specific industry.

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PUBLIC RELATIONS

• A news release is an announcement sent to the
  appropriate media outlets.
• The release announces newsworthy developments
  about a companys goods or services, distribution
  channels, facilities and operations, partners,
  revenues and earnings, employees, and events.

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PUBLIC RELATIONS

• Businesses also use social media to interact with
  customers and get feedback on the company, its
  products, and services.
• Social networks provide businesses with a way to
  obtain opinions and speak directly with potential
  and existing customers.

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PUBLIC RELATIONS

• Through news releases and social media,
  businesses gain publicity.
• Publicity involves bringing news or newsworthy
  information about an organization to the publics
  attention. This process in known as placement.
• The main function of publicity is to develop a
  positive perception or awareness of the
  organization and its products in the marketplace.

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PUBLIC RELATIONS

• The right kind of publicity can create and
  maintain a companys positive image.
• However, negative publicity can devastate it.
• Unlike advertising, the placement of publicity is
  free.
• Newspapers, television and radio news programs,
  and customer-generated responses through social
  media are usually viewed as more objective than
  advertisers.

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PUBLIC RELATIONS

• The disadvantage of publicity is that its
  content, unlike paid advertising, is not
  controlled by the business that issues it.
• The media select the context and story angle and
  decide when and how to present the content.
• Short-post forums on Twitter, YouTube videos, and
  customer-generated online opinions on social
  networking sites can quickly spread negative or
  unverified stories.

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The Concept of Promotional Mix

• Most businesses use more than one type of
  promotion to achieve their promotional goals.
• This mix assures them that their product will be
  widely recognized and easier to sell.
• Companies learn which strategies are most
  effective in their promotional mix through this
  process

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Developing a Promotional Mix

• (Step 1) Identify the Target Market -A business
  must identify its targeted customers to design
  the best message and the best way to reach them.
• (Step 2) Establish Objectives - A promotional
  mix must have objectives to accomplish, such as
  to create brand awareness, introduce a new
  product, build an image, or generate more sales.

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Developing a Promotional Mix

• (Step 3) Design Promotional Message -
  Appropriate images or words should be selected to
  communicate with the target market. The selected
  message will largely dictate the format used,
  such as graphics, sound, electronic or print
  messages, or personal sales presentations

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Developing a Promotional Mix

• (Step 4) Select Promotional Activities
• The type of promotional method(s) used must be
  based upon stated objectives, the desired
  message, and prioritized by available resources

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Developing a Promotional Mix

• (Step 5) Allocate Budget Amounts - A promotion
  budget should be based upon the ideal
  promotional mix and can include all promotional
  methods or a selected number based upon available
  resources.
• (Step 6) Measure the Results - Promotional
  methods and the results achieved must be
  continually evaluated. The results will determine
  whether the planned activities should continue or
  be revised to meet objectives.

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Developing a Promotional Mix

• The marketing department selects the best
  promotional activity to reach the target market.
• The selected promotional activities must
  complement one another, and they must be able to
  reach the potential market.
• They must also be realistic in terms of the
  budget for the promotion.
• Elements of the promotional mix must be
  coordinated.
• For example, national advertising should be
  reinforced by local promotional efforts.

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Developing a Promotional Mix

• When promoted products are not available as
  advertised or the selling staff is uninformed
  about a promotion, sales are lost and customers
  are dissatisfied.
• The total promotional mix and each strategy in
  the mix must be measured on how well they met the
  objectives.

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Promotional Budget

• In large companies, the marketing department has
  many roles.
• It determines the promotional mix, establishes
  the budget, allocates resources, coordinates the
  campaign, supervises any outside resources, and
  measures the results.
• Often, a promotional budget is based on a
  percentage of sales.
• Other times, it is based on an estimate of what
  competitors spend on advertising, direct
  marketing, and sales promotion.

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The Push-Pull Concept

• Push policy is a type of promotion used with
  partners in the distribution channel.
• The manufacturer pushes the product through the
  distribution channel to the retailer.
• The main purpose of the promotion is to convince
  a retailer to stock the products being promoted.

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The Push-Pull Concept

• The Pull policy directs promotional activities
  toward consumers.
• The idea is to entice (or pull) the consumer into
  the store (or Web site) to buy the product.
• This pull policy of promotion is designed to
  create consumer interest and demand.
• This strategy relies heavily on consumer
  advertising, premiums, samples, in-store
  displays, and demonstrations