Promotion Mix
Promotion Mix
Examples
Honda adopted a worldwide policy not to allow its cars
to be used as taxis. They believe that their clients work
hard and buy a Honda because they don’t want to see a
car of similar make being used as a form of public
transportation.
Positioning is therefore the act of
communicating to consumers the overall
positive impression for a brand, relatively to
competition. In the industrial marketing
and direct selling method where is a face-to-
face selling situation, positioning serves as
the talking points to be emphasized by the
salesperson to his clients.
Gardenia positions it’s high-fiber wheat bread as
the “healthy Bread”.
Its
defines how much to spend
on advertising .
It
is one of an important
decisions.
Itwill not be same for every
companies and industries.
FACTORS TO CONSIDER WHEN SETTING
ADVERTISING BUDGET
FACTORS WHY IS IT IMPORTANT ?
Effective
at achieving
a quick boost to sales
Encourages customer
to trial a product or
switch brand.
DISADVANTAGES
Sales effect may only be in
short term
Customer may come to
expect or anticipate further
promotion
May damage brand image
1. What does the promotion cost ?
2. Is the sales promotion consistent
with the brand image ?
3. Will the sales promotion attract
customer who will continue to buy
the products once the promotion
ends, or will it simply attract those
customer who are always on the
look-out for a bargain ?
CHARACTERISTICS OF SALES
PROMOTION
TEMPORARY - sales promotion are
conducted on short duration. The time
limit creates a series of urgency for
customer to buy immediately.
BETTER VALUE - a similar products are
looked at a similar way. Sales
promotion are used to create a short -
term differentiation by offering a
better product value.
BENEFICIAL –
sales promotion promote
growth, sometimes even at an
artificial level. This growth
benefits is pursued for
different objectives such as
generate or increase product
trial, or increase purchased
quantity.
KINDS OF SALES PROMOTION
Trade Promotion
Consumer Promotion
Sales force Promotion
EXAMPLE OF TRADE PROMOTION
Cooperative Advertising
Cooperative Promotion
Discounts and Terms
Display Allowance
Free products
Trade contest
Rebates / Rewards
Push pin money
Personality
Exhibit and related
events
Conferences / Training
COOPERATIVE ADVERTISING
This happen when the
supplier and his trade customer
share in paying for an
advertising campaign that
usually features the product of
the supplier exclusively or
among other products.
COOPERATIVE PROMOTION
This happen when the supplier
and his trade customer share in
paying for a sales promotion
campaign. When based on
sales, on most especially when
based on incremental sales.
Cooperative promotion is better
than cooperative advertising.
DISCOUNT and TERMS
These are the straight deduction
from the list price while term is the
period when payment is to be made.
DISPLAY ALLOWANCE
This is a financial support granted
to a trade outlet for the
performance of in-store display
requirements. Display are very
effective for low involvement or
impulse product like snack foods.
FREE PRODUCTS
Free product promotion involve
giving additional quantities of
products on top of regular purchase
volume.
Trade contest
This intended for channel
members. It is part of trade
marketing utilized by manufacturers
in promoting their brand.
Rebate/ Reward
This is often a year end rebate as a
token of appreciation for the loyalty
of their dealers.
Push Pin Money
A variety rewards promotion is
push pin money which is money
given to the salesclerk of the
dealers to push the firm product.
Exhibits and Related events
Joining exhibits and a trade
shows is cost- effective way to
create awareness, and generate
sales lead most especially for
business to business product.
Conferences/ Training
This promotion that advance
the goodwill with the trade.
CONSUMER
PROMOTION
Sampling – This is a limited
amount of free products ( or
free use) offered for consumers
to try a product or service.
Coupon – These are certificate
entitling the bearer to a
published saving on the
purchase of a specific product.
Price-off – This is a promotion
that offers immediate savings
upon purchase.
Rebate – These are like
coupon except that the price
reduction is usually larger and
that they are given after the
purchase rather than at the
point of sale.
Bonus Packs – This involves
giving extra quantity of the
same product without
increasing price
Sample Packs – This involves
a trial size of a product at a
price usually lower than
market standard.
SpecialPacks – Products
combined as single packs
can bring saving for
consumers.
Premiums – These are free
gifts offered as incentive to
purchase a particular
product .
Self-liquidating promotion – These
promotion enable marketers to
recover all their expenses for the
promotions and sometimes even
experience a little profit.
Free trial – This type of promotion
invites prospective customers to
try the products without cost in
the hope that they will buy the
product.
Warranty – This reduces the risk
factors in a purchase, most
specially for high-involvement
or high-priced products and
services
Prizes – Consumers may be
offered an opportunity to win a
prize after purchasing a
product.
Patronage Reward –
Consumers may be given an
incentive in proportion to the
volume of product regularly
purchased.
Contests – These are promotion
given to consumers to have a
chance of winning something
of value.
Personality – “Mystery
Visitor” is a common from
of personality promotion.
This entails the consumer to
show the product of the
company to a mystery
visitor to win a prize.
SALES FORCE INCENTIVES
Launch of the
All-New ABC
Processor
OBJECTIVES
Answers the questions,
• WHY ARE YOU HAVING A SALES
PROMOTION?
• WHAT PROBLEMS DO YOU WANT TO
SOLVE?
This simply stresses the fact that
no sales promotion should be
implemented if no improvement
will be experienced.
Objectives are defined to
determine the intensity
of strategies and tactics.
They must be concrete
and clear to the
marketer.
EXAMPLE
1. Attain a 90% distribution level in
all class A appliance outlets within
30 days from launch.
2. Increase trial rate from 20% to
30% in 3 months.
3. Increase market shares from
15% to 18%
COVERAGE
•Defines the specific
territories included in
the sales promotion.
EXAMPLE:
Metro Manila, Cebu and Davao
DURATION
-This identifies the length of the
promotion. The time period involved in
a sales promotion is important.
Duration of sales promotion must
consider purchase cycle and timing.
The “sell-in” or “pipeline” period
needed to put all stocks in the trade is
important.
EXAMPLE: JANUARY 15- APRIL 15 (3 months)
OFFER
•This identifies the type and
size of promotion to be
executed.
EXAMPLE:
Free 3 cooking lessons by
celebrity Mr. DEF for every set of
food processor bought.
MECHANICS
-This section identifies approaches
in achieving objectives. It includes
how the promotion will be
implemented, the conditions for
participation, the detailed logistics
needed, who is responsible for
what, and a contingency in case
unexpected things would happen.
EXAMPLE
•Coupons for free cooking
lessons shall be given upon
purchase.
•Cooking lessons shall be
conducted at the Center of XYZ
malls in Makati, Cebu, and
Davao.
COMMUNICATIONS
-How to communicate the sales
promotion at the start, during
and after the promotion’s
duration is as important as the
sales promotion itself. The
communication intends to
motivate their target consumer
to say, “I want it too!”
EXAMPLE
goals?
Effective Will we be within Not exceeding expenses
requested for, removing
allowable budget? unnecessary fats along the
way.