Promotional Mix
Promotion LAP 1
Objectives
A. Describe the elements of the
promotional mix.
B. Explain factors affecting the selection
of a promotional mix.
Objective A
Describe the elements of the
promotional mix.
Purposes of Promotion
To tell consumers about a company’s …
Ideas
Services
Images
Goods
Purposes of Promotion
To persuade consumers to buy
Promotion’s Recipe
for Success:
Mix various
communication
activities together and
serve to potential
customers until desired
outcome is achieved.
Communication Techniques
• Advertising
• Personal selling
• Publicity
• Sales promotion
Flynn
The bikes
the pros
use.
Traveler Magazine
The Top 5
Airlines!
25% Off
Coupon
The Combination, or Blend, of Marketing
Communication Channels Is Called the...
Advertising
Any paid form of nonpersonal presentation of ideas,
images, goods, or services
The most visible element of the promotional mix
• Actual cost of advertisement is
quite high.
• Since many people receive the
message, the per contact cost
is very low.
The New Barchetta
Diamonds from
Desmond’s
Jewelers are a girl’s
best friend.
Say No to Drugs.
Services
Ideas
Images
Goods
The Vet for Your
Pet
At Techco,
we’re
friendly to
our
customers
and the
environment.
Advertising
Messages can be delivered by:
•
•
•
•
•
•
•
•
Television
Radio
Newspapers
Magazines
Direct mail
Outdoor advertisements
Directories
The Internet
Personal Selling
Determines client needs/wants and responds through
planned, personalized communication that influences
purchase decisions and enhances future business
opportunities
My budget won’t
allow me to replace
them all at once,
but I want them to
be compatible.
You might want
to consider leasing
Are you planning
computers. You can
on replacing all
get free service
of your computers
and upgrade to a
at once?
newer model whenever
you want!
Selling
SellingDisadvantage
Advantages
I like the sound
We do carry a
of this stereo,
bookshelf model
but I think it’s a On a per contact basis, with similar
little large for
sound quality.
selling
is
the
most
expensive
my dorm room.
form of promotion.
• Immediate feedback
• Flexibility
Publicity
• Any nonpersonal presentation of ideas, goods, or
services that is not paid for by the company or
individual which benefits from or is harmed by it
• Many consumers pay close attention to publicity.
– Feel publicity has more credibility because it is not a
commercial message
– View publicity as news
Example: Mention of a company’s charitable activities
in print or broadcast media
Ways the Internet Can Be Used
as a Source of Publicity
“Tae-Bo has really changed my life. I’ve lost
weight, toned-up, and feel better than ever.”
-Susie Wells, CA
A company web site can be used to obtain and display
positive feedback.
Ways the Internet Can Be Used
as a Source of Publicity
OnlineNews.com
Car shopping on the web
Buying a car on the web just got
easier! Autobytel.com will help you
get the financing, pick out the model,
color and extras. Then they provide a
quote from a local dealer. All at the
touch of a keypad.
A business’s goods, services, or web site might be mentioned in an
Internet newsgroup.
Ways the Internet Can Be Used
as a Source of Publicity
LINK TO ACME.COM
A company might agree to provide a link to another business’s web
site in exchange for the same consideration.
Sales Promotion
• Promotional activities other than advertising, personal
selling, and publicity which stimulate purchases
• Sales promotion activities include:
Visual
Product
merchandising
Novelty
Fashion
Instant
Free
Trade
Contests
Coupons
Exhibits
demonstrations
samples
rebates
shows
items
shows
or displays
Importance
of the
Promotional
Mix
• Plays a key role in
obtaining and keeping
customers
• Enables businesses to
communicate effectively
with customers
• Informs consumers about
goods/services and
persuades them to buy
Objective B
Explain factors affecting the
selection of a promotional mix.
Marketers Try To Create the
Ideal Blend of Promotional
Activities for Their Businesses.
Publicity
Personal
selling
Sales
promotion
Advertising
No magic formula that
marketers use to help
design promotional mix
Must decide which methods will
best reach potential customers and
communicate desired message
Hard to determine effectiveness of the
different promotional methods
Factors Affecting the Selection of a
Promotional Mix
Must be carefully
analyzed before
marketers decide when
and where to invest
promotional funds
Product’s
Good,
Distribution
Product’s
service,
target
image,
company
channels
market
or idea
Good, Service, Image, or Idea
• Type of product
Convenience goods
Shopping goods
Specialty goods
Good, Service, Image, or Idea
Inexpensive and
self-service products
can rely on advertising
and sales promotion.
This computer is
perfect for you. It
has all the software
pre-installed and a
left-handed mouse!
10% OFF
Products
which are
on all small
high-tech,
require
appliances are
demonstration,
expensive, or require
installation should be
promoted through
personal selling.
HARRY’S
HARDWARE
Product nature
Good, Service, Image, or Idea
When you are on-the-go…
New and
Improved!
…it’s Breakfast-To-Go
Each pocket provides
you a delicious
breakfast in just
Maturity
two minutes!
Growth
Introductory
Declining
Stage of life cycle
Product’s Target Market
Geographical
Number
Type ofofConsumer
Consumers
Location
Consumer
Close
Few
Together
Market
Consumers
vs.
Advertising
Sales Promotion
Publicity
Personal Selling
Spread
Industrial
Many
Over
a
Consumers
Market
Wide Area
Distribution Channel
INTERMEDIARY BLVD.
The promotional
mix selection is
affected by the
path that a
product takes.
DIRECT AVE.
Requires
personal
selling
Requires
personal
selling and advertising
Product’s Company
Businesses often rely on previous
use of promotional methods.
Less flower. More power.
Think small.
1960
1970
1980
1990
Historical Perspective
2000
Product’s Company
Example:
Today, the Wal-Mart corporation Wal-Mart started as one small
has increased its promotional mixstore in Arkansas. In Wal-Mart’s
to include television, radio,
early years, local newspaper
newspapers, special sales bulletins,
advertising and personal selling
and a Wal-Mart web site in order were all that the small company
to promote its national network. could afford.
Available Funds
Product’s Company
Competition
Tony’s Pizza
Kids eat
free!
Ange’s Pizza
Free kids’
meals!
Competing businesses use similar promotional
mixes and tend to follow the leader.
MarkED
Acknowledgements
Original Developer
Christopher C. Burke, MarkED
Version 1.0
Copyright  2000
MarkED Resource Center
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