Promotion Mix

Guitteau Pandol

Chapter 14

11/17/2011

Question 1) List and briefly describe the five major promotion mix tools

Answer)

The five promotion mix tools that any company should use to launch a particular product are: advertising, sales promotion, personal selling, public relations, and direct marketing.

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. It is a process used to persuade an audience into adopting a new product or ideas. It includes broadcast, prints, internet, outdoor, and other forms.

Sales Promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. It includes buy-one-get-one-free, customer relationship management which includes incentives such as bonus points or money off coupons, new media which is a sale promotion used whereby a consumer would enter a code into a dynamic website to see if they had won a prize, merchandising which is a point-of-sale materials and product demonstrations, free gift which is a card used to get a free product when filled of a certain amount of marks, discount prices, joint promotions between brands owned by a company or with another company’s brands, free samples, vouchers and coupons often seen in newspaper, magazines, on TV and radio, on the internet, finance deals- for example 0% financing over a certain time period. In short, sales promotion is a short-term incentive to encourage the purchase or sale of a product or service.

Personal Selling occurs where an individual salesperson sells a product, service or solution to a client. Salespeople match the benefit needs of a client. There are five steps to personal selling- prospecting, making the contact, the sale call, objection handling, and the closing sale. Personal sell is used for the purpose of making sales and building customer relationships.

Public Relations is used to promote goodwill between a company and...