Handout 16: Marketing strategies and methods of promotion PowerPoint presentation Unit 320 (B&A 59): Principles of business Handout 16: Marketing strategies and methods of promotion

Groups customers according to different factors Market segmentation Groups customers according to different factors Helps promotion of products by targeting customers’ needs Segmentation factors: Primary Geographic Demographic Psychographic Market segmentation – breaking down of the market into groups of customers. Primary segmentation - customers who just need different products/services, eg a vehicle manufacturer is unlikely to sell trucks to private individuals. Geographic – by region or country. The climate has an impact on what products/services people will want, eg umbrellas and rainwear, snow chains for cars. Demographic– by gender, age, nationality, religion. Psychographics - by life-style – a person’s attitudes, beliefs, interests and habits. This taps into how people identify themselves within society.

Above-the-line promotion Below-the-line promotion Way the organisation communicates the benefits of its products to a customer Above-the-line promotion Below-the-line promotion Above-the-line promotion - traditional methods of advertising, eg in magazines and newspapers, billboards or on television or online. This form of promotion is expensive and less certain of reaching the mass audiences required through advertising. Below-the-line promotion - uses a range of promotional activities to engage its target audience, usually mixing traditional media eg sponsorship deals, public relations, direct marketing and social media.

Marketing strategies Use the marketing mix Aim to meet an objective Change according to specific aims Examples of marketing objectives: Increase sales by 20% Launch a new product next year Break into the international market

B2B vs B2C Strategies differ B2B strategies focus on the results/benefits the product/service will bring, eg in terms of saving time, money or resources B2C strategies also focus on emotional elements, eg desirability, as well as different distribution channels

Attention: to attract the customer’s attention AIDA Attention: to attract the customer’s attention Interest: to provoke the customer’s interest by highlighting advantages and benefits of the product/service Desire: to convince customers that this is the product/service they need Action: to lead customers to purchase or commit AIDA describes the effects that an advertisement aims to have on a customer.