Promotional Mix Powerpoint - Study Resource

Promotional MixPrepared by

Mehul RasadiyaK.K.Parekh Institute of Management of Studies

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ObjectivesA.Describe the elements of the promotional mix.B.Explain factors affecting the selection of a promotional mix.

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Objective ADescribe the elements of the promotional mix.

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Purposes of PromotionTo tell consumers about a companys

Goods

ServicesImages

Ideas

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Purposes of PromotionTo persuade consumers to buy

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Promotions Recipe for Success:Mix various communication activities together and serve to potential customers until desired outcome is achieved.

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The Top 5 Airlines!Traveler Magazine

FlynnThe bikesthe prosuse.

25% OffCoupon

ZapAdvertisingPersonal sellingPublicitySales promotionCommunication Techniques

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The Combination, or Blend, of Marketing Communication Channels Is Called the...

PromotionalMixAdvertisingSales PromotionPublicityPersonal Selling

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Elements of thePromotional Mix

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AdvertisingAny paid form of nonpersonal presentation of ideas, images, goods, or servicesThe most visible element of the promotional mix

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Driving Excitement!The New BarchettaActual cost of advertisement is quite high.Since many people receive the message, the per contact cost is very low.

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What's Advertised?

Goods

Services

Images

Ideas

The Vet for Your Pet

At Techco, were friendly to our customers and the environment.

Say No to Drugs.

Diamonds from Desmonds Jewelers are a girls best friend.

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AdvertisingMessages can be delivered by:TelevisionRadioNewspapersMagazinesDirect mailOutdoor advertisementsDirectoriesThe Internet

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Personal SellingDetermines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities

Are you planningon replacing allof your computersat once?My budget wontallow me to replacethem all at once,but I want them to be compatible.You might wantto consider leasingcomputers. You canget free serviceand upgrade to anewer model wheneveryou want!

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Selling AdvantagesImmediate feedbackFlexibility

I like the soundof this stereo,but I think its alittle large formy dorm room.We do carry abookshelf modelwith similarsound quality.

Selling Disadvantage

On a per contact basis, selling is the most expensive form of promotion.

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PublicityAny nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual which benefits from or is harmed by itMany consumers pay close attention to publicity.Feel publicity has more credibility because it is not a commercial messageView publicity as news

Example: Mention of a companys charitable activities in print or broadcast media

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Ways the Internet Can Be Used as a Source of PublicityA company web site can be used to obtain and display positive feedback.

Tae-Bo has really changed my life. Ive lost weight, toned-up, and feel better than ever. -Susie Wells, CA

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Ways the Internet Can Be Used as a Source of Publicity

A businesss goods, services, or web site might be mentioned in an Internet newsgroup.OnlineNews.com

Car shopping on the webBuying a car on the web just got easier! Autobytel.com will help you get the financing, pick out the model, color and extras. Then they provide a quote from a local dealer. All at the touch of a keypad.

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Ways the Internet Can Be Used as a Source of PublicityA company might agree to provide a link to another businesss web site in exchange for the same consideration.

LINK TO ACME.COM

LINK TO ACME.COM

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Sales Promotion Promotional activities other than advertising, personal selling, and publicity which stimulate purchasesSales promotion activities include:Visual merchandising or displays

CouponsProduct demonstrations

Instant rebates

Free samples

Fashion shows

Contests

Novelty items

Trade shows

Exhibits

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Importance of the Promotional MixPlays a key role in obtaining and keeping customersEnables businesses to communicate effectively with customersInforms consumers about goods/services and persuades them to buy

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Objective BExplain factors affecting the selection of a promotional mix.

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Marketers Try To Create theIdeal Blend of Promotional Activities for Their Businesses.

Must decide which methods willbest reach potential customers and communicate desired messageAdvertisingPersonalsellingPublicitySales promotionHard to determine effectiveness of the different promotional methods

No magic formula that marketers use to help design promotional mix

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Factors Affecting the Selection of a Promotional MixProducts target market

Good, service, image, or ideaDistribution channelsProducts companyMust be carefully analyzed before marketers decide when and where to invest promotional funds

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Good, Service, Image, or Idea

Convenience goods

Shopping goodsSpecialty goods

Type of product

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Good, Service, Image, or IdeaProduct nature

Products which are high-tech, require demonstration, are expensive, or require installation should be promoted through personal selling.

This computer isperfect for you. Ithas all the softwarepre-installed and a left-handed mouse!Inexpensive and self-service products can rely on advertising and sales promotion.

SALE!10% OFF on all small appliances

HARRYSHARDWARE

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IntroductoryGrowthMaturityDecliningGood, Service, Image, or IdeaStage of life cycle

When you are on-the-goits Breakfast-To-GoEach pocket provides you a delicious breakfast in just two minutes!

New and Improved!

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Products Target Marketvs.ConsumerMarketIndustrialMarketType of ConsumerAdvertisingSales PromotionPublicityPersonal Selling

Number of ConsumersFewConsumersManyConsumers

Geographical LocationClose TogetherSpread Over a Wide Area

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Distribution Channel

The promotional mix selection is affected by the path that a product takes.

INTERMEDIARY BLVD.

DIRECT AVE.

Requires personal selling

Requires personal selling and advertising

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Businesses often rely on previoususe of promotional methods.Products Company

196020001980Historical Perspective

19701990Think small.Less flower.More power.

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Products CompanyAvailable Funds

Wal-Mart started as one small store in Arkansas. In Wal-Marts early years, local newspaper advertising and personal selling were all that the small company could afford.

Today, the Wal-Mart corporation has increased its promotional mix to include television, radio, newspapers, special sales bulletins, and a Wal-Mart web site in order to promote its national network.Example:

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Products Company

Tonys Pizza

Kids eat free!

Anges Pizza

Free kids meals!Competing businesses use similar promotional mixes and tend to follow the leader.Competition

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MarkED

AcknowledgementsOriginal DeveloperChristopher C. Burke, MarkEDVersion 1.0Copyright 2000MarkED Resource Center

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Digital-based photography sources:

ADOBE IMAGE LIBRARY;RetailObj. A: #RET_050Photos copyright Eyewire Inc.833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada

ART EXPLOSION 250,000;Obj. A: #MODEL005Nova Development Corporation23801 Calabasas Road, Suite 2005Calabasas, CA 91302

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Digital-based photography sources:

PHOTODISC, INC.;Business & Occupations Vol. 7Obj. A: #7067Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121

T/Maker Company;ClickArtObj. A: #PRFTOT007Photos copyright T/Maker Company; 1390 Villa Street: Mountain View, CA 94041; tel. (415) 962-0195. Copyright 1994, all rights reserved. ClickArt is a registered trademark of T/Maker Company. ClickArt Images copyright 1984-1994 by T/Maker Company. All rights reserved.

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Copyright:All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.

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