Promotional Mix Presentation Imc - Final

8/4/2019 Promotional Mix Presentation Imc - Final

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PROMOTIONAL MIX

PREPARED BY:

vArnab Chatterjee.vSphoorthy Bagalwadi. vPraveen Naraynan.

vManik Mondal.

vVarun K Nair


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Promotional Mix

A business' total marketingcommunications program is calledthe "promotional mix" and consists ofa blend of advertising, personalselling, sales promotion and public

relations tools. A successful product or service

means nothing unless the benefit of

such a service can be communicated


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Promotional Mix

An organizations promotional mixstrategy can consist of:

Advertising. Public relations.

Sales promotion

Personal selling Direct Mail Internet

Marketing


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Advertising

Any paid form of non-personalcommunication of ideas or products in

the "prime media": i.e. television,newspapers, magazines, billboardposters, radio, cinema etc.

Advertising is intended to persuadeand to inform.The two basic aspects of advertising

are: The messa e.


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Advertising: ACommunication Tool

Production: The advertiser and socialcontext determine ad content.

Reception: The context of adreception and the audiencesunderstanding of an ad result in ameaningful interpretation of the ad

Accommodation and negotiation: The


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Audience For Advertising:

HouseholdConsumers

BusinessOrganizations

Professionals Government

The TradeChannelAudience Geography:

Global advertising International

advertising

Nationaladvertising

Regional Local

advertising


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Role Of Advertising:

Information and persuasion Introduction of new brands and

extensions Building and maintaining brand

loyalty / brand equity Creating an image/meaning Building brand loyalty in the trade

channel


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Advertising By Nike


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Advertising Strategy:

Designed to make a connection to theconsumer

Seldom pitch the product directly or talkabout product attributes

Sometimes dont even mention the

companys name featuring instead onlythe swoosh logo

Making new contracts with sportsmen

Collaboration ads with another strong


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Advertising Strategy:


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Personnel Selling

Personal selling is oral communication with potential

buyers of a product with the intention of making a sale.

Personal selling mainly focuses on developing a

relationship with the potential buyer. Personal selling is

one of the oldest forms of promotion. It involves the use

of a sales force to support a push strategy (encouraging

intermediaries to buy the product) or a pull strategy

(where the role of the sales force may be limited to

supporting retailers and providing after-sales service).

Personnel Selling involves selling through a person-to-

person communication process. In an Integrated Marketing

Communications program, personnel selling is a partner


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Personnel Selling differs from other forms ofcommunication , where in the messages flowfrom a sender to a receiver directly, usually face

to face. The direct and interpersonalcommunication lets the sender immediatelyreceive and evaluate feedback from the receiver.This communication process is known as Dyadic

Communication, allows for more specific tailoringof message and more personnel communicationsthan any other media.

In Personnel Selling, the message can bechanged to address the specific needs and wants

Personnel Selling


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Examples of PersonnelSelling:

The following are the examples ofPersonnel Selling:

1. Retail Marketing2. Tele Marketing

3. Jewellery Stores4. Luxury Cars Showroom.

5. Insurance Sellers.


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Role of Personnel Selling

To determine the role of Personnel Selling, four key pointsmust be considered.

1. Determining the information to be exchanged: In viewof the objectives of the management, the sales person mayhave a variety of messages to communicate, such ascreating awareness of the product or service offered,demonstrating product benefits for evaluation, initiating a

trial, and/or closing the sale.2. Examining Promotional Mix Alternatives: Everypromotional tool used by the management must beconsidered while developing a promotional mix. PersonnelSelling is an alternative that offers distinct advantages insome situations but is less appropriate in other situations.


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Role of Personnel Selling(Contd.,)

3. Evaluating the Relative Effectiveness ofAlternatives:The effectiveness of each

program element must be evaluated based onthe target market and the objectives sought.

Personnel Selling is effective in manysituations, but other program elements may be

more attractive in many cases.4. Determining Cost-Effectiveness: One of

the major disadvantages of personnel selling is

the cost involved. The cost of a personnel callma not be rohibitive in industrial settin s


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Stages in the Evolution OfPersonnel Selling

There are five stages in the evolution of personnel selling:

1. PROVIDER STAGE: In this stage, selling activities are limited to

accepting orders for the suppliers available offering and conveying it

to the buyer.

Example: Retail Salesclerk

2. PERSUADER STAGE: In this stage, selling involves an attempt to

persuade market members to buy the suppliers offerings.

Example: Telemarketers for a new product, a new insurance or anew automobile.

3. PROSPECTOR STAGE: In this stage, activities include seeking out

selected buyers who are perceived to have a need for the offerings as

well as the resources and authority to buy it.

Example: Car Insurance calling on new car buyers.


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Process of Personnel Selling

APPROACHING THE PROSPECT

FOLLOWING UPCLOSING THE SALE

HANDLING OBJECTIONS

MAKING THE SALES PRESENTATION

Pre approach:QUALIFYING PROSPECTS

PROSPECTING: IDENTIFYING POTENTIAL


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van ages anDisadvantages of Personnel

SellingAdvantages:

1. Allows for two-way interaction.

2. Enables tailoring of the message.3. Since it is a one-to-one selling, there are

less distractions.

4. The seller becomes a partner in thedecision process of the buyer.

5. The sales force becomes a source ofinformation, by getting the information about the

competitor brands and the specific needs and


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Disadvantages:1. Though the marketing staff decides the

message to be conveyed, the sales person mayalter it to the needs of the receiver, causing a

lack of inconsistency in the messages.2. In the best of the best companies, there

are conflicts between the sales force and themarketing staff.

3. The cost involved in making the calls isalso very high.

4. Personnel Selling cannot reach as many

target audience as other elements of promotion.

van ages anDisadvantages of Personnel

Selling


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Interactive/InternetMarketing

Interactive media allows for a back and forth flow ofinformation, whereby users can participate in and modifythe form and content of the information they receive in realtime.

Interactive media allows user to perform a variety offunctions such as receive and alter information andimages, make enquiries, respond to questions and makepurchases.

The interactive medium that is having the greatestimpact on marketing is the Internet.

The Internet is changing the ways companies design andimplement their business and marketing strategies.

The Internet is a multi faceted promotional tool.


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Advantages:

The interactive nature of the internet is one of its

major advantages.It enables marketers to gather valuable

personnel information from customers andprospects and to adjust the offer accordingly.

It allows a two-way communication.

It offers the capability to more closely andprecisely measure the effects of advertising and

other types of promotion.

Interactive/InternetMarketing


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Direct mail is a way of advertising inwhich advertisers mail printed ads, lettersor other solicitations to large groups of

consumers. Direct mail use to advertise new products

or to distribute coupons.

Direct mail is a type of advertisingmedium in which messages are sent totarget customers through the mail.

Direct mail often use the terms "direct" " " "

Direct Mail


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Types of Direct Mail

PRINT MEDIA

BROADCASTING MEDIA


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Print media messages are deliveredthrough the printed word, usually in

newspapers or magazines.

Broadcast media messages are

delivered through the airwaves, ontelevision or radio. In direct mail,advertising and other types of

messages are delivered through the

Types of Direct Mail


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Direct Mail

Advantages Selective, flexible, little waste, lends itself to

testing, uses many formats Disadvantages

Direct mail is expensive May cost 15 to 20 times more to reach a person with

a direct mail piece than with a TV commercial Mail lists can be plagued with bad addresses Mail delivery dates can be unpredictable


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Direct Mail


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American Express is a global servicescompany, providing access to products,insights and experiences that enrich livesand build business success.

American Express Global Mail Solutions

offers Global Mail Disaster RecoverySolutions to ensure continuity of servicethrough a Business Continuation

partnership with

Company: American Express


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First, it help you define your targetaudience with a customer analysis ofyour top American Expresscustomers.

Then, you can use that knowledge totarget potential customers throughDirect Mail or Search Engine

Marketing.

Company: American Express

How it works:


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Steps to a Direct-Mail usedby American Express

The Strategy The List The Creative The Offer Features vs.

Benefits Ask for the Sale The Follow-Up Remain Visible


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Service Description

1. Delivery Assurance

2. Flexibility3. Get your mail out quicker and more

cost effectively.

4. Security5. Expertise


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Sales Promotion

Where advertising gives a reason tobuy, Sales Promotion gives an

incentive to buy. Internal reasons:

vTop management is more conducive to

spending on promotionsv Line managers under greater pressure

to achieve targetsvJustification of expenditure is easy


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External reasons:v Increase in number of brandsv Consumer is more price savvyv Greater pressure from trade to liquidate

stocks

v Add effectiveness declining owing torising costs, media clutter and legalconstraints

Sales Promotion


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Sales Promotion is a pushstrategy

Since it is at the last point where theconsumer is often at the point of

buying, the additional incentive makesa last ditch effort to convert thecustomer on to the incentivized brand

Sales Promotion is of two types:Trade Consumer


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Classifying Types of SalesPromotion

Promotionalpricing

Non-pricepromotions

Sampling

Price reductions Free goods Tied offers

Money off nextpurchase Loss leader pricing Cheap credit

Contests Free gifts

Self-supporting offers Multi-brand promos s Guarantees and added

services

Most effective in theearly stages of a newproduct launch (usefor coupons)

Important for foodproducts

Very expensive


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Major consumer promotiontools

Free samples:- company providessamples of the product by mail, by

retail store, attached in magazines.e.g.: Clinic plus used to give

samples of it shampoo to big bazaar

attached with times of India. Coupons:- company provide coupons

to its customers inside the pack ofthe product.

j i


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Discounts:- Companies providediscounts offers to their customers

when they buy the product, e.g.:Globus provide 50% off on itsproduct.

Combo offer :- Combo pack is tworelated products brandedtogether.e.g.: Colgate offers

toothbrush free with toothpaste

Major consumer promotiontools


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Major trade promotion tools

Free goods:- Offers of extra cases ofmerchandise to intermediaries

certain quantity or who feature acertain flavor or size

e.g.: Nestle clairs offer free goods

offers to retailers. Push money:- An extra commission

paid to retailers to push the products.

e.g.: Nokia provide their retailers


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Price Off:- A straight discount off the listprice on case purchased on limited time

period.e.g.: Nokia offers their retailers price offfacility. Allowance :- An amount offered in return

for the retailers agreeing to featuremanufactures products. An advertisingallowance & display allowance

compensates retailers for advertising

Major trade promotion tools


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Public Relations

v PR involves a variety of programsdesigned to promote or protect a

companys image or its individualproducts.

v PR is usually unsponsored and

unpaid. It acts synergistically alongwith advertising.

v It can be a very important

component of the entire


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Functions of PR

Promoting goodwill Promoting product, service,

corporate image Corporate communications Lobbying Counteracting negative publicity


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Very credible and inexpensive PR can hold down promotion costs

Advantages of PR

Disadvantages of PR

Difficult to quantify PR benefitsLack of controlDeft management required


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Uses of PR

Customer complaints and redressal It is an opportunity to cement

relations with the customer Very important in the service and

hospitality industryCombating rumors / falsehoods Confront and disclose facts in leading

media Give the positive side of the story

Capitalize on rumors to your benefit

PR t t i d b


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PR strategies used byVodafone

Advertisement:

Vodafone believes in advertisingthrough media like television and pressas people retain those things that theyview visually. Heavy amounts of

money is spent on visualadvertisements.

Corporate Advertising:

Vodafone also undertakes corporate

PR t t i d b


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Hoardings:

Vodafone uses hoardings also in order topromote their company and the new

services or tariffs plans that they arecoming up with. This strategy helps inmaking their target audience aware of their

upcoming plans.Press Releases:

They believe Press Releases help in order

to maintain very good relations with the


PR t t i d b


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Press Conference:

Vodafone uses press conferences as a very

powerful tool in handling the media andseeking consumer attention. They holdpress conferences at the launch of new

services or products of any kind. They alsohold press conferences when they aregetting into a business deal for somecompany. They also hold press conferencesfor announcin half- earl results or


PR t t i d b


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Media Interviews:

Vodafone undertakes media interviews withproper planning. It is sometimes initiatedby media while most of the time it is byVodafone. It is handled very carefully

specially during crisis or when a newservice is launched and is this used as avery good platform for promotion, building

image and even control crisis.


PR t t i d b


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Social Activities:

The Vodafone Group Foundation is

committed to providing assistance in thearea of disaster response. Its main aim is todevelop partnerships which enhance longterm disaster response and preparedness

activity, working with organizations such asthe United Nations Foundation, Oxfam andMapAction. It also seeks wherever possible

to make a direct contribution in response to


PR strategies sed b


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Sponsorships: Vodafone sponsorsmany events. Some of them are:

UEFA Champions League.

England Cricket Team.

Vodafone McLaren Mercedes.



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Promotional Mix Presentation Imc - Final