PBL Task 4

Promotion Mix

Learning Objective #1

  Advertising: Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. (Always in Paid Form non personal)

  Personal selling: A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

  Sales promotion: Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

  Public relations: Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars.

  Direct Marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Source: Boundless. “The Promotion Mix.” Boundless Business. Boundless, 26 May. 2016. Retrieved 25 Sep. 2016 from https://www.boundless.com/business/textbooks/boundless-business-textbook/marketing-communications-17/promotion-104/the-promotion-mix-492-5112/

The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and promotion – that the firm blends to produce the response it wants in the target market.

Kotler and Armstrong (2010).

Learning Objective #2

http://economictimes.indiatimes.com/definition/advertising

Definition of 'Advertising'

Definition: Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

Description: Advertising is always present, though people may not be aware of it. In today's world, advertising uses every possible media to get its message through. It does this via television, print (newspapers, magazines, journals etc), radio, press, internet, direct selling, hoardings, mailers, contests, sponsorships, posters, clothes, events, colours, sounds, visuals and even people (endorsements).

The advertising industry is made of companies that advertise, agencies that create the advertisements, media that carries the ads, and a host of people like copy editors, visualizers, brand managers, researchers, creative heads and designers who take it the last mile to the customer or receiver. A company that needs to advertise itself and/or its products hires an advertising agency. The company briefs the agency on the brand, its imagery, the ideals and values behind it, the target segments and so on. The agencies convert the ideas and concepts to create the visuals, text, layouts and themes to communicate with the user. After approval from the client, the ads go on air, as per the bookings done by the agency's media buying unit.

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http://www.creativeguerrillamarketing.com/what-is-guerrilla-marketing/

Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing tactics that yield maximum results.

The original term was coined by Jay Conrad Levinson in his 1984 book ‘Guerrilla Advertising’. The term guerrilla marketing was inspired by guerrilla warfare which is a form of irregular warfare and relates to the small tactic strategies used by armed civilians. Many of these tactics includes ambushes, sabotage, raids and elements of surprise. Much like guerrilla warfare, guerrilla marketing uses the same sort of tactics in the marketing industry.

This alternative advertising style relies heavily on unconventional marketing strategy, high energy and imagination. Guerrilla Marketing is about taking the consumer by surprise, make an indelible impression and create copious amounts of social buzz. Guerrilla marketing is said to make a far more valuable impression with consumers in comparison to more traditional forms of advertising and marketing. This is due to the fact that mostguerrilla marketing campaigns aim to strike the consumer at a more personal and memorable level.

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What is 'Zero-Based Budgeting - ZBB'

Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

 Investopedia http://www.investopedia.com/terms/z/zbb.asp#ixzz4LIOFyRAq

Learning Objective #3

http://smallbusiness.chron.com/calculate-roi-sales-promotion-60401.html

Promotions are a necessary expense of running your business and increasing brand awareness and sales. Small businesses should calculate the return on investment, or ROI, of sales promotions in order to determine which campaigns or advertising mediums are more effective for your company and your bottom line.

Collect Your Advertising Data

During your sales campaign, regularly collect data on the promotion. For example, if it is an online campaign, record data on the number of daily impressions and clicks the campaign delivers. If it's a print campaign, get data on the circulation and distribution of the campaign. Before your sales promotion runs, target your advertising vehicles based on a target audience profile and the sales goals you wish to accomplish.

Analyze Your Return

Determine results of your sales promotion as they relate to your business. For sales promotions, the most obvious measure of return is revenue generated from the promotion. Review your sales numbers to determine the amount of sales that resulted from your promotion. In order to get a more accurate view of how many sales were a direct result of the campaign, use trackable sales methods in your ad. For example, use unique website landing pages or phone numbers in the ads so you can directly track the number of sales that result from these channels. Once you know the amount of sales revenue that results from your promotion, determine your gross profits from those sales by subtracting the cost of the goods sold from your revenue. For example, if you sell a shirt for $10, but it costs you $3 to buy it, when you sell 10 shirts, your revenue is $100, but your profit is $70.

Determine Your Total Campaign Costs

Calculate the total cost to run the sales promotion. Track these expenses from the onset of the project to get an accurate account of expenditures. Costs could include the sales promotion purchase price, freelance or design fees, and any employee time or resources put into the complete sales promotion process.

Calculate Your Return on Investment

Calculate your return on investment for the campaign by subtracting your sales promotion total cost from your gross profits, dividing that number by your sales promotion cost and then multiplying that number by 100 to get a percentage. For example, if your promotion yielded $1,000 in profit but cost $500, your ROI would be 100 percent. An ROI of 100 percent means the promotion led to a profit that was twice the cost. It's important to note that this number is a profit in relation to the total expenses of the campaign. The "return" in the ROI equation is in direct proportion to the amount spent, or the investment.