The Marketing Mix - Promotion N4/5 Business Management

Learning Intentions To develop an understanding of the four elements of the marketing mix

Advertising Advertising is a very important part of the Marketing departments role – this is what makes customers aware that the product exists. It will include information about the product and encourages people to buy it. Advertising can increase sales and increase profitability. Technology can be used in marketing in many ways:

Advertising Internet Websites A business might have a website to communicate information about its products and to sell them online – this is known as e-commerce. E-commerce is now one of the most widely used marketing tools. Internet sites can be accessed using a browser, e.g. Internet Explorer and web addresses are known as “URL’s” – Uniform Resource Locator.

E-Commerce Advantages of e-commerce Customers worldwide can be targeted Customers can shop 24/7 from anywhere they want Online discounts can be given Product information can be updated and accessed quickly Products can often be customised online so the customer can see what they’ll look like Stock availability can be checked immediately Businesses might not have to pay for premises to store stock - cheaper Environmentally friendly compared to printing posters or leaflets

E-Commerce Disadvantages of E-commerce The goods can’t be seen or handled before buying Customers might not want to disclose personal details online Technical problems can occur No personal contact with the business Can be expensive to connect/subscribe to an internet service provider Can be expensive to make and maintain a good website Employees need training to maintain and update the website

Web 2.0 (Social Media) Web 2.0 is a programme which allows people to interact over the internet. This is now an extremely popular way of for businesses to sell and promote their products – they can reach a vast number of people very quickly and can also interact with their customers. Sites like Youtube also allow companies to upload clips and videos of their products – showing hoe they work or providing information about it. This can be viewed by customers before they decide to purchase.

Apps Apps are now being used more and more often as a means of advertising and promoting products. These are similar to the use of the internet however there are some other advantages and disadvantages associated with apps: Don’t have to be sitting at a computer or laptop to use them – can use it on the move Can sometimes use free wifi to access People will need to have a smartphone or tablet which can be expensive Training is needed to design the app The internet connection depends on location and can freeze or go slow which could annoy customers.

SMS Text messaging is widely used by businesses to communicate and promote products to customers. Specific customers can also be targeted quickly. Customers receive communications immediately Lots of customers can be targeted Cheaper than some other advertising methods Can only include a small amount of text compared to a website Customers may feel frustrated or annoyed if they are receiving lots of messages Need to obtain the mobile number of customers.

E-mail Businesses will use email to send mailshots to customers. Customers can also subscribe to mailing lists and be emailed with details of special offers , promotions and product launches. Advantages Disadvantages Customers can sign up, therefore it is only those interested in your products that receive the information Come email providers can filter email into spam folders E-mail can be sent at any time – and to more than one person Customers can become annoyed if receiving lots of promotional emails Documents and files can be attached Viruses can be spread through email. Emails can be sent worldwide with little cost Environmentally friendly

Advertising There are still a number of other “traditional” advertising methods used by businesses. There are: TV, newspapers/magazines and on billboards or posters.

Advertising on TV TV adverts remains one of the most popular methods of advertising as there are very large numbers of people watching TV. TV adverts can also be made to be shown on certain channels at certain times in order to target customers. Large audiences can be reached Adverts can be targeted Product can be shown fully – and demonstrated Costs can be high Modern technology means people can skip adverts Adverts can be quite short and may not give all the time needed to show all of the information

Advertising in Newspapers/Magazines Different types of newspapers are available, some are only available locally, others nationally and some are only available on certain days. Some newspapers/magazines are designed for specific customers – The Financial Times, etc. Specific location can be targeted Adverts can be kept by readers A free sample could be given Not all newspapers have colour No sound, video or demonstration can be given Specialist magazines/papers can be expensive.

Radio and the Media The radio and different media programmes (e.g. the news or TV programmes) can report on the positive/negative activities of a business or about a product. If the report is positive it can have a knock on effect and promote the business to customers. They can also pay to have radio ads. Free advertising if the report is positive National media reaches large audiences Not all reports are positive – they can also tell people negative things about the business Reports can be wrong, misleading or miss out some key facts

Promotion Promotion is much more than just advertising – it is about encouraging people to buy the product. Business can do this by implementing different promotion methods.

Sales Promotion Methods Special Offers Companies might provide their customers with a discount - could be 10% off or BOGOF. Businesses will try to do this to make customer buy their product and to encourage their loyalty. Sometimes businesses will use introductory offers to encourage them to buy a product for the first time. Sometimes special offers may only be available to specific customers through mailing lists or business websites

Sales Promotion Methods Free Samples This gives people a “taster” of the product – it allows people to try the product before they buy it. Celebrity Endorsement This is when a celebrity is used to promote a business or product. Think of Kevin Bacon for EE or Gary Lineker for Walkers.