The Promotional Mix

Still Chapter 15Marketing

Elements of the Promotional Mix

Advertising

Publicity

PersonalSelling

SalesPromotion

Advertising

Any paid form of non-personalcommunication through a mass mediumby an organization about its products orservices.

InternetTransitDirect MailOutdoor

MagazineNewspaperRadioTelevision

Advantages/Disadvantages ofAdvertising

Repetition

Slow or no feedbackMost creative and expressiveform of promotion

ImpersonalReaches geographical diversepeople at the same time

Target audience may not be inright place to receive messageLow cost per person

High total costReaches millions of people

DisadvantagesAdvantages

Examples of Publicity

Grand opening! Bring in celebrities! Hold a special event

Writing a column innewspaper ormagazineSponsorship! Sports! Charity events! Community events

Announcements! New products! New management

hires! Remodel or new

location

Product placements! Magazines! Movies! Television

Advantages and Disadvantagesof Publicity

Advantages:May be freeCredibility! A positive review from a columnist is more likely to

persuade someone to buy a new product that anadvertisement.

Connects product with communityBreaks through advertising “noise”

Disadvantages:May be NegativeLack of Control

Personal Selling

Selling is direct, personalcommunication with prospectivecustomers in order to assess needsand satisfy those needs with theappropriate products and services.

Advantages/Disadvantages ofPersonal Selling

Personal follow-up

Requires skilled personnelPersuasive

Less control of messageImmediate user feedback

Time intensiveFlexible, customized message

High cost per customerProvides more information

DisadvantagesAdvantages

Sales PromotionsOffering incentives to customers in order toincrease sales

ContestsFree samplesCouponsFrequent buyerprogramsGiftsRebatesSpecial Events

AdvantagesAdvantages– Immediate increase in sales– Good way to attract new

customers

DisadvantagesDisadvantages– Customers may become

dependent and not buywithout an incentive

– May reduce profits

Factors that Affect thePromotional Mix

The Marketing Mix

Product’s position in the product life cycle! Introduction! Growth! Maturity! Decline

Price! Expensive items require more personal selling

Place - Geographical locationCooperative promotions

Product Price

PromotionPlace

Target Market

Focus on target market’s needs and wantsDifferent promotions for:! Teens! Young families! Retired couples! High income! Low income

Affects:! Message! Encoding! Message Channel! Anticipated noise! Feedback

Company Promotion Policyand Objectives

Different companies have differentpromotional philosophies! Auto industry and rebates! Kraft deciding not to advertise to kids! Nebraska Furniture Mart and SALES! Pepsi products and contests! Hershey’s did not advertise until 1950! Word-of-mouth philosophy

Is primary objective to inform, persuade orremind?

Company Resources

Financial situationWhat is budget for promotionsHow can limited dollars best be spenton different promotionsNebraska City Tourism example

Promotional Activities SupportEach Other

Advertising

Publicity

PersonalSelling

SalesPromotion

Steps in Promotional Plan

Analyze the Market

Develop Promotional Objectives

Identify Target Market

Develop Budget

Implement Plan

Select Promotional Mix

Evaluate Results

Market Research Census Data Competitors Strengths Weaknesses

Based on MarketAnalysisHow does yourproduct satisfy theirneeds and wants?What promotionalstrategies may beeffective?

Analyze the Market

Identify Target Market Purpose ofpromotion! Inform! Persuade! Remind

Objectives shouldbe measurable

Budget should bebased on objectivesNot, objectivesbased on budgetWhat percent ofbudget will beallocated to variouspromotionalactivities

Develop PromotionalObjectives

Develop Budget

What promotional strategies will be used?! Advertising! Personal Selling! Publicity! Sales Promotions

How will they complement one another?Plan with target market in mindThink about communication process! Encoding! Message Channel

Select Promotional Mix

Create schedulewith timetableAssignresponsibilities

Based on objectivesResearch againContinue?Revise?Change direction?

Implement Plan

Evaluate Results