MGT2 – INDUSTRIAL MARKETING MANAGEMENT

2nd Sem AY 2018-2019

Instructor: Sarah C. Vanguardia

Lesson 07: Promotion (Part 2)

Promotional mix - the combination of personal and nonpersonal selling that marketers use to meet the
needs of a firm’s target customers and to effectively and efficiently communicate its message to them.

Figure 1. Elements of Promotion Mix

Advertising – non-personal presentation of goods, services, or idea. It involves transmission of standard

message simultaneously to a large number of people.

Public relations or Publicity – non-personal, non-paid stimulation of demand of the product or business
unit by planning commercially significant news about in the print media or by obtaining a favorable
presentation of it upon a radio, television or stage.

Personal Selling – the process of assisting and persuading the existing and prospective buyer to buy the
goods or services in person.

Sales Promotion – consists of all activities that stimulate consumer purchasing and dealer effectiveness,
such as point of purchase displays, shows and exhibitions, demonstrations and various non-recurring
selling efforts not in the ordinary routine.

Table 1. Comparing the Elements of Promotion Mix

Promotion Mix Element Advantages Disadvantages

Advertising • Reaches large consumer audience at • Difficult to measure
low cost per contact effectiveness
• Allow strong control of the message • Limited value for closing
• Message can be modified to suit sales
different audiences
Personal selling • Message can be tailored for each • High cost per contact
customer • High expense and difficulty
• Produces immediate buyer response of attracting and retaining
• Effectiveness is easily measured effective salespeople

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MGT2 – INDUSTRIAL MARKETING MANAGEMENT
2nd Sem AY 2018-2019
Instructor: Sarah C. Vanguardia

Sales Promotion • Attracts attention and creates • Difficult to differentiate

awareness from similar programs and
• Effectiveness is easily measured competitors
• Produces increase in short-term • Nonpersonal appeal
sales
Public Relations • Improves trust in a product or firm • Difficult to measure
• Creates positive attitude about the effectiveness
product or company • Often devoted to non-
marketing activities
• Difficult to control message

Types of Consumer Sales Promotions

1. Coupons
2. Rebates
3. Promotional pricing
4. Trade-in
5. Loyalty programs
6. Sampling and free trials
7. Free product
8. Premiums
9. Contests and sweepstakes
10. Demonstrations
11. Personal appearances

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