Session 3: Marketing mix

Dr. Toan Nguyen

 Product

What is Price

Marketing
mix? Promotion

Place
Promotion
Definition
The promotion mix (or marketing
communications mix) is the specific blend of
promotion tools that the company uses to
persuasively communicate customer value
and build customer relationships
 Typical types of promotion

ADVERTISING PERSONAL SALES PUBLIC DIRECT

SELLING PROMOTION RELATION (PR) MARKETING
Advertising

Broadcast Print Internet Outdoor.

Advertising is any paid form of non-personal presentation and

promotion of ideas, goods or services by an identified sponsor.
 Personal selling

Sales presentation Trade shows Incentive programs

Personal selling is the personal presentation by the firm’s sales force

for the purpose of making sales and building customer relationships.
Sales promotion

Discount Coupons Displays Demonstration

Sales promotion is the short-term incentive to encourage the

purchase or sale of a product or service.
 Public relation (PR)

PRESS RELEASES SPONSORSHIP SPECIAL EVENTS WEBPAGES

Public relations (PR) involves building good relations 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.
 Direct marketing

Catalog telemarketing kiosks

Direct marketing involves making direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting customer
relationships - through the use of direct mail, telephone, direct-response television, e-
mail and the Internet to communicate directly with specific consumers.
Integrated
marketing
communication
Communication process
 Identify Identify target audience

Determine Determine communication objectives

Process of
effective Design Design a message
marketing
communication
Choose Choose channels and media

Select Select message source/communicator

Target
audience
Communication
objectives
Design a
message
 Message content

Rational appeal Emotional appeal Moral appeal

Choose channels & media

Personal communication Non-personal communication

 Personal communication

Face to face Telephone Email Chat

Control over the personal communication

Company Independent Word of mouth

experts/individuals
External representation options

Key opinion leaders (KOL) Brand ambassador

Non-personal communication
• Major media
• Atmosphere
• Event
Select source message/ communicator

Celebrities Athletes Entertainers

Healthcare
Professionals
providers
Setting up the promotional
budget
 Common methods for budgeting

Affordable- Percentage- Objective-

Competitive-
budget of-sales and-task
party method
method method method
Affordable-
budget method
• set the promotion budget at the
level management thinks the
company can afford.
• ignore the effects of promotion
on sales
• lead to underspending
Percentage-of-sales
method
• Easy to use
• set the budget at a certain percentage of current or
forecasted sales or as a percentage of the unit sales
price.
• Helps management to think about the relationship
between promotion, selling price and profit per
unit.
• Wrongly views sales as the cause rather than the
result of promotion.
Competitive-party
method
• sets the promotion budget to match competitors’
outlays.
• Represents industry standards
• Avoids promotion wars
 Objective-and-task
method
• sets the promotion budget based on what the firm wants to
accomplish with promotion and includes:
• Define specific promotion objectives
• Determine the tasks needed to achieve these objectives
• Estimate the costs of performing these tasks.
Push vs. Pull marketing
Push v. Pull
marketing