In promotional activities, the firm gets its chance to communicate with potential customers, “To beat the drum” about its product. We will discuss every aspect of this “P” of Marketing Mix in detail one by one: Meaning and Importance The Communication Process Determination of Promotional Mix Determination of total promotional Appropriation The Campaign Concept

1. PRESENTATION
Prepared by:
MIAN NIRWAN FAROOQI

2. In promotional activities, the firm gets its chance to
communicate with potential customers, “To beat the drum”
about its product.
We will discuss every aspect of this “P” of Marketing Mix in
detail one by one:
 Meaning and Importance
 The Communication Process
 Determination of Promotional Mix
 Determination of total promotional Appropriation
 The Campaign Concept

3. (1) FUNDS AVAILABLE
 Real determinant of the Mix
 More financial resources = More effective advertising
 Advertising is more effective then door to door personal
sales
 Lack of funds in a company forces company to rely on
Personal selling

4. Four factors should keep in mind while designing
promotional mix.
• The amount of money available for promotion
• The nature of Market
• The nature of Product
• The stage of the Product’s Life Cycle

5. (2) NATURE OF MARKET
 Geographic scope of market: Small local market, town …
 Type of customer: Household or Industrial
 Concentration of market: Total number of potential buyers

6. (3) NATURE OF PRODUCT
 Consumer products or Industrial Goods
 Product type: convenience, shopping or special item
 Convenience products heavily rely on advertising
 Industrial supplies need personal selling and demonstration
 Presale and post sale service may be needed
 Make strategies according to product type you sell

7. (4) STAGE OF PRODUCT’S LIFE CYCLE
Promotional strategies for a product are influenced by the
stage of life cycle that a product is in at any given time.
 Introductory Stage
 Growth Stage
 Maturity Stage
 Sales Decline Stage

8. There are four basic methods of determining the suitable
appropriations for promotion.
1) Relation to Income
2) Task or Objective
3) Use of all Available Funds
4) Follow Competition

9. (1) INCOME OF THE COMPANY
 The expenditures may be set as a percentage of past or
anticipated sales.
 Some businesses prefer to budget fixed amount of money
 It reduces promotional expenditures when sales are
declining
 This is just when promotion is most needed

10. (2) TASK OR OBJECTIVE
 Set your objective or task to be accomplish by promotional
program, then estimate its COST.
 The Task method forces management to define realistically
of its promotional programs
 This approach is also called Buildup method because the
way it operates
 The promotional appropriation is built up by adding
individual to all promotional tasks needed to reach the goal
of whole program

11. (3) USE ALL AVAILABLE FUNDS
 I A new company frequently plow all available funds into its
promotional program.
 The objective here is to build large sales for the first five
years 1-5
 Later on, management expects to earn profit and be able to
budget for promotion in a different manner.

12. (4) FOLLOW COMPETITION
 This is a weak method for determining the promotional
appropriation
 The company matches promotional expenditures with its
competitors
 It is possible that a company’s rival may be as much in dark
that how to set a promotional budget
 One company’s promotional goals and strategies may be
quite different from its competitors because of differences
in firm’s strategic marketing planning

13. Definition:
A campaign is a coordinate series of
promotional efforts built around a single theme and
designed to reach a predetermined goal.
In short, a campaign is an exercise in strategic planning.
For promotional campaign to be successful, the efforts of
the participating groups must be coordinated effectively.
 The Advertising program will consist of a series of related,
well timed, carefully placed ads that REINFORCE the
personal selling and sales promotion efforts.

15.  The Personal selling effort will be coordinated with the
advertising program.
 The Sales promotional devices, such as point-of-purchase
display materials, will be coordinated with the other
aspects of the campaign
 Physical distribution management will ensure that adequate
stocks of the product are available in all outlets prior to the
start of the campaign.