exploring the promotion mix April 15, 2014 proprietary & confidential
May 22, 2015
exploring the promotion mix
April 15, 2014
proprietary & confidential
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agendaelements of the promotion mix
advertising
direct marketing
public relations
personal selling
sales promotion
promotion selection
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01elements of the promotion mix
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promotion mix• Definition: A specific combination of promotional methods
used for one product or a family of products.
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PROMOTION MIX
advertising
direct marketing
public relations
personal selling
sales promotion
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02advertising
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advertising
• any paid form of non-personal communication
• television
• radio
• print ads
• billboards
• online banners
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advertisingpros & cons
+ high degree of control
+ flexibility
+ ability to reach large audiences
+ builds awareness and demand
+ attracts new customers
- expensive
- brevity necessary
- difficult to measure
- low credibility
- low persuasion to act
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03direct marketing
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direct marketing
• creates a direct relationship (1:1) between the customer and the business
• channel-agnostic form of advertising that drives a customer to respond or act
• cell phone text messaging
• interactive consumer websites
• interactive online dialogue
• direct mail
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direct marketing pros & cons
+ personalization
+ measurability
+ relationship-building
- expensive (print)
- sheer volume
- production time
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04public relations
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public relations
• communication through placement of information in the media without paying for the time or media space directly
• managing communication between an organization and its publics
• press releases
• corporate identity and communications
• interactive publicity
• sponsorships
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public relations pros & cons
+ builds reputation
+ creates goodwill
+ drives awareness
+ high credibility
- non-personal
- sponsorships expensive
- lack of message control
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05personal selling
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personal selling
• the act of selling a product/service in return for compensation
• direct person-to-person sales
• sales outsourcing
• telemarketing
• retail
• ecommerce
• exhibits
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personal selling pros & cons
+ customer service orientation
+ objection handling
+ upselling potential
+ instant feedback
- expensive
- perception of high-pressure
- lack of control
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06sales promotion
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sales promotion
• tactical media and non-media communications employed for a limited time to increase demand
• contests/prizes
• sales/coupons/rebates
• freebies
• point of purchase displays
• samples
• experiential
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sales promotionspros & cons
+ ability to target smaller audience
+ drives customer response/conversion
+ encourage trial
+ creates goodwill
- limited scalability
- ineffective if competitors also employ
- low credibility
- short-term effectiveness
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07promotion
selection
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effectiveness of promotional tools¹
¹ - Adapted from Fill/Jamieson at Edinburgh Business School Heriot-Watt University Marketing Communications
advertisingdirect
marketingpublic relations personal selling sales promotion
ability to deliver a personal message
low high low high low
ability to reach a large audience
high medium medium low medium
level of interaction
low high low high low
credibility given by the target audience
low medium high medium medium
absolute costs high medium low high medium
cost per contact low high low high medium
wastage high low high low medium
size of investment
high medium low high medium
ability to target specific audiences
medium high low medium high
flexibility to adjust deployment in changing circumstances
medium high low medium high
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selection criteria• The degree of control required over the delivery of the
message
• The financial resources available to transmit messages
• The level of credibility that each element transfers to the organization
• The size and geographic dispersion of the target audiences
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element effectiveness within the purchase decision²
² Adapted from Fill/Jamieson at Edinburgh Business School Heriot-Watt University Marketing Communications
awareness consideration purchase0
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advertisingdirect marketingpublic relationspersonal sellingsales promotion
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Thank You!