Promotion Lesson Objectives:  Define promotion  List promotional mix activities  Explain what can influence the promotional mix

Starter [2 mins] List 2-3 brands or items you recommend to friends on a typical day in your life Use the mini white-boards We'll take 2-3 minutes to discuss the reasons why people recommend products

What is promotion? Promotion is the part of the marketing mix that focuses on persuading people to buy the product or service

Why do companies promote?  Inform  Persuade You could also distinguish between:  Increase short term sales  Build sales for the long term

2 min Activity Write down 2-3 promotion activities companies can do to increase their sales We'll check how many activities the class can come up with

Increasing long-term sales: Branding Persuasive advertising Public Relation

Branding Branding is the process of creating a distinctive and lasting identity in the mind of the customers

2 min Activity: Branding On your white board, Write one benefit of branding

Some answers: Repeat purchases Retailers more enthusiastic about selling your product Reduces the amount spent on promotion (for the whole business)‏ Other products can use the same brand

Persuasive advertising Persuasive advertising is designed to create a distinctive image It tries to appeal to customers feelings Eg: our product makes you feel better, your life will be better if you buy our product, etc...

5 min Activity Pick an advertising slogan, Try to decipher its meaning Eg: Tesco's Every little helps  We understand your needs and we try to help Just do it, I'm lovin' it, It's the real thing,…

Public Relations Get you product in front of customers' eyes without using classic adverts in the media Sponsorship - event, sports team... Product placement in movies and soaps Press release Etc...

Boosting short-term sales Sales promotions Direct selling Merchandising

Sales promotions Reduce the price to attract new customers BOGOF, money off coupons, 15% extra, etc. Risk: existing customers could stock up Succeeds if it attracts new customers who stay loyal after the promotion ends

Direct selling Approach customers 1 to 1 Nowadays by phone Cost/prospect is high It works with:  High margin products  Very well targeted market segment

Merchandising Getting you product displayed in the most profitable location in the stores Q&A:  What are the most profitable locations in stores?  What do stores do with these locations?

The promotional mix The promotional mix is the combination of promotional methods used by a business in marketing its products

Class activity As a group, can we all take 1 minute to think, then apply our answers to solve B. A. Which promotional activity would you use at each stages of the product life cycle? B. How does this relate to the Boston matrix? (read your definition of the promotional mix again…)

Factors affecting the promotional mix Size of the market Type of product Cost

Factors affecting the promotional mix Size of the market Adapt media channel to market size Type of product Professional products are marketed differently than consumer products Cost Can small businesses afford TV campaign?

Media channels TV Newspapers Events Websites?

Marketing Strategy & Promotional Mix What is your marketing strategy? How does it affect the promotional mix?  New product launch  Differentiate  Extending the life-cycle  Increase market share  Built up the brand

4 min Activity: Find 1-2 aims for each promotional strategy:  Eg: New product launch (inform, reach target audience...)‏  Differentiate a product  Extension the life cycle  Increase market share  Built up the brand

Getting it right... Businesses need to understand the nature of their products, their customers and competitors Market research helps to make the right decisions about the marketing mix

Market research Market research is the gathering of information about customers and competitors Key term: A market segment is a smaller part of a larger market

Market Research (2)‏ Who is likely to buy?  Target audience What makes rival product successful?  Address those issues in your campaign How does your product appeal to customers?  Reinforce these features

Market research (3)‏ If you target the wrong market segment, If you fail to attract new customers,  you are wasting your marketing budget!

Clear marketing objectives... Are essential to achieve the correct promotional mix Once the promotional strategy and objectives are well defined, It is easy to develop an effective promotional campaign!

4 min Activity: The importance of promotion Find reasons why these factors affect the importance of promoting a product: – Stage in the product life cycle – Competitiveness of the market – Availability of the product – How easy it is to differentiate the product

Case study Photocopies or Book p270 Case study B1 Questions 1&3 Extension: question 4

Homework In you planners: Photocopies or Book p270 Case study B12 Due date: Wednesday 10 th March

Plenary Quiz! – 2 minutes to answer Let’s discuss these answers

Promotion Lesson Objectives:  Define promotion  List promotional mix activities  Explain what can influence the promotional mix