MARKETING MIX: PROMOTIONAL MIX PROMOTION - Expression used internally by the marketing company, but not normally to the

public or the market. - Can be done by different media, namely print media which includes Newspaper and magazines, Electronic media which includes radio and television, igital media which includes internet, social networking and social media sites and lastly outdoor media which includes banner ads, !!" #out of home$. - %omething #such as advertising$ that is done to make people aware of something and increase its sales or popularity. OBJECTIVES: &. 'o present information to consumers as well as others. (. 'o increase demand. ). 'o differentiate a product. PROMOTIONAL MIX - %pecifies how much attention to pay to personal selling, advertising, sales promotion, direct marketing, and publicity, and how much money to budget for each. INSTITUTIONAL PROMOTION: - *arketing approach that demonstrates the goodwill of an organization or individual in order to boost its public relations appeal. +or many business operators, engaging in active institutional promotion is considered a form of advertising that can increase both brand recognition and overall goodwill. PRODUCT PROMOTION - *ethod in marketing done to illustrate the positive effects and ,or benefits gained in a product for it to boost the sales and its demand in the market. -t is seen as a class of advertising, for various businesses, for its potential to achieve brand loyalty. TYPES OF PROMOTION .. /E0%!N.1 %E11-N2 selling occurs face-to-face and involved personal contact between the company representative and those who make purchase decisions such as the consumer or manager. o . 3.N'.2E4 /rovides flexibility and able to respond 5uickly to concerns. 6uilds buyers7 preferences. 0elationship oriented. o -%. 3.N'.2E4 .ttitude affects customers. Expensive. 6. -0EC' *.08E'-N2 involves sending mail direct to the customer, it is usually personal, creative, informal and selective #not sent to everyone in a database$. -t has four distinctive characteristics4 nonpublic, immediate, customized, and interactive. o . 3.N'.2E4 3ery 5uick and easy to produce, provides effective method of testing new products and prices and seek response from customers. o -%. 3.N'.2E4 "igh probability of being disregarded. C. . 3E0'-%-N2 Non personal, mostly paid promotions often using mass media to deliver the message. o . 3.N'.2E4 .lerts large number of consumers. .llows company to 5uickly determine their target market. 6uilds brand image. Consumers perceive advertised goods as more legitimate.

-%. 3.N'.2E4 1arge number of competitors can be intrusive and invasive to others. 1ow cost per exposure, though overall costs are high.

. PUBLIC RELATIONS uses third- party sources particularly the news media, to offer a favorable mention of the marketer7s company or product without direct payment to the publisher of the information. -t is also the management of a message between an individual or organization and the public. -ts primary purpose is to persuade stakeholders or investors to adopt a certain point of view about a pro9ect or product. : C!0E E1E*EN'%4 0etain and create goodwill +irst do good, then take credit for it -dentify and effectively communicate varying points of view and needs to well-defined targets -t is a planned activity. o o . 3.N'.2E4 . well-structured campaign done by the third-party source can result in the target market being exposed to a wealth of information that they may not receive from other forms of promotions. "ighly credible. -%. 3.N'.2E4 -mpact of traditional news has lost a great deal of hold over the public.

.udience 'argeting o 'he public relations programs target audience must be identified so that the message can be tailored to suit them. %ometimes the interests of differing audiences necessitate the creation of several distinct but complementary messages. *essaging o *essaging constructs a consistent and specific story around a /.0. event or pro9ect. -t eliminates contradictory or confusing information that will instil doubt in a purchasing choice or other decisions that have an impact on the marketer. %pin o %pin polishes and colours the truth by selectively presenting facts that support a desired position and can sway public opinion. -t is sometimes seen as a derogatory but is commonly used in public relations campaigns.

Negative /0 o Negative public relations, also called dark public relations # /0$, are a process of destroying or discrediting. irty secrets, misleading facts, or legitimate claims figure heavily into the e5uation. -ts use can be moral and ethical when the information protects or informs the public of danger.

E. %/!N%!0%"-/ supporting an event, activity or organization by providing money or other resources that is of value to the sponsored event. o . 3.N'.2E4 Chance of getting free publicity in the form of other types of promotion, may show up a wider audience than originally intended. o -%. 3.N'.2E4 Expensive. "igh risk of negative publicity in case of accidents. +. SALES PROMOTION involves use of special short-term techni5ues, often in the form of incentives, to encourage customers to respond or undertake some activity. #E.g. %ales, flyers, price discounts, coupons,

samples, giveaways, special events and point of sale$. 6lattberg and Neslin #&;;<$ consider sales promotion as an action-focused marketing event whose purpose is to have an impact on the behavior of the firm=s customers. +irst, sales promotions involve some type of inducement that provides an extra incentive to buy and this represents the key element in a promotional programme. 'his incentive is additional to the basic benefits provided by the brand and temporarily changes its perceived price or value. -t is also primarily seen as an acceleration tool designed to speed up the selling process and maximizes sales volume. '>/E% !+ %.1E% /0!*!'-!N .. '0. E /0!*!'-!N% 'rade promotions are marketing activities executed between manufacturers and retailers. 'rade promotions help companies differentiate a product, increase product visibility, and increase the product purchase rate. 6ut while there are multiple products on the market, retailers only have a finite space to display items on their shelves. -t is therefore sometimes necessary to encourage retailers to stock your item instead of your competitor7s. 'rade promotions are proposed to retailers or wholesalers, generally taking the form of money allowances, to persuade them o #a$ to carry the brand, o #b$ to carry more units than the normal amount, o #c$ to promote the brand by featuring display or price reductions or o #d$ to push the product in their stores. -ncludes4 o Trade allowances o Dealer loaders o o o Trade contests Point of purchase display (POP) Push money

o Training programs
6. C!N%?*E0 /0!*!'-!N Consumer promotions are marketing activities targeted at the consumer to encourage them to buy the product. -n consumer promotions, a direct, indirect or hypothetical benefit #samples, coupons, rebates, cash refund offer, etc$ is proposed to consumers to stimulate the purchase of a product. *anufacturers, generally, offer promotions through the distribution channel. 'hese are often used at the product launch to increase brand awareness, market acceptance, and sales. -ncludes4 o /rice deals o o o iscounts. 0eward programs 0ebates

o Coupons

o o o o o

%ome contests or sweepstakes automatically enter the consumer into the event through the purchase of the product. +ree samples iscounts are sometimes given to customers who buy in large 5uantities. 8ids eat free promotions offer a discount on the total dining bill by offering one free kid7s meal with each regular meal purchased. /remiums are promotional items that can be received for a small fee when redeeming the proof of purchase.

Trade versus C !su"er Pr " #$ !s 'rade promotions are targeted toward retailers while consumer promotions are targeted toward consumers. o o . 3.N'.2E4 %ince it is mostly announced to only last for short periods of time, it encourages customers to disregard alternative brand and are persuaded 5uickly in the purchasing of the product rather than later. -%. 3.N'.2E4 -ncrease in price sensitivity for the companies in case of large amount of discounts is introduced. Causes profit margin of the company to decrease. Not effective at building long-term brand preferences. %hort-lived.

2.

-2-'.1 C!**?N-C.'-!N% /romotion made for web, cell phone or digital device. -t includes online advertising, mobile communications, advergaming, social media, and consumer-generated content and viral strategies. o . 3.N'.2E4 -nexpensive. Cost-efficient. o -%. 3.N'.2E4 +ake promotions caused mistrust. PROMOTIONAL BUDGET % deciding how much money to allocate to different media *E'"! %4 -. .++!0 .6-1-'> *E'"! 6udget is set at a level that a company can afford *ethod used by small businesses 'hings often cost more than anticipated --. /E0CEN'.2E-!+-%.1E% *E'"! /ast of forecasted sales may be used %implest and %traightforward oes not take into account any changes in the market or unexpected circumstances ---. C!*/E'-'-3E-/.0-'> *E'"! 6udget matches competitors7 outlays 'o keep a brand in the minds of consumers -3. !6@EC'-3E-.N -'.%8 *E'"! %pecific ob9ectives are defined 'asks re5uired to achieve ob9ectives are determined Costs of performing tasks are estimated, them summed to create the promotional budget *ore rational approach

PUS&%AND%PULL CONCEPT % /romotional strategies to get the product to its target market .. /?%" %'0.'E2> trade promotions and personal efforts push the product through the distribution channels /laces the product in front of the consumer to make sure the consumer is aware of the existence of the product Aorks well for low value items and impulse buy items -t makes use of a company7s sales force and trade promotion activities to create consumer demand for a product +1!A4 /roducer B Aholesalers B 0etailers B Consumers /0!*!'-!N.1 '!!1% ?%E 4 /ersonal selling, 'rade /romotions 6. /?11 %'0.'E2> /roducers use advertising and consumer sales promotions to generate strong consumer demand for products %timulates demand and motivates customers to actively seek out a specific product . strong and visible brand is needed to ensure the success of a pull strategy +1!A4 Consumer B 0etailers B Aholesalers B /roducers /0!*!'-!N.1 '!!1% ?%E 4 Consumer promotion, .dvertisements, %ales promotion 0eference,s4 http4,,troysmarketingblog.blogspot.com,(<&(,<C,D-main-types-of-promotion.html http4,,www.tutor(u.net,business,marketing,promotionEpushpull.asp http4,,catalog.flatworldknowledge.com,bookhub,(<)< https4,,www.boundless.com,marketing,integrated-marketing-communication,selecting-the-promotion-mixfor-a-particular-product,push-and-pull-strategies, https4,,www.boundless.com,marketing,integrated-marketing-communication,the-promotion-mix,publicrelations, http4,,www.bizcommunity.com,.rticle,&;F,&G,CDC.html http4,,yourbusiness.azcentral.com,consumer-sales-promotion-methods-&&;F).html http4,,www.knowthis.com,types-of-sales-promotion,rebates http4,,smallbusiness.chron.com,consumer-sales-promotion-techni5ues-&<)C.html https4,,www.boundless.com,marketing,personal-selling-sales-promotion,consumer-sales-promotionmethods, - with pictures for the powerpoint

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MARKETING MIX: PROMOTIONAL MIX

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