Promotional Mix

Promotion LAP 1

Objectives

A. Describe the elements of the

promotional mix.

B. Explain factors affecting the selection

of a promotional mix.

Objective A

Describe the elements of the

promotional mix.

Purposes of Promotion

To tell consumers about a company’s …

Goods

Services

Ideas

Purposes of Promotion

To persuade consumers to buy

Promotion’s Recipe

for Success:

Mix various

communication

activities together and

serve to potential

customers until desired

outcome is achieved.

The Top 5

Airlines!

Traveler Magazine

FlynnThe bikes

the pros

use.

25% OffCoupon

• Advertising

• Personal selling

• Publicity

• Sales promotion

Communication Techniques

The Combination, or Blend, of Marketing

Communication Channels Is Called the...

Advertising

Any paid form of nonpersonal presentation of ideas,

images, goods, or services

The most visible element of the promotional mix

The New Barchetta

• Actual cost of advertisement is quite high.

• Since many people receive the message, the per contact cost is very low.

GoodsGoodsServicesServicesImagesImagesIdeasIdeas

The Vet for Your

Pet

At Techco, we’re

friendly to our

customers and the

environment.

At Techco, we’re

friendly to our

customers and the

environment.

Say No to Drugs.Diamonds from

Desmond’s

Jewelers are a girl’s

best friend.

Diamonds from

Desmond’s

Jewelers are a girl’s

best friend.

Advertising

Messages can be delivered by:

• Television

• Radio

• Newspapers

• Magazines

• Direct mail

• Outdoor advertisements

• Directories

• The Internet

Personal Selling

Determines client needs/wants and responds through

planned, personalized communication that influences

purchase decisions and enhances future business

opportunities

Are you planning

on replacing all

of your computers

at once?

My budget won’t

allow me to replace

them all at once,

but I want them to

be compatible.

You might want

to consider leasing

computers. You can

get free service

and upgrade to a

newer model whenever

you want!

Selling Advantages

• Immediate feedback

• Flexibility

I like the sound

of this stereo,

but I think it’s a

little large for

my dorm room.

We do carry a

bookshelf model

with similar

sound quality.

Selling Disadvantage

On a per contact basis,

selling is the most expensive

form of promotion.

Publicity

• Any nonpersonal presentation of ideas, goods, or

services that is not paid for by the company or

individual which benefits from or is harmed by it

• Many consumers pay close attention to publicity.

– Feel publicity has more credibility because it is not a

commercial message

– View publicity as news

Example: Mention of a company’s charitable

activities in print or broadcast media

Ways the Internet Can Be Used as a Source of Publicity

A company web site can be used to obtain and display

positive feedback.

“Tae-Bo has really changed my life. I’ve lost

weight, toned-up, and feel better than ever.”

-Susie Wells, CA

Ways the Internet Can Be Used as a Source of Publicity

A business’s goods, services, or web site might be mentioned in an

Internet newsgroup.

OnlineNews.com

Car shopping on the web

Buying 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.

Ways the Internet Can Be Used as a Source of Publicity

A company might agree to provide a link to another business’s web

site in exchange for the same consideration.

LINK TO ACME.COMLINK TO ACME.COM

Sales Promotion

• Promotional activities other than advertising, personal

selling, and publicity which stimulate purchases

• Sales promotion activities include:

Visual merchandising

or displays

Coupons

Product

demonstrations

Instant

rebates

Free samples

Fashion

shows

Contests

Novelty

items

Trade shows

Exhibits

Importance

of the

Promotional

Mix

• Plays a key role in

obtaining and keeping

customers

• Enables businesses to

communicate effectively

with customers

• Informs consumers about

goods/services and

persuades them to buy

Objective B

Explain factors affecting the

selection of a promotional mix.

Marketers Try To Create the

Ideal Blend of Promotional

Activities for Their Businesses.

Must decide which methods will

best reach potential customers and

communicate desired message

Advertising

Personal

selling

Publicity

Sales

promotion

Hard to determine effectiveness of the

different promotional methods

No magic formula that

marketers use to help

design promotional mix

Factors Affecting the Selection of a

Promotional Mix

Product’s target

market

Good, service,

image, or idea

Distribution

channels

Product’s

company

Must be carefully

analyzed before

marketers decide when

and where to invest

promotional funds

Good, Service, Image, or Idea

Convenience goods Shopping goods

Specialty goods

• Type of product

Good, Service, Image, or Idea

Product nature

Products which are

high-tech, require

demonstration, are

expensive, or require

installation should be

promoted through

personal selling.

This computer is

perfect for you. It

has all the software

pre-installed and a

left-handed mouse!

Inexpensive and

self-service products

can rely on advertising

and sales promotion.

Introductory

Growth

Maturity

Declining

Good, Service, Image, or Idea

Stage of life cycle

When you are on-the-

go…

…it’s Breakfast-

To-Go

New and

Improved!

Product’s Target Market

vs.Consumer

Market

Industrial

Market

Type of Consumer

Advertising

Sales Promotion

Publicity

Personal Selling

Number of Consumers

Few

Consumers

Many

Consumers

Geographical Location

Close Together Spread Over a

Wide Area

Distribution Channel

The promotional mix selection is affected by the

path that a product takes.

INTERMEDIARY BLVD. DIRECT AVE.

Requires personal sellingRequires personal selling and advertising

Businesses often rely on previous

use of promotional methods.

Product’s Company

1960 20001980

Historical Perspective

1970 1990

Think small. Less flower. More power.

Product’s CompanyWal-Mart started as one small store in

Arkansas. In Wal-Mart’s 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.

Product’s Company

Tony’s Pizza

Kids eat

free!

Ange’s Pizza

Free kids’

meals!

Competing businesses use similar promotional

mixes and tend to follow the leader.

Competition