Promotional tools and Advertising Advertising lecture MK, Unit 13

Marketing mix Product Price Place Promotion People Process Physical evidence

Sort these examples of promotional tools into 4 groups Free samples, newspaper ads, sales representative, loss leaders, blogs TV commercials, price reductions, publicity, competitions, posters, sponsorship, 2 for the price of 1, coupons

Promotional tools and examples Public Relations Sales Promotion Personal selling Advertising Publicity Sponsorship Free samples Price reductions Competitions 2 for the price of 1 coupons loss leaders Sales reps Blogs Newspaper ads TV commercials Posters

Factors that determine the type of promotional tools used 1. The size of the company’s budget and the cost of each promotional tool 2. Market size and concentration a) Small market – personal selling b) Large market – advertising 3. Customer information needs a) When selling equipment for nuclear power stations – ? b) When selling beans – ? 4. The stage in the product life cycle.

Task: p. 64/Vocabulary Match up the terms with the definitions. Group the terms into 5 groups: 1. What marketers do 2. Product 3. Price 4. Place 5. Promotion

Solution 1. What marketers do: 1. Market segmentation, product differentiation, market opportunity 2. Product 1. Product features 3. Price 1. Market skimming, market penetration, price elasticity 4. Place 1. Distribution channel, wholesaler 5. Promotion 1. Sales representative

The product life cycle (MK, p. 65) Solution: Introduction: D, E, J, P Growth: A, G, K, N Maturity: B, F, L, M Decline: C, H, I, O

Find the expression in the reading The number of products sold The number of products sold is the highest in the life cycle of the product Enter a market Sell off something sales volume the sales volume peaks penetrate a market liquidate

Verbs and prices/ pricing Turn them into nouns. skim a market penetrate a market Reduce a price Set a price Maintain a price Skim pricing/ market skimming Penetration pricing/ market penetration Price reduction Price setting Price maintenance

The product life cycle (MK, p. 65) 1. What is the connection between product awareness and sales? 2. Why are costs high at the introduction stage? 3. When do they decrease? Why? 4. When can skim pricing be used effectively? 5. When should penetration pricing be used? 6. Explain the connection between prices and competition. (say which type of pricing strategy you are talking about) 7. What is the connection between competition and product differentiation?

Advertising

Answer these questions 1. What are the 3 things a company gives to an advertising agency? 2. What are the 2 things they get in return? 3. What 3 different methods of determining advertising spending are mentioned? 4. List some disadvantages of traditional advertising. 5. How can the Internet be used in advertising?

Make 3 groups out of the following expressions Brief, the amount of money a company wants to spend on advertising, advertising strategy, the message, statement of the objectives of the campaign, the reason a company advertises, what to tell customers about the product, budget

BRIEFMESSAGEBUDGET statement of the objectives of the campaign advertising strategy the amount of money a company wants to spend on advertising the reason a company advertises (what it wants to achieve by advertising) what to tell customers about the product Types: To launch a new product. To inform customers. Etc. Types: Unique Selling Proposition (USP) Added value

Find word partnerships in the text (MK, p. 69) Media Sales Marketing Advertising ~ plan ~ revenue, increase ~, ~ promotion Viral ~ ~ agencies, ~ campaign, ~ strategy, ~ industry, word-of- mouth ~, ~ spending

Fill in the missing words Ulla Popken, a clothing retailer specializes in selling clothes for larger women, this is an example of n____ marketing. Grey power, DINKS (Double Income No Kids) and YUPPIES (Young Upwardly-mobile Professionals) are all types of market s ____. Our company chose DINKS as the t ____ market for our newest product. We decided to change our p ____ strategy, we moved our product down-market from top-of-the range to value-for-money. Some companies don’t do market r ____ before launching a product, but these products have a high percentage of failure. The marketing m ____ the 4 Ps) has to be set when the product is first l ____ and then changed during the life of the product.

Fill in the gaps with these words: target, brand, free publicity It is often profitable to stir controversy. An ad that upsets people and so generates headlines is an excellent source of __ ___. But if it angers ____ customers, it has gone too far. Benetton, a fashion ___, attracts young shoppers by annoying their parents.

Fill in the gaps It is often profitable to stir controversy. An ad that upsets people and so generates headlines is an excellent source of free publicity. But if it angers target customers, it has gone too far. Benetton, a fashion brand, attracts young shoppers by annoying their parents.