Transcript Spread the Word (Nature of the Promotional Mix)

SPREAD THE WORD
(NATURE OF THE PROMOTIONAL MIX)
Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
SO WHAT?

To attract new customers, Katie needs to
promote her business.
Classified advertisement
 Newspaper story
 Door-to-door selling
 Free products

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
PROMOTION’S PURPOSE
Tell or Inform
 Persuade
 Remind

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
MARKETING COMMUNICATION
CHANNELS
Advertising
 Personal selling
 Publicity
 Sales promotion

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
PROMOTIONAL MIX

The specific combination, or blend, of
marketing communication channels that a
business uses to send its messages to
customers
Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
ADVERTISING
What is it?
 How is it used?
 When does it work best?
 What are its advantages?
 What are its disadvantages?
 What are some examples of advertising?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
PERSONAL SELLING
What is it?
 What is one of its disadvantages?
 What are its advantages?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
PUBLICITY
What is it?
 What are its disadvantages?
 What are its advantages?
 What are some examples of publicity?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
SALES PROMOTION
What is it?
 What are some examples of sales
promotion?
 What are its advantages?
 How is it used when promoting to
intermediaries?
 What are its disadvantages?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
IMPORTANCE OF THE
PROMOTIONAL MIX
Plays a key role in obtaining customers
 Enables businesses to communicate
effectively with customers
 Drives sales
 Helps company to reach objectives and
goals

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PR LAP 1
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FACTORS AFFECTING THE
PROMOTIONAL MIX
Product being sold
 Product’s target market
 Channels of distribution
 Product’s company

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
PRODUCT CONSIDERATIONS
Type of product
 Stage of the product life cycle

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
TARGET MARKET
CONSIDERATIONS
Type of customer
 Number of customers
 Geographic location of customers

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
DISTRIBUTION CHANNEL
CONSIDERATIONS
Multiple intermediaries
 Direct to ultimate consumer
 Promotional strategies



Push
Pull
Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
COMPANY CONSIDERATIONS
Historical perspective
 Available funds
 Competition

Draft: For Discussion Only
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MAKE IT PAY!

Think of three products:
Convenience
 Shopping
 Specialty

How are they promoted?
 How are their promotional mixes similar
and different?
 Why?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center
THE GRAY ZONE
Is it ethical for businesses to track
Foursquare users and offer sales
promotions via smartphones to everyone
who checks in nearby?
 Should firms target their specials solely at
their own customers?
 Why?

Draft: For Discussion Only
PR LAP 1
© 2011, MBA Research and Curriculum Center