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PROMOTIONAL MIX

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PREPARED BY:
v

Arnab Chatterjee. vPraveen Naraynan. vSphoorthy Bagalwadi. vManik Mondal.


4/14/12
v

Varun K Nair

Promotional Mix
A business' total marketing communications program is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools. A successful product or service means nothing unless the benefit of such a service can be communicated 4/14/12

Promotional Mix

An organizations promotional mix strategy can consist of:


Advertising. Public relations. Sales promotion

Personal selling Direct Mail Internet Marketing

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Advertising

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Any paid form of non-personal communication of ideas or products in the "prime media": i.e. television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is intended to persuade and to inform. The two basic aspects of advertising are:
The message.

Advertising: A Communication Tool

Production: The advertiser and social context determine ad content. Reception: The context of ad reception and the audiences understanding of an ad result in a meaningful interpretation of the ad Accommodation and negotiation: The

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Audience For Advertising:


Professionals Household Government Consumers Business The Trade OrganizationsChannel

Audience Geography:

Global advertising International advertising

National advertising

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Local Regional advertising

Role Of Advertising:

Information and persuasion Introduction of new brands and extensions Building and maintaining brand loyalty / brand equity Creating an image/meaning Building brand loyalty in the trade channel

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Advertising By Nike

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Advertising Strategy:

Designed to make a connection to the consumer Seldom pitch the product directly or talk about product attributes Sometimes dont even mention the companys name featuring instead only the swoosh logo Making new contracts with sportsmen Collaboration ads with another strong 4/14/12

Advertising Strategy:

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Personnel Selling
Personal selling is oral communication with potential buyers of a product with the intention of making a sale. Personal selling mainly focuses on developing a relationship with the potential buyer. Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). Personnel Selling involves selling through a person-toperson communication process. In an Integrated Marketing 4/14/12 Communications program, personnel selling is a partner

Personnel Selling
Personnel Selling differs from other forms of communication , where in the messages flow from a sender to a receiver directly, usually face to face. The direct and interpersonal communication lets the sender immediately receive and evaluate feedback from the receiver. This communication process is known as Dyadic Communication, allows for more specific tailoring of message and more personnel communications than any other media. In Personnel Selling, the message can be 4/14/12 changed to address the specific needs and wants

Examples of Personnel Selling:


The following are the examples of Personnel Selling:
1. Retail Marketing 2. Tele Marketing 3. Jewellery Stores 4. Luxury Cars Showroom. 5. Insurance Sellers.
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Role of Personnel Selling


To determine the role of Personnel Selling, four key points must be considered. 1. Determining the information to be exchanged: In view of the objectives of the management, the sales person may have a variety of messages to communicate, such as creating awareness of the product or service offered, demonstrating product benefits for evaluation, initiating a trial, and/or closing the sale. 2. Examining Promotional Mix Alternatives: Every promotional tool used by the management must be considered while developing a promotional mix. Personnel Selling is an alternative that offers distinct advantages in 4/14/12 some situations but is less appropriate in other situations.

Role of Personnel Selling (Contd.,)


3. Evaluating the Relative Effectiveness of Alternatives: The effectiveness of each program element must be evaluated based on the target market and the objectives sought. Personnel Selling is effective in many situations, but other program elements may be more attractive in many cases. 4. Determining Cost-Effectiveness: One of the major disadvantages of personnel selling is the cost involved. The cost of a personnel call 4/14/12 may not be prohibitive in industrial settings

Stages in the Evolution Of Personnel Selling


There are five stages in the evolution of personnel selling: 1. PROVIDER STAGE: In this stage, selling activities are limited to accepting orders for the suppliers available offering and conveying it to the buyer. Example: Retail Salesclerk 2. PERSUADER STAGE: In this stage, selling involves an attempt to persuade market members to buy the suppliers offerings. Example: Telemarketers for a new product, a new insurance or a new automobile. 3. PROSPECTOR STAGE: In this stage, activities include seeking out selected buyers who are perceived to have a need for the offerings as well as the resources and authority to buy it.
4/14/12 Example: Car Insurance calling on new car buyers.

Process of Personnel Selling


FOLLOWING UP CLOSING THE SALE HANDLING OBJECTIONS MAKING THE SALES PRESENTATION APPROACHING THE PROSPECT
Pre approach: QUALIFYING PROSPECTS

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PROSPECTING: IDENTIFYING POTENTIAL

Advantages and Disadvantages of Personnel Selling


Advantages: 1. Allows for two-way interaction. 2. Enables tailoring of the message. 3. Since it is a one-to-one selling, there are less distractions. 4. The seller becomes a partner in the decision process of the buyer. 5. The sales force becomes a source of information, by getting the information about the competitor brands and the specific needs and 4/14/12

Advantages and Disadvantages of Personnel Disadvantages: Selling


1. Though the marketing staff decides the message to be conveyed, the sales person may alter it to the needs of the receiver, causing a lack of inconsistency in the messages. 2. In the best of the best companies, there are conflicts between the sales force and the marketing staff. 3. The cost involved in making the calls is also very high. 4. Personnel Selling cannot reach as many target audience as other elements of promotion. 4/14/12

Interactive/Internet Marketing
Interactive media allows for a back and forth flow of information, whereby users can participate in and modify the form and content of the information they receive in real time. Interactive media allows user to perform a variety of functions such as receive and alter information and images, make enquiries, respond to questions and make purchases. The interactive medium that is having the greatest impact on marketing is the Internet. The Internet is changing the ways companies design and implement their business and marketing strategies. The Internet is a multi faceted promotional tool. 4/14/12

Interactive/Internet Marketing
Advantages: The interactive nature of the internet is one of its major advantages. It enables marketers to gather valuable personnel information from customers and prospects and to adjust the offer accordingly. It allows a two-way communication. It offers the capability to more closely and precisely measure the effects of advertising and other types of promotion. 4/14/12

Direct Mail

Direct mail is a way of advertising in which advertisers mail printed ads, letters or other solicitations to large groups of consumers. Direct mail use to advertise new products or to distribute coupons. Direct mail is a type of advertising medium in which messages are sent to target customers through the mail. Direct mail often use the terms "direct 4/14/12

Types of Direct Mail

PRINT MEDIA

BROADCASTING MEDIA

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Types of Direct Mail

Print media messages are delivered through the printed word, usually in newspapers or magazines.

Broadcast media messages are delivered through the airwaves, on television or radio. In direct mail, advertising and other types of messages are delivered through the 4/14/12

Direct Mail

Advantages

Selective, flexible, little waste, lends itself to testing, uses many formats Direct mail is expensive

Disadvantages

May cost 15 to 20 times more to reach a person with a direct mail piece than with a TV commercial

Mail lists can be plagued with bad addresses Mail delivery dates can be unpredictable

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Direct Mail

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Company: American Express

American Express is a global services company, providing access to products, insights and experiences that enrich lives and build business success. American Express Global Mail Solutions offers Global Mail Disaster Recovery Solutions to ensure continuity of service through a Business Continuation partnership with 4/14/12

Company: American Express


How it works:

First, it help you define your target audience with a customer analysis of your top AmericanExpress customers. Then, you can use that knowledge to target potential customers through Direct Mail or Search Engine Marketing. 4/14/12

Steps to a Direct-Mail used by American Express


The Strategy The List The Creative The Offer Features vs. Benefits Ask for the Sale The Follow-Up 4/14/12 Remain Visible

Service Description
Delivery Assurance Flexibility Get your mail out quicker and more cost effectively. Security Expertise
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1. 2. 3.

4. 5.

Sales Promotion

Where advertising gives a reason to buy, Sales Promotion gives an incentive to buy. Internal reasons:
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Top management is more conducive to spending on promotions Line managers under greater pressure to achieve targets Justification of expenditure is easy

Sales Promotion
External reasons:
v v v

Increase in number of brands Consumer is more price savvy Greater pressure from trade to liquidate stocks Add effectiveness declining owing to rising costs, media clutter and legal constraints

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Sales Promotion is a push strategy


Since it is at the last point where the consumer is often at the point of buying, the additional incentive makes a last ditch effort to convert the customer on to the incentivized brand Sales Promotion is of two types: Trade Consumer
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Classifying Types of Sales Promotion


Promotional pricing Non-price promotions Sampling

Price reductions Free goods Tied offers Money off next purchase Loss leader pricing Cheap credit

Contests Free gifts Self-supporting offers Multi-brand promos s Guarantees and added services

Most effective in the early stages of a new product launch (use for coupons) Important for food products Very expensive

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Major consumer promotion tools


Free samples:- company provides samples of the product by mail, by retail store, attached in magazines. e.g.: Clinic plus used to give samples of it shampoo to big bazaar attached with times of India. Coupons:- company provide coupons to its customers inside the pack of the product.

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Major consumer promotion tools


Discounts:- Companies provide discounts offers to their customers when they buy the product, e.g.: Globus provide 50% off on its product. Combo offer :- Combo pack is two related products branded together.e.g.: Colgate offers toothbrush free with toothpaste 4/14/12

Major trade promotion tools


Free goods:- Offers of extra cases of merchandise to intermediaries certain quantity or who feature a certain flavor or size e.g.: Nestle clairs offer free goods offers to retailers. Push money:- An extra commission paid to retailers to push the products. 4/14/12 e.g.: Nokia provide their retailers

Major trade promotion tools


Price Off:- A straight discount off the list price on case purchased on limited time period. e.g.: Nokia offers their retailers price off facility. Allowance :- An amount offered in return for the retailers agreeing to feature manufactures products. An advertising allowance & display allowance 4/14/12 compensates retailers for advertising

Public Relations
PR involves a variety of programs designed to promote or protect a companys image or its individual products. v PR is usually unsponsored and unpaid. It acts synergistically along with advertising. v It can be a very important component of the entire 4/14/12
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Functions of PR

Promoting goodwill Promoting product, service, corporate image Corporate communications Lobbying Counteracting negative publicity
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Advantages of PR

Very credible and inexpensive PR can hold down promotion costs

Disadvantages of PR
Difficult to quantify PR benefits Lack of control Deft management required

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Uses of PR
Customer complaints and redressal It is an opportunity to cement relations with the customer Very important in the service and hospitality industry Combating rumors / falsehoods Confront and disclose facts in leading media Give the positive side of the story Capitalize on rumors to your benefit 4/14/12

PR strategies used by Vodafone


Advertisement: Vodafone believes in advertising through media like television and press as people retain those things that they view visually. Heavy amounts of money is spent on visual advertisements. Corporate Advertising: 4/14/12 Vodafone also undertakes corporate

PR strategies used by Vodafone


Hoardings: Vodafone uses hoardings also in order to promote their company and the new services or tariffs plans that they are coming up with. This strategy helps in making their target audience aware of their upcoming plans. Press Releases: They believe Press Releases help in order to 4/14/12 maintain very good relations with the

PR strategies used by Vodafone


Press Conference: Vodafone uses press conferences as a very powerful tool in handling the media and seeking consumer attention. They hold press conferences at the launch of new services or products of any kind. They also hold press conferences when they are getting into a business deal for some company. They also hold press conferences 4/14/12 for announcing half-yearly results or

PR strategies used by Vodafone


Media Interviews: Vodafone undertakes media interviews with proper planning. It is sometimes initiated by media while most of the time it is by Vodafone. It is handled very carefully specially during crisis or when a new service is launched and is this used as a very good platform for promotion, building image and even control crisis. 4/14/12

PR strategies used by Vodafone


Social Activities: The Vodafone Group Foundation is committed to providing assistance in the area of disaster response. Its main aim is to develop partnerships which enhance long term disaster response and preparedness activity, working with organizations such as the United Nations Foundation, Oxfam and MapAction. It also seeks wherever possible to 4/14/12 a direct contribution in response to make

PR strategies used by Vodafone


Sponsorships: Vodafone sponsors many events. Some of them are: UEFA Champions League. England Cricket Team. Vodafone McLaren Mercedes.

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