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Promotion, Promotion Mix & Promotional Budget.: Shince Peter Ms

Promotion is one of the four elements of marketing mix used to communicate with buyers and influence purchasing decisions. The promotion mix refers to the specific combination of advertising, sales promotion, public relations, publicity, personal selling, and direct marketing used to communicate value to customers. Setting the promotional budget involves determining an affordable level based on factors like the target market, product, competition, and marketing objectives. Companies use either a push strategy focusing on trade partners or a pull strategy emphasizing consumer advertising.

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155 views21 pages

Promotion, Promotion Mix & Promotional Budget.: Shince Peter Ms

Promotion is one of the four elements of marketing mix used to communicate with buyers and influence purchasing decisions. The promotion mix refers to the specific combination of advertising, sales promotion, public relations, publicity, personal selling, and direct marketing used to communicate value to customers. Setting the promotional budget involves determining an affordable level based on factors like the target market, product, competition, and marketing objectives. Companies use either a push strategy focusing on trade partners or a pull strategy emphasizing consumer advertising.

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shincepeterms
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© Attribution Non-Commercial (BY-NC)
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PROMOTION,

PROMOTION MIX &


PROMOTIONAL BUDGET.

SHINCE PETER MS
PROMOTION
Promotion is one of the four elements of
marketing mix (product, price, place,
promotion.). It is the communication link
between sellers and buyers for the
purpose of influencing, informing, or
persuading a potential buyer's
purchasing decision.
FEATURES
It means activities that communicate the
merits of the product and persuade target
customers to buy it.
It is an important tool in marketing mix.
It includes advertising, personal selling,
sales promotion, public relations,
publicity etc…
OBJECTIVES
There are five basic objectives of
promotion.
1) To present information to consumers as
well as others.
2) To persuade the customers to buy.
3) To increase demand.
4) To differentiate a product.
5) To remind the prospective customers
about the company and its products.
TYPES OF PROMOTION
The following are two types of Promotion:
Above the line promotion:

Promotion in the media (e.g. T.V, Radio, Mobile phones,


News papers and Internet in which the advertiser pays
an advertising agency to place the ad)

Below the line promotion:


All other promotion. Much of this is intended to be
subtle enough for the consumer to be unaware that
promotion is taking place.
E.g., sales promotion, direct mail, personal selling, public
relations etc…
PROMOTION MIX
Also known as marketing communication
mix.
It states the specific blend of advertising,
sales promotion, public relations,
publicity, personal selling and direct
marketing tools that the company uses to
persuasively communicate customer
value and build customer relationship.
Advertising:
 Any paid form of non personal presentation
and promotion of ideas, goods or services by an
identified sponsor.
 Examples: Print ads, radio, television, billboard, direct mail,
brochures and catalogs, signs, in-store displays, posters,
motion pictures, Web pages, banner ads, and emails .

SalesPromotion
 Short term incentives to encourage the
purchase or sale of a product or service.
 Examples: Coupons, contests, product samples, trade shows,
trade-ins, and exhibitions.
Public Relations:
 Building good relations with the companies
various publics by obtaining favorable publicity,
building up a good corporate image and handling or
heading of unfavorable rumors, stories and events.
 Examples: Newspaper and magazine articles/reports, TVs and
radio presentations, charitable contributions, speeches and
seminars.
Publicity
Isa special form of public relations that involves
news stories about an organization or its products.
Organization seeks good publicity and frequently
provide the material for it in the form of news
releases, press conferences and conferences.
Direct Marketing:
 Direct connections with carefully targeted
individual consumers to both obtain an
immediate response and cultivate lasting
costumer relationships.
Personal Selling:
 Personal presentation by the firm’s sales
force for the purpose of making sales and
building customer relationships.
 Examples: Sales presentations, sales meetings, sales
training and incentive programs for intermediary
salespeople, samples, and telemarketing. Can be face-to-
face or via telephone.
Factors affecting Promotional Mix

There are mainly four factors which


affect the promotional mix.
The target market.
Nature of product.
Stages of product life cycle.
Amount of money available.
The target market
 Readiness to buy.
- awareness
- knowledge
- liking
- preference
- conviction
- purchase
Geographic scope of the market.
Type of customer.
Concentration of the market.
Nature of the product
Unit value
Degree of customization
Presale and post sales services

Stages of product lifecycle

Funds available
PROMOTIONAL BUDGET
One of the hardest marketing decisions facing a
company is how much to spend on promotion.
There are four common methods used to set
the total budget for advertising

Affordable method.
Percentage of sales method.
Competitive parity method.
Objective & Task method.
Affordable method
 Setting the promotional budget at the
level management thinks the company
can afford.
Percentage-of-sales method
Setting the promotion budget at a certain
percentage of current or forecasted sales
or as a percentage of the unit sales price.
Competitive-parity method
 Setting the promotional budget to match
competitors’.
Objective and task method
 Developing the promotion budget by
a) Defining specific objectives
b) Determining the tasks that must be performed
to achieve these objectives.
c) Estimating the costs of performing these tasks.
The sum of these costs is the proposed
promotion budget.
PROMOTION MIX STRATEGIES
There are mainly two type of promotion mix
strategies
 Push Strategy
 A promotion strategy that calls for
using the sales force and trade promotion
to push the product through channels. The
producer promotes the product to channel
members to induce them to carry the
product and promote it to final consumers.
Pull Strategy
A promotion strategy that calls for
spending a lot on advertising and
consumer promotion to induce final
consumers to buy the product. If the pull
strategy is effective, consumer will then
demand the product from channel
members, who will in turn demand it
from producers.
THANK YOU

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