1 Objectives 1. To gain a basic understanding

1 Objectives 1. To gain a basic understanding

1 Objectives 1. To gain a basic understanding of the promotional mix. 2. To learn basic techniques for compiling a promotional mix. 3. To obtain knowledge concerning the various aspects of the promotional mix. 2

Main Menu Introduction Advertising & Public Relations Sales Promotions & Personal Selling Promotional Planning 3 4

Promotion Is any form of communication a business or organization uses to inform, persuade or remind individuals about products or services Allows businesses to improve public image Is a form of persuasive communication Can be achieved through a variety of outlets or media 5 Promotional Mix

Is the term used to describe the set of tools a business utilizes to effectively communicate the benefits of products or services to customers Is a businesss total marketing communications program Is a part of a strategic decision-making process to increase business 6 Promotional Mix Is important to businesses because:

if customers are not aware of a companys products and services, it will not survive effective communication with customers is vital to ensure businesses generate sales and profits promoting a business can be difficult 7 Promotional Mix Consists of the following tools: advertising

public relations sales promotions personal selling 8 9 Advertising Is a form of paid non-personal promotion Is used to inform, persuade or remind

customers about a specific product, company or idea Has two basic aspects: the message what a business wants to communicate the medium the method communication 10 Types of Advertising Messages Phrases meant to attract customers

come in and enjoy a try our new buy now Slogans meant to raise brand name awareness Dude, youre getting a Dell! Built Ford Tough Think Outside the Bun 11 Advertising Media

Include the following: print media newspapers, flyers, magazines, trade publications, journals, newsletters, yellow pages and direct mail broadcasting media television, radio and movie ads 12 Advertising Media

Include the following: Internet website banners, pop-ups, spam and e-mail outdoor and transit media billboards, buses, taxis, trucks, cars, subway stations and airline terminals 13 Advertising

Advantages Increases business awareness Reaches a wide audience Uses repetition and product positioning to build customer trust Entices customers visually 14 Advertising Disadvantages

Can be impersonal Is often less effective for closing the sale Can be expensive 15 Advertising Decisions Include:

budgeting how much the ad will cost frequency how often the ad will run medium which medium should be used for greatest results 16

Public Relations Is composed of the methods and activities used to establish and promote a positive relationship with the public Is used by businesses to create a favorable image or reputation in the community 17

Public Relations Enables an organization to influence a target audience Is often associated with publicity or free advertising 18 Public Relations Includes the following: sponsorships public events

press kits news releases charitable donations 19 Public Relations Advantages: is a way for a business to seem more credible since the message appears to be coming from a third party is an inexpensive way of reaching

many customers Disadvantages risks the loss of control of what is written or said by the third party 20 Examples of Public Relations A business hosts a charity picnic; the newspaper later mentions the event in an article

- creating free publicity An organization sponsors a local youth soccer league A business sends a news release to a local television network in order to recognize the hiring of a new CEO 21 22 Sales Promotions

Are the processes associated with providing incentives to customers in order to stimulate demand for a product Are used to: increase sales and immediate buying action inform potential customers about new products create a positive business image 23 Sales Promotions

Include the following: special events or activities coupons and rebates prizes and premiums games and sweepstakes product samples customer loyalty programs 24 Sales Promotions Advantages

Create quick increases in sales Serve as good short term tactical tools Increase product familiarity 25 Sales Promotions Disadvantages Can be overused

Can damage brand image with too many promotions Create high expenses for a limited return 26 Sales Promotions Examples Passing out coupons at a sporting event Holding a raffle for a shopping spree in your

store Handing out free samples of new products Giving customers ten percent off on their birthday 27 Personal Selling Is oral communication with potential buyers of a product with the intention of making a sale Focuses on developing a relationship

with a potential buyer Has the ultimate goal of closing the sale Includes direct and personal contact with a customer 28 Personal Selling Includes the following: telemarketing personal meetings door-to-door sales

trade shows 29 Personal Selling Advantages Is highly interactive Is a great way to communicate complex or detailed product information and features Allows a sales relationship to be built

30 Personal Selling Disadvantages Is costly due to the required sales force Is not suitable if there are thousands of important buyers Usually results in a high rejection rate for customer home visitations 31

Personal Selling Examples A salesmen traveling door-to-door selling magazine subscriptions A Mary Kay representative holding a party to sell products A telemarketer calling a home to persuade individuals to change phone services A business setting up a booth at a trade show and holding demonstrations

32 33 Promotional Planning Is the combination of strategies and cost-effective allocation of resources in order to create the desired promotional outcome for a business Should be tailored to suit the

individual businesss needs Will be different for each business 34 Tips for Developing a Promotional Mix Determine your target market find the segment of individuals needing or benefiting from your product or service

create surveys, quizzes and test groups to better understand the markets attitudes and behaviors 35 Target Market Example You own a womens shoe store Based on your sales history and marketing research your customers are normally women

ages 20-40 Therefore, you should use the various promotional tools to target this age group examples; advertise in a womens magazine place coupons in a Mothers Day gift bag 36 Tips for Developing a Promotional Mix

Determine your objectives decide exactly what you want to do increase sales, raise product awareness, etc. establish the response you wish to obtain from your target market visit your business, click on your website, etc. 37

Determining Objectives Example Brainstorm and create a list of your objectives Shorten the list to include only the objectives vital to your current situation Link your objectives to a specific tactic in the promotional mix 38

Tips for Developing a Promotional Mix Design your message using your objectives decide what your company wants to communicate to customers in the promotional mix a business must communicate how a product produces a positive emotion or satisfies a particular

need 39 Message Components Content is the words and images used to communicate to a target market example: car commercials which say if

you love your family you will buy our top of the line, safety oriented car 40 Message Components Format is unique to each type of promotion for example:

Internet advertising emphasizes graphics personal selling focuses on presentation 41 Tips for Developing a Promotional Mix Select your promotional methods

this is a crucial step in development if the wrong channels are chosen it can be devastating to the campaign weigh the pros and cons of each method these should reflect your target market, objectives and message 42 Promotional

Channels Example To complete this task you should weigh your options without bias Each medium should be ranked based on its advantages and disadvantages The channels best meeting your company needs should be selected 43

Selecting Promotional Channels It is important to remember, you can and will use more than one promotional channel By balancing each promotional channel you will create a successful promotional mix 44 Tips for Developing a

Promotional Mix Determine your budget promotion is normally a set portion of any companys budget around 20 percent of a companys profit is typically allocated for promotion depends on the profitability of the company as well as the success of the promotion

45 Determining Your Budget Can be completed by analyzing the rate of return on previous promotional strategies if a strategy worked well, keep it if a strategy failed, eliminate it

46 Promotional Mix Example An ice cream parlor with a promotional budget of $1,000 might create a promotional mix consisting of the following: 40 percent advertising: radio and television $400 40 percent sales promotion: free ice cream $400

20 percent public relations: sponsor youth baseball team $200 47 Tips for Developing a Promotional Mix Evaluate results use your objectives and goals to evaluate the success of your

promotional mix if a goal is not met or if the wrong channel was utilized, make changes and begin again 48 Resources (2007). Retrieved October 7, 2008, from ESmallOffice: www.esmalloffice.com (2008). Retrieved October 7, 2008, from Answers.Com: www.answers.com

Free marketing study resources. (2008). Retrieved October 7, 2008, from Tutor2U: http://www.tutor2u.net/marketing/default. html 49 Acknowledgements Production Coordinator Amy Hogan Megan OQuinn Brand Manager

Megan OQuinn Graphic Designer Melody Rowell Technical Writer Jessica Odom V.P. of Brand Management Clayton Franklin Executive Producer Gordon W. Davis, Ph.D. MMXIV

CEV Multimedia, Ltd. 50

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