3. Marketing Mix
Promotion
Ways that a company
may inform, persuade,
remind a target market
about their
products/services
Product
Price
Promotion
Place
Target
Market
7. Types of promotion
Above-the-line promotion
This uses mass media advertising over which a firm
has no direct control e.g. television, radio and
newspapers
Below-the-line promotion
This uses promotional media which the firm can
control e.g. direct mail, sales promotions, sponsorship
and social media
8. Promotional activities
Advertising e.g. TV, billboards and internet.
Sales promotions e.g. loyalty cards, BOGOF,
discounts & free gifts
Sponsorship – a business pays to be associated with
another firm, event or cause
Direct mailing – promotional material is sent to
potential customers by post/email
Public relations – building the relationship between
the firm and the public by enhancing its reputation
9. Promotional mix
Most businesses use a combination of different
promotional activities.
The chosen promotional mix will depend on:
Cost
Target market
Product
Competitors
10. AIDA
Promotional campaigns often take into account the
AIDA model:
Awareness - raising awareness of a product
Interest – exciting interest in the product
Desire – creating desire for the product
Action – encouraging a purchase
13. Unique Selling Proposition
Differentiates a product from
its competitors,
• lowest cost
• highest quality
• first-ever product of its
kind.
• Avis’ “We’re only number two.
We try harder” campaign.
• Domino’s “30 minutes or it’s
free” promise.
• FedEx’s “When it absolutely,
positively has to be there
overnight.”
• Southwest’s claim to be the
lowest-priced airline.
14. Advertising
Personal
Selling
Sales
Promotion
Public
Relations
Direct
Marketing
Reach Many Buyers, Repeat Message
Many Times, Impersonal, Expensive
Personal Interaction, Relationship
Building, Most Expensive Promo Tool
Wide Assortment of Tools, Rewards
Quick Response, Efforts Short-Lived
Very Believable, Dramatize a Company
or Product, Underutilized
Nonpublic, Immediate, Customized,
Interactive
Setting the Promotion Mix
16. Promotional Mix
Involves personal and non-personal
communication techniques
Is determined by three factors
Geographical nature
wide market requires mass coverage
local market use personal selling
Business’s target customers
Shotgun promotion or consumer analysis
Product’s characteristics
High priced item use personal selling
Inexpensive item use advertising
18. Promotion Mix
Advertising
Paid for impersonal presentation of an idea that is
identified with a business.
Informs, persuades, reminds customers
Conveys a consistent, enduring image that reinforces the
position of the product or company
McDonald’s “I’m Loving It”
Pepsi “The Pepsi Generation”
Print – magazines, newspapers, direct mail
Broadcast – television, radio
Display – billboards, signs, posters
Daily newspaper, weekly newspaper, telephone directory, direct
mail, radio, television, transit, outdoor, local magazine, posters
and leaflets, billboards, athletic arenas, park benches.
Product and Institutional advertising
20. Short-term inducement to encourage trial or
purchase a product or service
Aimed at consumers at the point-of-sale
In-store displays or On-package
Communication, incentive, invitation with
customers
Contests, games, gifts, coupons, sampling, rebates,
exhibits, demonstrations, trade-in, point-of-purchase
discount, free weekends, video tapes.
Offer promotions to top selling salespersons in
company or retail outlets selling the product
24. Personal Selling
“Two-way communication for the purpose of making
sales and building customer relationships.”
Face to face interaction with one or more prospective
purchasers, to make presentations, answer questions
Provides a forum for immediate exchange of needs,
goals, ideas, and feedback
Personal confrontation, relationship building, response
Sales presentations, meetings, incentive programs,
samples trade shows
25.
26. Public Relations
Programs designed to promote and/or
protect a company’s image or its individual
products.
Obtain favorable publicity, improve “corporate
image”, head off unfavorable rumors, stories,
events
High credibility, ability to catch buyers off guard,
dramatization
Press kits, speeches, seminars, charitable
donations, sponsorships, publications events,
company newsletter
27. Direct
Marketing
Using non personal
contact tools to
communicate directly
or solicit a response for
specific customers and
prospects
Nonpublic,
customized, up-to-
date, interactive
Catalogs,
mailings,
telemarketing,
electronic
shopping, fax
mail, e-mail, voice
mail
