3.03 Notes on Promotional Mix PDF

Spread the Word Nature of the Promotional Mix Promotion LAP 1 Spread the Word Nature of the Promotional Mix Describe the elements of the promotional mix. Explain factors affecting t...

Spread the Word Nature of the Promotional Mix Promotion LAP 1 Spread the Word Nature of the Promotional Mix Describe the elements of the promotional mix. Explain factors affecting the selection of a promotional mix. Describe the elements of the promotional mix.  To attract new customers, Katie needs to promote her dog-care business. Classified advertisement Newspaper story Local community groups Free products Promotion’s Purpose  Tell customers about a product, image, or idea  Persuade customers to buy or to form an opinion  Remind customers of the product, image, or idea  Promotional Mix  The specific combination, or blend, of marketing communications channels that a business uses to Delivery DiGiorno’s send its messages to customers Total Sale Total Sale Price is a differentiator that sets DiGiorno’s frozen pizzas apart from pizza delivery chains. Promotional Mix Elements  Advertising  Personal selling  Publicity  Sales promotion Advertising  Any paid form of nonpersonal presentation of ideas, images, goods, or services  Puts a “face with a name”  Encourages short-term sales  Builds product awareness  Develops a brand image When Advertising Works Best Product awareness is low Product features are not obvious Product needs to be differentiated from competitors’ products Discretionary incomes are high Overall industry sales are rising  Advantages and Disadvantages of Advertising Can reach a large audience in a broad geographic area Cost per contact is low  Advantages and Disadvantages of Advertising Often tuned out Must be seen multiple times to mean anything Difficult to track results and effectiveness Not good for complicated messages Personal Selling  Determines client needs and wants  Planned, personalized communication  Influences purchase decisions  Enhances future business opportunities Advantages and Disadvantages of Personal Selling Immediate feedback and flexibility Viewed as more credible Ideal for complicated messages and highly specialized, technical products Most effective form of promotion Most expensive form of promotion Publicity  Identity-building tactic  Nonpersonal presentation of ideas or products  Not paid for by the company/individual who benefits or is harmed by it  Advantages and Disadvantages of Publicity Viewed as more credible Seen as news Builds goodwill and a positive image for a business Non-personal with little or no direct interaction Businesses have little control over publicity. Sales Promotion  Promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases Advantages and Disadvantages of Sales Promotion Measureable Low cost per exposure Attract new customers and generate excitement Encourage quick responses Advantages and Disadvantages of Sales Promotion Provide added value Boost repeat purchases Help to sell old stock May help to extend declining product’s life cycle Advantages and Disadvantages of Sales Promotion Short-term in nature Not good for delivering complicated messages Can cheapen a company’s image May cause customers to develop a “no bonus, no buy” attitude Importance of the Promotional Mix  Plays a key role in obtaining customers  Enables businesses to communicate effectively with customers  Drives sales Blended Promotional Strategies  Marketers combine elements of the promotional mix.  Examples: Sponsorship Guerrilla Marketing Blended Promotional Strategies  Promotional efforts should reinforce the same message— integrated marketing communications  Helps the company to reach its marketing objectives and goals Explain factors affecting the selection of a promotional mix.  Factors Affecting the Promotional Mix  Product being sold  Target market  Channels of distribution  The company itself Product Considerations  Type of Product Convenience products Shopping products Specialty products Unsought products Product Considerations  Stage of Product Life Cycle Introductory stage Growth stage Maturity stage Declining stage Target Market Considerations  Type of customer  Number of customers  Geographic location of customers Distribution Channel Considerations  Multiple intermediaries  Direct to ultimate consumer  Promotional strategies Push Pull Company Considerations  Historical perspective  Available funds  Competition  Think of a convenience product, a shopping product, and a specialty product.  How are they promoted?  Which elements of the promotional mix are most dominant?  How are their promotional mixes similar and different, and why?  Mobile technology has changed the way that marketers advertise.  Wi-Fi-enabled recycling bins track people’s habits.  People are targeted with promotions based on behavior.  Is it ethical for companies to use mobile technology to their advantage and target customers based on their habits?  Or should this practice be prohibited to protect privacy?  Acknowledgments Original Original Developers: Developers: Kristen Kristen Auletto Auletto and and Lelia Lelia Ventling, Ventling, MBA MBA Research Research Version Version 3.0 3.0 Copyright Copyright ©© 2017 2017 MBA MBA Research Research and and Curriculum Curriculum Center Center Digital-Based Photography Sources ThinkStock Photography Various images used in this presentation are ©2016 Thinkstockphotos. 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