Marketing Mix ProductPromotionPricePlace

PROMOTION This is the attempt to draw attention to a product or business in order to gain new customers or to retain existing ones. It includes all of the tools available to the marketer to communicate with the public.

PROMOTION Advertising Sales Promotion Public Relations Word of Mouth

This is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular product or service. Advertising

Main advertising media:

Television Billboard

Blimps

Magazines Radio

Brochures

Promotional Items

Types of Advertising : Informative Persuasive

Informative advertising is designed to increase customer awareness providing any information that the customer may need. Informative advertising

Examples of Informative Advertising: Medicine Laptops/Computers Electronics Cars Student Activity: Why do advertisements for the above products need to be informative?

Persuasive advertising uses techniques to convince consumers to purchase products. It often stresses that the product is more desirable than others. Persuasive advertising

Homework: (1) Find and cut out ONE informative advertisement and ONE persuasive advertisement from a newspaper or magazine

Homework: (2) Construct a table showing the advantages and disadvantages of Advertising

This refers to all other techniques used to encourage sales such as: Buy one, Contests/ Get one freeCompetitions Sales Promotion

Free sample Coupons

Introductory offers (Free installation) Discounts

Loss leaders These are products that are sold below cost price. Losses are made but the greater advantage is that it draws customers to the store and they may also buy other products.

This is a company’s attempt to communicate with groups that form its ‘public’. The aim is to increase sales by improving the image of the firm and its products. Public Relations

Groups that are included in a company’s ‘public’: Customers Suppliers Distributors Shareholders Trade Unions Banks

EXAMPLE: A new restaurant may advertise themselves as an introduction to the public. However, if an article is done in a newspaper of the new restaurant, customers may take it more seriously.

EXAMPLE: Press Conferences involve inviting journalists to a company presentation. New products may be launched and samples may be given out

Some companies appoint a Publicity Manager. This is done to promote favourable press stories and also to respond to criticism

Sponsorship. This is popular in the sporting world. There is a link between certain companies and sporting events or sports personalities.

Word of mouth

This is the passing of information from person to person. A satisfied customer who recommends a product to a potential customer acts as an advertisement for the company’s products or service. Word of mouth

For every three people willing to spread positive word there are thirty- three who will spread the negative. When past customers tell other people how great a service is, it makes people feel secure and safe. Testimonies can be used as a marketing tool.