4.01C Identify the elements of the promotional mix

Elements of the Promotional Mix  Promotional Mix: the combination, or blend, of marketing communication channels that a business uses to send its messages to customers  Elements of the Promotional Mix  Advertising  Personal Selling  Publicity  Sales Promotion

Advertising  The most visible element of the promotional mix  Advertising is any paid form of nonpersonal presentation of ideas, images, goods and services  Used to encourage short-term sales, build product awareness and develop brand image  Per contact cost is low  Works best when:  Product awareness is low  Product features are not obvious to customers  A product needs to be differentiated from competition  Discretionary incomes are high  Overall industry sales are rising

Personal Selling  The form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities  All about building relationships  Can take place fact-to-face, by telephone, or by  On a per contact basis, it is the most expensive form of promotion  Immediate feedback and flexibility

Publicity  Publicity is any nonpersonal presentation of ideas, goods or services that is not paid for by the company or individual  Businesses have little control over the message presented to customers  Free  Can build goodwill toward a company

Sales Promotion  Sales promotions are promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases.  Visual merchandising, coupons, in-store demonstrations, cash discounts, price incentives, product samples, contests, etc.  They are measurable, have a low cost per exposure, attract new customers, generate excitement, encourage quick responses, provide added value and boost repeat purchases.

The Importance of the Promotional Mix  An appropriate blend of the promotional elements enables businesses to communicate effectively with customers.  It increases brand recognition, raises product awareness, and communicates product benefits  Makes it more likely for businesses to reach their target markets than using one form of promotion alone  Drives sales and helps the company reach its marketing goals and objective

Factors Affecting the Promotional Mix  Product Being Sold  Three types of products: convenience, shopping specialty  Convenience products are items purchases frequently with minimal effort.  Toothpaste, ballpoint paints, eggs  Use advertising and sales promotion  Shopping products are goods and services such as automobiles, laptop computers, cell phone plans  Purchases after a customer has made comparisons of competing products  Customer checks prices, styles, colors, qualities of different products  Personal selling and national TV advertising often used  Specialty products have unique characteristics that customers make special efforts to obtain.  Expensive jewelry and antiques  Require more personal selling

Factors Affecting the Promotional Mix  Product being sold cont’  Stages of the life cycle  Introductory stage: product is introduced. Efforts are designed to inform customers about new products. Sales promotions and advertising are frequently used  Growth stage: competing products appear. Promotional activities focus on pointing out differences between products. Advertising is used extensively  Maturity stage: product is well-established on the market. Promotion is used to remind about product benefits  Declining stage: newer products enter the market, taking the place of existing ones. Production may slow or stop. Money is aimed at maintaining a positive image

Factors Affecting the Promotional Mix  Affect of the Product’s Market  Type of customer: personal customer vs industrial customers  Number of customers: few customers=effectively promoted through personal selling. Numerous customers used advertising and sales promotion  Geographic location: where customers live

Factors Affecting the Promotional Mix  Distribution Systems: promotional mix is affected by the path the product takes  Push stategies: promoting products to intemediaires who then promote the product to consumers  Pull strategies: producers promote their products directly to the ultimate consumers  New drink on TV

Factors Affecting the Promotional Mix  Product’s company mix:  Historical perspective: rely on previous uses of promotional methods to determine current promotional mixes  Available funds  Competition