PROMOTIONAL MIX

PRESENTED BY: PROF. LESLIE ANN U. GAMUNDOY

  Consists of coordinated seller-initiated efforts to establish
channels of information and persuasion to foster the sale of
goods or services, or the acceptance of ideas or point of
PROMOTIONAL MIX view.
 It is an element in an organizations mix that is used to
inform and persuade the market regarding the
organization’s products and services.
 ELEMENTS OF PROMOTIONAL MIX

 Personal seliing is an activity of informing and persuading a

market on a person to person basis to buy the merchandise
offered for sale.
 Advertising involves any paid non-personal communication of
information about goods, services, ideas or institutions
through any of the media of mass communication with intent
to sell or secure favorable consideration.
 Sales promotion refers to those sales activities which
supplement both personal selling and advertising, coordinate
them and help make them more effective.
 Publicity is the dissemination of news and information about
a person, product, service, idea or institution through mass
media without openly paying for them.
 Public relation refer to the activities of an organization,
person or institution directed toward one or more groups
of people, such as employees, consumers, dealers and
stockholders, for the purpose of creating a goodwill
understanding of its policies.
FACTORS INFLUENCING PROMOTIONAL MIX

 Funds available
 Nature of the market
 Geographic scope
 Type of customers
 Concentration of the market

 Nature of the product

 Stage of the product life cycle.
PERSONAL SELLING

 This is the oldest and most important method of promotion.

 It is unique, hard to replace force in modern marketing because
it makes possible two way communication of ideas between a
seller and a buyer.
 It is the only form of sales promotion that can encourage and
make immediate, on the spot use of responses from buyers.
CLASSIFICATION OF PERSONAL SELLING JOBS

 Across the counter selling or in-store selling is employed by retail stores.

 House-to-house selling or out-door selling, where salesmen visits
prospects in their offices or houses.
 Salesmen employed by wholesalers to call upon retailers.
 Salesmen employed by manufacturers to call upon other manufacturers,
wholesalers and retailers.
SALESMEN’S ACTIVITY

 Order-taking. The order taker is a salesman who basically notes which of his
company’s products customers want or need, which helps his customers choose the
desired items and quantities and writes up orders.
 Order getting. Order-getter is more concerned with seeking out prospective
customers, creating and developing them as customers.
 Supporting salesmen. They assist and support order-oriented salesmen but do not
concentrate on securing on the spot-order themselves.
 Detailmen or missionary men. These salesmen are employed by manufacturers.
 Consulting engineers. Sales engineers helps prospective to choose their products.
  Adequate preparation. This related to the
knowledge required to ensure satisfactory
results from selling efforts.
 Finding buyers. Salesmen are expected to
BASIC PRINCIPLES engage in prospecting, establishing and
OF PERSONAL contracting clues to prospects.
SELLING
 Building goodwill after the sale. A sale
should be mutually satisfying for both
buyer and seller.
  Pre-sale preparation. The sales person must be
prepared. He or she must have a full knowledge
about the product.
 Prospecting or looking for potential buyers. This
involves outlining a profile of prospects,
STEPS IN PERSONAL developing list of potential buyers.
SELLING
 Pre-approach to prospects. Salespersons should
discover all they can about their prospects; what
products their prospects are using; personal
habits and preferences of the prospect
  Sales presentation-AIDA (Attention, Interest, Desire,
Action)
 Attracting attention. The approach. This is the simples way is
greeting the prospect and tell what you are selling.
 Holding interest and arousing desire. This is the sales talk itself.
This must show how the product will benefit the prospect.
 Meet objection and close the sale. This is trying to close the
STEPS IN PERSONAL sale by getting the order. A trial close can be used which will
SELLING give clue to the salesperson how near the project is to a
decision.
 Post sale activities. Selling does not end in closing of
sale but with series of post-sale services to build
customer goodwill.
ADVERTISING

 It is a form of communication
 It pays for the use of the communication media
 It is non-personal, unlike personal selling.
 It communicates facts and information, not the actual goods,
services, ideas or institutions.
 It is openly persuasive and convincing, in order to sell or
secure favorable consideration
 It is a marketing function.
COMPUTATION ON
ADVERTISING
 If advertisement is: “Mababang Presyo” Supermarket, in
Advertising pays for the use of Bulletin Today, Sunday issue. Rate per column centimeter on
the communication media. If Sunday is Php 18.25. Advertisement measures 10 cm in
the advertisement is: Close up
Toothpaste, in Channel X width and 13 cm in length. To compute for the fee to be
Program ABC where paid the publisher: Number of column centimeters.
advertising rate is P18,
500/30’s. Advertisement =10cm x 13 cm
duration is 30 seconds,
=130 cl. Cm.
frequency is two (2) spots in
same show. To compute for Advertising fee:
the fee to be paid to program
producer: =130 cl. cms. x Php 18.25/cl. cm.
Php18,500/30’s x 2= Php =Php 2, 372.50
37,000 is the advertisement
fee.
  Aids in the introduction of new products to specific target
markets.
 Increase market share.
 Assists in securing new dealers.
OBJECTIVES OF
 Make prospective customers more familiar with company’s
ADVERTISING
brands.
 Make more buyers accessible to the company’s salesmen.
 Increase the middlemen’s knowledge about the profitability
of the company’s products.
 TYPES OF ADVERTISING

 Product and institutional advertising. Product advertising is aimed at informing and stimulating market
demand for an advertised product brand for service. Institutional advertising is designed either to
present information about the advertiser’s business or to create a good attitude, build goodwill towards
an organization
 Direct action advertising. Sellers are seeking immediate response to their advertisements by using mail-back
coupons for premiums or free samples.
 Indirect-action advertising. Designed to stimulate demand over a period of time.
 Patronage advertising. Presents information about the advertiser’s business.
 Public service advertising. This shows the advertiser as a “good citizen”.
 TYPES OF ADVERTISING
 Primary and selective demand advertising. Primary demand advertising is designed to
stimulate demand for a product in general like “ medical guides for maintenance of
healthy teeth.”. Selective demand advertising is competitive advertising. It is intended to
persuade the potential customers emphasizing particular benefits.
 Pioneering advertising. Used when product is in the introductory stage.
 Comparative advertising. The advertiser mentions hypothetical brands, stating that the advertised
brand is better than the other.
 Cooperative advertising.
 Vertical cooperative advertising. This involves companies on different levels of distribution like
manufacturers and retailers.
 Horizontal cooperative advertising. This involves companies on the same level of distribution such as
group of retailers.
CLASSIFICATIONS OF ADVERTISING

 According to source or origin

 Advertisement by manufacturers. Ex. Colgate Toothpaste, advertiser is Colgate-Palmolive
 Advertisement by resellers (wholesalers and retailers). Ex. PureGold
 Advertisement by service businesses. Ex. Savory Restaurant for its events packages
 Advertisement by organization or institutions. Ex. STI or AMA College
 Advertisement by government units. Ex. SSS or GSIS, BIR
 Advertisement by individuals. Ex. Birthday greetings for a celebrant; political campaign of a
candidate for national election.
 CLASSIFICATIONS OF ADVERTISING
 According to media used.
 Print media. Basis of payment is space measured per column centimeter or agate line. These are advertisements in
newspapers, magazines, journals.
 Broadcast media. Basis of payment is time, measure per 30 seconds. These are in TV or radio
 Outdoor advertising. Neon signs, streamers, billboards, poster panels, aerial signs, tarpaulins. Measured on the basis
of space occupied, duration of occupancy, degree of traffic.
 Transit advertising. Billboards/neon advertisements on public utility vehicles.
 Field advertising. Uses a vehicle which roams around a subdivision or places announcing a new product through loud
speaker.
 Movie advertising. Advertisements in theaters, important consideration for advertising fee is seating capacity of the
movie house and class.
 Direct advertising. Hand-outs, catalogues, brochures, advertising a product of service.
CLASSIFICATIONS OF ADVERTISING

 According to objective.
 Promotional advertising. It mentions a brand of product or service intended to
stimulate demand.
 Institutional advertising. It advertises an outlet’s name without mentioning any
brand, intended to develop goodwill.
 According to action desired
 Direct or immediate action advertising. These are promotional advertisement.
 Indirect action advertising. These are institutional advertisement.
 CLASSIFICATIONS OF ADVERTISING

 According to audience targeted.

 Consumer advertising. Advertisements of products in finished form for personal use by the buyer.
 Industrial advertising. Advertisements targeting businessmen to buy products advertised for use in
their business operations.
 Trade advertising. Advertisements targeting re-sellers to buy product advertised for re-sell purposes
in the same form, in order to gain profit.
 Professional advertising. Advertisements targeting professionals like physicians, engineers or educators
to prescribed the product advertised.
  Introductory advertising. This is the stage of advertisement
where a product, service, idea or institution is publicity
launched. The objective of this stage is to develop consumer
awareness about the product advertised.

STAGES IN THE  Competitive advertising. This aims to encourage the

consumers to prefer the advertiser’s product or service
ADVERTISING against competitors products. This emphasizes a unique
CYCLE selling propositions, features or benefits.
 Retentive advertising. This stage attempts to develop
consumer loyalty by reminding the public about the product
or service through repetitive advertisement. The
advertising message is generally brief and concise.
SALES PROMOTION
• All sales promotional
activities must be carefully
planned enjoying the
following aspects:
• The goal
• The allocation of resources.
• The method of evaluation
• The relationship of business
organization to other activities.
 The goal of sales promotion. It is planned in order to increase
sales. Its goal will depend on how it is used.
 Allocation of resources. This is the another aspect to planning
sales promotion programs which include: (1) produce for
recording and administering expenditures; (2) the budget
allotted to be spent on sales promotion devices.
 Evaluation of sales promotion. The importance of accurate
method for evaluation effectiveness cannot be
overemphasized.
 Relationship of sales promotion to other marketing function.
Personal selling is to sales manager, advertisements to
advertising manager.
INTRODUCTORY SALES PROMOTION DEVICES
1. Samples. It is the actual offering of a free product trial to a
consumer.
1. Mail-delivered samples.These are suitable for lightweight or
small-size samples.
2. Door-to-door samples.
3. In-store samples. Dissemination of samples by a demonstrator
for a trial within stores.
4. On-package samples. A sample is attached to or inserted in
product package.
5. Isolated group samples. Samples are delivered to identifiable and
isolatable groups like brides, young mothers, housewives.
2. Coupons. It is a certificate that, when presented for
redemption at a retail store, entitles the bearer to a stated
saving on the purchase of a specific product.
METHODS OF DISTRIBUTING COUPONS

 Direct mail couponing. This provides maximum unduplicated

coverage of households.
 Printed publication couponing. Newspapers and magazines
are used, where distribution cost is low. Redemption levels
are also low.
 In-package couponing. The coupon in this method is inserted
in package or printed on the label.
RETAIL STORES SALES PROMOTION DEVICES

 Trading stamps. These are given for purchases in a particular retail outlets.
These stamps are saved by consumers and then redeemed for merchandise
premiums.
 Retailer coupons. The difference of these retailer coupons from coupons of
manufacturer is that: retailer coupons are distributed for products which the
retailer carries and not only the manufacturer’s brands.
 Retail display. These displays are also known as point-of purchase (POP) or
point-of-sale (POS). The purpose of this is to encourage customers purchase
the goods exhibited.
KINDS OF RETAIL DISPLAY

 Outside signs. These are large product or location identification pieces used to tell consumers that a retailer
handles a brand or line of merchandise.
 Windows display. This shows the products the retailer carries, how they used and the accessories that can be used
with them.
 Counter pieces. These are small, simple merchandise display cases placed on top of a retail counter to complete
showcases built by manufacturers for retailers.
 Display racks. Racks, whether metal, wire, wood, plastic or fiberglass made, are designed to hold the merchandise
being displayed.
PURPOSES OF RETAIL DISPLAY

 To increase the sale of a manufacturer’s product.

 To stimulate impulse buying, where buying decision is made inside the
store.
 To influence retailers to allot some of the valuable space to
manufacturer’s product.
  It is any promotional communication about an organization
and/or its products where the message is not paid for by the
organization benefiting from it.
PUBLICITY  It can be promotional information or plugging for a product or
service by a personality in an interview or a person in his speech
 It can also be a non-personal news story appearing in mass
media
  It can be a tool for promoting products or services
marketed by the company.
 It can be used to inform the public about new corporate
USES OF PUBLICITY policies or credit, prices, executive promotions, financial
reports or research and development.
 Publicity can be used to counteract an unfavorable image or
unfavorable reports in the media.
  It complements the company’s advertising and personal
selling efforts.
 It can be done at lower cost than advertising and personal
selling, since no payment is required
ADVANTAGES OF  Its credibility is higher, since a product or company is
PUBLICITY indorsed by a third party.
 It is more like to be read than advertisement.
 It can provide more information than an advertisement.
 News releases through publicity can be quick.
PUBLIC RELATIONS

 It is an organized, planned and

continued effort to establish or promote
public goodwill, and maintain mutual
understanding between an organization
and its various publics.
 AREAS OF PUBLIC RELATION PROGRAM
 Consumer Relations. To measured by consumer acceptance or
rejection of the company’s product.
 Press Relations. This embraces activities more than writing and
distribution of press releases. It also includes speech
preparation, press conferences and press reviews.
 Stockholder Relations. Goodwill with present investors will
attract other investors.
 Community Relations. People around the location of the
company will be leeway for more sales, thus, they should also
be pleased to create favorable reaction towards company’s
products.
 Distributor-Dealer Relations. Wholesale and retailers are
important people in the distribution system. Manufacturers
depend on them to buy, promote, resell their products.
AREAS OF PUBLIC RELATION PROGRAM
 Supplier Relations. A favorable relations with suppliers will enable the
company to obtain privileges such as lower prices, good credit terms,
speedy deliveries and guarantees.
 Educational Relations. Business organizations are dependent on schools
for human resources to carry out their functions and in disseminating
information to the public.
 Government Relations. This may be strengthened by taking sides on
national issues affecting business; sponsorship of community centered
government programs and extending financial assistance to
government projects in the community.
 Employee Relations or labor relations. Effective method of
communicating with employees will result to high morale and
productivity.
 Trade and professional association relations. The trade organizations
speak for its members, thus, its viewpoint is important towards
shaping public opinions..
THANK YOU

PROF. LESLIE ANN U. GAMUNDOY

PAMANTASAN NG CABUYAO
ASSISTANT PROFESSOR1