Setting the Promotion Mix
Category: Marketing
The company has the following four main sources for communication, called the Promotion Mix (or tools):
Advertising. Any paid form of no personal presentation and promotion. Advertising is characterized by a product which is standard and legitimate, to buy the product will be publicly accepted, the message can be repeated, many times, buyers can compare the message of competitors, a very expressive media, can build up a long-term product image, reach masses geographically, one-way communication, it is impersonal. Advertising says: ‘Buy our product’. Its cost structure is characterized by: low cost per exposure, but can be very costly (TV).
Sales Promotion. Short-term incentives to encourage purchase or sales. Sales promotion is characterised by using different tools as coupons, contests, %-off deals, premiums, etc, which attract consumers’ attention and provide information, offer strong incentives to purchase, gives additional value and invite to quick response — says: ‘Buy our product now’. Have special effects in the short-run, do not build long-run preference.
Public Relation. Building good relations (‘corporate image’) to the public. Public Relation is often characteristics by being more believable than other ads. It reaches prospects who avoid salespeople and advertisements, it can dramatise a company or product. With other promotion mix it can be very effective and economical.
Personal Selling. Oral presentation in a conversation with a potential purchaser for the purpose of making sales. Personal Selling is characterised by being the most effective tool in building up buyers’preferences, to convict a customer, and to get the customer into a buying action. Compared with other ads, its advantages are the personal interaction, the creation of relationship, the fact that the buyer feels a higher need to listen and respond. But usually personal selling requires longer-term commitment, and is the most expensive promotion tool.