Promotion mix

MODULE-1

Promotion Mix

What is Promotion ?

A specific combination of promotional methods used for one product or a family of products.

Elements of the Promotion Mix

Advertising

Ingredientsof the

PromotionMix

Ingredientsof the

PromotionMix

Public Relations

Personal Selling

Sales Promotion

Advertising

Advertising - Presentation and promotion of ideas,

goods, or services by an identified sponsor.

Examples: Print ads, radio, television, billboard,

direct mail, brochures and catalogs, signs, in-store

displays, posters, mobile apps, motion pictures,

Web pages, banner ads, and emails.

Public Relation

Public relations - Paid intimate stimulation of

supply for a product, service, or business unit by

planting significant news about it or a favorable

presentation of it in the media. Examples:

Newspaper and magazine articles/reports, TVs

and radio presentations, charitable contributions,

speeches, issue advertising, and seminars.

Personal SellingPersonal selling - A process of helping and

persuading one or more prospects to purchase a

good or service or to act on any idea through the

use of an oral presentation. Examples: Sales

presentations, sales meetings, sales training and

incentive programs for intermediary salespeople,

samples, and telemarketing. Can be face-to-face

selling or via telephone.

Sales PromotionSales Promotion - Media and non-media

marketing communication are employed for a

pre-determined, limited time to increase

consumer demand, stimulate market demand or

improve product availability. Examples:

Coupons, sweepstakes, contests, product

samples, rebates, tie-ins, self-liquidating

premiums, trade shows, trade-ins, and

exhibitions.

The Communication Process

ReceiverDecodingChannelEncodingSender

Noise

Channel

Goals and Tasks of Promotion

Informing Reminding

Persuading

TargetAudience

AIDA and the Hierarchy of Effects

Attention Interest Desire Action

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

When Elements of Promotion Are Most Useful

Advertising

Personalselling

Salespromotion

Publicrelations

Either not effective or inefficient

Very effective

Somewhat effective

Awareness Knowledge Liking Preference Conviction

Eff

ecti

ven

ess

Purchase

Factors that Affect the Promotion Mix

Push–and–Pull Strategies

Nature of the Product

Stage in the ProductLife Cycle

Target Market Characteristics

Type of Buying Decision

Available Funds $ $ $

Creating a Promotion Plan

Choose Promotion Mix

Develop Promotion Budget

Set Promotion Objectives

Identify Target Market

Analyze the Marketplace

Criteria for Setting Promotion Objectives

Promotion objectives should:

be measurable, concrete

be based on sound research, with a well-defined target audience

be realistic

reinforce the overall marketing plan and relate to specific marketing objectives

Examples of Promotion Objectives

Objective: To RemindTo remind consumers that Peter Pan peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores

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 from22 percent to 35 percent

Techniques for Setting Promotion Budgets

• Department Budget Allocation

• All - You - Can - Afford

• Competitive Parity

• Percent of Sales

• Market Share

• Objective and Task

Major Types of Advertising

Corporate Image

Advocacy Advertising

Typesof

Advertising

Typesof

AdvertisingPioneering

Comparative

ProductAdvertising

InstitutionalAdvertising

Advocacy Advertising

Corporate Image AdvertisingMental picture that springs up at the mention of a firm's name. It is a composite psychological impression that continually changes with the firm's circumstances, media coverage, performance, pronouncements, etc. Similar to a firm's reputation or goodwill, it is the public perception of the firm rather than a reflection of its actual state or position.

Pioneering Advertisement

Pioneering advertising refers to the launch

campaign of a new product category, as opposed to

the marketing of a single product within a

developed marketplace. The purpose of pioneering

advertising is to inform consumers of the arrival of

an entirely new concept and explain its benefits.

Comparative Advertising

Promotional technique in which an advertiser

claims the superiority of its product over

competing product(s) by direct or indirect

comparison. If other products are mentioned by

their name (and not as 'brand X,' 'brand Y,' etc.)

Advertising Campaign Decision Process

Determine the campaign objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

Common Advertising Appeals

ProfitProfit

HealthHealth

Love or RomanceLove or Romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and PleasureFun and Pleasure

Vanity and EgotismVanity and Egotism

Save money, keep from losing moneySave money, keep from losing money

Body-conscious, healthyBody-conscious, healthy

Sell cosmetics and perfumesSell cosmetics and perfumes

Social embarrassment, growing old, losing health, power

Social embarrassment, growing old, losing health, power

Celebrity endorsement effectiveCelebrity endorsement effective

Fast-food and microwave productsFast-food and microwave products

Vacations, beer, amusement parksVacations, beer, amusement parks

Expensive, conspicuous itemsExpensive, conspicuous items

Executional Styles for Advertising

Mood or Image

Musical

Demon-stration

Scientific

Real/AnimatedProductSymbols

Fantasy

Lifestyle

Spokes-person/

Testimonial

Slice-of-Life

Humorous

CommonExecutional

Styles

CommonExecutional

Styles

The Tools of Public Relations

MajorTools

Used ByPR

Professionals

MajorTools

Used ByPR

Professionals

New Product Publicity

Product Placement

Customer SatisfactionPhone Lines

Consumer Education

Event Sponsorship

Issue Sponsorship

Web Sites

Tools for Consumer Sales Promotion

Coupons

Premiums

Frequent Buyer Programs

Contests and Sweepstakes

Samples

Point-of-PurchaseDisplays

SixCategories

ofConsumer

SalesPromotions

SixCategories

ofConsumer

SalesPromotions

Tools for Trade Sales Promotion

Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstrations

Business Meetings, Conventions, Trade-Shows

SixCategories

ofTradeSales

Promotions

SixCategories

ofTradeSales

Promotions

Advantages of Personal Selling

Cost ControlCost Control

Message ControlMessage Control

TargetedTargeted

Detailed Information

Detailed Information

Closing SalesClosing Sales

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.

Differences Between Traditional & Relationship Selling

Traditional Personal Selling

Sell products (goods and services)

Focus on closing sales

Limited sales planning

Spend most contact time telling customers about product

Conduct “product-specific” needs assessment

“Lone-wolf” approach to the account

Proposals and presentations basedon pricing and product features

Sales follow-up focused on product delivery

Relationship Selling

Sell advice, assistance, and counsel

Focus on improving the customer’s bottom line

Considers sales planning as top priority

Spend most contact time attempting to build a problem-solving environment with the customer

Conduct discovery in the full scope of the customer’s operations

Team approach to the account

Proposals and presentations based on profit impact and strategic benefits to the customer

Sales follow-up is long term, focused on long-term relationship enhancement

Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,” National Conference on Sales Management, Proceedings, March 1996.

Steps in the Selling Process

BasicSteps in

theSelling

Process

BasicSteps in

theSelling

Process

Generating Sales Leads

Qualifying Sales Leads

Making the Sales Approach

Making the Sales Presentation

Handling Objections

Closing the Sale

Following Up

Functions of Sales Management

Motivate Sales Force

Evaluate Sales Force

Manage Turnover

Train Sales Force

Develop Compen-

sation Plan

Structure Sales Force

Determine Sales Force

Size

Recruit Sales Force

Set Sales Objectives

Major Tasks of Sales

Management

Major Tasks of Sales

Management

8 successful Mantras for successful sales call

1. Develop a professional greeting.2. Introduce yourself and your company.3. Express gratitude.4. State the purpose of your call5. Schedule a meeting6. Face-to-face meeting7. Thank them for their time today and

for the upcoming appointment8.Follow up

How To Identify Prospective Customer

• Data base• Personal observation• Social Meeting• Direct Mailers or Letters• Tele calling• Cold Calling

Essentials for a successful sales man

1. Believe that you will be successful2. Confidence To Make a Sales Call3. Enthusiasm During A Sales Call4. Focus On Your Customer5. Be a Great Listener6. Handle the Queries Successfully

Steps in Setting the Right Price

$ $ $ $ $ $ $ $

Fine-Tune Base Price

Choose Strategy

Estimate Demand, Costs, and Profits

Establish Pricing Goals

Right Price

Legal and Ethical Issues in Pricing

Unfair Trade Practices

Key Legaland Ethical

IssuesRelated to

Price

Key Legaland Ethical

IssuesRelated to

Price

Price Fixing

Price Discrimination