Amity School of Business:, II Sem Principles of Marketing Ii Ruchika Jeswal

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AMITY SCHOOL OF BUSINESS

AMITY SCHOOL OF
BUSINESS
BBA, II Sem
PRINCIPLES OF MARKETING II
Ruchika Jeswal
What is Promotion Mix?

The specific blend of promotion tools that the


company uses to persuasively communicate
customer value and build customer relationships.
It consists of a specific blend of advertising, public
relations, personal selling, sales promotion and
direct marketing tools that the company uses to
persuasively communicate customer value and
build customer relationships.
Definitions of the five major
promotion tools are as follows:
Advertising Any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor .
Sales Promotion- Short-term incentives to encourage the purchase or
sale of a product or service .
Personal Selling- Personal presentation by the firms sales force for
the purpose of making sales and building customer relationships .
Public relations- Building good relations with the companys various
publics by obtaining favorable publicity, building up a good corporate
image, and handling or heading off unfavorable rumors, stories and
events .
Direct Marketing- Direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting
customer relationships- the use of direct mail, the telephone, direct- response
television, e-mail, the internet, and other tools to communicate directly with
specific customers.
Integrated Marketing
Communications
Carefully integrating and coordinating the companys many
communications channels to deliver a clear, consistent, and compelling
message about the organization and its products.
Steps in Developing Effective 5

Marketing Communication
Identifying the Target Audience.
Determining the Communication
Objectives.
Designing a message- Message content,
Message Structure, Message Format.
Choosing Media
Selecting the message source.
Collecting Feedback.
Setting the Total Promotion 6

Budget
Four common methods used to set the
total budget for advertising:
1)The affordable method.
2) Percentage-of sales method.
3) Competitive-Parity method.
4) Objective-and- task method.
Shaping the overall Promotion 7

Mix
The concept of integrated marketing
communications suggests that the
company must blend the promotion tools
carefully into a coordinated promotion mix.
Companies within the same industry differ
greatly in their designs of promotion
mixes.
The nature of each Promotion 8

Tools.
Advertising- Advertising can reach masses
of geographically dispersed buyers at a
low cost per exposure, and it enables the
seller to repeat a message many times.
Personal Selling- It is the most effective
tool at certain stages of the buying
process, particularly in building up buyers
preference, convictions and actions.
The nature of each Promotion 9

Tools(contd)
Sales Promotion- It includes a wide assortment of tools-
coupons, contests, cents-off deals, premiums, and
others- all of which have many unique qualities.
Public Relations- It is very believable- news stories,
features, sponsorships, and events more real and
believable to readers than ads do.
Direct Marketing- It is less public. Normally directed to a
specific person. It is immediate and customized. It is
interactive. It allows a dialogue between the marketing
team and the consumer, and messages can be altered
depending on the consumers response.
Promotion Mix Strategies 10

Marketers can choose from two basic


promotion strategies:
1)Push Strategy- It involves pushing the
product through marketing channels to final
consumers.
2)Pull Strategy- The producer directs its
marketing activities towards final consumers
to induce them to buy the product.
Integrating the Promotion Mix 11

Start with customers.


Analyze trends- Internal and external.
Audit the pockets of communications spending
throughout the organization.
Team up in communications planning.
Create compatible themes, tones and quality across all
communications media.
Create performance measures that are shared by all
communications elements.
Appoint a director responsible for the companys
persuasive communications efforts.
ADVERTISING 12

Any paid form of non-personal presentation and


promotion of ideas, goods, or services by an
identified sponsor.
Four important decisions when developing an
advertisement program:
Setting advertising objectives
Setting the advertising budget
Developing advertising strategy(message decisions and media
decisions)
Evaluating advertising campaign
13

Possible advertising Objectives:


1)Informative Advertising
2)Persuasive Advertising
3)Reminder Advertising
PUBLIC RELATIONS 14

Building good relations with the companys various


publics by obtaining favorable publicity, building up a
good corporate image, and handling unfavorable stories,
rumors and events.
Functions performed:
Press relations-creating newsworthy information in the news.
Product publicity- Publicizing specific products.
Lobbying- Building and maintaining national or local community relations.
Investor relations- Maintaining relationships with shareholders and others in
the financial community.
Development- Public relations with donors or members of non-profit
organization to gain financial or volunteer support.
Major PR Tools 15

NEWS
SPEECHES
SPECIAL EVENTS
WRITTEN MATERIALS
AUDIO-VISUAL MATERIALS
CORPORATE IDENTITY MATERIALS
PUBLIC SERVICE ACTIVITIES
BUZZ MARKETING
PERSONAL SELLING 16

Personal presentation by the firms sales


force for the purpose of making sales and
build customer relationships.
Salesperson- An individual representing a
company to customers by performing one
or more of the following activities:
prospecting, communicating, selling,
servicing. Information gathering and
relationship building.
Role of sales force 17

PS is an interpersonal arm of promotion mix.


It involves interpersonal interaction between
salespeople and individual customers.
It can be more effective than advertising in more
complex situations.
They can learn more about the people and
adjust the marketing offering and presentation to
fit the needs of each customer.

SALES PROMOTION 18

It consists of short-term incentives to


encourage the purchase or sales of a
product or service.
E.g.Sunday newspaper carrying an insert
offering a coupon of Rs 20 off on
Bournvita.
Sony laptop with a free case.
Zen Estillo with a discount of Rs 30,000.
19

Sales promotion tools are used by most organizations,


including manufacturers, distributors, retailers, and not-
for-profit organizations. They may be targeted to any of
the following:
Consumer promotions: final buyers
Trade wholesalers: retailers and wholesalers
Business customers: business promotions
Sales force promotions: sales force.
Major Sales Promotion Tools 20

Consumer Promotions- Sales promotion tools used to


boost short-term customer buying and involvement or to
enhance long-term customer relationships.
Samples
Coupons
Cash refunds
Price packs
Premiums
Promotional products
Point-of-purchase promotions
Contests, sweepstakes and games
event marketing
21

Trade promotions-Sales promotion tools used to persuade resellers


to carry a brand, give it shelf space, promote it in advertising, and
push it to consumers.
Manufacturers offer an allowance, offer free goods, offer push
money, free specialty advertising items.
Business Promotions- Sales promotion tools used to generate
business leads, stimulate purchases, reward customers, and
motivate sales people.
It includes many of the same tools used for consumer or trade
promotions.
Some additional include conventions and trade shows and sales
contests.
DIRECT MARKETING 22

Connecting directly with carefully targeted


individual consumers to both obtain an
immediate response and cultivate lasting
customer relationships.
Direct Marketing is the fastest growing
form of marketing.
Forms of Direct Marketing 23

Direct mail marketing


Catalog Marketing
Telephone Marketing
Direct response Television Marketing
Kiosk Marketing
mobile phone marketing/ podcasts and
vodcasts /interactive TV(ITV)
Growth and benefits of direct 24

marketing
Benefits to Buyers:
Convenient , easy and private
Ready access to a wealth of products.
Wealth of comparative information about
companies, products, and competitors.
Interactive and immediate.
25

Benefits to sellers:
Helps building customer relationships.
Offers sellers an easy, low cost, efficient, speedy
alternative for reaching their markets.
Results in lower costs, improved efficiencies, and
speedier handling of channel and logistics functions.
Allows greater flexibility.
Gives sellers access to buyers that they could not reach
through other channels.

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