1. 1 PROMOTIONAL MIX PROMOTION LAP 1

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

3. 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. 4 THE BEST BLEND Marketing Mix u ADVERTISING u PERSONAL SELLING u PUBLICITY u SALES PROMOTION

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

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

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

8. 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. 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. 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. 11 SALES PROMOTION u Defined: u Promotional activities other than advertising, personal selling, and publicity which stimulate purchases

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

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

14. 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. 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. 16 IDEAL BLEND u Difficult decisions because it is hard to determine the effectiveness of the different promotional methods

17. 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. 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. 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. 20 FACTORS AFFECTING THE PROMOTIONAL MIX PRODUCT TYPE u Specialty goods -- products that have unique characteristics (must include personal selling)

21. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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)

36. 36 THE END