Promotion Mix (Continued….)

Presented by-Rakesh KumarRahul Kesarwani(II semester)

Promotion Mix

Marketers have at their disposal four major methods of promotion. Taken together these comprise the promotion mix.

It includes all tools available for Marketing communication.

Elements of Promotion Mix

Ingredientsof the

PromotionMix

Advertising

Public Relations

Personal Selling

Sales Promotion

Advertizing

Advertizing is any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.

- Philip Kotler

Developing an Advertizing ProgramIn developing an advertizing program, marketing managers must always start by identifying the target market and buyer motives.Then they can make the 5 major decisions known as “the five Ms”

Mission

Sales goalsAdvertizing objectives

Money

Factors to consider :Stages in PLCMarket share and consumer baseCompetition and clutterAdvertizing frequencyProduct substitutability

Message

Message generationMessage evaluation and selectionMessage executionSocial – responsibility review

Media

Reach, frequency, impactMajor media typesSpecific media vehiclesMedia timingGeographical media allocation

Measurement

Communication impactSales impact

Objectives of Advertizing

An advertizing objective is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time.

The objectives are :-

Informative Advertizing - This aims to create brand awareness and knowledge of new products or new features of existing product.

Persuasive Advertizing – This aims to create liking, preference, conviction, and purchase of a product or service.

Reminder Advertizing – This aims to stimulate repeat purchase of product and services.

Reinforcement Advertizing – This aims to convince current purchases that they made the right choice.

Advertizing ToolsTelevision Ads – Television is generally acknowledged as

the most powerful advertizing tool and reaches a broad spectrum of consumers.

Print Ads – Print media offer a stark contrast to broadcast media. Because readers consume them at their own place, magazines and newspapers can provide detailed product information and effectively communicate with the user.

Radio Ads – Perhaps radio’s main advantage is flexibility – stations are targeted, ads are relatively inexpensive to produce and place, and short closings allow for quick response.

Film AdsInternet – This is a very good tool for

placing ads because in today's world a very large population uses web.

Billboards

Tool Advantages Limitations

Newspapers Flexibility; timeliness; good local market coverage; broad acceptance; high believability

Short life; poor reproduction quality; small “pass – along” audience

Television Combines sight, sound and motion; appealing to the senses; high attention; high reach

High absolute cost; fleeting exposure; less audience selectivity

Direct mail Audience selectivity; flexibility; no ad competition within the same medium; personalization

Relatively high cost; “junk mail” image

Radio Mass use; high geographic and demographic selectivity; low cost

Audio presentation only; lower attention than television; nonstandardized rate structures; fleeting exposure

Magazines High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life; good pass-along relationship

Long ad purchase lead time; some waste circulation; no guarantee of position

Tool Advantages Limitations

Outdoor Flexibility; high repeat exposure; low cost; low competition

Limited audience selectivity; creative limitations

Yellow pages Excellent local coverage; high believability; high reach; low cost

High competition; long ad purchase lead time; creative limitations

Newsletters Very high selectivity; full control; interactive opportunities; relative low cost

Cost could run away

Brochures Flexibility; full control; can dramatize messages

Overproduction can lead to run away costs

Telephone Many users; opportunity to give a personal touch

Relative high cost unless volunteers are used

Internet High selectivity; interactive possibilities; relatively low cost

Relatively new tool with a low number of users in some countries

Public Relations• Not only must the company relate constructively to

customers, suppliers, and dealers. It must also relate to a large number of related publics. Public Relations includes a variety of programs to promote or protect a company’s image or individual product.

• Systematic effort to create and maintain goodwill of an organization's various publics (customers, employees, investors, suppliers, etc.), usually through publicity and other non-paid forms of communication. These efforts may also include support of arts, charitable causes, education, sporting events, etc.

- www.businessdictionary.com

Role of Public RelationsThe role of public relations includes:

building awareness and a favorable image for a company or client within stories and articles found in relevant media outlets

closely monitoring numerous media channels for public comment about a company and its products

managing crises that threaten company or product image building goodwill among an organization’s target market

through community, and special programs and events

Objectives of Public Relations

Building Product Awareness - When introducing a new product or relaunching an existing product, marketers can use a Public Relation element that generates consumer attention and awareness through media placements and special events.

Stimulating Demand – A positive article in a newspaper, on a TV news show or mentioned on the Internet, often results in a large increase in product sales.

Providing Information – Public Relation can be used to provide customers with more in depth information about products and services.

Reinforcing the Brand – In many companies the public relations function is also involved with brand reinforcement by maintaining positive relationships with key audiences, and thereby aiding in building a strong image.

Public Relations ToolsPublications – Companies rely extensively on published

materials to reach and influence their target markets.Events – Companies can draw attention to new products or

other company activities by arranging special events.Sponsorships – Companies can promote their brands and

corporate name by sponsoring sports and cultural events and highly regarded causes.

News – One of the major tasks of Public Relations professionals is to find out or create favorable news about the company, its products, and its people and to get the media to accept press releases and attend press conferences.

Speeches – Increasingly, company executives must field questions from the media or give talks at trade associations or sales meetings, and these appearances can build the company’s image.

Public Service Activities – Companies can build goodwill by contributing money and time to causes.

Identity Media – Companies need a visual identity that the public immediately recognizes.

Promotion Summary Table

The table compares each of the promotion mix options on the eight key promotional characteristics. The summary should be viewed only as a general guide since promotion techniques are continually evolving and how each technique is compared on a characteristic is subject to change.

Characteristics AdvertisingSales

PromotionPublic

RelationsPersonal

Selling

Directed Coverage mass & targeted mass & targeted mass targeted

Message Flow one & two-way one & two-way one-way two-way

Payment Modelpaid

limited non-paidpaid non-paid paid

Interaction Type non-personalpersonal &

non-personalnon-personal personal

Demand Stimulation lagging quick lagging quick

Message Control good good poor very good

Message Credibility low-medium low-medium high medium-high

Cost of Promotion High Medium Low Low/Medium

There is a guideline for emphasizing various aspects of promotion mix over product life cycle –

Product Life Cycle

ReferencesMarketing Management

- Philip Kotler, Kevin lane Keller,

Abraham Koshy, Mithleshwar Jha

www.businessdictionary.comwww.wikipedia.orgwww.davedolak.comwww.knowthis.com

Thank You