Promotional mix


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Promotional mix

  1. 1. Promotional Mix Marketing means anticipating, and meeting customers needs 1
  2. 2. Integrated Marketing Communications Advertising Personal sellingSales promotion Public relations Direct marketing BASIC ADAPTABLE 2
  3. 3. Setting the Promotion Mix Reach Many Buyers, Repeat Message Reach Many Buyers, Repeat Message Advertising Advertising Many Times, Impersonal, Expensive Many Times, Impersonal, Expensive Personal Personal Personal Interaction, Relationship Personal Interaction, Relationship Selling Building, Most Expensive Promo Tool Building, Most Expensive Promo Tool Selling Sales Sales Wide Assortment of Tools, Rewards Wide Assortment of Tools, Rewards Promotion Quick Response, Efforts Short-Lived Quick Response, Efforts Short-Lived Promotion Public Public Very Believable, Dramatize a Company Very Believable, Dramatize a Company Relations or Product, Underutilized or Product, Underutilized Relations Direct Direct Nonpublic, Immediate, Customized, Nonpublic, Immediate, Customized, Marketing Interactive Interactive Marketing 3
  4. 4. Factors in Setting Promotion Mix Buyer State Liking, Preferences, and Conviction Purchase Product-Life-Cycle Stage Introduction Growth Mature Decline 4
  5. 5. Advertising Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor. 5
  6. 6. Advertising Its function is to inform consumers about product differences, new products and application possibilities. 6
  7. 7. Advertising It plays a role in the competitive process by firstly bringing differences in products or services to the attention of the consumer. Secondly, it persuades consumers to prefer on company’s product to those of another. Thirdly, It creates value by its communication strategy. 7
  8. 8. Main Advertising Objectives Informative Advertising Persuasive Advertising Reminder Advertising 8
  9. 9. Characteristics of Advertising One way communication It deals with thousands of consumers and each one receives the same mesage. Depends on symbols: brand logos Low-cost mass communication Persuasive communication 9
  10. 10. Advertising media Newspapers Magazines Television Direct mail Radio Etc… 10
  11. 11. Personal Selling Involves Two-Way, Personal Communication Between Salespeople and Individual Customers: face to face, by telephone, through video conferencing, or by other means 11
  12. 12. Personal Selling A personalized form of communication in which a seller presents the features and benefits of a product to a buyer for the purpose of making a sale 12
  13. 13. Personal SellingRoles: Increase marketing intelligence Locating and maintaining customers Generating sales at point of purchase Relationship marketing Provide detailed and up-to-date information to the travel trade 13
  14. 14. Personal SellingObjectives Sales volume Cross-selling, Up-selling, and Second- chance selling Marketing share Product-specific objectives 14
  15. 15. Personal Selling Cross-selling offering a customer the opportunity to purchase allied products that go beyond the obvious core products Up-selling upgrading price and profit margins by selling higher-priced products Second-chance selling trying to sell additional services to a customer who has already booked services 15
  16. 16. Personal Selling: Sales management The management of the sales force and personal selling efforts to achieve desired sales objectives Roles include: recruiting training motivating/rewarding sales planning evaluating sales performance 16
  17. 17. Personal Selling disadvantages Can only deal with a small number of potential customers. More costly on a per-customer basis. A bad salesperson can damage a relationship 17
  18. 18. Sales Promotion Sales Promotion consists of short- term incentives to encourage the purchase or sales of a product. 18
  19. 19. Sales Promotion It’s a blend of marketing activities and material that are designed to intensify the efforts of the company’s salesforce, induce intermediaries to stock and sell the company’s product, and/or persuade consumers to buy the product limited in time period 19
  20. 20. Sales Promotion A technique used to increase the value of its product by offering an extra incentive to purchase the product Short-term incentives to encourage the purchase or sales of product or service Directed at consumer (samples, coupons, rebates, contests, demonstrations) and trade (free goods, contests, family trips) 20
  21. 21. Sales Promotion Increase short-term sales or help build long-term market share. Get consumers to try a new product Attract customers away from a competitor In general, sales promotion should focus on consumer relationship building. 21
  22. 22. Sales Promotion Sales promotion methods are aimed at three target groups, namely consumers (consumer promotion), salespeople (salesforce promotion) and intermediaries (trade promotion) 22
  23. 23. Consumers Trade Salesforces NetworkPrice cuts Extra Bonuses andSales offers commissions other moneyDiscount Prizes incentivesvouchers Free gifts Gift incentivesCoupons Parties TravelDisguised price incentivescuts PrizesAdditionalservicesFree giftsPrizes 23
  24. 24. Effective sales promotion Short duration Dificult to imitate by competitors Difficult to predict Directed at and restricted to specific segments 24
  25. 25. Effective sales promotion Short duration: customers must not be able to postpone buying decisions . If the promotion is too long, customers will also perceive it as part of the standard price. 25
  26. 26. Effective sales promotion Difficult to imitate by competitors – for example airlines that arranege co-operative promotions linking a particular hotel, car rental company or restaurant… 26
  27. 27. Effective sales promotion Difficult to predict – if customers can predict sales promotions, they may simply postpone their buying decision. 27
  28. 28. Effective sales promotion Directed at and restricted to specific segments – this is to avoid the diluition of total sales revenue which occurs if unnecessary incentives are offered to all customers, some of whom intended to buy without the added incentive. For this reason airlines that offer sales promotions on overseas trips would specify a minimum stay at the destination (often 7 days or more), to avoid having business travellers using the promotion. 28
  29. 29. Public Relations Public Relations Involves Building Good Relations With the Company’s Various Publics by Obtaining Favorable Publicity, Building Up a Good Corporate Image, and Handling or Heading Off Unfavorable Rumors, Stories, and Events. 29
  30. 30. Public Relations The activities that a tourism or hospitality organization uses to maintain or improve its relationship with other organizations or individuals 30
  31. 31. Public Relations 31
  32. 32. Functions of PR Departments Establishing corporate identity Government relations Crisis management Internal communications Customer relations Press Relations Product Publicity Corporate Communication Lobbying Counseling 32
  33. 33. Public Relations Build Awareness, comprehension, positive attitude. Build Credibility Stimulate the Sales Force and Channel Intermediaries Sales-and-Profit Contribution 33
  34. 34. Public Relations Techniques Availableto the Tourism and Hospitality Industry 34
  35. 35. Public RelationsRead Public relations text…. 35
  36. 36. Direct Marketing It’s the use of advertising methods (for example, mail, mass media, telephone or intecative devices) to handle all or some portion of the selling process handked by personal, face to face contact. Consider Internet Impact 36
  37. 37. Direct Marketing Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. 37
  38. 38. Mass Marketing and Direct MarketingMost Mass MarketingInvolves One-WayCommunicationsAimed At Consumers. Direct Marketing Involves Two-Way Interactions With Customers. 38
  39. 39. Advantages of Direct Marketing Precision targeting Personalization Flexibility Privacy Measurability Low cost Detailed knowledge of consumers Fast or immediate response 39
  40. 40. Forms of Direct Marketing Face-to-Face Selling Online Telemarketing Marketing Kiosk Direct Marketing Mail Direct-Response Catalog TV Marketing 40
  41. 41. Direct MarketingRead direct marketing text…. 41