Elements of the Promotional Mix

1
Elements of the Promotional Mix

• Advertising
• Sales Promotion
• Personal Selling
• Public Relations

2
Advertising

• About 25 of each promotional dollar is spent on
  advertising
• Advertising objectives
• Awareness
• Reminder to use
• Change attitudes about use of the product
• Change perceptions of importance of brand
  attributes

3
Advertising

• Advertising objectives
• Attitude reinforcement
• Product-line or corporate image building
• Obtain a direct response
• Budgeting
• Establish baseline budget - historical
• Set advertising objectives
• Estimate message design and media costs

4
Advertising

• Budgeting
• Run experiments to obtain estimate of proposed
  advertising campaign
• Revise budget
• Evaluation
• CPM cost of ad x 1000/circulation
• Rating program audience/total audience

5
Advertising

• Evaluation
• Reach - percentage of the target audience that
  will be exposed to the message
• Frequency - average number of times a member of
  the target audience is exposed to the message
• Gross Rating points - reach percentage x number
  of exposures

6
Advertising

• Evaluation
• Recognition tests
• Recall tests
• Theater tests

7
Sales Promotion

• About 50 of each promotional dollar is spent on
  sales promotion
• Short-term results
• Objectives
• Inquiries - free gifts, mail-in coupon for
  information, catalog offers, exhibits
• Trial - coupons, free samples, contests,
  premiums, demonstrations

8
Sales Promotion

• Objectives
• Repurchase - on-pack coupons, mail-in rebates
• Traffic building - special sales, weekly
  specials, entertainment events, retailer coupons
• Increase rate of purchase - multipacks, special
  price on twos

9
Sales Promotion

• Objectives
• Inventory building - return allowances, slotting
  allowances
• Promotional support - reusable display cases,
  sales contests, merchandise allowances

10
Sales Promotion

• Evaluation
• Redemption rates
• Acquisition rates
• Displacement rates
• Conversion rates
• Stock-up rates
• Product-line effects

11
Personal Selling

• About 25 of each promotional dollar is spent on
  personal selling activities
• Recruitment
• Compensation
• Evaluation

12
Public Relations

• Less than 1 of each promotional dollar is spent
  on public relations
• Difficult to control and evaluate
• Process
• Set objectives
• Identify target audience
• Design message
• Reach media that serves target audience
• Evaluate results