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Promotion Mix

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Monika Kozłowska

on 7 June 2014

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Transcript of Promotion Mix

Definition of promotion
are decisions about advertising, personal selling, sales promotion, and publicity used to attract potential customers.

Companies use
to inform people about their products and services and also to enhance their public image and reputation.
Methods of promotion
There are two methods of promotion:
Product promotion: promotion method businesses use

to convince consumers to select its products or services.
nstitutional promotion: promotion method used

to create a favorable image for a business,
help it advocate for change, or take a stand on trade or community issues.
Promotional Mix Concept
To reach its promotional goals, an organization develops an effective promotional mix which is a combination of strategies and a cost-effective allocation of resources.
The strategies in the mix are designed to complement one another.
About the company
multinational beverages corporation
founded in 1886 by Dr John S.Pemberton
company operates based on franchised distribution system since 1889
400 brands in over 200 countries
over 1.6 billion servings each day
About the company
first introduced in 1893 by Caleb Bradham as Brad's Drink, then in 1898 named Pepsi-Cola, finally in 1961
produced and manufactured by Pepsi Co
Pepsi's billion-dollar brands, that generate more than $1 billion in annual retail sale, include Pepsi, Diet Pepsi, Mountain Dew and Lipton
Advertising strategy
Slogans and posters
Advertising is a form of
non personal
It takes place when companies pay
to promote ideas, goods, or services
in a variety of media outlets.
It can be found
magazines, newspapers, television, websites, etc.

concept of

to promote products
essential tool to reach mass media
ads built
brand image
create awareness
create memorable and
catchy slogans
since years
reminder type
of advertising
as a part of 'pull strategy' and due to intense competition, companies spend heavily on advertisements
unique ads
will have impact on the customers
Slogans and posters
Outdoor advertising
TV commercials
Public relations

Public relation campaigns

try to create a favorable image for a company, its products, or its policies.
Companies give news releases

to announce newsworthy developments about a company's products or services, distribution channels, facilities, operations, partners, revenues and earnings, employees, and events.

a campaign to encourage businesses to donate computers to schools, donating to hospitals.

Direct Marketing
Public Relations - Social Campaigns
Direct Marketing
Direct marketing

is a type of advertising directed to a targeted group of prospects and customers rather than to a mass audience.
Two forms of direct marketing

are printed by mail, or direct by e-mail.
The goals of direct marketing

are to generate sales or leads for sales representatives to pursue.
direct mail, e-mail.

Trade promotions
Trade promotions

are sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers.

Trade Promotion

is a marketing technique aimed at increasing demand for products in retail stores based on special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation gifts, and more.

In-store displays
Located near cash register to encourage impulse buying
Can be perceived as more visually appealing to consumers than products alone on a retail shelf

Floor Stickers or advertisements for products
Feature Displays, which can be located at the end of an aisle to draw attention to a product
Special Racks

Coca-Cola and Pepsi Co use
direct marketing
in many different ways
cooperation with various
movie theaters
mobile graphics
and texts to appeal to markets on a more personal level
sponsoring sport and social events
like Olympic Games, Football World Cup, Super Bowl, Cricket and Motor Racing
Temporary Price Reductions (TPR)

Directly or indirectly
lower cost per unit of a product;
manufactures or retailers temporarily reduce the price of a product.
Contests and sweepstakes
Examples of direct marketing
Disadvantages of Trade Promotions
paying a lower price on a product or
getting more of a product for less money.

Instantly reducing the price of a product, making it more desirable to consumers.
create brand awareness
and also, e
ncourage consumers to purchase
specific brands on the next trip to the store.

Availability: when buying products or in newspapers, specified time,
for new products / new collections

Contest and sweepstakes - require the participant to perform some type of activity.

The winner is selected based on who performs best or provides the most correct answers.

The problems with Contest and Sweepstakes are the costs, consumer indifference and clutter.

encourage consumers to purchase a product with a
tangible benefit
, such as a gift. Premiums make the product offer more valuable to consumers by including a related product for no additional cost.

Allows consumers to try the product either in-store or via free samples before buying it.
This can reduce consumers’ apprehension about buying a new product or introduce them to a product they were unfamiliar with before.

consumers buy what
do not really need
manipulating the attitudes and behaviors
of consumers
transmission of excessive information about the qualities of the products
weakening freedom
of choice and purchase, exerting psychological pressure
weakening of the rational motives
of purchase stimulating emotions
increasing prices
to offset the costs of promotion
Sales Promotion
Sales promotion basically represents all marketing activities other than personal selling, advertising, and public relations.

Sales promotions are used to
stimulate purchasing and sales
and the objectives are to
increase sales
inform potential customers
about new products.

Examples: coupons, product samples, point-of-purchase displays.

Internet marketing
Internet marketing, or online marketing, refers to
advertising and marketing efforts that use the Web and email to drive direct sales
via electronic commerce, in addition to sales leads from Web sites or emails.

Internet marketing and online advertising efforts are typically used in conjunction with traditional types of advertising like radio, television, newspapers and magazines.
Personal selling
Basically personal selling is
one-to-one communication
between seller and prospective purchaser.

It generates
direct contact
with prospects and customers.
It is one of the most expensive forms of promotion.

Examples: personal meetings, telemarketing, e-mails, and correspondence.

Internet Marketing
simple to navigate through Websites
allows customers to become interactive through various games and contests
special section to enable customers to find out how to help their community
presence at social network sites such as Facebook, Twitter, YouTube
Linking the feeling with a Coke
sponsor of
the World Cup
since 1978
sponsor of
the Olympic Games
since 1928
all major sport / social events
Sponsor of
the Super Bowl
since 1988
Official Soft Drink of
the National Football League
(NFL) and Major League Baseball
Full transcript