PROMOTION An attempt to draw attention to a product or business in order to gain new customers.

Promotion Promotion is aimed at 2 groups: Retailers – those who sell the product Consumers – those who buy the product

Into the pipeline promotions These are used by the manufacturer to encourage the retailer to sell their finished products. Point of sale displays – this includes posters, stands to display products and free samples Dealer promotions and loaders – offers given to encourage the retailer to stock products. Prizes for retailer who sells the most, extra products given for volume.

Continued .. Staff training – manufactures provides training and demonstrations so staff are confident in promoting the product. Sale or return – to reduce the risk of being stuck with stock manufacturers will take back unsold stock. Extended credit – given to enable retailers to buy stock Remember MANUFACTUER to RETAILER

OUT OF THE PIPELINE PROMOTIONS These are aimed at consumers to encourage them to buy from retailers: Free samples Loyalty schemes Vouchers Special offers (BOGOF) Price reductions (short period only) Free entry into competitions Remember RETAILER to CONSUMERS Why do these promotions encourage customers to buy?

Promotion can be: Above the line – aimed at a wide audience Examples include newspapers, posters, radio, billboards, TV and cinema adverts. Can be expensive and less effective as it is difficult to appeal to a wide range of people

Below the line – aimed at particular groups of people Examples include sales promotions, direct selling, sponsorship. Social media (Facebook and Twitter) has become a popular method of raising awareness – organisations can advertise on these site, individuals can comments on products/organisations Question – what impact has social media had on organisations?

Public relations (PR) Attempts to improve the relationship and communication between the public and the organisation It provides information that shows the business in a positive way. It is involved in damage limitation when something goes wrong – faulty product, industrial action, bad customers feedback

Task - You work in PR for the Broadway Hotel, the following is part of an article published in the Herald: Do not pass comment, or risk a £100 penalty. Those are the house rules at Blackpool’s Broadway Hotel. After Tony and Jan Jenkinson of Whitehaven endured a disagreeable night there in August, they vented their feelings online. “Filthy, dirty rotten stinking hovel run by muppets!” ran the headline of their review on Trip Advisor. The hotel management took exception to the criticism and invoked a clause in the small print that, they claim, entitled them to debit the couple’s credit card for an extra £100 How are you going to deal with this?

Pr activities include: Press releases Sponsorship – organisations will sponsor events where there is a lot of public attention Charity donations – seen as being socially responsible

Controls on advertising The Trades Description Act 1968 Products must match the claims made about them in advertisements. It is also illegal to include ingredients on a label that are not present.

The Advertising Standards Authority The UK’s independent watchdog committed to maintaining high standards in advertising and other forms of promotions for the benefit of consumers, advertisers and society at large According to the Advertising Code “adverts must be legal, decent, honest and truthful and must not cause offence”. They have codes that organisations must adhere to and adverts can be withdrawn if they break this code

Rise in the advertising of bingo/gambling sites. Right or wrong? Ethical marketing The growth of social media and electronic devices has increased the number of people being directly targeted with advertising. Many see this as an invasion of privacy. Ethical marketing avoids businesses making claims that products can change people’s lives. It protects vulnerable groups such as the elderly or those on low income. Rise in the advertising of bingo/gambling sites. Right or wrong?