2020-05-22

Promotion

Marketing
communication

Promotional operations
• Promotional mix - The combination of one or more
of the communication tools used to inform,
persuade,
or remind prospective buyers.
• Integrated marketing communications - The concept of designing
marketing communications programs that coordinate all
promotional
activities to provide a consistent message across all audiences.
• Communication - The process of conveying a message to others;
it requires six elements:
– a source
– a message
– a channel of communication
– a receiver
– the processes of encoding
– the process of decoding.

1
 The communication process

The elements of the communication process

Communication involves:
• Sender – the party wishing to communicate a message
• Message - The set of symbols that the sender transmits.
• Encoding – translating the message into words, signs, sounds,
illustrations and symbols that will convey the intended
message and the receiver will understand and react positively
to.
• Channel - chosen media to transmit the message, e.g. television
or a direct mail letter
• Receiver – the person to whom the message was intended,
usually the customer
• Decoding – The process by which the receiver assigns meaning
to the symbols encoded by the sender
 The elements of the communication process – II
• Field of experience - Attitudes, lessons, perceptions, and value that
an individual or a group brings to a situation or problem.
For the message to be communicated effectively, the sender and
receiver must have a mutually shared field of experience.
• Response - The reactions of the receiver after being exposed to the
message—any of hundreds of possible responses, such as: the
consumer likes a product better, is more likely to buy it next time,
hums the melody from the advert, or does nothing.
• Feedback - the sender’s interpretation of the response and
indicates whether the message was decoded and understood as
intended.
• Noise - The unplanned static or distortion during the communication
process, which results in the receiver getting a different
message than the one the sender sent—the consumer is
distracted while watching the commercial and misses its key
points.

Marketing communication process participants:

- Purchasers – individual, institutional
- Society or selected societal groups - in marketing
activities made by non-profit organisations
• Opinion leaders - those to whom others turn for opinions
or those who are popular and willing to share their
opinions with others
- Trade intermediaries - wholesalers and retailers
- Employees (i.e. those in the company that are responsible
for sales management and distribution).
- Journalists
 Buyer readiness stages

Promotional operations
The customers should be aware of the products/services that are
provided and the way in which they differ from those of competitors.
The customers are informed via the use of promotion or marketing
communications.
The promotional element of the marketing mix is very costly and it is
therefore essential that the company:
• Sends the correct message
• To the correct audience
• Using the most appropriate media

Customer Response hierarchy models

 AIDA – model of customer response hierarchy
AIDA model is a formula for developing a promotion that takes into account the psychological impact
of a promotional message (advertising) on a potential buyer.
The model is based on subsequent actions carried out by sellers to stimulating consumers to buy,
(promotional activities, advertising, etc.)
Letters that make up the acronym AIDA mean:
A - Attention of the client for the offer.
I – Interest of the customer with the properties of the offer.
D – Desire at the client's; he becomes convinced that the product will be needed to satisfy his needs.
A - Action (bringing to action) - convincing the customer to buy this product.

Some add CS to the formula (AIDACS):

C – Conviction of the customer that he made
the right decision by choosing this product.
S – Satisfaction of the customer, giving
the chance that he will re-select the product
and recommend it to other people.

The AIDA model is also used to examine the

effectiveness of the advertising impact on
customers - it is based on analyzing the changes
in the perception of advertising recipients - about
a given product or company.

Channel strategies: Push and Pull

• Push Strategy – Directing the promotional mix to members
to the distribution channels to encourage them to order
and stock a product. The basis of this strategy is to promote
directly to the suppliers, therefore pushing the products
down the line to reach the customers throughout various
channel members.

• Pull Strategy – Directing the promotional mix at ultimate

consumers to create demand for the products, to encourage
them to ask the retailer for the product. This strategy operates
in contrast to the push strategy. The aim is to create
demand at the direct supply end and pull the product
upwards through the channels, through customer demand.
 Channel strategies: Push and Pull

Direct and indirect communication

 Factors affecting the promotional mix
• Target Market/customer type – lifestyle and
media consumption
• Characteristics and effectiveness of each promotional
tool - in relations to reaching your target audience
• Marketing/sales strategies (e.g. push vs. pull
strategies)
• Company resources and objectives – launching
products requires more resource than maintaining
them.
• Availability of promotional tools
• The Product life cycle stage

5 key communication effects of promotional activities

Category needs - the perception of the actual customer
needs.
Brand awareness - the ability of the customer to identify
and associate with a particular brand.
Brand attitude – this relates to the costumer’s particular,
observations, view and perceptions of the brand, cognitive
beliefs.
Brand purchase – once the category needs have been
identified, the brand purchase intention follows.
Purchase facilitation – the organization needs to ensure
the product is in the right place, at the right price,
at the right time.
 Possible communication objectives
• Clarification of customer needs
• Increasing brand awareness
• Increasing product knowledge
• Improving brand image
• Increasing brand preference
• Stimulating search behaviour
• Increasing trial purchase
• Increasing financial position
• Increasing flexibility of the corporate image
• Increasing cooperation from trade
• Enhancing the reputation of the organization

Setting the promotion budget

Determining the ideal amount for the budget is difficult -> there’s no precise way to
measure the exact results of spending promotion $.
Methods that can be used to set the promotion budget.
• Percentage of sales - the amount of money spent on promotion
is a % of past or anticipated sales. A common budgeting method,
this approach is often stated in terms such as “our promotion budget
for this year is 3% of last year’s gross sales".
• Competitive parity budgeting - matches the competitor’s absolute level
of spending or the proportion per point of market share.
• Affordable method (All you can afford) - Setting the promotion budget at
the level management thinks the company can afford money to be spent
on promotion only after all other budget items are covered.
• Objective and task. The best approach to budgeting is objective and task
budgeting, whereby the company
(1) determines its promotion objectives,
(2) outlines the tasks to accomplish those objectives, and
(3) determines the promotion cost of performing those tasks.
 The promotional planning process
Identify target audience

Set promotional objectives

Determine the message

Set the promotional budget

Determine the promotional mix

Measurement and control of promotional effectiveness

Integrated Marketing Communications

 The promotional-mix: Advertising
• Advertising – A paid form of nonpersonal communication
about an organization, product, service, or idea by an
identified sponsor, that is transmitted through mass media,
such as TV, radio, newspapers, magazines, direct mail, public
transport vehicles, outdoor displays and the Internet.
Advertising objectives:
• Promoting products, organizations and services
• Stimulating demand for products
• Increasing sales growth
• Educating the market
• Increasing product/service usage
• Reminding/reinforcing
• Reducing demand fluctuations

Major advertising decisions

Advertising objective - A specific communication task to be accomplished with

a specific target audience during a specific period of time.
Types of advertising: Trade advertising, Consumer advertising,
Corporate advertising.
Cooperative advertising - Advertising programs by which a manufacturer
pays a percentage of the retailer’s local advertising expense for advertising
the manufacturer’s products.
 The 5 Ms of Advertising

The promotional-mix: Advertising - II

The major advantages of advertising as a promotional tool:
• Potentially low cost per target audience contact (reach)
• Allows repetition of message
• Enables dramatization of company and its products (impact)
• Can be used to build up long-term image
Potential disadvantages of advertising:
• Potentially high absolute costs
• Often difficult to evaluate effectiveness
• Persuasive value may be less than more personal promotional tools

Advertising is an effective tool for raising awareness about a product/

service, however, it is not as effective for actually achieving sales.
Other elements need to be used with advertising to ensure sale increase.
 The new classification of major types of media (POES):
• Paid media - promotional channels paid for by the marketer, including
traditional media (such as TV, radio, print, or outdoor) and online and
digital media (paid search ads, mobile ads, email marketing,
or Web and social media display ads and sponsored content).
• Owned media - promotional channels owned and controlled by the
company, including company Web sites, corporate blogs, owned social
media sites, proprietary brand communities, sales forces, and events.
• Earned media —PR media channels, such as television, newspapers,
blogs, online video sites, and other media not directly paid for or
controlled by the marketer but that incorporate the content because
of viewer, reader, or user interest.
• Shared media - shared by consumers with other consumers, such as
social media, blogs, mobile media, and viral channels as well as
traditional word of mouth.

Unique selling proposition

USP (Unique Selling Propositon) – The factor or consideration
presented by a seller as the reason that one product/service is
different from and better than that of the competition. It can also be
a feature of quality of a company that sets the organization apart
from its competitors and can be used therefore to differentiate the
product/service/company to develop a competitive advantage.
USP in promotional messages (examples):
• Avis: „We're number two. We try harder”.
• FedEx Corporation: „When it absolutely, positively has to be
there overnight”.
• M&Ms: ‘The milk chocolate melts in your mouth, not in
your hand.’
• Domino's Pizza: ‘You get fresh, hot pizza delivered to your
door in 30 minutes or less or it's free.’
• Esso: „Put a tiger in your tank”
 Unique Selling Proposition

Possible Advertising Objectives

Informative Advertising
Communicating customer value
Building a brand and company image
Telling the market about a new product
Explaining how a product works
Persuasive Advertising
Building brand preference
Encouraging switching to a brand
Changing customer perceptions
of product value
Reminder Advertising
Maintaining customer relationships
Reminding consumers that the product
may be needed in the near future
Suggesting new uses for a product
Informing the market of a price change
Describing available services and support
Correcting false impressions
Persuading customers to purchase now
Creating customer engagement
Building brand community
Reminding consumers where to buy
the product
Keeping the brand in a customer’s mind
during off-seasons
 Factors influencing promotional decisions

- Customers’ knowledge,
habits, preferences,
Customers’
- Informationmarket
availablebehaviour
- Needs and wants
- Institutional customers’ behaviour
Legal standards
Legal system
Administrative system
Self-control
International regulations (EU Laws)

- hierarchy of values
- cultural conventions

Buyers' attitude to promotion -Socio-cultural

language conditions

• Promotional strategy – The choice of a target market and

formulation of the most appropriate promotion mix to influence it.

• ATL (ang. Above-the-line) - press, radio, internet and television

advertising that earns a commission for the advertising
agency, that contracts the advertising space and broadcast time
on behalf of a client.

• BTL (ang. Below-the-line) - promotional methods (such as

catalog marketing, direct marketing, and trade fair
marketing) that are under the direct control of the marketer
(client) and earn no commissions for the advertising agency.
 Types of advertising - 1
• Informative advertising – seeks a presentation of product facts in
a formal manner, incl. presenting findings from independent studies
and safety assessments, to attract customers and sell a product.
Its goal are to:
- suggest new applications for the product,
- explain the principles of product operation/functioning,
- reduce consumer concerns,
- create a producer’s image.
Informative advertising may also mention a product's negative side
effects.
• Persuasive advertising – seeks to relay product (brand) information in
a way that the product is framed in a compelling, positive light.
It ignores product’s (brand’s) negative elements in favor of emphasizing
information that appeals directly to consumer need or desire.

Types of advertising - 2
• Comparative advertising – ad in which a company's product (brand)
is presented as superior when compared to a competitor's product (brand)
features like quality, value or price. Typically, the competing product is
shown in a disparaging light.
• Reminder advertising - messages sent with the objective of reminding a target
consumer group about a product or service or of introducing a new theme into
an existing marketing program. Used by a business that has already invested
considerable resources in initially promoting their product or service and still
wishes to maintain its competitiveness.
• Defensive advertising - A type of advertising that is initiated for the purpose
of combating a potentially damaging or negative effect of a competitors ads.
Example: Political campaigns often involve negative advertisements regarding a candidate, paid for
by the opposing candidate's political party.
• Reinforcement advertising - aims to convince current purchasers that they
made the right choice.
Example: Automobile ads often depict satisfied customers enjoying special features of their
new car.
 The Advantages and Disadvantages
of advertising in alternative media.

The Advantages and Disadvantages

of advertising in alternative media – cont.
 Scheduling the Advertising
Setting schedules requires an understanding of how the market
behaves. Most companies tend to follow one of 3 basic approaches:
1. Continuous (steady) schedule. When seasonal factors are
unimportant, advertising is run at a continuous or steady
schedule throughout the year.

2. Flighting (intermittent) schedule. Periods of advertising are

scheduled between periods of no advertising to reflect seasonal
demand.

3. Pulse (burst) schedule. A flighting schedule is combined with a

continuous schedule because of increases in demand, heavy
periods of promotion, or the introduction of a new product.

Classification of Advertising Timing Patterns

 Sample Media Schedule
The following days of promotional campaign

Pretesting the Advertising

• Pretests - Tests conducted before an advertisement is placed in any medium
to determine whether it communicates the intended message or to select
among alternative versions of the advertisement.
• Portfolio Tests - used to test copy alternatives. The test ad is placed in a portfolio
with several other ads and stories, and consumers are asked to read through
the portfolio. Afterward, subjects are asked for their impressions of the ads on
several evaluative scales, such as from “very informative”
to “not very informative.”
• Jury Tests - Jury tests involve showing the ad copy to a panel of consumers and
having them rate how they liked it, how much it drew their attention, and how
attractive they thought it was. This approach is similar to the portfolio test in
that consumer reactions are obtained. However, unlike the portfolio test, a test
advertisement is not hidden within other ads.
• Theater Tests – are the most sophisticated form of pretesting. Consumers are
invited to view new television shows or movies in which test commercials
are also shown. Viewers register their feelings about the advertisements
either on handheld electronic recording devices used during the viewing or on
questionnaires afterward.
 Post-testing the Advertising
Posttests - Tests conducted after an advertisement has been shown to
the target audience to determine whether it has accomplished its
intended purpose.
• Recognition test - Evaluation of the advertising effectiveness
of print media in which a random sample of readers
(of a particular issue of a publication) are asked if they noticed
or read a particular advertisement.
• Aided Recall test - After being shown an ad, respondents are asked
whether their previous exposure to it was through reading,
viewing, or listening.
• Unaided Recall Test - A question such as, “What ads do you
remember seeing yesterday?” is asked of respondents without
any prompting to determine whether they saw or heard
advertising messages.

Post-testing the Advertising - II

• Attitude Tests - Respondents are asked questions to measure
changes in their attitudes after an advertising campaign,
such as whether they have a more favorable attitude toward
the product advertised.
• Inquiry Tests - Additional product information, product samples,
or premiums are offered to an ad’s readers or viewers. Ads
generating the most inquiries are presumed to be the most effective.
• Sales Tests Sales tests involve studies such as controlled
experiments (e.g. using radio ads in one market and newspaper
ads in another and comparing the results) and consumer
purchase tests (measuring retail sales that result from a given
advertising campaign).
 Advertising - measures:
• Reach (R) - The number/percentage of different persons/households exposed
to a particular media schedule at least once during a specified time period.
• Frequency (F) - The number of times within the specified time period
that an average person/ household is exposed to the message.
• Impact (I) - The qualitative value of an exposure through a given medium.
• Total number of exposures (E) - This is the reach times the average
frequency: E = R × F, also called the Gross Rating Points (GRP).
If a given media schedule reaches 80% of homes with an average exposure
frequency of 3, the media schedule has a GRP of 240 (80 × 3). If another
media schedule has a GRP of 300, it has more weight, but we cannot tell how
this weight breaks down into reach and frequency.
In principle, 100 GRP could mean either that 100 percent of targeted households
are reached once per week, or 1 percent of them are reached 100 times in
the week, or any combination thereof.
• Weighted number of exposures (WE). This is the reach times average
frequency times average impact, that is WE = R × F × I.

Advertising measures (2):

• CPT (Cost per Thousand) or CPM (Cost Per Mille)

(in Latin, French and Italian, mille = 1000) -
the cost an advertiser pays for 1000 views
or clicks of an advertisement. CPM is calculated by dividing the cost of an
advertising placement by the number of impressions (expressed in
thousands) that it generates. CPM is useful for comparing the relative
efficiency of various advertising opportunities or media and in evaluating
the overall costs of advertising campaigns.
• CTR (Click-Through Rate) – the ratio of users who click on a
specific link to the number of total users who view a page, email, or
advertisement.
Used to measure the success of an online advertising campaign for
a particular website as well as the effectiveness of email campaigns.

• Advertising ratio - the effectiveness of the current advertising

campaigns by expressing relationship between money spent on
advertising and sales generated.
Formula: Advertising expenses ÷ sales revenue.
Methods of evaluation of promotional activities:
• Survey at the close or post event
• Telephone
• Postal or face-to-face questionnaire
• Interview
• Report
• Observation

The promotional-mix: Public Relations

• Public Relations – a planned and sustained form
of communication management that seeks to influence
the feelings, opinions, or beliefs about a company and
its products or services, as well as to establish and
maintain goodwill and mutual understanding between
an organization and its target publics: customers,
potential customers, stockholders, suppliers,
employees, and others.
• Publicity - A nonpersonal, indirectly paid presentation
of an organization, product, or service; any type of
news story and information about an organization
and/or its products transmitted at no charge through a
mass medium.
 The promotional-mix: Public Relations
Aims and objectives of public relations:
• To create awareness
• To create and maintain the corporate and brand image and
enhance the position and standing of the organization in the eyes
of the public.
• To maintain visibility
• To communicate the organization’s ethos and philosophy,
and corporate values.
• To assist with crisis management
• To raise the company profile and forge stronger relationships
with publics.

Public Relations – main rules:

• Credibility
• Openness and readiness to provide information
• Attractiveness and originality of activities
• Kindness, tact, culture in contacts of a personal nature
• Continuity and consistency in action
• Professionalism, both at the stage of
programming activities and their
implementation
 Responsibility for Public Relations include:

• Changing negative into positive,

Changing hostility into sympathy,
Changing prejudice into acceptance,
Changing apathy into interest,
Changing ignorance into knowledge

• Define techniques, such as press releases, press

conferences, publications, media relations, etc.

• Undertake internal PR activities

• Select appropriate PR techniques based upon suitability,

feasibility and acceptability

Public Relations – types of activity

• Press releases
• Company open days
• Press conferences
• Third-party endorsements
• Corporate stationery, log, uniform and printed materials (reports,
handbooks, etc.)
• Community events
• Facility visits
• Speeches and interviews
• Audio visual materials
• Internet (www sites, social media presence, etc.)
• Sponsorship
 The major advantages of Public Relations as a promotional tool

• Can be used to promote a company as a whole and hence all

its products
• Often preceived by target audience as less „biased” than, say,
advertising.
• Potentially low cost.

Potential disadvantages associated with publicity and PR:

• Difficult to control media comments, reactions to publicity and PR
• Difficult to assess impact, if any, on sales/profits
• More difficult to control content and timing of communication

„Black PR”
Negative campaigning – the process of deliberate spreading negative
information about someone or something to worsen the public image
of the described. These are PR activities aimed at harming
companies, institutions, people competitive on a given market –
anti-advertising, misinformation, mudslinging.
! These actions are ethically questionable, NOT ETHICAL!
Black PR are methods, actions or propaganda moves used to discredit
an opponent (usually a politician or a company) in the eyes of the
public. These activities are aimed at taking over the current favor
(clients, electorate) towards the competitor.
Black PR tools - disinformation, defamation, press leaks (real or
probable), fake news that depict an opponent in an unfavorable light,
spreading rumors, insinuations, compromising photos, film materials,
documents, etc.
 The promotional-mix: Sales Promotions
• Sales Promotions – A short-term offering something over and above
the normal product offer designed to arouse interest in buying
a product or service; A range of tactical marketing techniques
designed within a strategic marketing framework to add value
to a product or service in order to achieve specific sales and
marketing objectives.
Aims and objectives of sales promotions:
• To increase brand and product awareness
• To increase trial and adoption of products
• To attract customers to brands
• To level fluctuations in supply and demand
• To disseminate information
• To encourage trading up to next size
Sales Promotions – may be aimed at:
- Trade and intermediaries - The sales force - Consumers

Consumer-Oriented Sales Promotions activities and tools:

1. Deals - short-term price reductions, commonly used to increase trial among
potential customers or to retaliate against a competitor’s actions.
2. Premiums - items offered free or at a minimum cost for purchasing a product
3. Coupons – the customer uses coupons obtained from, say, magazines to obtain
products at reduced price.
4. Self-liquidating offer – a form of merchandise based, sales promotion that invites
the consumer to send cash, and often proof of purchase in return for merchandise.
The price charged covers the cost of the merchandise and a contribution to handling
and postage.
5. Giveaways – a free gift (i.e. A toy included with the product)
6. Sale contests – consumers apply their skill or analytical or creative thinking to
try to win a prize.
7. Sweepstakes - sales promotions that require participants to submit some kind of
entry but are purely games of chance requiring no analytical or creative effort
by
the consumer.
8. Loyalty programs (LP) – a marketing process that generates rewards for customers,
based on their repeat purchases or engagement with the brand. In exchange for
purchases and interactions with the focal firm, they accummulate assets (e.g. points),
which they may exchange for products or services associated with the focal firm.
 Types of sales promotion activity and tools - II:
9. Bargain package – a set of products sold cheaper than the sum of the prices
of each individual product.
11. Samples – offering the product free or at a greatly reduced price. Often used
for new products, sampling puts the product in the consumer’s hands.
A trial size is generally offered that is smaller than the regular package size.
12. Product Placements - involves the use of a brand-name product in a movie,
television show, video game, or commercial for another product.
13. Cash rebates – offering the return of money based on proof of purchase
or a specified number of proofs of purchase in order to qualify for
a cash sum or for a coupon.
14. Point-of-Purchase Displays - in-store product displays in the form of
advertising signs, which sometimes actually hold or display the product,
and are often located in high-traffic areas near the cash register or the end
of an aisle. These are designed to maximize the consumer’s attention
to products and to motivate them to make a purchase.

Trade-Oriented Sales Promotions:

1. Buy-back allowances – A certain amount of money is allowed to, say, a retailer
according to quantities bought during a promotional deal.
2. Merchandise allowance - Reimbursing a retailer for extra in-store support
or special featuring of the brand (i.e. a picture of the product in a
newspaper with a coupon good at only one store.) It consists of a %
deduction from
the list case price ordered during the promotional period.
3. The Case allowance / Dealer loads - a discount on each case ordered during
a specific time period. These allowances are usually deducted from the
invoice. A variation of the case allowance is the “free goods” approach,
whereby retailers receive some amount of the product free based on the
amount ordered, such as 1 case free for every 10 cases ordered.
4. The Finance allowance - involves paying retailers for financing costs
or financial losses associated with consumer sales promotions.
5. Training of Distributors’ Salesforces
 Sales promotion and the marketing mix:
Responsibility for sale promotions include:
• Selecting appropriate promotional techniques
• Trade promotions, retailer to consumer promotions,
manufacturer to consumer promotions
• Development of consumer loyalty schemes

Advantages of sales promotion:

• Large Scale production - Sales promotion techniques generally aim
at demand created for the company’s products. Increased volume of sales
results in large scale production which ultimately lowers the unit cost.
• Effective Sales Support - Sales promotion policies supplement the efforts
of personal selling and advertising. These measures make the efforts
of the salesmen more productive. They minimise the work to be done
by the salesmen, avoid wastage in time and efforts.
• Immediate Returns - Sales promotion devices bring quick and immediate
results than other methods like personal selling and advertising. In fact
the impact of sales promotion can be felt more quickly than advertising.
• Effective Control - The management can exercise effective control over
the methods used in the sales promotion programmes. This ensures
lower promotional costs and quick and better returns. The
management is also in a position to evaluate the impact of the
programme
with reference to the cost factor.
 Disadvantages of Sales Promotion:
• Increased price sensitivity - Consumers wait for the promotion
deals to be announced and then purchase the product, so the routine
sales at the market price are lost and the profit margin is reduced
because of the discounts to be offered during sale-season.
• Quality image may become tarnished - the promotions could have
a negative effect about its quality image. Consumers may start
suspecting that perhaps the product has not been selling well, the
quality of the product is true compared to the price or the product
is likely to be discontinued because it has become outdated.
• Short-term orientation - Sales promotions are generally for a short
duration. This gives a boost to sales for a short period. This short-
term orientation may sometimes have negative effects on long-
term future of the organization. Promotions mostly build short-
term sales volume, which is difficult to maintain.

The promotional-mix: Personal Selling

Personal Selling – An interpersonal communication tool which
involves fact-to-face activities between a buyer and seller
in order to influence a person’s or group’s purchase
decision, to inform, persuade, remind them to take
appropriate action as required by the sponsor’s
representative.
- Face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations,
answering questions, and procuring orders.

A Lead - a person or business who may eventually become

a client.
 The promotional-mix: Personal Selling - II
Personal selling is the most effective tool at later stages of the buying
process, particularly in building up buyer preference, conviction,
and action.
Personal selling has three notable qualities:
1. Personal interaction - Personal selling creates an immediate and
interactive episode between two or more persons. Each is able
to observe the other’s reactions.
2. Cultivation - Personal selling also permits all kinds of
relationships to spring up, ranging from a matter-of-fact selling
relationship to a deep personal friendship.
3. Response —The buyer is often given personal choices and
encouraged to directly respond.

The promotional-mix: Personal Selling - III

Objectives of personal selling
• To increase brand awareness
• To build and enhance corporate image
• To raise awareness of brands related to products restricted
in advertising through various legislation,
such as alcohol and cigarettes
• To increase sales turnover
• To reduce the number of clients with minimum viable orders
• To reduce the costs of sales
• To increase the number of distribution outlets
 The promotional-mix: Personal Selling - IV
Types of Personal Selling:
* Telephone selling
* Technical selling
* Retail selling
* Missionary (or pioneer) selling
Responsibilities of the marketer in supporting the sales team:
• Provision of market information and competitor intelligence
• Provision of potential leads
• Client history/database information
• Product presentation/ demonstration
• Financial reports
• Provision of appropriate promotional materials
• Provision of sales aids, promotional plans and incentives

The promotional-mix: Personal Selling -V

Advantages of personal selling:
• Two-way communication with target audience.
• Facilitation of immediate feedback
• Flexibility – can respond to individual customer needs
• Allows cultivation of customer relationships.
Disadvantages of personal selling:
 More difficult to vary spend in short term compared to other
promotional tools
 High costs (per customer) compared to other promotional tools
 Extremely labour intensive promotional tool. A large sales force
is required to carry out personal selling successfully.
 The training of the salesperson is a very time consuming and costly.
 The method does not cover huge demographic. It can only reach
a limited number of people/ customers.
 Responsibilities of Sponsorship
Sponsorship – The provision of financial or material support
by a company to individuals, teams, events or organizations,
outside the sponsor’s normal sphere of operations for some
independent activity … not usually directly linked to
the company’s normal business, but support from which
the sponsoring company would hope to benefit.

The promotional-mix: Sponsorship

• Selecting appropriate form of sponsorship:
i.e. programme sponsorship,
arts/sports sponsorship
event sponsorship
individual or team sponsorship
• To ensure appropriate sponsorship arrangements are in place
and the match between the organization and the potential
sponsoring organization is right
• Develop the right mix,
i.e. ensuring high-level of spin-offs in promotions,
optimizing cost effectiveness,
advertising,
merchandising, and
promotional incentives.
 Sponsorship
Three different forms of sponsorship:
• Patronage
• Endorsement
• Direct sponsorship

Consider:
• Sponsor’s objectives and expectations
• Measurement criteria
• Communication channels
• Costs

The most popular areas of Sponsorship

• Sports - sponsoring events, teams or individual athletes
• Culture and arts - sponsoring cultural institutions: theaters, museums,
cultural events, prizes, foundations, concerts, exhibitions, festivals, artists
• Ecology - sponsoring nature protection and natural environment, supporting
the survival of endangered animal species (e.g. at the ZOO)
• Social care - supporting institutions, e.g. orphanages, nursing homes, charity
events, e.g. suporting disabled, feeding poor,
• Health care - sponsorship of hospitals, health clinics, actions related to
preventive examinations, education in the field of health protection,
promotion of a healthy lifestyle
• Education - supporting schools, kindergartens, talented students and pupils
• Science - sponsoring scientific research, scientific expeditions of nature,
archeology or geography, supporting books and other scientific
publications, sponsoring the organization of conferences and scientific
symposia.
 The promotional-mix: Direct and Interactive Marketing
• Direct Marketing – Promotional element that uses direct
communication with consumers to generate a response in the form
of an order, a request for further information, or a visit to a retail
outlet.
• Interactive marketing - An interactive system of marketing which
uses one or more advertising media to effect a measurable response
at any location.
• Direct orders - The result of direct marketing offers that contain
all the information necessary for a potential buyer to make a
decision
to purchase and complete the transaction.

Direct and Interactive Marketing

• 'Sales Lead‘ - the identification data gathered from a prospective
buyer of a product or service.
Businesses gain access to sales leads through advertising, trade
shows, direct mailings, third-parties, and other marketing efforts.
A sales lead is not a sales prospect because further qualification
of the new client possibility is necessary to determine their
intent and interest.
• Lead generation - the process of figuring out who you have to talk
to, and talking to them; The result of a direct marketing offer
designed to generate interest in a product or a service and
a request for additional information.
• Traffic generation - The outcome of a direct marketing offer
designed to motivate people to visit a business.
 Aims and objectives of direct marketing:
• Ensuring an appropriate database that is effective in
reaching targets
• Defining the appropriate techniques, e.g. direct mail, internet,
e-mail marketing, tele-marketing, direct response advertising
• To be aware of Data Protection legislation and how it affects
the activities of direct markeitng

Responsibilities of Direct Marketing

• Increasing direct mail order levels from new and existing
customers
• To increase provision of information to aid information
and adoption
• Increase the number of sales leads generated
• Increase the number of trial leads

Promotional mix elements: Strenghts & weaknesses

 Common communication platforms
One Way Communication Two Way Communication
Advertising Public Relations Sales promotion Direct marketing Personal
selling
Print and Press kits Contests, games, Catalogs Direct mail/ Sales
broadcast ads
Packaging-outer
Speeches sweepstakes, marketing presentations
Packaging inserts Seminars lotteries Database marketing Sales meetings
Cinema Annual reports Premiums and gifts E- marketing Incentive
Brochure and Corporate image Sampling Telemarketing programs
booklets
Community relations Fairs and trade Mobile marketing Samples
Directorties
Reprints of ads Press conferences shows SMS Fairs and trade
Billboards / Charitable donations Exhibits Viral marketing shows
outdoor Publications Demonstrations Social media marketing
Display signs Events Coupons (Facebook, Twitter,
Point-of-purchase
displays Factory tours Rebates LinkedIn i in.)
DVDs Company museums Low-interest
Magazines Festivals financing
Radio Lobbying Trade-in
Television
Online advertising Sponsoring allowances
Celebrity endorsement Continuity programs
Ambush marketing Tie-ins

Word-of-Mouth Marketing - Person-to-Person

Chato rooms
Blogs