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Promotions : How they are done?

Promotion Mix

Learning Objectives: the Promotional Mix and Advertising

1.Define the term promotional mix. 2. List and explain the nine elements of the communications process. 3. Explain the relationship of the promotional mix and the marketing mix. 4. Define the terms advertising, personal selling, sales promotion, merchandising, public relations and publicity. 5. Identify the factors that affect the promotional mix.

What is promotion?

Any form of communication a business or organization uses to inform, persuade, or remind people about its products.

The Promotion Mix is a combination of the different types of promotion. Or

The combination of promotion types represents a products PROMOTIONAL MIX

Two types of promotion

Product Promotion
Type of promotion that a business uses to convince potential customers to buy products from them and not their competitors.

Institutional Promotion
Type of promotion that a business uses to create a favorable image for itself.

Promotion mix is also known as marketing communication mix Consists of 5 major tools

Advertising Sales Promotion Publicity Personal selling Public relations

What is the largest form of promotion?

Personal Selling!
This type of promotion requires contact with potential buyers

The PERSONAL presentation of a product or company to one or more potential buyers

Promotional mix personal selling

Prospecting & qualifying Pre-approach Approach Presentation/demonstration Overcoming objections Closing Follow-up
7 steps in effective selling


Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.



Product advertising

Sells a particular good or service Initiated by retailers and directed at consumers via papers, television Intended to promote a firms image rather than sell product

Retail advertising
Institutional advertising Trade advertising Industrial advertising Advocacy advertising

Initiated by manufacturers and directed to retailers and wholesalers

Initiated by manufacturers and directed to other manufacturers Promote view to influence public opinion or legislation

Promotional mix advertising media

Different media and their advantages

Media Newspaper Television Radio Magazines Outdoor Direct mail Yellow pages

Good local coverage, broad acceptance, believable Mass coverage, high attention with sight, sound,& motion Low cost, high geographic & demographic selectivity Long life, quality reproduction, high demographic selectivity High repeat exposure, low cost, local market focus Very flexible, targets specific audience, complete information Low cost, excellent local coverage, wide consumer use

Competition from other features, limited selectivity High cost, fleeting exposure, limited audience selectivity Fleeting exposure, audio presentation only Long ad-purchase lead time, lack of flexibility Brief exposure, limited audience selectivity High cost, junk mail image, need accurate mailing list Long ad-purchase lead time, high other-ad competition


Low cost, interactive, 24-hour

Easily ignored, low readership

Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.

Sales Promotion

All marketing activities, other than personal selling, advertising, and public relations is called.

Sales Promotion
2 for 1 Sale Buy One, Get One Free
20 Rs off after 8PM on Tuesday

stimulate purchases increase store traffic Are short term direct inducements to encourage the sales of the products and services

Promotional mix sales promotion

Samples Rebates Point-ofpurchase Prizes Trade shows conventions Price-off discount

Sales contests




Public Relations
Any activity designed to create a favorable image toward a business, its products or its policies. Marketers engage in public relations to develop a favorable image of their product or organization

A specific kind of public relations that involves placing positive and newsworthy information about a business, its products, or its policies in the media is called.. Non personal stimulation of demand for a product or service by putting commercially significant news in media to create a favorable image, its not paid by the sponsor

Creating demand for a business or product by placing news about it in the media

Advantage It is free! Disadvantage.. Its contents cannot be controlled by the business

Principal function of publicity

Building an image

What do they do?

Creates awareness of a businesss product

Public Relations
Creates a favorable image for the business itself

Sales Promotion
Efforts stimulate sales

Personal Selling
Builds on all of the other efforts by helping customers complete the sale

Promotional mix comparison

Advertising Direct mail Personal selling Telemarketing Word of mouth Sales promotion

Large audience, low cost per contact, can modify message Effective when using targeted and current mailing list Tailored to each buyer, immediate buyer response Immediate feedback and immediate buyer response Inexpensive, has high credibility Inexpensive, short-term sales increases Creates positive attitude about product/firm

Overall expensive, difficult to measure effectiveness Reaches disinterested parties and considered junk Expensive Often seen as intrusive Difficult to manage Non-personal appeal Non-personal appeal, hard ot measure effectiveness

Public relations

Push Policy

Promotion policy used only with the next partner in the distribution channel.
Manufacturers PUSH a product to the retailers for sale.

Pull Policy

Promotion policy designed to create consumer interest

When a product is consumer driven or PUSHED into a store.

Convince retailers and wholesalers to market the products





Convince consumers to ask intermediaries for the products