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Subject name: Assignment title:
Marketing Theory and Practices Promotional Mix
• • • • • • • Advertising Sale Promotion Personal Sale Sponsorship Direct Marketing Publicity Packaging
Submitted to: Submitted by: Registration No: Submission date:
Dr.Waseem Ikram Haji Jan sp10-MBA-043 May 19, 2010
Table of content
S.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Topic Promotional Mix Elements of Promotional Mix Advertising Sale Promotion Personal Selling Sponsorship Direct Marketing Publicity Packaging References Summary Page No 01 02 03 04 05 06 07 08 09 10 11
Definition “……The specific blend of advertising, sales promotion, public relation, personal
selling and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationship……” Marketing management (P.kotler Gray Armstrong) (12th edition)
“…...Promotional mix is the combination of communication strategies that a company uses to convey brand benefits to customers and to influence them to buy……” Marketin g (Crosier) (1994)
Using several different types of communication to support marketing goals which include Advertising, Personal selling, Publicity, and Sales promotions……”
Elements of Promotional Mix
Any paid form of non-personal presentation and promotion of ideas goods or services by an identified sponsor the most familiar modes of ads are print media (newspaper and magazine) and electronic media (television, radio and internet.) Marketing management (P.kotler and Armstrong) (12th edition)
Advertising is promotion via a recognizable advertisement placed in a definable advertising medium, guaranteeing exposure to a target audience in return for a publish rate for the space or time used.
Marketing (Crosier) (1994) Advertising is one way communication via a recognizable advertisement placed in a definable advertising medium to promoting ideas, concepts, goods or services by an identified sponsor to the target audience. Television, billboards, Radio, Internet, Newspapers and Mobile Messages are commonly used for advertising purposes.
Good for building awareness Effective at reaching a wide audience Repetition of main brand and product positioning helps build customer trust
Impersonal - cannot answer all a customer's questions marketinglearners.com
2. Sale Promotion
Short-term incentives to encourage the purchase or sale of a product or service. Sale promotion include a wide variety of promotion tools design to stimulate earlier or strong market response such as coupon, free shipping, rebate, discount. Marketing management (P.kotler and Armstrong) (12th edition) Sales promotion is via a considerable array of related but distinct promotion not encompassed by any of the definition above ,all intended to achieve exposure for the promoted product and some further more offering the target audience an incentive to response actively. (Marketing) (Crosier) (1994)
Providing incentives to customers or to the distribution channel to stimulate demand for a product. Sales promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions are varied and changes overtime. Some examples of sales promotions activities are gas follows. 1. By-One-Get-One (Giving an extra good or service to the customer on the purchase of one without loss. New Media ( 2. Merchandising (additions such as dump bins, point-of-sale materials and product demonstrations, free gifts) 3. Cause-related and fair-trade (products that raise money for charities, like World Call Pakistan is donating Rs.100 on each sale of USB Net Device, to Shaukat Khanum Memorial Hospital) 4. Finance deals (Example, 0% finance over 3 years on selected vehicles.) 5. Trade Sales Promotions. (Joint promotions between a manufacturer and a distributor, sales promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales people and their retail clients) 6. Sale Offers (by reducing price to some extent i.e. 50% off, 20% off etc.) 7. Discounted prices (Inform to the customers with the latest low-price deals once new flights are released, or additional destinations are announced) 8. Joint promotions (Between brands owned by a company, or with another company's brands.) 9. Vouchers and coupons (often seen in newspapers and magazines, on packs) 10. Promotion via Stars (Stars of different fields are now a days used for promotion, like Shahzad Roy say I am the member of Wateen family are you?) Marketinglearners.com
3. Personal Selling
Personal Presentation by the firms’ sales force for the purpose of making sale and building customer relationship. Personal selling consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships. (Marketing management) P kotler and Armstrong (12th edition)
Personal selling is a promotion via sales pitch by a sales representation to a prospect or by a retail assistant to a customer, guaranteeing exposure to selfselected member of a target market. Marketing (Crosier) (1994) Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale". 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). Generally Insurance Companies and Direct Sale Markers use personal selling to promote their products and services. TIENS International (a Direct Selling Company) is also using Personal selling to promote his Health related products by help of his commissioned based individual distributors. (Tiens.com.pk. / tianshi.com.cn)
Supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event. There rare many kind of sponsorships like Television and radio programmed sponsorship (different brands sponsor Capital talk of GeoNews), Sports Sponsorship (Idea! Sponsors IPL), Educational Sponsorship and arts sponsorships.
Payment for an event/person/organization is given in return of some benefit A specialized form of advertising (payment for an event/person/organization) that can create significant exposure for companies It is common in the world of sports as PEPSI Cola is sponsoring Pakistan Cricket Team and Telenor Pakistan is Sponsoring Shandur Polo Festival. The purpose behind this sponsorship is to promote their products and services. bookpros.com Sponsorship is about providing money to an event, in turn the product or company is acknowledged for doing so. For example, Panasonic will partly sponsor the Beijing Olympics in 2008. Sponsorship helps the company improve its image and public relations within the market and usually the company attempts to sponsor a person or event that mirrors the image they are trying to aim for. Nike for example has successfully sponsored the golfer Tiger Woods for many years.
Sponsorship agencies are: SMI Sports Management
Motogp, F1, SBK, Soccer, Am's Cup Sponsoring and Licensing since 1998 www.smisport.com
International network of leading sponsorship agencies www.sphere-network.com
Reports, journal, case studies, analysis and research www.imrpublications.com 8
5. Direct Marketing.
Direct marketing consists of direct connection with carefully targeted individual customer to both obtain an immediate response and cultivate lasting customer relationship such as via a mail shot, telemarketing or a fax message. Marketing management (P.kotler and Armstrong) (12th edition) Direct marketing is a promotion via a mail shot (delivered in the post) a mail drop (delivered in the door) telemarketing (unsolicited phone calls) or a fax message, guaranteeing exposure to individual member of a target audience. Marketing (Crosier) (1994)
Direct Marketing is promotion via a mail shot (delivered in the post), a mail drop (unsolicited phone calls) or a fax message, guaranteeing exposure to individual members of a target audience. • • • • • • Contacting the customer through offers directly Emails, letters, websites etc. Communication can be personalized Short term effectiveness can be easily measured Response rates are often low Poorly targeted direct marketing causes customer annoyance bookpros.com
It is promotion through a release to definable news media in the hope of secondary exposure through an additional mention earned by the news worthiness of subject matter. Marketing management (P.kotler and Armstrong) (12th edition) Publicity is promotion via release to definable news media in the hope of secondary exposure via an editorial mention earned by the news worthiness of the subject matter Marketing (Crosier) (1994) Publicity is promotion via release to definable news media in the hope of secondary exposure via an editorial mention earned by the news worthiness of the subject matter. Publicity focuses on gaining “earned media.” Earned media is coverage in local and mass media outlets that is not paid for, but rather is written by independent and objective reporters. Publicity involves television, radio, print and online interviews, press releases, press conferences and independent book reviews.
Often seen as more "credible" - since the message seems to be coming from a third party, e.g. magazine, newspaper. Cheap way of reaching many customers - if the publicity is achieved through the right media
Risk of losing control - cannot always control what other people write or say about your product Bookpros.com
It is promotional through display guaranteeing exposure to customers at the point of sales but not to an under target customer. Marketing management (P.kotler and Armstrong) (12th edition) All the activities of designing and producing the container for a product." Packaging can be defined as the wrapping material around a consumer item that serves to contain, identify, describe, protect, display, promote, and otherwise make the product marketable and keep it clean. Packaging is the outer wrapping of a product. It is the intended purpose of the packaging to make a product readily sellable as well as to protect it against damage and prevent it from deterioration while storing. Furthermore, the packaging is often the most relevant element of a trademark and conduces to advertising or communication.
Packaging is defined in the regulations as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and preservation of goods from the producer to the user or consumer." Packaging applies in the following product a. 'Primary' or 'Sales' packaging is packaging which forms a sales unit for the user or final consumer, for example, a box containing soap powder b. 'Secondary' or 'Grouped' packaging is that which contains a number of sales units, for example, a cardboard outer containing a number of boxes of soap powder. c. ‘Tertiary' or 'Transport' packaging is packaging that is used to group secondary packaging together to aid handling and transportation and prevent damage to the products, for example, the pallet and shrink wrap used to transport a number of cardboard outers containing boxes of soap powder. For the purposes of the Regulations, this does not include road, ship, rail or air containers. www.ni-environment.definition_of_packaging.htm
1. Marketing management (P.kotler Gray Armstrong) (12th edition) 2. (Marketing) Crosier 1994 3. www.learnmarketing.net/promotionexpanded.htm 4. marketinglearners.com 5. tutor2u.com business/marketing/promotion 6. bookpros.com 7. marketingteacher.com
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