Promotion al Mix

Prepared to DR Nihal Elnaggar
Prepared by Ahmed Farouk sayed Ahmed Elhashemy 2/3/2010

The Promotional Mix
Def. 1-Is the specific mix of advertising, personal selling, sales promotion, public relations, Interactive/Internet Marketing, and direct marketing a company uses to pursue its advertising and marketing objectives Def. 2-the range of means available to an organization for communication with its target market - advertising, sales promotion, personal selling, publicity, Interactive/Internet Marketing, and Direct Marketing. Promotion is all about companies communicating with customers. Advertising - Any paid form of no personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advantages: 1. Good for building awareness 2. Effective at reaching a wide audience 3. Repetition of main brand and product positioning helps build customer trust Disadvantages: 1. Impersonal - cannot answer all a customer's questions 2. Not good at getting customers to make a final purchasing decision When to use and recommendations: This tool can be used for mass promotion ie GSM offers, it’s recommended to be used to send the whole market a message taking about the new promotion. Sales promotion - Short-term incentives to encourage the purchase or sale of a product or service. Advantages: 1. Can stimulate quick increases in sales by targeting promotional incentives on particular products 2. Good short term tactical tool Disadvantages: 1. If used over the long-term, customers may get used to the effect 2. Too much promotion may damage the brand image 3. Customers will always used to get promotions and will be thirsty for more at each time the organization provides any promotion. When to use and recommendations: most of the sales retailers use this tool to encourage sales especially by the end of each season ie cloths stores.

Public relations - Building good relationships with the company’s various publics by obtaining favorable publicity, building up a good "corporate image", and handling or heading off unfavorable rumors, stories, and events. Advantages: 1. Often seen as more "credible" - since the message seems to be coming from a third party (e.g. magazine, newspaper). 2. Cheap way of reaching many customers - if the publicity is achieved through the right media. Disadvantages: 1. Risk of losing control, never could control what others will said about the product.

Personal selling - Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Advantages: 1. Highly interactive - lots of communication between the buyer and seller 2. Excellent for communicating complex / detailed product information and features
3. Relationships can be built up - important if closing the sale make take a long time

Disadvantages: 1. Costly - employing a sales force has many hidden costs in addition to wages. 2. Never will be enough to cover the whole network of buyers, especially in the big organizations. 3. Sometimes it’s hard to find the suitable caliber to be qualified for this job. When to use and recommendations: it’s a tool the big organizations used as to use a dedicated sales force classified into certain criteria’s to cover the company’s portfolio of customers. I.e. mobinil

Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships. It attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication (direct mail, e-mail, and telemarketing) with consumers or businesses, usually unsolicited.

1. Direct marketing enables you to talk directly identify, isolate and communicate with well-defined target markets. 2. It can be used to test new markets and trial new products or customers. 3. The cost per acquisition of direct mail can be less than other marketing methods.

1. Often, direct mailing bothers the customers and many do not prefer it as they say it inhibits their private lives.

When to use and recommendations: is common in banks and insurance companies as they collect the data from the clients to call them for up selling a credit card or life insurance policy, it’s not recommended to be used at all as by all means it bothers the clients

Interactive/Internet marketing – communication through interactive media such as the Internet, CD-ROMS and kiosks. Advantages: 1. Your store is open, 24 hrs a day, 7 days a week. Further, your customers are worldwide in reach, and can shop anytime that they want to 2. The cost of spreading the message is almost nothing compared to the cost of marketing 3. Updating the subscribers instantly through email. Disadvantages:
1. Online marketing is not free. The cost of software, hardware, wed site design, maintenance of the site, online distribution costs, all these factors must be considered during the pricing phase. 2. The internet is still regarded as a source of information gathering for the majority of your customers not a shop they can rely on. 3. Many people prefer the live interaction when they buy as to get the most need data and answer all the questions in mind. 4. Many of the visitors will not want to use their credit card to make a purchase. The fear of having their credit card info stolen is a clear and present danger in the minds of your visitors.

When to use and recommendations: I believe currently this is the most effective marketing tool as the internet become an important factor in our daily life, especially after the facilities the service company provided like the DSL lines which increase the speed of the internet, more over this tool gives the client the free to watch and compare everything he likes to buys or acquire, I strongly recommend this tool but with a highly secured precautions.