Promotion & Promotion Mix

Promotion Mix

By : Ranjan Gupta MBA 3rd Sem

Promotion Mix
 A business' total marketing

communications programme is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools.

Elements of Promotion Mix
Sales Promotion

Advertising

Direct Marketing

Promotion mix

Personal Selling

Public Relation

Sales Promotion
“Sales Promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and\or greater purchase of particular products\services by consumers or the trade.” Philip Kotler

Objectives of Sales Promotion
 Building Product Awareness  Creating Interest  Protect market share in the age of

competition
 Stimulating Demand for product

Objectives of Sales Promotion(cont…)
 Generates short term cash flow

 Improve relation with dealer
 Expand the target market

 Develop favorable consumer

experience

Types of Sales Promotion
Sales Promotion
Consumer Sales Promotion Dealer Sales Promotion

Consumer Sales Promotion Sales promotion directed at the
end –user are called Consumer Sales Promotion. These are based on Pull-Strategy.  It is used for durable & nondurable goods  It may prove effecting when combined with advertising.

Major Consumer Promotion tools
 Samples
 Coupons  Cash refund offers (Rebates)

 Price Packs (cents-off deals)
 Premiums (gifts)  Prizes (contests, games)  Free Trails  Product Warranties

Trade sales promotion
 Trade promotion is to push the

product/services through marketing intermediaries.

Major Dealer/Trade Promotion Tools
 Price-off (off-invoice or off-list)  Allowance  Free Goods  Trade Shows and Conventions

 Sales Contests
 Specialty Advertising

Advertising
“Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.” Philip Kotler Any paid form of non-personal communication of ideas or products in the “prime media”: i.e. television, newspapers, magazines, billboard

Objectives of Advertising
 To Promote

 To Remind
 To Support

 To Compete
 To Persuade  To Expand the

Market

Personal Selling
 Oral communication with

potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close

Importance of Personal Selling
 Salesmanship help to create

demand for new product or new brand.  It is a useful method for understanding the need and behavior of the customer.  It helps to establish close relationship between the manufacturer and consumer.

Direct Marketing
Direct marketing is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middleman. Direct marketing has been fast growing avenue for serving customers. Direct mail, catalog marketing, telemarketing web sites etc. are the

 Direct mail marketing means sending an offer,

announcement, reminder, or other item to an individual consumer.  Catalog marketing is a Direct selling method in which merchandise from several vendors, or several items from the same vendor, are presented to prospective buyers via mail or internet.

 Telemarketing (sometimes known as inside

sales, or telesales in the UK and Ireland) is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.

Public Relations
 A Public is any group that has an actual

or potential interest in or impact on a company’s ability to achieve its objectives.  Public relations includes a variety of programs to promote or protect a company’s image or individuals products.

Advantages & Disadvantages
Mix Element Advantages Good for building awareness Effective at reaching a wide audience Disadvantages Impersonal - cannot answer all a customer's questions

Advertising

Not good at getting customers Repetition of main brand and to make a final purchasing product positioning helps build decision customer trust Highly interactive - lots of communication between the buyer and seller

Personal Selling

Excellent for communicating complex / detailed product information and features Relationships can be built up important if closing the sale make take a long time

Costly - employing a sales force has many hidden costs in addition to wages Not suitable if there are thousands of important buyers

Advantages & Disadvantages(cont…..)
Can stimulate quick increases If used over the long-term, in sales by targeting customers may get used to promotional incentives on the effect particular products Too much promotion may Good short term tactical tool damage the brand image

Sales Promotion

Often seen as more "credible" - Risk of losing control - cannot since the message seems to be always control what other coming from a third party (e.g. people write or say about your magazine, newspaper) product Public Relations Cheap way of reaching many customers - if the publicity is achieved through the right media

Barriers
 Source Effect
 Multiple Transmission

 Decoding Errors
 Communication Noise  Inadequate Feedback

Risks
 Might decrease long-run brand

loyalty  More expensive than they appear  Costs of special production runs, extra sales-force effort, and handling requirements.  Certain promotion irritate retailers

References Marketing Management -P. Kotler -K. L. Keller -A. Koshy -M. Jha Marketing Management -Kothari -Mehta -Sharma www.google.com