Promotional Mix

Promotional Mix - Promotional Mix Promotional Promotion LAP...

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Unformatted text preview: Promotional Mix Promotional Promotion LAP 1 Objectives Objectives A. Describe the elements of the Describe promotional mix. promotional B. Explain factors affecting the selection Explain of a promotional mix. of Objective A Objective Describe the elements of the Describe promotional mix. promotional Purposes of Promotion Purposes To tell consumers about a company’s … Ideas Images Services Goods Purposes of Promotion Purposes 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. Communication Techniques • Advertising • Personal selling • Publicity • Sales promotion Flyn n The bikes the pros use. Traveler Magazine The Top 5 Airlines! Airlines! 25% Off Coupon The Combination, or Blend, of Marketing Communication Channels Is Called the... Communication Advertising Advertising Any paid form of nonpersonal presentation of ideas, Any images, goods, or services images, The most visible element of the promotional mix • Actual cost of advertisement is quite high. • Since many people receive the message, the per contact cost is very low. The New Barchetta The Diamonds from Desmond’s Jewelers are a girl’s best friend. Say No to Drugs. Services Images GIdeas oods At Techco, we’re friendly to our customers and the environment. The Vet for Your Pet Advertising Advertising Messages can be delivered by: • • • • • • • • Television Radio Newspapers Magazines Direct mail Outdoor advertisements Directories The Internet Personal Selling Personal Determines client needs/wants and responds through Determines planned, personalized communication that influences purchase decisions and enhances future business opportunities opportunities 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 Are you planning computers. You can on replacing all get free service of your computers and upgrade to a at once? newer model whenever you want! Selling Disadvantage Selling Advantages I like the sound We do carry a of this stereo, bookshelf model but I think it’s an a per contact basis, O On with similar little large for selling is the most sound quality. my dorm room. expensive form of promotion. promotion. • Immediate feedback • Flexibility Publicity Publicity • Any nonpersonal presentation of ideas, goods, or Any services that is not paid for by the company or individual which benefits from or is harmed by it individual • Many consumers pay close attention to publicity. – Feel publicity has more credibility because it is not a Feel commercial message commercial – View publicity as news Example: Mention of a company’s charitable activities Example: in print or broadcast media in Ways the Internet Can Be Used as a Source of Publicity as “Tae-Bo has really changed my life. I’ve lost weight, toned-up, and feel better than ever.” -Susie Wells, CA A company web site can be used to obtain and display company positive feedback. positive Ways the Internet Can Be Used as a Source of Publicity as 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 business’s goods, services, or web site might be mentioned in an business’s Internet newsgroup. Internet Ways the Internet Can Be Used as a Source of Publicity as LINK TO LINK ACME.COM ACME.COM A company might agree to provide a link to another business’s web company site in exchange for the same consideration. site Sales Promotion Sales • Promotional activities other than advertising, personal Promotional selling, and publicity which stimulate purchases selling, • Sales promotion activities include: Visual merchandising or displays ProductCoupons Noveltyrebates Fashion shows Instant items Free samples Trade shows Contests Exhibits demonstrations Importance of the Promotional Mix Mix • Plays a key role in Plays obtaining and keeping customers customers • Enables businesses to Enables communicate effectively with customers with • Informs consumers about Informs goods/services and persuades them to buy persuades Objective B Objective Explain factors affecting the Explain selection of a promotional mix. selection Marketers Try To Create the Marketers Ideal Blend of Promotional Ideal Activities for Their Businesses. Activities Publicity Sales Sales promotion promotion Must decide which methods will Advertising magic formula that No No best reach potential customers and best marketers use to help communicate desired message communicate design promotional mix design Hard to determine effectiveness of the Hard different promotional methods different Personal selling Factors Affecting the Selection of a Promotional Mix Promotional Must be carefully Must analyzed before marketers decide when and where to invest promotional funds promotional PGood, service, roduct’s DProduct’s Product’s istribution Product’s target Good, Distribution image, or idea company channels image, cmarket market ompany hannels Good, Service, Image, or Idea Good, • Type of product Convenience goods Shopping goods Specialty goods Good, Service, Image, or Idea Good, 10% OFF E! Products which are Products SAL on all small high-tech, require Inexpensive and Inexpensive self-service products can rely on advertising and sales promotion. and This computer is perfect for you. It has all the software pre-installed and a left-handed mouse! appliances demonstration, are expensive, or require installation should be promoted through personal selling. personal HARRY’S HARDWARE Product nature Good, Service, Image, or Idea When you are onWhen onthe-go… …it’s BreakfastTo-Go Each pocket provides you a delicious breakfast in just Maturity two minutes! New and New Improved! Improved! Growth Introductory Introductory Declining Stage of life cycle Product’s Target Market Product’s Geographical Location Numberof Consumer Type of Consumers Consumer Close Close Few Together Market Together Consumers vs. Advertising Sales Promotion Publicity Personal Selling Spread Over Spread Industrial Many a Wide Area Wide Consumers Market Distribution Channel Distribution INTERMEDIARY BLVD. DIRECT AVE. The promotional mix selection is affected by the path that a product takes. Requires personal Requires personal selling selling and advertising Product’s Company Businesses often rely on previous use of promotional methods. Think small. Less flower. More power. 1960 1970 1980 1990 2000 Historical Perspective Product’s Company Product’s Example: Today, the Wal-Mart corporationWal-Mart started as one small Today, Wal-Mart has increased its promotional mix tore in Arkansas. In Wal-Mart’s s to include television, radio, early years, local newspaper newspapers, special sales bulletins, advertising and personal selling and a Wal-Mart web site in orderwere all that the small company to promote its national network. could afford. to could Available Funds Product’s Company Product’s Competition Tony’s Pizza Kids eat free! Ange’s PizzaFree kids’ meals! Competing businesses use similar promotional Competing mixes and tend to follow the leader. mixes MarkED Acknowledgements Original Developer Christopher C. Burke, MarkED Version 1.0 Copyright © 2000 MarkED Resource Center Digital­based photography sources: ADOBE IMAGE LIBRARY; Retail Obj. A: #RET_050 Photos copyright Eyewire Inc. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada ART EXPLOSION 250,000; Obj. A: #MODEL005 Nova Development Corporation 23801 Calabasas Road, Suite 2005 Calabasas, CA 91302 Digital­based photography sources: PHOTODISC, INC.; Business & Occupations Vol. 7 Obj. A: #7067 Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121 T/Maker Company; ClickArt Obj. A: #PRFTOT007 Photos 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 19841994 by T/Maker Company. All rights reserved. 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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This note was uploaded on 04/26/2011 for the course ECON 100 taught by Professor Mr.smith during the Spring '11 term at DeVry Sandy.

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