...Promotion is one of the market mix elements, and a term used frequently in marketing. The specification of five promotional mix or promotional plan. These elements are personal selling, advertising, sales promotion, direct marketing, and publicity.[1] A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of acorporate image. Fundamentally, however there are three basic objectives of promotion. These are:[2] 1. To present information to consumers as well as others. 2. To increase demand. 3. To differentiate a product. There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product. The term "promotion" is usually an "in" expression used internally by the marketing company, but not normally to the public or the market - phrases like "special offer" are more common. An example of a fully integrated, long-term, large-scale promotion are My Coke Rewards and Pepsi Stuff. The UK version of My Coke Rewards is Coke Zone. Promotion is an important...
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...1. What are the different forms of promotion available to a marketing manager? Under what conditions are each most appropriate? A marketing manager has several options to communication information about a product to others in the distribution channel, including the final user. Personal selling is one option where, designated sales people, either from the producer or intermediaries, directly communicate with customers. This type of promotion is more labor intensive and therefore more costly than others, so its use is not generally extensive. Personally selling is used when “pushing” a product through the distribution channel, particularly when the product is luxury, expensive, or high-end. Some services like financial services and wealth management are handled mainly through one-on-one personal selling, and most B2B products and services are promoted through personal selling. When a product is in the introductory phase of its lifecycle, personal selling is often used more than in later stages of the lifecycle. Mass selling is another option. It includes all forms of paid, non-personal communication including advertising in all media formats. Mass selling is typically aimed at a very wide, non-specific target audience, with the aim of getting information to as many people as possible, as inexpensively as possible. Mass selling of some degree is necessary in nearly all types of promotion efforts. It is used when products are both being “pushed” and “pulled” in the...
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...THE PROMOTIONAL MIX A company’s total promotion mix also called its marketing communications mix; consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationships. THE FIVE MAJOR PROMOTION TOOLS The Nature of each Promotion Tool ADVERTISING Each promotion tool has unique characteristics and costs. Marketers must understand these characteristics in shaping the promotion mix. Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. For example, advertising includes broadcast, print, Internet, mobile, outdoor, and other forms. Advertising Objectives The first step is to set advertising objectives. These objectives should be based on past decisions about the target market, positioning and marketing mix, which define the job that advertising must do in the total marketing program. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purpose – whether the aim is to inform, persuade or remind. Informative advertising – this advertising is used to inform consumer about a new product or feature or to build primary demand. Persuasive advertising – this type of advertising is used to build...
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...Sales Promotion Schemes Project Report MBA One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don't know which half." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found. How do companies decide on their promotion budget? There are mainly four methods of sales promotion :• Affordable Method :Many companies set the promotion budget at what they think the company can afford. One executive explained this method as follows : "Why, it’s simple. First I go upstairs to the controller and how much they can afford to give us this year. He says a million and half. Later, the boss comes to me and asks how much we should spend and I say ‘Oh about a million and half."It is a method which is uncertain one and makes long term planning difficult.• Percentage of Sales Method :Many companies set their promotion expenditures at a specified percentage of sales. Accordingly the sales is set on the basis of sales. | Advertising Effectiveness Project ReportInternal Customer Satisfaction Project Report | In this a specified sales percentage is decided for the promotional budget...
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...Marketing Promotion Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.[ Above the line (ATL), Below the line (BTL), and Through the Line (TTL), in organizational business and marketing communications, are advertising techniques. In a nutshell, while ATL promotions are tailored for a mass audience, BTL promotions are targeted at individuals according to their needs or preferences. While ATL promotions can establish brand identity, BTL can actually lead to a sale. ATL promotions are also d ifficult to measure well, while BTL promotions are highly measurable, giving marketers valuable insights into their return-on-investment. BTL sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in kind, and having short duration. It is efficient and cost-effective for targeting a limited and specific group. It uses less conventional methods than the usual ATL channels of advertising, typically focusing on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. BTL services may include those for which a fee is agreed upon and charged up front. \ Marketing promotion Promotional Mix Promotional Mix : Using several different types of communication to support marketing...
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...PRODUCT PROMOTION Is the act of advertising a good or services with the short/long term goal of increasing sales. FOUR FACTORS WHICH MARKETING DECISIONS MAKING WITH REGARD TO PROMOTION: 1.) THE PROMOTION BUDGET AVAILABLE The amount of money available for promotion is the real determinant of the mix. BIG companies can make greater and more effective use of advertising than firms with limited resources. Small businesses rely on personal selling dealer displays. 2.) THE NATURE OF THE MARKET The influence of the nature of a company’s market is affected by the Geographic scope of the market, its concentration and type of customers and nature of competition. 3.) THE NATURE OF THE PRODUCT Consumer product and industrial goods frequently require different strategies. For instance, firms marketing convenience goods will rely heavily on manufacturer’s advertising, plus emphasis on dealers display. Personal selling plays a minor role, for industrial Goods such as machinery. 4.) THE STAGE OF THE PRODUCT PROMOTION’S LIFE CYCLE AND THE TARGET PROMOTION PRODUCT LIFE CYCLE (CPLC) – the course of a product’s sales and profit over its lifetime. Every product seem to go to PLC –it is born, goes through several phrases, and eventually dies as younger products come along that better suit and serve the consumer needs. METHODS USED TO PROMOTE A PRODUCT: A. ADVERTISING Is a tool that is available for everyone to use. Presentation and promotion ideas, goods, or services...
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.../ Marketer – meaning 2. Marketing – meaning, Features – Role 3. Marketing Management – Measuring Nature and Objectives 4. Difference between marketing and selling 5. Marketing Functions 6. Marketing Mix – product, price, place and promotion 7. Advertising – meaning, features, merits and limitations. 8. Various media of Advertising and Media selection. 9. Objections to advertising 10. Sales promotion and Trade promotion – meaning and variety of Tools / methods used. 11. Personal selling – measuring features and steps in sales process 12. Publicity and Public Relations – meaning and methods used. LEARNING OBJECTIVES Market, Customer, Seller / Marketer – meaning Meaning Functions and Role of Marketing Marketing Management – meaning Nature and objectives Difference between marketing and selling Marketing Functions Marketing mix – concept and elements Meaning Role and Limitations of Advertising Media for Advertising, Media Selection Objections to Advertising. Sales promotions / Trade promotion – meaning and variety of Tools / Methods used Personnal selling – meaning, Features and steps in sales process. Publicity and public relations – meaning and methods used. KEY CONCEPTS IN NUTSHELL: MARKET : It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity. CUSTOMER : Customers refers to the people or organization that seek satisfaction of their needs and wants. SELLER OR MARKETEER...
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...15 talks about the role of promotion in the marketing mix, the elements of the promotional mix, the communication process. The communication process has several steps, the goals and tasks of promotion, the AIDA concept and its relationship to the promotional mix, the factors that affect the promotional mix and the concept of integrated marketing communications. First, the role of promotion in the marketing mix. Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Promotional strategy is the plan for using the elements of promotion-advertising, public relations, sales promotion, and personal selling-to meet the firm's overall objectives and marketing goals. Based on these objectives, the elements of the promotional strategy become a coordinated promotion plan. The promotion plan then becomes an integral part of the total marketing strategy for reaching the target market along with product, distribution, and price. Second, the elements of the promotional mix. The elements of the promotional mix include advertising, public relations, sales promotion, and personal selling. Advertising is a form of impersonal, one-way mass communication paid for by the source. Public relations is the function of promotion concerned with a firm's public image. Firms can't buy good publicity, but they can take steps to create a positive company image. Sales promotion is typically used to back...
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...Business and Law Unit 3 &9 Assignment 5 What is the purpose of promotion? The purpose of promotion is to appeal your product or service as a business to the wider public so that potential customers are aware and also this can help your business to gain more sales and revenue, promotion can also be seen as a way of penetrating the market to gain more recognition. Promotional Mix The promotional mix has six elements and I will be moving on to describe the mix being used by two businesses, the six elements are as follow include: Advertising, direct marketing, personal selling, sales promotions, sponsorship, publicity and public relations. Advertising Advertising in the promotional mix is important because it’s a way a business can advertise their specific product or service in order for them to get recognised and try achieve sales for the specific product you’re selling. Direct Marketing Direct marketing is effective in the mix because what direct marketing is that it’s selling directly to the customer through things like over the phone telephone selling or even mail order that’s what makes it direct rather than public. Personal Selling Personal selling is where there is face to face selling and this is where after the face to face confrontation the business attempts to persuade the customer to take a free trial or purchase the product. Sales Promotions Sale promotion is a method or a marketing technique used by businesses to attract a consumer into new products...
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...important decisions, e.g. deciding about the product or products which should be offered for sale, price of the product, markets where products may sell and the means of communication with the consumer for the sale of the product. All these decisions form part of marketing-mix. In this lesson we shall study about the concept of marketing mix, its components and the relationship among various components of marketing mix. 22.2 Objectives After studying this lesson, you will be able to : explain the concept and characteristics of marketing mix; describe various components of marketing-mix; establish the relationship amongst various components. 22.3 Concept and Characteristics of Marketing Mix The process of marketing or distribution of goods require particular attention of management of business because production has no relevance unless products are sold. Marketing mix, simply stated, is the process 20:: Business Studies of designing and integrating various elements of marketing in such a way as to ensure the achievement of enterprise objectives. The elements of marketing mix have been classified under four heads - product, price, place and promotion. That is why marketing mix is said to be a combination of 4 P’s. Decisions relating to the product include product designing, packaging and labelling and varieties of the product. Decision on ‘Price’ is very important because sales depend to a large extent on product pricing. Whether uniform price will be charged or different...
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...JAMMIE WOODS OWNER OF THE WORK SALES PLANNING AND OPERATIONS 1.1 a) The following are the explanations how personal selling supports the promotion mix using various elements of promotional mix promotional mix of is one of the element in the marketing mix used to communicate with clients and distributors in various channels through various activities in order to increase the sales of the firm and these include; sales promotion, personal selling, advertising and public relations. Advertisement refers to an element in the promotion mix that involves non personal presentations and promotion of ideas, products and services using an identified sponsor. And by this personal selling can support this element through the sales agent using the ideas in the advert to sell the product to the clients or customers. Public relations refer to the element of promotion mix which is responsible for creating good relation to the public through good will. By this the sales agent maintains this through him following up the client after sales, through advising the clients on the use of the product on behalf of the shoe selling company. b) The following are the comparison between buyer behavior and decision making process in different situations as per the Bata shoes selling company scenario. This comparison model is important for Bata Shoe Selling company in need of making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision...
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...the role of promotion and ad ------------------------------------------------- Top of Form Bottom of Form * Login * Login via * Register * International Marketing * Marketing Tips * MLM * Press Releases * Social Marketing * Viral Marketing * Home Page * Marketing Print articlevertisement ------------------------------------------------- ADVERTISING AND SALES PROMOTION * Jul 01, 2009 * 0 * 13,629 12 ADVERTISING AND SALES PROMOTION RELATED ARTICLES Impact of World Financial Crisis on the Media Industry "Espionage Management" Part 1. Mikhail Kryzhanovsky, KGB and CIA Abstract Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization. The messages carried in-medias. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme. It helps the consumer to save their time in purchases. It helps the manufacturer sell their products. The relation between wholesalers and retailers is improved through advertising. Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to Sales promotion tools vary in their specific objectives. A free sample. Stimulates consumer trial, while a free management advisory service comments a...
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...different types of communication to support marketing goals which include Advertising, Personal selling, Publicity, and Sales promotions. Marketers to help choose these different types of marketing a firm reach its goals. Furthermore the promotional mix is a combination of methods that are used for a product or service in order to sell that specific product or service. Moreover the methods in the promotional mix are: * Advertising * Personal selling * Sales promotion * Public relations * Sponsorship * Direct mail Advertising: advertising is a way of displaying a product or service in a attractive way to a customer in a non-personal presentation. * Xbox use advertising on a regular basis on television, they show both genders and different age groups playing and using the Xbox as the want the console to appeal to as many people as possible. * Apple also use advertising on a regular basis on television. They recently have Justin Timberlake advertising there new IPhone 6 which will persuade viewers to buy the iPhone as if the phone is good enough for a well paid celebrity then it is good enough of them Personal selling: personal selling is where businesses use people to sell the product after meeting face-to-face with the customer. The sellers promote the product through their attitude, appearance and specialist product knowledge. * Xbox don’t use personal selling because they don’t need to pay a salesman to sell their product because they already...
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...promotional mix has been used for many years to help explain the promotional activities undertaken by organizations. Promotion is considered to be one of the 4P’s on the marketing mix. The Marketing Communications Mix is the specific mix of advertising, personal selling, sales promotion, public relations, and direct marketing a company uses to pursue its advertising and marketing objectives. In order to decide how too properly to utilize the mix is important to consider the relative strengths and weakness of each component of the mix. The objectives of the promotional mix must be realistic and reasonable. Each promotional element has a different communication capacity, is effective at different stages in the buying process and there is a different level of control over each one. The decision for choice of promotion mix will depend upon several factors such as, the target audience, objectives, complexity of the product, and monetary restraint. The advertising we have known in the past couple of decades has been about interruptions, and the advertising in the future need to be more about engagement (Hughes & Fill, 2007). It is not enough for a business to have good products sold at attractive prices in order to generate sales and profits, the benefits of products have to be communicated to customers. Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler & Keller 2009). It is the mass media method of marketing...
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...10 Question no 2 What kind or kinds of promotion would probably have been most productivefor plastic industries? Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. Elements of Promotion Traditionally the promotional mix has included four elements: advertising, sales promotion,publicity/public relations, and personal selling. However, direct marketing as well as interactivemedia as major promotional-mix elements that modern-day marketers use to communicate withtheir target markets. Each element of the promotional mix is viewed as an integrated marketingcommunications tool that plays a distinctive role. Each may take on a variety of forms and eachhas certain advantages. AdvertisingAdvertising is defined as any paid form of no personal communication about an organization,product, service, or idea by an identified sponsor. The paid aspect of this definition reflects thefact that the space or time for an advertising message generally must be bought.The no personal component means that advertising involves mass media (e.g., TV, Radio,magazines, newspapers) that can transmit a message to large groups of individuals, often at thesame time. The nonpersonal nature of advertising means that there is generally no opportunityfor immediate feedback from the message recipient (exception direct-response advertising). Interactive/Internet MarketingInteractive...
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