1 PROMOTIONAL MIX PROMOTION LAP 1

2 PROMOTION u Communication activities that inform potential consumers about the existence of goods, services, or ideas and persuade them to buy

3 u PROMOTIONAL MIX: The most effective combination, or blend, of the marketing communication channels that a business uses to send its messages to consumers THE BEST BLEND

4 THE BEST BLEND Marketing Mix u ADVERTISING u PERSONAL SELLING u PUBLICITY u SALES PROMOTION

5 ADVERTISING u Define: u ANY PAID FORM OF NONPERSONAL PRESENTATIONS OF IDEAS, GOODS, OR SERVICES

6 ADVERTISING EXAMPLES Major Media u Television u Radio u Newspapers u Magazines

7 ADVERTISING EXAMPLES Major Media u Direct Mail u Outdoor Advertisements u Directories

8 PERSONAL SELLING u Defined: u The form of promotion that uses planned, personalized communication in order to influence purchase decisions and to ensure satisfaction

9 PUBLICITY u Defined: u A nonpersonal form of promotion that is not paid for by the company or individual which benefits from it. u Publicity is free

10 PUBLICITY EXAMPLES u Favorable news release u Appearance on radio\tv talk shows u Mention of charitable activities in print or broadcast media u Featured newspaper and magazine articles u Press conference

11 SALES PROMOTION u Defined: u Promotional activities other than advertising, personal selling, and publicity which stimulate purchases

12 SALES PROMOTION EXAMPLES u Displays u Fashion shows u Coupons u Exhibits

13 SALES PROMOTION EXAMPLES u Free samples u Novelty items u Trade shows u Demonstrations

14 IMPORTANCE OF PROMOTIONAL MIX u Plays a key role in obtaining and keeping customers u Enables businesses to communicate effectively with consumers u Informs potential consumers about the existence of goods and persuades them to buy

15 IDEAL BLEND u Business must decide which methods will do the best job which will be best at actually communicating the desired message to potential consumers

16 IDEAL BLEND u Difficult decisions because it is hard to determine the effectiveness of the different promotional methods

17 IDEAL BLEND u No magic formula can be used to design P.M. u No One Promotion Element Should Be Considered the Best

18 FACTORS AFFECTING THE SELECTION AND USE OF APPROPRIATE PROMOTIONAL MIX ELEMENTS u Product u Product’s market u Distribution system u Product’s company

19 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT TYPE u Convenience goods -- purchased frequently and with a minimum effort (personal selling not used) u Shopping goods -- purchased after a customer has made comparisons (personal selling & national t.v. are often used)

20 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT TYPE u Specialty goods -- products that have unique characteristics (must include personal selling)

21 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT NATURE u Inexpensive and self-service products can rely on advertising and sales promotion u Highly technical products, which require demonstration, are expensive or require installation, should be promoted through personal selling

22 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u Goods & services develop and mature as do people u Products go through stages, known as life cycles which are being introduced to the market, growing, maturing, and declining

23 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u PIONEERING -- Introduction of new product on market u Promotional efforts that inform about the existence of new product

24 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u GROWTH -- Competing products appear on the market u Promotion becomes very competitive among companies

25 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u MATURITY -- Product is well established u Promotional activities focus on pointing out differences between competing products u Competition increases, and advertising is used extensively

26 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u DECLINE -- Newer products are entering the market, taking the place of existing ones u Companies may slow or stop production of existing products u Little money is invested in promotional activities.

27 FACTORS AFFECTING THE PROMOTIONAL MIX STAGE OF PRODUCT LIFE CYCLE u As a good or service moves through its life cycle, its promotional mix needs vary u It’s important to use promotional methods that are appropriate for the current life stage of the product or service.

28 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S MARKET u The particular group of consumers who want or need a give product u Type of consumer (consumer or industrial consumer) u Number of consumers – few consumers -- personal selling – many consumers or wide area --- advertising and sales promotion

29 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S MARKET u Geographical location – If consumers are located close together --- personal selling – If consumers are spread over a wide area - -- advertising & sales promotion

30 FACTORS AFFECTING THE PROMOTIONAL MIX DISTRIBUTION SYSTEM u All products move from their producers to consumers through paths, or channels u Promotional mix selection is affected by the path that product takes – Lots of intermediaries --- more personal selling – Direct from manufacture --- personal selling & advertising used effectively together

31 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S COMPANY u HISTORICAL PERSPECTIVE u Often rely on previously used promotional methods u Marketers sometimes feel that what has been successful in past will continue to work u May be true; however, there may be other more successful promotional mixes

32 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S COMPANY u AVAILABLE FUNDS u Key factor in selection of promotional mix u Businesses which spend small amounts for promotion tend to rely on personal selling u Business which spend large amounts can effectively use advertising

33 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S COMPANY u SIZE OF SALES FORCE u The smaller the size of the sales staff, the more a business focuses its promotional mix on elements other than personal selling u Many small, technical businesses use specialized magazine advertising and trade shows to inform consumers about their products

34 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S COMPANY u SIZE OF SALES FORCE u The smaller the size of the sales staff, the more a business focuses its promotional mix on elements other than personal selling u Many small, technical businesses use specialized magazine advertising and trade shows to inform consumers about their products

35 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT’S COMPANY u COMPETITION u Competing businesses often use very similar promotional mixes u Many factors affecting the promotional mix will have the same or similar effects on businesses within the same industry u Competing businesses also tend to follow the leader. (they have similar promotions)

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