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Advertisement and its role

 
             
     
 
       By Roopak gupta
        
rkgupta@amity.edu         

 By Roopak gupta
Promotional Mix
Learning Objectives: the Promotional Mix and
Advertising

1.Define the term promotional mix.

2. List and explain the nine elements of the


communications process.

3. Explain the relationship of the promotional


mix and the marketing mix.

4. Define the terms advertising, personal


selling, sales promotion, merchandising,
public relations and publicity.

5. Identify the factors that affect the


promotional mix.
What is promotion?
 Any form of
communication a
business or
organization uses
to inform,
persuade, or
remind people
about its products.
The Promotional Mix is a
combination of the
different types of
promotion.
Two types of promotion
 Product Promotion
– Type of promotion that a business uses
to convince potential customers to buy
products from them and not their
competitors.
 Institutional Promotion
– Type of promotion that a business uses
to create a favorable image for itself.
Four basic types of
promotion….
 Personal selling
 Advertising
 Sales promotion
 Public relations
What is the largest form of
promotion?
 Personal
Selling!
– This type of
promotion
requires
contact with
potential
buyers
Promotional mix – personal
selling
Prospecting & qualifying
Prospecting & qualifying

77steps
Pre-approach

stepsin
Pre-approach

ineffective
effectiveselling Approach
Approach

Presentation/demonstration
Presentation/demonstration
selling

Overcoming
Overcoming objections
objections

Closing
Closing

Follow-up
Follow-up
Advertising….
 Any paid form of
non-personal
presentation and
er ti s
promotion of ideas, A dv
goods, or services h e r e!
e
by an identified
sponsor.
Five M’S OF ADVERTISING
 MISSION
 MONEY
 MESSAGE
 MEDIA
 MEASUREMENT
TYPES OF ADVERTISING
 INFORMATIVE
 PERSUADE
 REMINDER
 REINFORCE
Product
Productadvertising
advertising Sells
Sellsaaparticular
particulargood
goodor
orservice
service

Initiated
Initiatedby
byretailers
retailersand
anddirected
directed
Retail
Retailadvertising
advertising at consumers via papers,
at consumers via papers,
television
television

Intended
Intendedtotopromote
promoteaafirm’s
firm’simage
image
Institutional
Institutionaladvertising
advertising rather than sell product
rather than sell product

Initiated
Initiatedby
bymanufacturers
manufacturersand and
Trade
Tradeadvertising
advertising directed to retailers and
directed to retailers and
wholesalers
wholesalers

Initiated
Initiatedby
bymanufacturers
manufacturersand
and
Industrial
Industrialadvertising
advertising directed to other manufacturers
directed to other manufacturers

Promote
Promoteview
viewto
toinfluence
influencepublic
public
Advocacy
Advocacyadvertising
advertising opinion or legislation
opinion or legislation
Promotional mix – advertising
media
Different
media and Media Strengths Weaknesses
their Newspape Good local coverage, broad Competition from other
advantages acceptance, believable features, limited selectivity
r
Television Mass coverage, high attention High cost, fleeting exposure,
with sight, sound,& motion limited audience selectivity

Radio Low cost, high geographic & Fleeting exposure, audio


demographic selectivity presentation only

Magazines Long life, quality reproduction, Long ad-purchase lead time,


high demographic selectivity lack of flexibility

Outdoor High repeat exposure, low cost, Brief exposure, limited


local market focus audience selectivity

Direct mail Very flexible, targets specific High cost, junk mail image,
audience, complete information need accurate mailing list

Yellow Low cost, excellent local Long ad-purchase lead time,


coverage, wide consumer use high other-ad competition
pages
Internet Low cost, interactive, 24-hour Easily ignored, low readership
Harcourt, Inc. items and derived
items copyright © 2001 by
Harcourt, Inc.
Sales Promotion
 All marketing
activities, other
than personal
selling, advertising,
and public relations
is called….
Promotional mix – sales promotion

Coupons
Coupons Point-
Point-
of-
of-
Samples
Samples purcha
purcha
Rebates se
se
Rebates
Premiums
Premiums Prizes
Prizes
Trade
Tradeshows
shows
conventions Price-
Price-
Sales
Sales conventions
off
off
contest
contest discou
discou
ss
Allowances nt
nt

Consumer-oriented Trade-oriented
Public Relations
 Any activity
designed to create
a favorable image
toward a business,
its products or its
policies.
Publicity
 A specific kind of public
relations that involves placing
positive and newsworthy
information about a business,
its products, or its policies in
the media is called…..
Publicity
 Advantage…
– It is free!
 Disadvantage…..
– Its contents
cannot be
controlled by
the business
Principal function of
publicity…
 Building an image
What do they do?
 Advertising
– Creates awareness of a business’s product
 Public Relations
– Creates a favorable image for the business itself
 Sales Promotion
– Efforts stimulate sales
 Personal Selling
– Builds on all of the other efforts by helping
customers complete the sale
Promotional mix –
comparison
Tool Strengths Weaknesses
Tool Strengths Weaknesses
Large
Largeaudience,
audience,lowlowcost
costperper Overall
Overallexpensive,
expensive,difficult
difficulttoto
Advertising
Advertising contact, can modify message measure effectiveness
contact, can modify message measure effectiveness
Effective
Effectivewhen
whenusing
usingtargeted Reaches
Reachesdisinterested
Direct mail
Direct mail and
targeted disinterested
andcurrent
currentmailing
mailinglist
list parties
partiesand
andconsidered
considered“junk”
“junk”
Tailored
Tailoredtotoeach
eachbuyer, Expensive
Personal
Personalselling
selling immediate buyer
buyer,
response
Expensive
immediate buyer response
Immediate
Immediatefeedback
feedbackand Often
Oftenseen
seenas
asintrusive
Telemarketing
Telemarketing immediate and intrusive
immediatebuyer
buyerresponse
response
Inexpensive,
Inexpensive,hashashigh Difficult
Difficulttotomanage
Word
Wordof
ofmouth
mouth credibility
high manage
credibility
Inexpensive,
Inexpensive,short-term
short-termsales Non-personal
Non-personalappeal
Sales promotion
Sales promotion increases
sales appeal
increases
Creates
Createspositive
positiveattitude Non-personal
Non-personalappeal,
appeal,hard
hardotot
Public
Publicrelations
relations about
attitude
product/firm measure effectiveness
about product/firm measure effectiveness
Push Policy
 Promotion policy
used only with the
next partner in the
distribution
channel.
Manufacturers
PUSH
a product to the
retailers for
sale….
Pull Policy
 Promotion policy
designed to create
consumer interest

When a
product is
consumer
driven or
PUSHED into
a store….
Push
Push
Convince
Convince
retailers
retailersand
and
wholesalers
wholesalersto to Wholesalers
market Wholesalers
marketthe
the
products
products

Retailers
Retailers

Pull
Pull
Convince
Convince
Consumers
Consumers consumers
consumersto to
ask
ask
intermediaries
intermediaries
for
forthe
the
products
products
 Thankyou so much

 Advertisement is so necessary that it


captures the human intelligence for
generating profit on and on…