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Comprehensive Overview of Promotional Mix in Marketing Management

Learn about the key elements of the promotional mix in marketing management including advertising, sales promotion, personal selling, and public relations. Explore budgeting, evaluation methods, objectives, and strategies for effective promotions in the industry. Gain insights into advertising and sales promotion objectives, budgeting techniques, evaluation criteria, and more.

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Comprehensive Overview of Promotional Mix in Marketing Management

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  1. Elements of the Promotional Mix • Advertising • Sales Promotion • Personal Selling • Public Relations Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  6. Advertising • Evaluation • Recognition tests • Recall tests • Theater tests Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

  9. Sales Promotion • Objectives • Inventory building - return allowances, slotting allowances • Promotional support - reusable display cases, sales contests, merchandise allowances Kelley Fall 2001 Marketing Management

  10. Sales Promotion • Evaluation • Redemption rates • Acquisition rates • Displacement rates • Conversion rates • Stock-up rates • Product-line effects Kelley Fall 2001 Marketing Management

  11. Personal Selling • About 25% of each promotional dollar is spent on personal selling activities • Recruitment • Compensation • Evaluation Kelley Fall 2001 Marketing Management

  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 Kelley Fall 2001 Marketing Management

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