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Elements of the Promotional Mix

Elements of the Promotional Mix. Advertising Sales Promotion Personal Selling Public Relations. Advertising. About 25% of each promotional dollar is spent on advertising Advertising objectives Awareness Reminder to use Change attitudes about use of the product

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Elements of the Promotional Mix

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  1. Elements of the Promotional Mix • Advertising • Sales Promotion • Personal Selling • Public Relations Kelley Fall 2001 Marketing Management

  2. Advertising • About 25% of each promotional dollar is spent on advertising • Advertising objectives • Awareness • Reminder to use • Change attitudes about use of the product • Change perceptions of importance of brand attributes Kelley Fall 2001 Marketing Management

  3. Advertising • Advertising objectives • Attitude reinforcement • Product-line or corporate image building • Obtain a direct response • Budgeting • Establish baseline budget - historical • Set advertising objectives • Estimate message design and media costs Kelley Fall 2001 Marketing Management

  4. Advertising • Budgeting • Run experiments to obtain estimate of proposed advertising campaign • Revise budget • Evaluation • CPM = cost of ad x 1000/circulation • Rating = program audience/total audience Kelley Fall 2001 Marketing Management

  5. Advertising • Evaluation • Reach - percentage of the target audience that will be exposed to the message • Frequency - average number of times a member of the target audience is exposed to the message • Gross Rating points - reach percentage x number of exposures Kelley Fall 2001 Marketing Management

  6. Advertising • Evaluation • Recognition tests • Recall tests • Theater tests Kelley Fall 2001 Marketing Management

  7. Sales Promotion • About 50% of each promotional dollar is spent on sales promotion • Short-term results • Objectives • Inquiries - free gifts, mail-in coupon for information, catalog offers, exhibits • Trial - coupons, free samples, contests, premiums, demonstrations Kelley Fall 2001 Marketing Management

  8. Sales Promotion • Objectives • Repurchase - on-pack coupons, mail-in rebates • Traffic building - special sales, weekly specials, entertainment events, retailer coupons • Increase rate of purchase - multipacks, special price on twos Kelley Fall 2001 Marketing Management

  9. Sales Promotion • Objectives • Inventory building - return allowances, slotting allowances • Promotional support - reusable display cases, sales contests, merchandise allowances Kelley Fall 2001 Marketing Management

  10. Sales Promotion • Evaluation • Redemption rates • Acquisition rates • Displacement rates • Conversion rates • Stock-up rates • Product-line effects Kelley Fall 2001 Marketing Management

  11. Personal Selling • About 25% of each promotional dollar is spent on personal selling activities • Recruitment • Compensation • Evaluation Kelley Fall 2001 Marketing Management

  12. Public Relations • Less than 1% of each promotional dollar is spent on public relations • Difficult to control and evaluate • Process • Set objectives • Identify target audience • Design message • Reach media that serves target audience • Evaluate results Kelley Fall 2001 Marketing Management

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