PRESENTATION

Prepared by:

MIAN NIRWAN FAROOQI

In promotional activities, the firm gets its chance to

communicate with potential customers, “To beat the drum”

about its product.

We will discuss every aspect of this “P” of Marketing Mix in

detail one by one:

Meaning and Importance

The Communication Process

Determination of Promotional Mix

Determination of total promotional Appropriation

The Campaign Concept

(1) FUNDS AVAILABLE

Real determinant of the Mix

More financial resources = More effective advertising

Advertising is more effective then door to door personal

sales

Lack of funds in a company forces company to rely on

Personal selling

Four factors should keep in mind while designing

promotional mix.

• The amount of money available for promotion

• The nature of Market

• The nature of Product

• The stage of the Product’s Life Cycle

(2) NATURE OF MARKET

Geographic scope of market: Small local market, town …

Type of customer: Household or Industrial

Concentration of market: Total number of potential buyers

(3) NATURE OF PRODUCT

Consumer products or Industrial Goods

Product type: convenience, shopping or special item

Convenience products heavily rely on advertising

Industrial supplies need personal selling and demonstration

Presale and post sale service may be needed

Make strategies according to product type you sell

(4) STAGE OF PRODUCT’S LIFE CYCLE

Promotional strategies for a product are influenced by the

stage of life cycle that a product is in at any given time.

Introductory Stage

Growth Stage

Maturity Stage

Sales Decline Stage

There are four basic methods of determining the suitable

appropriations for promotion.

1) Relation to Income

2) Task or Objective

3) Use of all Available Funds

4) Follow Competition

(1) INCOME OF THE COMPANY

The expenditures may be set as a percentage of past or

anticipated sales.

Some businesses prefer to budget fixed amount of money

It reduces promotional expenditures when sales are

declining

This is just when promotion is most needed

(2) TASK OR OBJECTIVE

Set your objective or task to be accomplish by promotional

program, then estimate its COST.

The Task method forces management to define realistically

of its promotional programs

This approach is also called Buildup method because the

way it operates

The promotional appropriation is built up by adding

individual to all promotional tasks needed to reach the goal

of whole program

(3) USE ALL AVAILABLE FUNDS

I A new company frequently plow all available funds into its

promotional program.

The objective here is to build large sales for the first five

years 1-5

Later on, management expects to earn profit and be able to

budget for promotion in a different manner.

(4) FOLLOW COMPETITION

This is a weak method for determining the promotional

appropriation

The company matches promotional expenditures with its

competitors

It is possible that a company’s rival may be as much in dark

that how to set a promotional budget

One company’s promotional goals and strategies may be

quite different from its competitors because of differences

in firm’s strategic marketing planning

Definition:

A campaign is a coordinate series of

promotional efforts built around a single theme and

designed to reach a predetermined goal.

In short, a campaign is an exercise in strategic planning.

For promotional campaign to be successful, the efforts of

the participating groups must be coordinated effectively.

The Advertising program will consist of a series of related,

well timed, carefully placed ads that REINFORCE the

personal selling and sales promotion efforts.

The Personal selling effort will be coordinated with the

advertising program.

The Sales promotional devices, such as point-of-purchase

display materials, will be coordinated with the other

aspects of the campaign

Physical distribution management will ensure that adequate

stocks of the product are available in all outlets prior to the

start of the campaign.