10The most visible element of the promotional mix AdvertisingAny paid form of nonpersonal presentation of ideas, images, goods, or servicesThe most visible element of the promotional mix
11Driving Excitement! Actual cost of advertisement is quite high. The New BarchettaActual cost of advertisement is quite high.Since many people receive the message, the per contact cost is very low.
12At Techco, we’re friendly to our customers and the environment. Diamonds from Desmond’s Jewelers are a girl’s best friend.Say No to Drugs.IdeasServicesGoodsImagesWhat's Advertised?At Techco, we’re friendly to our customers and the environment.The Vet for Your Pet
13Messages can be delivered by: AdvertisingMessages can be delivered by:TelevisionRadioNewspapersMagazinesDirect mailOutdoor advertisementsDirectoriesThe Internet
14Personal SellingDetermines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunitiesYou might wantto consider leasingcomputers. You canget free serviceand upgrade to anewer model wheneveryou want!My budget won’tallow me to replacethem all at once,but I want them tobe compatible.Are you planningon replacing allof your computersat once?
15Selling Disadvantage Selling Advantages On a per contact basis, selling is the most expensive form of promotion.I like the soundof this stereo,but I think it’s alittle large formy dorm room.We do carry abookshelf modelwith similarsound quality.Immediate feedbackFlexibility
16PublicityExample: Mention of a company’s charitable activities in print or broadcast mediaAny nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by itMany consumers pay close attention to publicity.Feel publicity has more credibility because it is not a commercial messageView publicity as news
17Ways 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. I’ve lost weight, toned-up, and feel better than ever.”-Susie Wells, CA
18Ways the Internet Can Be Used as a Source of Publicity A business’s goods, services, or web site might be mentioned in an Internet newsgroup.OnlineNews.comCar shopping on the webBuying 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.
19Ways the Internet Can Be Used as a Source of Publicity LINK TO ACME.COMLINK TO ACME.COMA company might agree to provide a link to another business’s web site in exchange for the same consideration.
20Sales PromotionPromotional activities other than advertising, personal selling, and publicity which stimulate purchasesSales promotion activities include:Novelty itemsFashion showsTrade showsExhibitsFree samplesProduct demonstrationsInstant rebatesVisual merchandising or displaysCouponsContests
21Importance of the Promotional Mix Plays a key role in obtaining and keeping customersEnables businesses to communicate effectively with customersInforms consumers about goods/services and persuades them to buy
22Explain factors affecting the selection of a promotional mix. Objective BExplain factors affecting the selection of a promotional mix.
23Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses. No magic formula that marketers use to help design promotional mixPublicityPersonal sellingSales promotionMust decide which methods will best reach potential customers and communicate desired messageAdvertisingHard to determine effectiveness of the different promotional methods
24Factors Affecting the Selection of a Promotional Mix Must be carefully analyzed before marketers decide when and where to invest promotional fundsGood, service, image, or ideaProduct’s target marketDistribution channelsProduct’s company
25Good, Service, Image, or Idea Type of productConvenience goodsShopping goodsSpecialty goods
26Good, Service, Image, or Idea Products which are high-tech, require demonstration, are expensive, or require installation should be promoted through personal selling.SALE!10% OFF on all small appliancesHARRY’SHARDWAREInexpensive and self-service products can rely on advertising and sales promotion.This computer isperfect for you. Ithas all the softwarepre-installed and aleft-handed mouse!Product nature
27Good, Service, Image, or Idea When you are on-the-go……it’s Breakfast-To-GoEach pocket provides you a delicious breakfast in just two minutes!New and Improved!MaturityGrowthDecliningStage of life cycleIntroductory
28Product’s Target Market Number of ConsumersGeographical LocationType of ConsumerSpread Over a Wide AreaClose TogetherConsumerMarketFewConsumersvs.IndustrialMarketManyConsumersAdvertisingSales PromotionPublicityPersonal Selling
29Distribution ChannelINTERMEDIARY BLVD.DIRECT AVE.Requires personalselling and advertisingRequires personal sellingThe promotional mix selection is affected by the path that a product takes.
30Product’s Company Historical Perspective Businesses often rely on previous use of promotional methods.Think small.Less flower.More power.19601970198019902000Historical Perspective
31Product’s Company Example: Available Funds 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.Wal-Mart started as one small store in Arkansas. In Wal-Mart’s early years, local newspaper advertising and personal selling were all that the small company could afford.Available Funds
32Product’s Company Competition Tony’s PizzaKids eat free!Ange’s PizzaFree kids’ meals!Competing businesses use similar promotional mixes and tend to follow the leader.
33MarkED Acknowledgements Original Developer Christopher C. Burke, MarkEDVersion 1.0Copyright 2000MarkED Resource Center
34Digital-based photography sources: ADOBE IMAGE LIBRARY;RetailObj. A: #RET_050Photos copyright Eyewire Inc.833 Fourth Ave. SW, Suite 800 Calgary, AB, CanadaART EXPLOSION 250,000;Obj. A: #MODEL005Nova Development Corporation23801 Calabasas Road, Suite 2005Calabasas, CA 91302
35Digital-based photography sources: PHOTODISC, INC.;Business & Occupations Vol. 7Obj. A: #7067Photos copyright PhotoDisc, Inc.2013 Fourth Ave., Seattle, WA 98121T/Maker Company;ClickArtObj. A: #PRFTOT007Photos 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.
36Copyright:All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.