Outline
 Introduction
 Marketing & Promotional Mix  Promotion Budget Allocation  Advertising  Sales Promotion

 Personal Selling
 Decision Summary

Introduction – (Main Char)
• Demographic Characteristics:
– – – – Gender: Female Age: 25 & above Household size: 3 or more persons Occupation: Skilled and Unskilled labor (Blue Collar)

• Geographic Char:
– St. John’s metropolitan area

• Benefits Sought:
– Strong high quality – Bagged tea in “Boxed tea”

Planning: – Entering the market with a new brand named “Bentley Fresh Brew Tea” • Team 2.(Previous Decisions) • Team 1. Pricing Strategy: – Price: 2.49 . Product Strategy: – Blend: lower than the market brands – Amount of tea: 1 Cup Bag – Package size: Medium 60-72 bags • Team 3.Introduction .

Price 4.Marketing Mix Variables that marketing managers can control in order to best satisfy customers in the target market 1. Place . Promotion 2. Product 3.

Marketing Mix .

Advertising * Personal Selling * Sales Promotion * 4. Public Relation Direct Marketing Publicity .Promotional Mix “Promotion is all about companies communicating with customers” “It is no longer enough for a business to have great products” 1. 6. 2. 5. 3.

The Objectives • Firm Objective: – Increase Market share By 5% within two years • Advertising Objective: – Establish a 70% product awareness among Blue Collar Females by end of the first year .

Meeting Competition Method 4. Fixed amount per unit sold 3. Task Objective Method .Budget Allocation Methods 1. Percentage of Sales 2.

Simplicity .Less sales less advertising! .Depends heavily on past experience .Budget Allocation Methods 1.Controllable Budget Limitation: .Starting Company can not use it . Percentage of Sales Example: Two percent of the sales are allocated for advertising Advantage: .

Fixed amount per unit sold Example: Ten cents' worth of advertising per teabag box Advantage: .Simplicity .Controllable Budget Limitation: .Less sales less advertising! .Depends heavily on past experience .Starting Company can not use it .Budget Allocation Methods 2.

Starting Company can not use it .Less sales less advertising! . Meeting Competition Method Example: We shall spend 2% over the average market advertising expenditure Advantage: .Company will level its advertising with the high standard competitors Limitation: .Budget Allocation Methods 3.

Achievement is measurable .Good for all Companies at any time Limitation: .Un-achievable objective .No specific Budget .Budget Allocation Methods 4. Task Objective Method Example: Establish a 70% product awareness among Blue Collar female workers by end of the first year Advantage: .Budget support strategic Objective .

brand building.Advertising vs Promotion Advertising About: A type of marketing tool Advertising is a one-way communication whose purpose is to Definition: inform potential customers about products and services Promotion A type of marketing tool A Promotion usually involves an immediate incentive for a buyer Purpose: Time: Price: Sales: Example: Increase sales. Assumption that it will lead to sales Giving an advertisement in the newspaper about the major product . coupons etc. Directly related to sales. Short term Not very expensive in most cases. Long term Expensive in most cases Increase sales. Giving free products.

Advertising Is a paid form of non-personal communication about an organization. its products. or its activities that is transmitted through a mass medium (TV/ Newspaper/…etc) to a target audience Large numbers of people Make them aware Persuade Remind them about the firm's offerings .

TV 30 sec: $200 to $300 (7 PM to 11 PM) Radio 30 sec: $20 to $40 Magazines The Newfoundland Herald One page: $ 300 Cover: $600 St. John's Newspaper Evening: $750 Morning: $500 Complete coverage: $200 to $400 each Most effective and largest penetration methods. .

Major Types of Advertising objectives  Awareness Reminder to use the product Corporate/ product line image building Attitude Reinforcement Changing Beliefs about brand similarities Changing Changing attitudes about the use of the product form .

Establish 70% brand Awareness to blue collars females 25 years & above with household of 3 or more persons Our advertising message is “The real taste for fresh Tea” .

Billboards All year awareness : 1. Radio 2. Newspapers 3. Magazine 2. Billboards .Advertising Recommendation… Winter & Spring Campaign: 1.

Spring & Winter Campaign 1.Short life Best Time: AM 7-10 & PM 4-7 Cost Radio: 30sec  $30 = 6 times X $30 X 60 days = $10.000 . Radio Advantages: Low Cost compared to TV .Mass use Audience selectivity Disadvantages: Audio only .less attention.800 Cost TV: 30sec  $250 = 6 times X $250 X 60 days = $ 90.

John's in metro areas: Near Dominion & Sobey's Hypermarkets -Bus stations .Repeat exposure inexpensive Disadvantages: Many distractions for viewer .Advantages: Flexible .Nonselectivity of audience Locations: St.

Winter Campaign “Billboard” .

Spring Campaign “Billboard ” .

All year awareness 1. Magazine Advantages: long readership / +++TV guide & entertainment schedule. Disadvantages: No guarantee of position Cost: One page $ 300 X 12 = $3600 The Newfoundland Herald TV Guide inside Entertainment schedule inside .

Newspapers Advantages: Flexible and timelyIntense coverage.Read hastily Cost: One page ad is $500  $500X5X12= $30.000 St.All year awareness 2.High believability of printed word Disadvantages: Short life . John's morning newspaper .

All year awareness 3. John's in metro areas: Near Dominion & Sobey's Hypermarkets & Bus stations . Billboard Locations: St.

27 .

Personal Selling It’s the method of using sales force to support a push strategy or a pull strategy A Push Strategy The use of a company's sales force and trade promotion activities to create consumer demand for a product. 28 .

Personal Selling A Pull Strategy Requires heavy spending on advertising and consumer promotion to build up consumer demand for a product 29 .

Personal Selling 30 .

Face-to-face sales meeting  Customization of the sales message to make it clear to the buyer Immediate response Greater persuasive impact Important source of marketing information X High cost X Salespersons focus more on their personal gains rather than satisfying the customer needs X Time ineffectual 31 .

Sales Promotion Definition: Incentives that create an immediate short-term response. Reasons for using sales promotion: Increase awareness Positive word of mouth Increase accountability Complement advertising activities Growing power of retailers . thus they usually receive the top management support.

Sales Promotion Sales promotion Consumer-Oriented Promotions Trade-Oriented Promotions .

Rebates and refund: customers are given reimbursements for purchasing the product either on the spot or through the mail.Sales Promotion Consumer-oriented sales promotion tools: Sampling: customers are offered regular trial sizes of the product either free or at a nominal price. now often available at point of purchase. Sweepstakes and Contests: prizes are available either through chance selection or games of skill. Coupons: Probably the most familiar and widely used of all consumer promotions. Price-off deals: Customers are offered discounts from the product’s regular price. Loyalty programs Event Marketing . Bonus packs: Additional amounts of the product are given to buyers when they purchase the product. Premiums: A reward or gift can come from purchasing a product.

Reduce the retail price of a product without relaying on retailers 3.Sales Promotion  Advantages of couponing 1. Coupons encourage repurchase after initial trial 4. Response to a coupon is rarely immediate 3. Reduces customer’s perceived associated with trial of a new brand 5. Difficult to estimate how many consumers will use a coupon and when 2. It’s difficult to measure how many new customers and existing ones have used the coupons 5. Rather than attracting new customers. Costly . coupons can end up reducing the company’s profit margin 6. Make it possible to offer a price reduction for price-sensitive consumers 2. Useful promotional devices for established products Disadvantages of couponing 1. Many marketers attempt to expedite redemption by shortening the time period before expiration 4.

Sales Promotion Will it be necessary for Mr. Evan use sales promotion tools for the successful introduction of Bentley fresh? why or why not? If yes. which tool would you recommend and why? Sales promotion recommendation : Use of Sampling tool at minimum cost .

• Budget • Task Objective Method • Advertising • Winter & Spring Campaign • All year awareness • Promotion • Provide Free Sampling • Personal Selling • In the future .Our Recommendations….

Any Questions !!! .Thank You ….

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