Promotional Mix

Promotional Mix

• Promotion is a coordinated effort to establish communication channels and persuasion. It aims to foster the sale of goods/services or acceptance of ideas.

• It is an element used to inform and persuade the market about an organization's offerings (MONTERON).

Elements of Promotional Mix

• Personal Selling: Informs and persuades on a person-to-person basis to encourage purchase.

• Advertising: Paid, non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Publicity: Dissemination of news and information through mass media to create public impressions without direct payment.

• Public Relations: Activities aimed at creating goodwill and understanding of an organization's policies among various groups (employees, consumers, etc.).

• Sales Promotion: Activities supplementing personal selling and advertising to make them more effective. Includes techniques for broad consumer participation with promises of gain (prizes, rewards).

  • Also refers to techniques intended to increase sales, patronage, and/or goodwill.

Factors Influencing Promotional Mix

1. Funds Available

2. Nature of the Market

   • Geographic scope

   • Type of customer

   • Market concentration

3. Nature of the Product

4. Stage of the Product’s Life Cycle

Personal Selling

• Oldest and most important method. Allows two-way communication between seller and buyer.

• Enables immediate, on-the-spot responses from buyers.

Classification of Personal Selling Jobs

1. Across the counter (in-store selling)

2. House to house (outdoor selling)

3. Wholesaler's salesmen calling on retailers

4. Manufacturer's salesmen calling on manufacturers, wholesalers, and retailers

Salesmen's Activities

1. Order-Taking

2. Order getting

3. Supporting salesmen

   • Detailmen or missionary men

   • Consulting engineers

Basic Principles of Personal Selling

1. Adequate preparation (knowledge)

2. Finding buyers (prospecting)

3. Building goodwill after the sale (customer satisfaction)

Steps in Personal Selling

1. Presale preparation (product, market, competition knowledge)

2. Prospecting for potential buyers (profile development)

3. Pre-approach to prospects (research on prospects' needs, habits)

4. Sales presentation (A.I.D.A. - Attention, Interest, Desire, Action)

   • Attracting attention (the approach)

   • Holding interest and arousing desire

   • Meet objection and close the sale

5. Post-sale activities

   • Summarizing product's benefits

   • Repeating why it is better than other choices

   • Highlighting customer satisfaction

   • Promising and fulfilling post-sale services (delivery, installation, warranty)

Advertising Elements

1. Form of communication

2. Pays for media use

3. Non-personal

4. Communicates facts/information

5. Openly persuasive

Advertising Fee Calculation Examples

1. Television Advertisement:

   • Rate: $P18,500/30s$

   • Duration: 30 seconds

   • Frequency: 2 spots

   • Fee: $P18,500/30s \times 2 = P37,000$

2. Print Advertisement:

   • Rate: $P18.25$ per column centimeter

   • Size: 10 cm (width) x 13 cm (length)

   • Column centimeters: $10 cm \times 13 cm = 130$ column centimeters

   • Fee: $130 cl. cms. \times P18.25/cl. cm. = P2,372.50$

Objectives of Advertising

1. Introduce new products

2. Increase market share

3. Secure new dealers

4. Increase brand familiarity

5. Make buyers accessible to salesmen

6. Increase middlemen's product knowledge/profitability

Types of Advertising

1. Product and institutional advertising

   • Product advertising: Stimulates demand

     • Direct-action: Seeks immediate response

     • Indirect-action: Stimulates demand over time

   • Institutional advertising: Presents information or builds goodwill

     • Patronage advertising: Information about the advertiser's business

     • Public service advertising: Advertiser as a