Presentation on theme: "Promotional Mix Promotion LAP 1. Objectives A.Describe the elements of the promotional mix. B.Explain factors affecting the selection of a promotional."— Presentation transcript:
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 ServicesImages 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 MagazineFlynn The bikes the pros use. 25% Off Coupon AdvertisingAdvertising Personal sellingPersonal selling PublicityPublicity Sales promotionSales 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.Actual cost of advertisement is quite high. Since many people receive the message, the per contact cost is very low.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: TelevisionTelevision RadioRadio NewspapersNewspapers MagazinesMagazines Direct mailDirect mail Outdoor advertisementsOutdoor advertisements DirectoriesDirectories The InternetThe 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 feedbackImmediate feedback FlexibilityFlexibility 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 itAny 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.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
Sales Promotion Promotional activities other than advertising, personal selling, and publicity which stimulate purchasesPromotional activities other than advertising, personal selling, and publicity which stimulate purchases Sales promotion activities include: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 customersPlays a key role in obtaining and keeping customers Enables businesses to communicate effectively with customersEnables businesses to communicate effectively with customers Informs consumers about goods/services and persuades them to buyInforms 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. SALE! 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. ConsumerMarketIndustrialMarket Type of Consumer Advertising Sales Promotion Publicity Personal Selling Number of Consumers FewConsumers ManyConsumers 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 Historical Perspective 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
Digital-based photography sources: ADOBE IMAGE LIBRARY; Retail Obj. A: #RET_050 Photos copyright Eyewire Inc. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada ART EXPLOSION 250,000; Obj. A: #MODEL005 Nova Development Corporation Calabasas Road, Suite 2005 Calabasas, CA 91302
Digital-based photography sources: PHOTODISC, INC.; Business & Occupations Vol. 7 Obj. A: #7067 Photos copyright PhotoDisc, Inc Fourth Ave., Seattle, WA T/Maker Company; ClickArt Obj. A: #PRFTOT007 Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright by T/Maker Company. All rights reserved.
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