Outline

Introduction
Marketing & Promotional Mix Promotion Budget Allocation Advertising Sales Promotion

Personal Selling
Decision Summary

Introduction (Main Char)

Demographic Characteristics:
Gender: Female Age: 25 & above Household size: 3 or more persons Occupation: Skilled and Unskilled labor (Blue Collar)

Geographic Char:
St. Johns metropolitan area

Benefits Sought:
Strong high quality Bagged tea in Boxed tea

Introduction - (Previous Decisions)

Team 1, Planning:
Entering the market with a new brand named Bentley Fresh Brew Tea

Team 2, Product Strategy:

Blend: lower than the market brands Amount of tea: 1 Cup Bag Package size: Medium 60-72 bags

Team 3, Pricing Strategy:

Price: 2.49

Marketing Mix
Variables that marketing managers can control in order to best satisfy customers in the target market

1. Product

3. Promotion

2. Price

4. Place

Marketing Mix

Promotional Mix
Promotion is all about companies communicating with customers
It is no longer enough for a business to have great products

1. 2. 3.

Advertising * Personal Selling * Sales Promotion *

4.
5. 6.

Public Relation
Direct Marketing

Publicity

The Objectives
Firm Objective:
Increase Market share By 5% within two years

Advertising Objective:
Establish a 70% product awareness among Blue Collar Females by end of the first year

Budget Allocation Methods

1. Percentage of Sales
2. Fixed amount per unit sold

3. Meeting Competition Method

4. Task Objective Method

Budget Allocation Methods

1.

Percentage of Sales

Example:
Two percent of the sales are allocated for advertising

Advantage:
- Simplicity - Controllable Budget

Limitation:
- Less sales less advertising! - Starting Company can not use it - Depends heavily on past experience

Budget Allocation Methods

2.

Fixed amount per unit sold

Example:
Ten cents' worth of advertising per teabag box

Advantage:
- Simplicity - Controllable Budget

Limitation:
- Less sales less advertising! - Starting Company can not use it - Depends heavily on past experience

Budget Allocation Methods

3.

Meeting Competition Method

Example:
We shall spend 2% over the average market advertising expenditure

Advantage:
- Company will level its advertising with the high

standard competitors

Limitation:
- Less sales less advertising!

- Starting Company can not use it

Budget Allocation Methods

4.

Task Objective Method

Example:
Establish a 70% product awareness among Blue Collar female workers by end of the first year

Advantage:
- Budget support strategic Objective - Achievement is measurable - Good for all Companies at any time

Limitation:
- Un-achievable objective - No specific Budget

Advertising vs Promotion
Advertising
About: A type of marketing tool
Advertising is a one-way communication whose purpose is to Definition: inform potential customers about products and services

Promotion
A type of marketing tool
A Promotion usually involves an immediate incentive for a buyer

Purpose: Time: Price: Sales: Example:

Increase sales, brand building. Long term Expensive in most cases

Increase sales. Short term Not very expensive in most cases. Directly related to sales. Giving free products, coupons etc.

Assumption that it will lead to sales Giving an advertisement in the newspaper about the major product

Advertising
Is a paid form of non-personal communication about an organization, its products, or its activities that is transmitted through a mass medium (TV/ Newspaper/etc) to a target audience

Large numbers of people

Make them aware

Persuade

Remind them about the firm's offerings

TV
30 sec: $200 to $300
(7 PM to 11 PM)

Radio
30 sec: $20 to $40

Magazines
The Newfoundland Herald One page: $ 300 Cover: $600

St. John's Newspaper

Evening: $750 Morning: $500
Complete coverage: $200 to $400 each

Most effective and largest penetration methods.

Major Types of Advertising objectives

Awareness

Reminder to use
the product

Corporate/ product line image building

Attitude Reinforcement

Changing Beliefs about brand similarities

Changing

Changing attitudes about the use of the product form

Establish 70% brand Awareness to blue collars females 25 years & above with household of 3 or more persons Our advertising message is The real taste for fresh Tea

Advertising Recommendation
Winter & Spring Campaign: 1. Radio 2. Billboards
All year awareness : 1. Magazine 2. Newspapers 3. Billboards

Spring & Winter Campaign

1. Radio
Advantages: Low Cost compared to TV - Mass use Audience selectivity Disadvantages: Audio only - less attention- Short life Best Time: AM 7-10 & PM 4-7 Cost Radio: 30sec $30 = 6 times X $30 X 60 days = $10,800 Cost TV: 30sec $250 = 6 times X $250 X 60 days = $ 90,000

Advantages:
Flexible - Repeat exposure inexpensive Disadvantages: Many distractions for viewer - Nonselectivity of audience Locations: St. John's in metro areas: Near Dominion & Sobey's Hypermarkets -Bus stations

Winter Campaign Billboard

Spring Campaign Billboard

All year awareness

1. Magazine
Advantages: long readership / +++TV guide & entertainment schedule. Disadvantages: No guarantee of position Cost: One page $ 300 X 12 = $3600

The Newfoundland Herald

TV Guide inside

Entertainment schedule inside

All year awareness

2. Newspapers
Advantages: Flexible and timelyIntense coverage- High believability of printed word
Disadvantages: Short life - Read hastily Cost: One page ad is $500 $500X5X12= $30,000
St. John's morning newspaper

All year awareness

3. Billboard

Locations: St. John's in metro areas: Near Dominion & Sobey's Hypermarkets & Bus stations

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Personal Selling
Its the method of using sales force to support a push strategy or a pull strategy

A Push Strategy

The use of a company's sales force and trade promotion activities to create consumer demand for a product,
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Personal Selling

A Pull Strategy
Requires heavy spending on advertising and consumer promotion to build up consumer demand for a product

29

Personal Selling

30

Face-to-face sales meeting Customization of the sales message to make it clear to the buyer Immediate response Greater persuasive impact Important source of marketing information

X High cost X Salespersons focus more on their personal gains rather than satisfying the customer needs X Time ineffectual

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Sales Promotion
Definition: Incentives that create an immediate short-term response, thus they usually receive the top management support.
Reasons for using sales promotion: Increase awareness Positive word of mouth Increase accountability Complement advertising activities Growing power of retailers

Sales Promotion

Sales promotion
Consumer-Oriented Promotions

Trade-Oriented Promotions

Sales Promotion
Consumer-oriented sales promotion tools:
Sampling: customers are offered regular trial sizes of the product either free or at a nominal price.
Coupons: Probably the most familiar and widely used of all consumer promotions, now often available at point of purchase. Premiums: A reward or gift can come from purchasing a product. Sweepstakes and Contests: prizes are available either through chance selection or games of skill. Rebates and refund: customers are given reimbursements for purchasing the product either on the spot or through the mail.

Bonus packs: Additional amounts of the product are given to buyers when they purchase the product.
Price-off deals: Customers are offered discounts from the products regular price. Loyalty programs

Event Marketing

Sales Promotion
Advantages of couponing 1. Make it possible to offer a price reduction for price-sensitive consumers 2. Reduce the retail price of a product without relaying on retailers 3. Coupons encourage repurchase after initial trial 4. Reduces customers perceived associated with trial of a new brand 5. Useful promotional devices for established products Disadvantages of couponing 1. Difficult to estimate how many consumers will use a coupon and when 2. Response to a coupon is rarely immediate 3. Many marketers attempt to expedite redemption by shortening the time period before expiration 4. Its difficult to measure how many new customers and existing ones have used the coupons 5. Rather than attracting new customers, coupons can end up reducing the companys profit margin 6. Costly

Sales Promotion
Will it be necessary for Mr. Evan use sales promotion tools for the successful introduction of Bentley fresh? why or why not? If yes, which tool would you recommend and why?

Sales promotion recommendation : Use of Sampling tool at minimum cost

Our Recommendations.
Budget
Task Objective Method

Advertising

Winter & Spring Campaign All year awareness

Promotion

Provide Free Sampling

Personal Selling

In the future

Thank You .Any Questions !!!