elements of the promotion mix
Download
Skip this Video
Download Presentation
Elements of the Promotion Mix

Loading in 2 Seconds...

play fullscreen
1 / 33

Elements of the Promotion Mix - PowerPoint PPT Presentation


  • 315 Views
  • Uploaded on

Elements of the Promotion Mix. Advertising. Ingredients of the Promotion Mix. Public Relations. Personal Selling. Sales Promotion. The Communication Process. Noise. Sender. Encoding. Channel. Decoding. Receiver. Channel. Goals and Tasks of Promotion. Informing. Reminding.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Elements of the Promotion Mix' - helga


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
elements of the promotion mix
Elements of the Promotion Mix

Advertising

Ingredients

of the

Promotion

Mix

Public Relations

Personal Selling

Sales Promotion

the communication process
The Communication Process

Noise

Sender

Encoding

Channel

Decoding

Receiver

Channel

goals and tasks of promotion
Goals and Tasks of Promotion

Informing

Reminding

Target

Audience

Persuading

aida and the hierarchy of effects
AIDA and the Hierarchy of Effects

Purchase

Conviction

Preference

Liking

Knowledge

Awareness

Attention

Interest

Desire

Action

when elements of promotion are most useful
When Elements of Promotion Are Most Useful

Advertising

Personal

selling

Effectiveness

Sales

promotion

Public

relations

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Very effective

Somewhat effective

Either not effective or inefficient

factors that affect the promotion mix
Factors that Affect the Promotion Mix

Nature of the Product

Stage in the Product

Life Cycle

Target Market Characteristics

Type of Buying Decision

Available Funds

$ $ $

Push–and–Pull Strategies

creating a promotion plan
Creating a Promotion Plan

Analyze the Marketplace

Identify Target Market

Set Promotion Objectives

Develop Promotion Budget

Choose Promotion Mix

criteria for setting promotion objectives
Criteria for Setting Promotion Objectives

Promotion objectives should:

be measurable, concrete

be based on sound research, with a

well-defined target audience

be realistic

reinforce the overall marketing plan and

relate to specific marketing objectives

examples of promotion objectives
Examples of Promotion Objectives

Objective: ToInform (Awareness)

To increase the top-of-mind awareness level for Peter Pan peanut butter from 16 percent to 24 percent

Objective: To Persuade (Attitudinal)

To increase the percentage of parents who feel that Peter Pan peanut butter is the best peanut butter for their children from

22 percent to 35 percent

Objective: To Remind

To remind consumers that Peter Pan peanut butter is the creamiest peanut butter and is available at their nearest grocery and convenience stores

techniques for setting promotion budgets
Techniques for Setting Promotion Budgets

• Arbitrary Allocation

• All - You - Can - Afford

• Competitive Parity

• Percent of Sales

• Market Share

• Objective and Task

regulation of promotion
Regulation of Promotion

Self-Regulation

• National Advertising Division (NAD)

• National Advertising Review Board (NARB)

Federal Regulation

• Federal Trade Commission (FTC)

effects of advertising
Effects of Advertising

Diminishing

returns

on additional

spending

Increasing efficiency

as ad budget becomes

sufficient

Return on Advertising Expenditures

Advertising Spending

major types of advertising
Major Types of Advertising

Corporate Image

Institutional

Advertising

Advocacy Advertising

Types

of

Advertising

Pioneering

Product

Advertising

Competitive

Comparative

advertising campaign decision process
Advertising Campaign Decision Process

Determine the campaign objectives.

Make creative decisions.

Make media decisions.

Evaluate the campaign.

common advertising appeals
Common Advertising Appeals

Profit

Save money, keep from losing money

Health

Body-conscious, healthy

Love or Romance

Sell cosmetics and perfumes

Fear

Social embarrassment, growing old, losing health, power

Admiration

Celebrity endorsement effective

Convenience

Fast-food and microwave products

Fun and Pleasure

Vacations, beer, amusement parks

Vanity and Egotism

Expensive, conspicuous items

executional styles for advertising
Executional Styles for Advertising

Scientific

Slice-of-Life

Musical

Lifestyle

Common

Executional

Styles

Demon-

stration

Spokes-person/

Testimonial

Mood or Image

Fantasy

Real/

Animated

Product

Symbols

Humorous

methods used to evaluate advertising campaigns
Methods Used to Evaluate Advertising Campaigns

Pretests

Examples:

• Consumer jury tests

• Portfolio or unfinished rough tests

• Physiological tests

Post-tests

Examples:

• Recognition tests

• Recall tests

• Attitude measures

• Audience size measurement

the tools of public relations
The Tools of Public Relations

New Product Publicity

Product Placement

Major

Tools

Used By

PR

Professionals

Customer Satisfaction

Phone Lines

Consumer Education

Event Sponsorship

Issue Sponsorship

Web Sites

types of consumer sales promotion goals
Types of Consumer & Sales Promotion Goals

Type of buyer Desired results Sales promotion examples

Loyal customers Reinforce behavior, • Loyalty marketing programs,

People who buy your increase consumption, such as frequent-buyer cards

product most or all change purchase timing or frequent-shopper clubs

of the time • Bonus packs that give loyal

consumers an incentive to

stock up or premiums offered

in return for proofs-of-purchase

Competitor’s Break loyalty, persuade • Sampling to introduce your

customers to switch to your brand product’s superior qualities

People who buy a compared to their brand

competitor’s product • Sweepstakes, contests, or

most or all of the time premiums that create interest

in the product

Brand switchers Persuade to buy your • Any promotion that lowers the

People who buy a brand more often price of the product, such as

variety of products coupons, price-off packages,

in the category and bonus packs

• Trade deals that help make the

product more readily available

than competing products

Price buyers Appeal with low prices • Coupons, price-off packages,

People who or supply added value refunds, or trade deals that

consistently buy the that makes price less reduce the price of brand to

least expensive brand important match that of the brand that

would have been purchased

Source: From Sales Promotion Essentials, 2E by Don. E. Schultz, William A. Robinson, and Lisa A. Petrison. Reprinted by permission of NTC Publishing Group, Lincolnwood, IL.

tools for consumer sales promotion
Tools for Consumer Sales Promotion

Coupons

Premiums

Six

Categories

of

Consumer

Sales

Promotions

Frequent Buyer Programs

Contests and

Sweepstakes

Samples

Point-of-Purchase

Displays

tools for trade sales promotion
Trade Allowances

Push Money

Six

Categories

of

Trade

Sales

Promotions

Training

Free Merchandise

Store Demonstrations

Business Meetings,

Conventions, Trade-Shows

Tools for Trade Sales Promotion
advantages of personal selling
Advantages of Personal Selling

Detailed Information

Message Control

Targeted

Cost Control

Closing Sales

advertising versus personal selling
Advertising Versus Personal Selling

Personal Selling is more important if...

The product has a high value.

It is a custom-made product.

There are few customers.

The product is technically complex.

Customers are geographically concentrated.

Advertising/Sales Promotion is more important if...

The product has a low value.

It is a standardized product.

There are many customers.

The product is simple to understand.

Customers are geographically dispersed.

differences between traditional relationship selling
Differences Between Traditional & Relationship Selling

Traditional Personal Selling

Sell products (goods and services)

Focus on closing sales

Limited sales planning

Spend most contact time telling customers about product

Conduct “product-specific” needs assessment

“Lone-wolf” approach to the account

Proposals and presentations basedon pricing and product features

Sales follow-up focused on product delivery

Relationship Selling

Sell advice, assistance, and counsel

Focus on improving the customer’s bottom line

Considers sales planning as top priority

Spend most contact time attempting to build a problem-solving environment with the customer

Conduct discovery in the full scope of the customer’s operations

Team approach to the account

Proposals and presentations based on profit impact and strategic benefits to the customer

Sales follow-up is long term, focused on long-term relationship enhancement

Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”

National Conference on Sales Management, Proceedings, March 1996.

steps in the selling process
Steps in the Selling Process

Generating Sales Leads

Qualifying Sales Leads

Basic

Steps in

the

Selling

Process

Making the Sales Approach

Making the Sales Presentation

Handling Objections

Closing the Sale

Following Up

functions of sales management
Functions of Sales Management

Set Sales Objectives

Evaluate Sales Force

Structure Sales Force

Major Tasks of Sales Management

Manage Turnover

Determine Sales Force Size

Motivate Sales Force

Develop Compen-sation Plan

Train Sales Force

Recruit Sales Force

cost determinants of price
200

150

100

50

0

1

2

3

4

5

6

7

8

9

10

Cost Determinants of Price

MC

ATC

Dollars

AVC

AFC

Quantity

break even analysis
Break-Even Analysis

Total Revenue

Profits

Break Even

Total Costs

Price ($)

Fixed Costs

Losses

Quantity (units)

steps in setting the right price
Steps in Setting the Right Price

Establish Pricing Goals

Estimate Demand, Costs,

and Profits

Choose Strategy

Fine-Tune Base Price

$ $ $ $ $ $ $ $

Right Price

legal and ethical issues in pricing
Legal and Ethical Issues in Pricing

Unfair Trade Practices

Key Legal

and Ethical

Issues

Related to

Price

Price Fixing

Price Discrimination

Predatory Pricing

discounts allowances and rebates
Cash

Discount

EDLP

Quantity

Discount

Seasonal

Discounts

Functional

Discount

Promotional

Allowances

Trade Loading

Rebates

Discounts, Allowances, and Rebates

Price

Reductions

geographic pricing
Geographic Pricing

FOB Origin

Uniform Delivered

Pricing

Tactics

Based on

Geography

Zone Pricing

Freight-Absorption

Basing-Point

special pricing tactics
Special Pricing Tactics

Single

Price

Two-Part

Pricing

Flexible

Pricing

Common

Special Pricing

Tactics

Bundle

Pricing

Professional

Services

Odd-Even

Pricing

Price

Lining

Bait

Pricing

Leader

Pricing

ad