Promotional Mix

Elements of Promotional Mix

Personal Selling Advertising Sales Promotion Publicity Public Relation

Factors Influencing Promotional Mix

Funds Available Nature of the market - Geographic scope of the market - Type of customers - Concentration of the market Nature of the product Stage of the products life cycle

1. Personal Selling
the oldest and most important promotion The only sale promotion that can encourage and make immediate, on-the-spot use of response from buyer.

Classification of Personal Selling Jobs

Across-the-counter selling or in store selling is employed by retailers store. House-to-house selling or out-door selling Salesmen employed by wholesalers to call upon retailers. Salesmen employed by manufacturers to call upon other manufacturers, wholesalers and retailers.

Basic Principle of Personal Selling

Adequate preparation knowledge require to ensure satisfactory results from selling efforts. Finding buyers secure and develop new customers Building goodwill after sale sale should be mutually satisfying for both buyer and seller.

Steps in Personal Selling

Presale preparation Prospecting of looking for potential buyers Preapproach to prospects Sales Presentation A.I.D.A (attention, interest, desire, action) Post-sale activities

2. Types of Advertising
1. Product advertising is aimed at informing and stimulating market demand for and advertised product brand. a. Direct- action advertising b. Indirect-action advertising Institutional advertising present information about the advertisers business or to create a goodwill a. Patronage advertising b. Public service advertising

2. Primary and Selective demand Primary demand advertising stimulate

demand of the products a. Pioneering Advertising used when product introductory stage.

Selective demand advertising is a competitive

advertising a. Comparative advertising 3. Cooperative advertising a. Vertical cooperative advertising b. Horizontal cooperative advertising

Code of Ethics of the Philippines Association of National Advertisers

1. Good advertising recognizes both economic and social
2.

3.
4. 5.

responsibility to help reduce distribution costs and serve public interest. Good advertising depends its success on public confidence. Good advertising aims and inform the consumer and help him buy intelligently. Good advertising tells the truth. Good advertising conforms not only the laws but also generally accepted standards of good taste an decency and to the moral sentiments of the country.

6. Good advertising seeks public acceptance on the basis of positive and constructive statements made on the merits of the product or serviced advertised. 7. Good advertising does not allow any activity which involves the exploitation of goodwill attached to any other firm, product and service. 8. Good advertising helps to dignify individual and contributes to the building of a civilized society.

Classification of Advertising
1. According to source or origin a. Advertisements for manufacturers. b. Advertisements by resellers. c. Advertisements by service business. d. Advertisements by organization and institutions. f. Advertisements by individuals.

2. According to media used. a. Print media b. Broadcast media c. Outdoor advertising d. Transit advertising e. Field advertising f. Movie advertising g. Direct advertising

3. According to objectives a. promotional advertising b. institutional advertising

4. According to action desired a. direct or immediate action advertising b. indirect action advertising

5. According to audience targeted a. Consumer advertising b. Industrial advertising c. Trade advertising d. Professional advertising

Stages in the Advertising Cycle

1. Introductory advertising the stage where product, service, idea or institution is publicity launched. 2. Competitive advertising this aims to encourage consumers to prefer the advertisers product or service against competitors product.

3. Retentive advertising this stage attempts to develop consumer loyalty by reminding the public or service through repetitive advertisement.

3. Sales Promotion
Objectives of Sales Promotion 1. To motivate consumers to try new product or an improve model of an established product. 2. To attract new customers. 3. To encourage present customers to use the product or service more frequently. 4. To beat competitors promotional activity.

5. To increase the amount of impulse buying by consumers. 6. To get greater cooperation from retailers.

Sales Promotion Planning

1. The goal of sale promotion 2. Allocation of resources a. The procedure for recording and administering expenditures. b. The budget alloyed to be spent on sales promotion devices.

3. Evaluation of sales promotion - steps in evaluating sales promotion > to restate the specific sales promotion goals > evaluation of the sales promotion itselfby sales volume level; brand share, shipments from plants and factories > actual evaluation process 4. Relationship of sales promotion to other marketing function.

Sales Promotional Devices

Two main forms: 1. Directed to ultimate consumers 2. Directed to trades Two Objectives: 1. Used during the introductory stage of the product 2. and those intended to increase use of product.

Introductory Sales Promotion Devices for Consumers

1. Sample sampling is the actual offering of free product trial to a consumers. Kinds of Samples a. Mail- delivered samples b. Door-to-door samples > Ring-and-leave method > Ring-and-hand-in method

c. In-store samples dissemination of samples by a demonstrator for trial within stores. d. On package samples A sample is attached to or inserted in product package. e. Isolated group samples samples are delivered to identifiable and isolatable groups 2. Coupons is a certificate that, when presented to redemption at a retail store, entitles the bearer to a stated saving on the purchase of a specific product.

Factors in Designing Coupons

a. Nature of the offer must be clearly stated on the face of the coupons. This refers to the brand involved, money value of the coupon, size of the product, place and means of redemption. b. Coupon must conform to standards that make it easy for the retailer to handle it. It must have an expiration date; name of the issuer is necessary, and does not necessarily require the redeemers signature.

Methods of Distributing Coupons

a. Direct-mail couponing. This provides maximum unduplicated coverage of households. a. Printed publication couponing. Newspaper and magazines are used, where distribution cost is low. a. In- package couponing the coupon in this method in inserted in package or printed on the label.

Sales Promotion Devices to Increase the Use of an Established Product

1. Price-off promotion Advantages of the Price-off Promotion a. It is a strong trial- gaining device b. It is often purchased in greater quantities by the distributors . c. Often earn preferred and special display location stores

d. Price off promotion can help decrease a lag in sales of a particular size of a product. e. It is highly controllable in terms of the amount of discount. 2. Premiums a premium is an item or merchandise that is offered at cost at relatively low cost as a bonus to purchaser of a particular product.

Kinds of Premiums
a. In- pack premiums are launched are included with the product when purchased. b. Free in the mail premiums are send thru mails to consumers who send in a business reply card. c. Self liquidating premiums cost of promotion and cost of premium itself, packaging and handling costs are recovered by the promoter.

3. Consumers contests and sweepstakes In contest a is a sale promotion devise in which the participants complete for a prize or prizes on the basis of the skill in fulfilling a certain requirements. In sweepstakes, the participants submit their names, address and signature, to have them included in drawing of prize winners.

Objectives of Contest and Sweepstakes

1. They create high level of consumer involvement in the advertising of a product. 2. They can be developed to encourage action at the retail level. 3. They add interest and excitement to a lagging product of advertising theme.