1. ADVERTISING & PROMOTION
(HNC/HND Unit 18)
HO 5 (Part 1)

2. Tools Of The Promotional Mix:
Personal Selling, Sales Promotion,
Packaging & Merchandising
(Part 1)

3. Tools of The Promotional Mix
“Promotional Mix”
Promotional mix is the particular combination
of promotion methods (tools) that a firm uses
in its promotion campaign to reach at
target market

4. Methods of Promotion Mix
There are five forms of promotion:
• Personal Selling
• Sales Promotion
• Public Relations & Publicity
• Direct Marketing
• Advertising

5. Person-to-person
communication in which a seller
Personal Selling
informs and educates
prospective customers and
attempts to influence their
purchase choices
• Most effective tool for building
buyers’ preferences, convictions,
and actions
• Personal interaction allows for
feedback and adjustments
• Relationship-oriented
• Buyers are more attentive
• Sales force represents a long-term
commitment
• Most expensive of the
promotional tools

6. Types of Salespeople
• Personal Selling Tasks:
– Order-getter
– Order-taker
– Supporting

7. The Selling Environment
• Three Selling Environments:
– Telemarketing:
→Inbound
→Outbound
– Over-the-Counter Selling
– Field Selling
(Source: Hoffman et al)

8. The Selling Environment (2)
• Over-the-Counter Selling:
– Usually conducted in retail outlets
– Order taker- is a salesperson who only processes the purchase that
the customer has already selected
– Order getter- is a salesperson who seeks to actively provide
information to prospects, persuade prospective customers, and close
the sales
• Suggestion selling- occurs when the salesperson points out
available complementary items in line with the selected item(s), in
order to encourage an additional purchase
(Source: Hoffman et al)

9. The Selling Environment (3)
• Field Selling:
– Involves calling on prospective customers in either their business or
home locations (be order takers or order getters)
– Professional Salespeople
– National Account Managers-highly skilled salespersons who call on
key customers’ headquarters sites, develop strategic plans for the
accounts, make formal presentations to top-level executives, and
assist with all the product decisions at that level
– Missionary Salespeople- they do not seek to obtain a direct order
from their customers, their primary goal is to persuade customers to
place orders with distributors or wholesalers
(Source: Hoffman et al)
– Support Salespeople- help the order-oriented salespeople-but they
don’t try to get orders themselves
(Source: Perreault and McCarthy)

10. Sales promotion

11. Sales Promotion
• The Institute of Sales
Promotion (ISP) defines
sales promotion as “ a
range of tactical
marketing techniques,
designed within a
strategic marketing
framework, to add value
to a product or service, in
order to achieve a specific
sales and marketing
objective”.

12. Principles & Approaches
• Sales promotions can be targeted at resellers,
consumers and sales forces
• Sales promotions can add value and also
increase value so as to accelerate the sales
process
• Growth: Short-termism, accountability, brand
performance, brand expansion and
competition for shelve space

13. Principles & Approaches (2)
• Loyalty schemes aims to increase customer
retention levels but there are a number of
different types and/or levels of loyalty
• Used appropriately sales promotion can have
a strategic roles in the overall marketing
communications plan

14. Objectives of Sales Promotions
• Facilitate the introduction of new products
• Obtain trial purchases
• Stimulate sales force enthusiasm
• Invigorate sales of a mature brand
• Increase on- and off-shelf merchandising space
• Neutralizing competitive advertising
• Encouraging repeat purchases
• Increase brand usage by loading consumers
• Preempting competition by leading consumers
• Reinforcing advertising

15. Objectives of Consumer Promotions
• Trial impact: Inducing nonusers to try a
brand or encouraging retrial
• Franchise holding/loading: Rewarding
current users for continuing to purchase
the promoted brand
• Image reinforcement: Involves the careful
selection of the right premium object, or
appropriate sweepstakes prize, to reinforce
a brand’s desired image

16. Objectives of Trade Promotions
• Introduce new or revised products
• Increase distribution
• Build retail inventories
• Maintain shelf space
• Obtain display space
• Reduce excess inventory
• Induce cooperative advertising
• Counter competition
• Sell more to final consumers

17. Trade Promotions
• Off-invoice allowance: The most
frequently used
• Bill-back allowance: Retailers receive
allowances for featuring the
manufacturer’s brand in advertisement
or for providing special displaying
• Slotting allowance : The manufacturer is
asked to pay the up-front fee for shelf
space
• Everyday low pricing (EDLP): no deal is
offered

18. Methods & Techniques
The techniques and methods are considered
by given types of audience and possible goals
that might be in place.
• Objectives – Increase usage by current
customers or encourage non-users to
experiment particularly in low involvement
situations

19. Methods & Techniques (2)
• Methods – There are a wide variety of
techniques and the decision to use any of
them should be based on specific
circumstances. By integrating its use with
other promotional tools, the impact and
effectiveness can be considerably improved

20. Methods & Techniques (3)
• Benefits – On sales, profitability, customer’s
perceptions, the competition and other tools
in the promotion mix need to be carefully
determined prior to any campaign. In addition
to this, sales promotions can be used to
develop customer databases for use in direct
marketing activities.

21. Sales Promotion Activities:
• Consumer:
→ Sampling → Branded packs
→ Couponing → Contests
→ Premiums → Cause related
→ Money off → Merchandising
→ Bonus packs → Point-of-sale
→ Loyalty schemes → Information

22. Sales Promotion Activities (2):
• Trade:
→ Consumer promotions
→ Allowances
→ Contests and incentives
→ Point-of-sale material and merchandising
→ Sampling
→ Gifts and free merchandising
→ Information

23. Packaging & Merchandising
• Packaging is a marketing tool that combines
graphic design with marketing concepts to create an
identity for the brand. An ideal package is one which
brings to the customer’s mind the essence of what
the brand is all about whenever and wherever it is
seen. It can be effectively used to influence customer
choice at the point-of-sale in terms of reducing the
uncertainty and risk inherent in product choice and it
acts as a tangible reminder at the point-of-sale.

24. Benefits of Packaging:
• A communication tool to express brand values
• Aesthetically pleasing
• Strong visual impact
• A living expression of what the brand represents
• Adds value from customer’s perspective
• A reminder
• Provides cues to express loyalty
• Creates an emotional link with the target audience

25. Packaging Features:
• Colour: – powerful emotional signals, symbolic e.g. Cadbury’s
purple is associated with luxury
• Typography: – communicates the product image
• Logo: - signifies the brand’s individuality and unique image,
e.g. Coca-cola
• Type/material: - recyclable, biodegradable, e.g. boxes,
cartons, cans etc.
• Shape & structure: - used to attract attention, e.g. Jif’s yellow
lemon
• Label or mark: - Varies with types and materials of packaging,
can be printed on the package or other materials
• Size: - encourage product usage, e.g. economy size pack

26. Merchandising:
• Merchandising can defined as the range of sales
promotions activities intended to ensure that
products are easily available, and prominently and
attractively displayed at point-of-sale. It is also used
to describe the activity of making promotional
products available, such as those associated with
new film releases (Star Wars, The Lion King, Harry
Porter), e.g. calendars, figurines, novelty items etc….