Lecture #16: The Promotion Mix

These lecture notes are provided as a study aid in preparation for examinations. Students should review their class notes, and compare to the outline presented below. To assist in reviewing for exams, students are advised to rewrite their notes in accordance with the outline.

Print Me!

The retailer must communicate its business to the target customers. As such, it must utilize the principles of communication taught in both the Principles of Marketing and Advertising courses. The only difference is that, for retailers, there is a fifth element of the mix: atmospherics (discussed in the next lecture).

Thus, the five elements of the communications mix are as follows:

  • Advertising
  • Sales promotions
  • Publicity
  • Personal selling
  • Atmospherics

Be sure to note the pros and cons of each method, as well as the costs of each.

A. Tasks of the Advertising Program:

  • Inform
  • Persuade
  • Remind

B. The "Fifth P:" Positioning. This is a perceptual variable, and is somewhat under the control of the Marketer, but ultimately depends on how customers view your business or product. Thus, Marketers need to try to steer the firm or product in such a way that customers perceive of it correctly---the same way the company wants it to be perceived. Positioning will often include aspects of merchandising, price, quality, benefits, uniqueness, and lifestyle.

C. Setting the ad budget:

  • Objective and task method
  • Affordable method
  • Percentage of sales method
  • Competitive parity method
  • Arbitray allocation method

D. Types of media vehicles:

  • Print
  • Broadcast
  • Outdoor
  • Specialty
  • Internet
  • Factors to consider: Coverage, reach, frequency, impact, and CPM

E. Special promotions:

  • Samples
  • Coupons
  • Premiums
  • Games and contests
  • Frequent shopper programs

F. Publicity Programs:

  • Press releases
  • Press conferences
  • VNRs
  • Byline articles
  • Public speaking
  • Staged "events"

Course Syllabus

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