Promotional Mix. Promotion LAP 1

Transcription

1 Promotional Mix Promotion LAP 1

2 Objectives A. Describe the elements of the promotional mix. B. Explain factors affecting the selection of a promotional mix.

3 Objective A Describe the elements of the promotional mix.

4 Purposes of Promotion To tell consumers about a company s Goods Ideas Services

5 Purposes of Promotion To persuade consumers to buy

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

7 Communication Techniques Advertising Personal selling Publicity Sales promotion Flynn The bikes the pros use. Traveler Magazine The Top 5 Airlines! 25% Off Coupon

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

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10 Advertising Any paid form of nonpersonal presentation of ideas, images, goods, or services The most visible element of the promotional mix

11 Actual cost of advertisement is quite high. Since many people receive the message, the per contact cost is very low. The New Barchetta

12 Diamonds from Desmond s Jewelers are a girl s best friend. Say No to Drugs. Services Images Goods Ideas The Vet for Your Pet At Techco, we re friendly to our customers and the environment.

13 Advertising Messages can be delivered by: Television Radio Newspapers Magazines Direct mail Outdoor advertisements Directories The Internet

14 Personal Selling Determines client needs/wants and responds through planned, personalized communication that influences purchase decisions and enhances future business 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!

15 Selling Disadvantage Advantages I like the sound of this stereo, but I think it s a little large for my dorm room. On a per contact basis, selling is the most expensive form of promotion. Immediate feedback Flexibility We do carry a bookshelf model with similar sound quality.

16 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

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

18 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 business s goods, services, or web site might be mentioned in an Internet newsgroup.

19 Ways the Internet Can Be Used as a Source of Publicity LINK TO ACME.COM A company might agree to provide a link to another business s web site in exchange for the same consideration.

20 Sales Promotion Promotional activities other than advertising, personal selling, and publicity which stimulate purchases Sales promotion activities include: Instant rebates Trade shows Coupons Product demonstrations Fashion shows Contests Free samples Visual merchandising or displays Novelty items Exhibits

21 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

22 Objective B Explain factors affecting the selection of a promotional mix.

23 Marketers Try To Create the Ideal Blend of Promotional Activities for Their Businesses. Personal selling Advertising Publicity Sales promotion No magic formula that marketers use to help design promotional mix Must decide which methods will best reach potential customers and communicate desired message Hard to determine effectiveness of the different promotional methods

24 Factors Affecting the Selection of a Promotional Mix Must be carefully analyzed before marketers decide when and where to invest promotional funds Distribution channels Product s company Product s target market Good, service, image, or idea

25 Good, Service, Image, or Idea Type of product Convenience goods Shopping goods Specialty goods

26 Good, Service, Image, or Idea Inexpensive and self-service products can rely on advertising and sales promotion. This computer is perfect for you. It has all the software pre-installed and a left-handed mouse! Product nature Products which are high-tech, require demonstration, are expensive, or require installation should be promoted through personal selling.

27 Good, Service, Image, or Idea When you are on-thego it s Breakfast- To-Go New and Improved! Maturity Growth Declining Introductory Stage of life cycle

28 Consumer Market Product s Target Market Geographical Location Type of Consumer Number of Consumers vs. Industrial Market Close Together Few Consumers Advertising Sales Promotion Publicity Personal Selling Spread Over a Wide Area Many Consumers

29 Distribution Channel INTERMEDIARY BLVD. DIRECT AVE. The promotional mix selection is affected by the path that a product takes. Requires personal selling Requires personal selling and advertising

30 Product s Company Businesses often rely on previous use of promotional methods. Think small. Less flower. More power Historical Perspective

31 Product s Company Wal-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.

32 Product s Company Competition Tony s Pizza Kids eat free! Ange s Pizza Free kids meals! Competing businesses use similar promotional mixes and tend to follow the leader.