CHAPTER 8

Promotional Mix
Promotional Mix
OBJECTIVES
Identify promotion mix(marketing
communication mix).

Explain Integrated Marketing

Communication (IMC).

Explain the marketing communication

strategy.
Objective

Identify promotion
mix (marketing
communication mix).
What is promotion?
Any form of
communication a
business or
organization uses
to inform,
persuade, or
remind people
about its products.
Purposes of Promotion
To tell consumers about a companys

Ideas Goods
Images Services
Purposes of Promotion
To persuade consumers to buy
Two types of promotion

Product
Promotion
Type of promotion that a
business uses to convince
potential customers to buy
products from them and not
their competitors.

Institutional
Promotion
Type of promotion that a
Creating a Promotion
Plan Analyze the Marketplace

Identify Target Market

Set Promotion Objectives

Develop Promotion Budget

Choose Promotion Mix

 Promotions Recipe
for Success:
Promotions Recipe Mix various
for Success: communication
activities together and
serve to potential
customers until desired
outcome is achieved.
 The Combination the different
types of promotion Is Called
S the... n g
al Ad ll i
es e
S
ve
Pr a l
om n
rti
s o i t y
ot r i c
sin

io e b l
n P P u
g

Promotional
Mix
 Marketers Try To Create the
Ideal Blend of Promotional
Activities for Their Businesses.
Publicity
Personal
Sales promotion
selling

Advertising

No magic formula that

Must decide which methods will
marketers use to help
best reach potential customers and
design promotional mix
communicate desired message

Hard to determine effectiveness of the

different promotional methods
Factors Affecting the Selection of
a Promotional Mix
Must be carefully analyzed
before marketers decide
when and where to invest Distribution
promotional funds channels

Products Products
company Good, service,
image, or idea
target
market
 Type of
product
Good, Service, Image, or Idea

Convenience goods Shopping goods

Specialty goods
 HARRYS
Good, Service, Image, or Idea
HARDWARE

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
10% OFF
on all
pre-installed and a
small left-handed mouse! Inexpensive and self-
appliances service products can rely
on advertising and sales
Product nature
promotion.
 Good, Service, Image, or Idea
When you are on-the-
go

New and
Improved!
its Breakfast-To-Go
Each pocket provides
you a delicious
breakfast in just
two minutes! Maturity

Growth Declining

Introductory Stage of life cycle

Products Target Market
Geographical Type of Consumer
Location Number of Consumers
Consumer vs. Industrial
Market Market
Close Advertising
Together Spread
Sales Promotion
Over a
Publicity Wide
Personal Selling Area
Few Many
Consumers Consumers
Distribution Channel
INTERMEDIARY BLVD. DIRECT AVE.

The promotional Requires personal selling

mix selection is Requires personal
selling and advertising
affected by the
path that a
product takes.
Products Company
Businesses often rely on previous
use of promotional methods.

Think small. Less flower. More power.

1960 1970 1980 1990 2000

Historical Perspective
Products Company
Competition

Tonys Pizza Anges Pizza

Kids eat Free kids
free! meals!

Competing businesses use similar promotional

mixes and tend to follow the leader.
Products Company
Example:
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.
Importance of the Promotional
Mix
Plays a key role in
obtaining and
keeping customers
Enables
businesses to
communicate
effectively with
customers
Informs consumers
about
Elements of the Promotional Mix

Traveler Magazine
Flynn
The bikes
the pros The Top 5 Airlines!
use.

25% Off
Zap Coupon
Elements of the Promotion Mix

Advertising

Ingredients Sales Promotion

Ingredients
of
of the
the
Promotion
Promotion
Mix
Mix Personal Selling

Public Relations
What do they do?
Advertising
Creates awareness of a
businesss product
Personal Selling
Builds on all of the other
efforts by helping
customers complete the
sale
Sales Promotion
Efforts stimulate sales
Public Relations
Creates a favorable image
for the business itself
Advertising
Any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified
sponsor.

e r ti s
Ad v !
e r e
eh

The most visible element of the promotional mix

Major Types of
Advertising Corporate Image

Institutional
Advertising
Advocacy Advertising
Types
Types
of
of
Advertising
Advertising
Pioneering

Product Competitive
Advertising

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

The New Barchetta

 Diamonds
Diamonds from
from
Desmonds
Desmonds
Say No to Drugs.
Jewelers
Jewelers are
are aa girls
girls
best
best friend.
friend.

What'sImages
Advertised?
Goods
Services
Ideas Ideas
At Techco,
were
friendly to
our
customers
The Vet for Your and the
Pet environme
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 companys charitable activities in print or

broadcast media
Characteristics of Advertising

Advertising
Advertising
Communication
CommunicationMode
Mode Indirect
Indirectand
andnon-personal
non-personal
Communication
CommunicationControl
Control Low
Low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
FlowDirection
Direction One-way
One-way
Message
MessageContent
ContentControl
Control Yes
Yes
Sponsor
SponsorIdentification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Samemessage
messageto
toall
allaudiences
audiences
Advertising
Messages can be delivered by:
Television
Radio
Newspapers
Magazines
Direct mail
Outdoor advertisements
Directories
The Internet
Advertising
Advantages Disadvantages

Total cost is high

Ability to reach large

number of people

Cost per contact is low

Can be micro-targeted
Sales Promotion
Short-term
incentives
to
encourage
the
purchase or
sale of a
product
Fashion or
shows
service
Visual
Sales
merchandising or
promotion
displays Novelty items
activities Trade
Product shows
include:
demonstrations Exhibits

Instant rebates Free samples Coupons Contests

Sales Promotion

Sales
Sales Promotion
Promotion
Targets
Targets

End
End Company
Company
Consumers
Consumers Employees
Employees

Trade
Trade Customers
Customers
 Characteristics of Sales
Promotion

Sales
Sales Promotion
Promotion
Communication
CommunicationMode
Mode Usually
UsuallyIndirect
Indirectand
andnon-personal
non-personal
Communication
CommunicationControl
Control Moderate
Moderatetotolow
low
Feedback
FeedbackAmount
Amount Little
Littleto
tomoderate
moderate
Feedback
FeedbackSpeed
Speed Varies
Varies
Message
MessageFlow
FlowDirection
Direction Mostly
Mostlyone-way
one-way
Message
MessageContent
ContentControl
Control Yes
Yes
Sponsor
SponsorIdentification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Fast
Fast
Message
MessageFlexibility
Flexibility Same
Samemessage
messageto
tovaried
variedtarget
target
 Tools for Consumer Sales
Promotion
Coupons

Premiums
Six
Six
Categories
Categories Frequent Buyer Programs
of
of
Consumer
Consumer Contests and
Sales
Sales Sweepstakes
Promotions
Promotions
Samples

Point-of-Purchase
Displays
 Tools for Trade Sales Promotion
Trade Allowances

Push Money
Six
Six
Training Categories
Categories
of
of
Trade
Trade
Free Merchandise
Sales
Sales
Promotions
Promotions
Store Demonstrations

Business Meetings,
Conventions, Trade-Shows
 What is the largest form of
promotion?

Personal
Selling!
This type of
promotion
requires
contact with
potential
buyers
Personal Selling
Determines client needs/wants and responds through planned,
personalized communication that influences purchase decisions and
enhances future business opportunities
Personal presentation by the firms sales force for the purpose of making
sales and building customer relationships

You might want

allow me to replace toAre
consider leasing
you planning
them all at once, computers. You can
on replacing all
but I want them to getyour
of free computers
service
be compatible. and upgrade
at once?to a
newer model whenever
you want!
 Characteristics of Personal
Selling

Personal
Personal Selling
Selling
Communication
CommunicationMode
Mode Direct
Directand
andface-to-face
face-to-face
Communication
CommunicationControl
Control High
High
Feedback
FeedbackAmount
Amount Much
Much
Feedback
FeedbackSpeed
Speed Immediate
Immediate
Message
MessageFlow
FlowDirection
Direction Two-way
Two-way
Message
MessageContent
ContentControl
Control Yes
Yes
Sponsor
SponsorIdentification
Identification Yes
Yes
Reaching
ReachingLarge
LargeAudience
Audience Slow
Slow
Message
MessageFlexibility
Flexibility Tailored
Tailoredto
toprospect
prospect
Advantages of Personal Selling

Detailed
Detailed
Information
Information Message
Message Control
Control

Targeted
Targeted

Cost
Cost Control
Control
Closing
Closing Sales
Sales
Selling Advantages

I like the sound We do carry a

of this stereo, bookshelf model
but I think its a On a per contact basis, with similar
little large for
my dorm room. selling is the most expensive
sound quality.

form of promotion.

Immediate feedback
Flexibility
Public Relations
Any activity designed
to create a favorable
image toward a
business, its products
or its policies.

Building good
relations with the
companys various
publics by obtaining
favorable publicity,
building up a good
corporate image and
handling or heading
Publicity
A specific kind of
public relations that
involves placing
positive and
newsworthy
information about a
business, its products,
or its policies in the
media is called..
Public Relations

Functions
Functions of
of
Public
Public Relations
Relations

Evaluates
Evaluates public
public Executes
Executes programs
programs
attitudes
attitudes to
to win
win public
public
Identifies
Identifies areas
areas
of
of public
public interest
interest
 Characteristics of Public
Relations

Public
Public Relations
Relations
Communication
CommunicationMode
Mode Usually
Usuallyindirect,
indirect,non-personal
non-personal
Communication
CommunicationControl
Control Moderate
Moderatetotolow
low
Feedback
FeedbackAmount
Amount Little
Little
Feedback
FeedbackSpeed
Speed Delayed
Delayed
Message
MessageFlow
FlowDirection
Direction One-way
One-way
Message
MessageContent
ContentControl
Control No
No
Sponsor
SponsorIdentification
Identification No
No
Reaching
ReachingLarge
LargeAudience
Audience Usually
Usuallyfast
fast
Message
MessageFlexibility
Flexibility Usually
Usuallyno
nodirect
directcontrol
control
Ways the Internet Can Be Used
as a Source of Publicity

Tae-Bo has really changed my life. Ive lost

weight, toned-up, and feel better than ever.
-Susie Wells, CA

A company web site can be used to obtain and display positive

feedback.
 Ways the Internet Can Be Used
as a Source of Publicity

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.

A businesss goods, services, or web site might be mentioned in an Internet

newsgroup.
 Ways the Internet Can Be Used
as a Source of Publicity

LINK
LINKTO
TOACME.COM
ACME.COM

A company might agree to provide a link to another businesss web site in

exchange for the same consideration.
Principal function of publicity

Building an image
Publicity
Advantage

It is free!

Disadvanta
ge..
Its contents
cannot be
Direct Marketing
Direct connections
with carefully
targeted individual
consumers to both
obtain an
immediate
response and
cultivate lasting
customer
relationships
Forms of Direct
Marketing
Direct Marketing

Telephone
Marketing
Inbound toll-free
800 numbers are
used to receive
orders from print or
TV ads
New legislation and
technological
advances threaten
the future of
Direct Marketing

Direct-Mail
Marketing
New trends
include fax,
mail, e-mail,
and voice mail

Catalog
Marketing
Many
cataloguers
have migrated
to the web
Direct Marketing

Direct-
Response
Television
Marketing
Direct-
response
advertising
Infomercials
Home shopping
channels
Direct Marketing
Benefits

Direct
Marketing
Benefits:
Buyers
Convenient
Easy to use
Private
Access to a
wealth of
information
Immediate
Interactive
Direct Marketing
Benefits
Direct Marketing Benefits:
Sellers
Powerful tool for building
relationships
Allows for targeting of small groups
or individuals with customized
offers in a personalized fashion
Offers access to buyers that
couldnt be reached via other
channels
Low-cost, effective alternative for
Dells
success
is due to
their
direct
selling
model
Direct Marketing
Customer
Databases &
Direct
Marketing
Databases include
customer profile,
purchase history,
and other detailed
information
Databases can be
used to identify
prospects, profile
Direct Marketing

Customer
Databases &
Direct
Marketing
Database
marketing
requires
substantial
investment in
Advertising Versus Personal
Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.

Advertising/Sales Promotion is more important if...

The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.
Objective
Explain Integrated
Marketing
Communication (IMC)
 Integrated Marketing
Communications

IMC A method of carefully

coordinating all promotional
activities to deliver a clear,
consistent, and compelling
message about the organization
and its products.
Integrated Marketing
Communications
 Saturns advertising program is
integrated with sales efforts and
website communications
Objectives of marketing
communication mix
Informing Reminding

Target
Audience

Persuading
 Objectives of marketing
communication mix

Informing
Informing Reminding
Reminding

PLC Stages: PLC Stages:

Introduction Maturity
Early Growth Target
Target
Audience
Audience

PLC Stages:
Growth
Maturity
Persuading
Persuading
 Objectives of marketing
communication mix

Informative Objective

Increase awareness

Explain how product works

Suggest new uses

Build company image

 Objectives of marketing
communication mix

Persuasion Objective
Encourage brand switching

Change customers perception of product

attributes

Influence buying decision

Persuade customers to call

 Objectives of marketing
communication mix

Reminder Objective
Remind customers that product
may be needed

Remind customers where to buy product

Maintain customer awareness

Examples of Promotion
Objectives
Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan
peanut butter from 16 percent to 24 percent

Objective: To Persuade (Attitudinal)

To increase the percentage of parents who feel that Peter Pan
peanut butter is the best peanut butter for their children from
22 percent to 35 percent

Objective: To Remind
To remind consumers that Peter Pan peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores
 Do these ads attempt to
inform, persuade, or remind?

How effective are

these ads?
Objective

Discuss the AIDA concept and its

relationship to the promotional mix
The AIDA Concept

Attention Model that outlines the process

for achieving promotional goals
Interest
in terms of stages of consumer
Desire involvement with the message.

Action
The AIDA Concept

Action
Desire

Interest

Attention
 AIDA and the Promotional Mix

Awareness
Awareness Interest
Interest Desire
Desire Action
Action

Very Very Somewhat Not

Not
Advertising
effective effective effective effective
effective

Public
Public Very
Very Very
Very Very
Very Not
Not
Relations
Relations effective
effective effective
effective effective
effective effective
effective

Sales Somewhat Somewhat Very Very

Very
Promotion effective effective effective effective
effective

Personal Somewhat Very Very Somewhat

Somewhat
Selling effective effective effective effective
effective
 Objective
Explain the marketing
communication
strategy
Push Policy
Promotion policy Trade promotions
used only with the and personal selling
next partner in the efforts push the
distribution product through the
channel. distribution channels.
Manufacturer
s PUSH
a product to
the retailers
for sale.
Pull Policy
Promotion policy Producers use advertising
designed to create and consumer sales
consumer interest promotions to generate
strong consumer demand
for products.
When a
product is
consumer
driven or
PUSHED
into a
store.
Push and Pull
Strategies
PUSH STRATEGY

Manufacturer
Manufacturer Wholesaler
Wholesaler Retailer
Retailer Consumer
Consumer
promotes
promotestoto promotes
promotesto
to promotes
promotestoto buys
buysfrom
from
wholesaler
wholesaler retailer
retailer consumer
consumer retailer
retailer

Orders to manufacturer

PULL STRATEGY

Consumer
Consumer Retailer
Retailer
Manufacturer
Manufacturer Wholesaler
Wholesaler
demands
demands demands
demands
promotes
promotesto
to demands
demands
product
product product
product
consumer
consumer product
productfrom
from
from
fromretailer
retailer from
fromwholesaler
wholesaler manufacturer
manufacturer
Orders to manufacturer
 Push vs. Pull
Promotion Strategy