The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
Promotional mix
1. Promotional Mix
Marketing means anticipating, and meeting customers needs
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2. Integrated Marketing
Communications
Advertising Personal selling
Sales promotion
Public relations
Direct marketing
BASIC ADAPTABLE
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3. Setting the Promotion Mix
Reach Many Buyers, Repeat Message
Reach Many Buyers, Repeat Message
Advertising
Advertising Many Times, Impersonal, Expensive
Many Times, Impersonal, Expensive
Personal
Personal Personal Interaction, Relationship
Personal Interaction, Relationship
Selling Building, Most Expensive Promo Tool
Building, Most Expensive Promo Tool
Selling
Sales
Sales Wide Assortment of Tools, Rewards
Wide Assortment of Tools, Rewards
Promotion Quick Response, Efforts Short-Lived
Quick Response, Efforts Short-Lived
Promotion
Public
Public Very Believable, Dramatize a Company
Very Believable, Dramatize a Company
Relations or Product, Underutilized
or Product, Underutilized
Relations
Direct
Direct Nonpublic, Immediate, Customized,
Nonpublic, Immediate, Customized,
Marketing Interactive
Interactive
Marketing
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4. Factors in Setting Promotion Mix
Buyer State
Liking, Preferences, and Conviction
Purchase
Product-Life-Cycle Stage
Introduction
Growth
Mature
Decline
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5. Advertising
Advertising is Any Paid Form of
Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified Sponsor.
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6. Advertising
Its function is to inform consumers
about product differences, new
products and application
possibilities.
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7. Advertising
It plays a role in the competitive
process by firstly bringing
differences in products or services
to the attention of the consumer.
Secondly, it persuades consumers
to prefer on company’s product to
those of another.
Thirdly, It creates value by its
communication strategy.
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9. Characteristics of Advertising
One way communication
It deals with thousands of
consumers and each one receives
the same mesage.
Depends on symbols: brand logos
Low-cost mass communication
Persuasive communication
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11. Personal Selling
Involves Two-Way, Personal
Communication Between
Salespeople and Individual
Customers:
face to face,
by telephone,
through video conferencing,
or by other means
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12. Personal Selling
A personalized form of
communication in which a seller
presents the features and benefits
of a product to a buyer for the
purpose of making a sale
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13. Personal Selling
Roles:
Increase marketing intelligence
Locating and maintaining customers
Generating sales at point of purchase
Relationship marketing
Provide detailed and up-to-date
information to the travel trade
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14. Personal Selling
Objectives
Sales volume
Cross-selling, Up-selling, and Second-
chance selling
Marketing share
Product-specific objectives
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15. Personal Selling
Cross-selling
offering a customer the opportunity to purchase
allied products that go beyond the obvious core
products
Up-selling
upgrading price and profit margins by selling
higher-priced products
Second-chance selling
trying to sell additional services to a customer who
has already booked services
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16. Personal Selling: Sales management
The management of the sales force
and personal selling efforts to
achieve desired sales objectives
Roles include:
recruiting
training
motivating/rewarding
sales planning
evaluating sales performance
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17. Personal Selling disadvantages
Can only deal with a small number
of potential customers.
More costly on a per-customer
basis.
A bad salesperson can damage a
relationship
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18. Sales Promotion
Sales Promotion consists of short-
term incentives to encourage the
purchase or sales of a product.
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19. Sales Promotion
It’s a blend of marketing activities
and material that are designed to
intensify the efforts of the
company’s salesforce, induce
intermediaries to stock and sell the
company’s product, and/or
persuade consumers to buy the
product limited in time period
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20. Sales Promotion
A technique used to increase the value
of its product by offering an extra
incentive to purchase the product
Short-term incentives to encourage the
purchase or sales of product or service
Directed at consumer (samples,
coupons, rebates, contests,
demonstrations) and trade (free goods,
contests, family trips)
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21. Sales Promotion
Increase short-term sales or help build
long-term market share.
Get consumers to try a new product
Attract customers away from a competitor
In general, sales promotion should focus
on consumer relationship building.
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22. Sales Promotion
Sales promotion methods are aimed
at three target groups, namely
consumers (consumer promotion),
salespeople (salesforce promotion)
and intermediaries (trade
promotion)
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23. Consumers Trade Salesforces
Network
Price cuts Extra Bonuses and
Sales offers commissions other money
Discount Prizes incentives
vouchers Free gifts Gift incentives
Coupons Parties Travel
Disguised price incentives
cuts Prizes
Additional
services
Free gifts
Prizes
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24. Effective sales promotion
Short duration
Dificult to imitate by competitors
Difficult to predict
Directed at and restricted to specific
segments
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25. Effective sales promotion
Short duration: customers must not
be able to postpone buying
decisions . If the promotion is too
long, customers will also perceive it
as part of the standard price.
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26. Effective sales promotion
Difficult to imitate by competitors –
for example airlines that arranege
co-operative promotions linking a
particular hotel, car rental company
or restaurant…
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27. Effective sales promotion
Difficult to predict – if customers
can predict sales promotions, they
may simply postpone their buying
decision.
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28. Effective sales promotion
Directed at and restricted to specific
segments – this is to avoid the diluition of
total sales revenue which occurs if
unnecessary incentives are offered to all
customers, some of whom intended to
buy without the added incentive. For this
reason airlines that offer sales promotions
on overseas trips would specify a
minimum stay at the destination (often 7
days or more), to avoid having business
travellers using the promotion.
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29. Public Relations
Public Relations Involves Building
Good Relations With the Company’s
Various Publics by Obtaining
Favorable Publicity, Building Up a
Good Corporate Image, and
Handling or Heading Off
Unfavorable Rumors, Stories, and
Events.
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30. Public Relations
The activities that a tourism or
hospitality organization uses to
maintain or improve its relationship
with other organizations or
individuals
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32. Functions of PR Departments
Establishing corporate identity
Government relations
Crisis management
Internal communications
Customer relations
Press Relations
Product Publicity
Corporate Communication
Lobbying
Counseling
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33. Public Relations
Build Awareness, comprehension, positive
attitude.
Build Credibility
Stimulate the Sales Force and Channel
Intermediaries
Sales-and-Profit Contribution
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36. Direct Marketing
It’s the use of advertising methods
(for example, mail, mass media,
telephone or intecative devices) to
handle all or some portion of the
selling process handked by
personal, face to face contact.
Consider Internet Impact
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37. Direct Marketing
Direct marketing is an interactive
system of marketing which uses one
or more advertising media to effect a
measurable response and/or
transaction at any location.
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38. Mass Marketing and Direct Marketing
Most Mass Marketing
Involves One-Way
Communications
Aimed At Consumers.
Direct Marketing
Involves Two-Way
Interactions With
Customers.
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39. Advantages of Direct Marketing
Precision targeting
Personalization
Flexibility
Privacy
Measurability
Low cost
Detailed knowledge of consumers
Fast or immediate response
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40. Forms of Direct Marketing
Face-to-Face
Selling
Online
Telemarketing
Marketing
Kiosk Direct
Marketing Mail
Direct-Response
Catalog
TV Marketing
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