3 Objectives Understand what the promotion mix is Know what each promotion tool entailsRelate to how companies utilize promotion mix to communicate with market
4 The Promotion Mix Also called marketing communications mix Consists of specific blend of promotion toolsCompanies use to communicate customer value and build customer relationships
5 5 Major Promotional Tools AdvertisingSales PromotionPersonal SellingPublic RelationsDirect Marketing
6 AdvertisingAdvertising- Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsorCan include:–Broadcasting–Print–The Internet
7 Advertising Why is advertising important? –Communicates a vivid and convincing message of value to customersAdvertising objective:– Specific communication task, delivered to a specific audience at a specific time
8 Types of Advertising Informative Advertising: Persuasive Advertising –Used when a company is attempting to introduce a new product to the market to make consumers aware of its existencePersuasive Advertising–Used to convince customers to purchase a company’s product as opposed to the competition’sReminder Advertising–Used as a reminder and to maintain customer relationships
9 Advertising and the Consumer Decision Making Process Informative AdvertisingPersuasive AdvertisingReminderAdvertisingDollar Shave Club practices persuasive advertising
10 Developing an Advertising Strategy An advertising strategy is formed when a company creates an advertising message and picks advertising media.–Message needs to ‘break through the clutter’–Strategy behind the message is to use an image, phrase, or a combination of both–Message execution is the tone, style, words, etc. the that company uses to attract interest and attention from customers. There are many execution styles.“Our Blades Are Fu**ing Great”
11 Developing an Advertising Strategy Selecting advertising media consists of:–Reach, frequency, and impact–Choose the major media types–Pick specific media vehicles–Media timingDollar Shave Club did not advertise at first–Now advertise on television and the radio–Chose specific channels to run at specific times
12 Evaluating It is difficult to evaluate how effective advertising is Ways to determine:–Evaluate sales and profits–Evaluate communication effectsDollar Shave Club saw that advertising on television helped raise $9.8 million
13 Sales PromotionsTrade Promotions are tools used to persuade resellers to carry a brand, provide it with shelf space, promote in advertising, and push it to customers.
14 Business PromotionsSales promotion tools used to generate business leads, create purchases, reward customers and motivate sales people.
15 Consumer PromotionsShort term drop in price or an incentive to motivate the purchase of a product or service.Consumer Promotions Include- Coupons, Rebates, Samples, Price packs, Event Sponsorships, Point-of-purchase promotions, Contests, and Advertising specialties.Not as effective at building relationships and brand preference.
16 Personal Selling Involves personal interaction Includes sales presentations, trade shows, and incentive programsMost effective promotion tool at certain stages of buying process but most expensive for companyRequires longer-term commitment than advertisingSize of sales force is harder to change
22 What We LearnedAbel: As a person who doesn’t like commercials, I learned to appreciate the advertising process.Adriana: I learned about all of the tedious components that it takes for a marketer to simply say, “Buy my product!”Andy: A company does not need to spend so much money on television advertisement to be successful.Chyvonne: How distinct each element of the promotion mix is and how important each one can be in a different way.Sergio: With creativity and pizzazz, a company can go ahead and compete with a big company like Gillette.
24 ReferencesPyra, C. (March 10, 2014). COLON CANCER ALLIANCE TEAMS UP WITH DOLLARSHAVECLUB.COM TO WIPE OUT COLON CANCER. Globenewswire. Retrieved fromDel Rey, J. (October 8, 2013) Dollar Shave Club Lands 12 million Investment to Dramatically Expand Product Portfolio. All Things D. Retrieved fromForte, D. (April 3, 2014) Dollar Shave Club Improves Mobile Conversions by 126%. MultiChannel Merchant. Retrieved fromKotler, P. (2014) Principles of Marketing. Pearson Education, Inc.Kaye, K. (2013).Why YouTube Darling Dollar Shave Club is Buying TV Ads. Retrieved fromPuri, R. (2013). YouTube Legend Dollar Shave Club Says TV Isn’t Dead. Retrieved from