ADVERTISING & PROMOTION(HNC/HND Unit 18)

HO 5 (Part 1)

Tools Of The Promotional Mix:

Personal Selling, Sales Promotion,Packaging & Merchandising

(Part 1)

Tools of The Promotional Mix

“Promotional Mix”Promotional mix is the particular combination

of promotion methods (tools) that a firm uses in its promotion campaign to reach at

target market

Methods of Promotion Mix

There are five forms of promotion:• Personal Selling• Sales Promotion• Public Relations & Publicity• Direct Marketing• Advertising

Person-to-person Person-to-person communication in which a seller communication in which a seller informs and educates informs and educates prospective customers and prospective customers and attempts to influence their attempts to influence their purchase choicespurchase choices

Personal SellingPersonal SellingPersonal SellingPersonal Selling

• Most effective tool for building buyers’ preferences, convictions, and actions

• Personal interaction allows for feedback and adjustments

• Relationship-oriented• Buyers are more attentive• Sales force represents a long-term

commitment• Most expensive of the

promotional tools

Types of Salespeople

• Personal Selling Tasks:

– Order-getter– Order-taker– Supporting

The Selling Environment

• Three Selling Environments:– Telemarketing:

→Inbound→Outbound

– Over-the-Counter Selling– Field Selling

(Source: Hoffman et al)

The Selling Environment (2)

• Over-the-Counter Selling:– Usually conducted in retail outlets

– Order taker- is a salesperson who only processes the purchase that the customer has already selected

– Order getter- is a salesperson who seeks to actively provide information to prospects, persuade prospective customers, and close the sales

• Suggestion selling- occurs when the salesperson points out available complementary items in line with the selected item(s), in order to encourage an additional purchase

(Source: Hoffman et al)

The Selling Environment (3)• Field Selling:

– Involves calling on prospective customers in either their business or home locations (be order takers or order getters)

– Professional Salespeople

– National Account Managers-highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level

– Missionary Salespeople- they do not seek to obtain a direct order from their customers, their primary goal is to persuade customers to place orders with distributors or wholesalers

(Source: Hoffman et al)

– Support Salespeople- help the order-oriented salespeople-but they don’t try to get orders themselves

(Source: Perreault and McCarthy)

Sales promotion

Sales PromotionSales PromotionSales PromotionSales Promotion• The Institute of Sales

Promotion (ISP) defines sales promotion as “ a range of tactical marketing techniques, designed within a strategic marketing framework, to add value to a product or service, in order to achieve a specific sales and marketing objective”.

Principles & Approaches

• Sales promotions can be targeted at resellers, consumers and sales forces

• Sales promotions can add value and also increase value so as to accelerate the sales process

• Growth: Short-termism, accountability, brand performance, brand expansion and competition for shelve space

Principles & Approaches (2)

• Loyalty schemes aims to increase customer retention levels but there are a number of different types and/or levels of loyalty

• Used appropriately sales promotion can have a strategic roles in the overall marketing communications plan

Objectives of Sales Promotions Objectives of Sales Promotions Objectives of Sales Promotions Objectives of Sales Promotions

• Facilitate the introduction of new productsFacilitate the introduction of new products• Obtain trial purchasesObtain trial purchases• Stimulate sales force enthusiasmStimulate sales force enthusiasm• Invigorate sales of a mature brandInvigorate sales of a mature brand• Increase on- and off-shelf merchandising spaceIncrease on- and off-shelf merchandising space• Neutralizing competitive advertisingNeutralizing competitive advertising• Encouraging repeat purchasesEncouraging repeat purchases• Increase brand usage by loading consumersIncrease brand usage by loading consumers• Preempting competition by leading consumersPreempting competition by leading consumers• Reinforcing advertisingReinforcing advertising

Objectives of Consumer PromotionsObjectives of Consumer PromotionsObjectives of Consumer PromotionsObjectives of Consumer Promotions

• Trial impactTrial impact: Inducing nonusers to try a : Inducing nonusers to try a brand or encouraging retrialbrand or encouraging retrial

• Franchise holding/loadingFranchise holding/loading: Rewarding : Rewarding current users for continuing to purchase current users for continuing to purchase the promoted brandthe promoted brand

• Image reinforcementImage reinforcement: Involves the careful : Involves the careful selection of the right premium object, or selection of the right premium object, or appropriate sweepstakes prize, to reinforce appropriate sweepstakes prize, to reinforce a brand’s desired imagea brand’s desired image

Objectives of Trade Promotions Objectives of Trade Promotions Objectives of Trade Promotions Objectives of Trade Promotions

• Introduce new or revised productsIntroduce new or revised products• Increase distributionIncrease distribution• Build retail inventoriesBuild retail inventories• Maintain shelf spaceMaintain shelf space• Obtain display spaceObtain display space• Reduce excess inventoryReduce excess inventory• Induce cooperative advertisingInduce cooperative advertising• Counter competitionCounter competition• Sell more to final consumersSell more to final consumers

Trade PromotionsTrade PromotionsTrade PromotionsTrade Promotions

• Off-invoice allowanceOff-invoice allowance: The most : The most frequently usedfrequently used

• Bill-back allowanceBill-back allowance: Retailers receive : Retailers receive allowances for featuring the allowances for featuring the manufacturer’s brand in advertisement manufacturer’s brand in advertisement or for providing special displayingor for providing special displaying

• Slotting allowance Slotting allowance : The manufacturer is : The manufacturer is asked to pay the up-front fee for shelf asked to pay the up-front fee for shelf spacespace

• Everyday low pricing (EDLPEveryday low pricing (EDLP): no deal is ): no deal is offeredoffered

Methods & Techniques

The techniques and methods are considered by given types of audience and possible goals that might be in place.

• Objectives – Increase usage by current customers or encourage non-users to experiment particularly in low involvement situations

Methods & Techniques (2)

• Methods – There are a wide variety of techniques and the decision to use any of them should be based on specific circumstances. By integrating its use with other promotional tools, the impact and effectiveness can be considerably improved

Methods & Techniques (3)

• Benefits – On sales, profitability, customer’s perceptions, the competition and other tools in the promotion mix need to be carefully determined prior to any campaign. In addition to this, sales promotions can be used to develop customer databases for use in direct marketing activities.

Sales Promotion Activities:• Consumer:

→ Sampling → Branded packs→ Couponing → Contests→ Premiums → Cause related→ Money off → Merchandising→ Bonus packs → Point-of-sale→ Loyalty schemes → Information

Sales Promotion Activities (2):

• Trade:→ Consumer promotions→ Allowances→ Contests and incentives→ Point-of-sale material and merchandising→ Sampling→ Gifts and free merchandising→ Information

Packaging & Merchandising

• Packaging is a marketing tool that combines graphic design with marketing concepts to create an identity for the brand. An ideal package is one which brings to the customer’s mind the essence of what the brand is all about whenever and wherever it is seen. It can be effectively used to influence customer choice at the point-of-sale in terms of reducing the uncertainty and risk inherent in product choice and it acts as a tangible reminder at the point-of-sale.

Benefits of Packaging:

• A communication tool to express brand values• Aesthetically pleasing• Strong visual impact• A living expression of what the brand represents• Adds value from customer’s perspective• A reminder• Provides cues to express loyalty• Creates an emotional link with the target audience

Packaging Features:• Colour: – powerful emotional signals, symbolic e.g. Cadbury’s

purple is associated with luxury• Typography: – communicates the product image• Logo: - signifies the brand’s individuality and unique image,

e.g. Coca-cola• Type/material: - recyclable, biodegradable, e.g. boxes,

cartons, cans etc.• Shape & structure: - used to attract attention, e.g. Jif’s yellow

lemon• Label or mark: - Varies with types and materials of packaging,

can be printed on the package or other materials• Size: - encourage product usage, e.g. economy size pack

Merchandising:

• Merchandising can defined as the range of sales promotions activities intended to ensure that products are easily available, and prominently and attractively displayed at point-of-sale. It is also used to describe the activity of making promotional products available, such as those associated with new film releases (Star Wars, The Lion King, Harry Porter), e.g. calendars, figurines, novelty items etc….