Principles of Marketing Session -39, 40 Promotion Mix

Promotion Mix consists of the following elements 1. Advertising 2. Sales promotion 3. Personal selling 4. Public relations 5. Direct Marketing

Promotion Mix Advertising is "any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor." Specific media tools include print (magazines, newspapers, direct mail), broadcast (television, radio), and display (billboards, signs, posters).

Promotional objectives To support sales increases To encourage trial To create awareness To inform about a feature or benefit To remind To reassure To create an image To modify attitudes

The Promotional Message GrabATTENTION ExciteINTEREST CreateDESIRE PromptACTION AIDA

Media TV Radio Print Cinema Outdoors Internet

Characteristics of Press media Offers a high degree of market coverage with large circulation Targeting specific segments is possible Cost-effective compared to television Lead time is short

Characteristics of Television media Creates high impact with colour sound and movement Easy to target specific segment It covers large audience

Characteristics of Radio media Cost-effective compared to TV and press Can target specific segments easily Relatively mobile

Characteristics of cinema media High impact with visual, sound and movements Targeting youth population is easier Regional reach is possible

Characteristics of posters/outdoor media Ads can be repeatedly seen 24/7 coverage May encourage impulse buying if close to shops Maximum local reach is possible

Message Message: Message is the thought, idea, attitude, image or other information that the advertisers wishes to convey to the targeted audience Types of appeal for message: Rational Emotional Fear Appeal Humour appeal Music appeal Sex Appeal

Advertising Marketing mix product PricePlace Promotion

Advertising Role of Advertising in Marketing mix Important component Advertising helps to increase the volume of sales Advertising helps communicating sales promotion Advertising department help in formation of product image Advertising helps in the price reduction of the product

Role of Advertising in Promotion Mix Helps in effective personal selling Enhanced publicity Helps in the success of sales promotion Better reach of sponsorship to the target publice

Advertising Functions of Advertising Primary Function Secondary Functions Increasing sales Persuading Dealers To stock Assist In Liquidating stock Response For New products Creation of Demand Eliminate Seasonal Fluctuations Increase Std of living

Advertising Secondary Functions Encouragement To salesmen Helps in making Correct claims Impress Product quality Creating a Sense Of security Employment Of Efficient employees

Models of function of advertisement Unawareness Awareness knowledge Liking Preference conviction Purchase Hierarchy of Effects model developed by Lavidge and Steiner

Promotion Mix Sales Promotion: Sales promotion is the use of "short-term incentives to encourage the purchase or sale of a product or service." The key term is "short-term," as most sales promotions have a finite time frame when the terms of the offer are in force. Sales promotions aimed at the consumer are often communicated at the point-of-sale (e.g. via in-store displays or on-package mentions), convey a "Buy me NOW!" message.

Promotion Mix Sales promotion tools include premiums, discounts, coupons, cash rebates and demonstrations. Although this is also a non-personal form of communication, many sales promotion themes are intended to spark personal interest in the product or service being promoted.

Promotion Mix Personal Selling: "Two-way communication for the purpose of making sales and building customer relationships." This form of communication is "personal." It provides a forum for immediate exchange of needs, goals, ideas, and feedback. A good salesperson listens to the customer and reacts to the information being conveyed.

Promotion Mix Personal selling tools include sales presentations, trade shows, and incentive programs. Product-related information can be tailored to the individual (or group), and presented in a way that is meaningful and pertinent to the situation

Promotion Mix Public Relations: Public relations is intended to build good relations with the company's various publics by obtaining favorable publicity, building up a good "corporate image," and handling or heading off unfavorable rumors, stories, and events Public relations offers several unique qualities. It is very believable -- news stories, features, and events seem more real to readers than ads do.

Promotion Mix Public relations can also reach many prospects who avoid salespeople and advertisements; the message gets to the buyer as "news" rather than as a sales-directed communication Like advertising, public relations can dramatize a company or product