The Marketing Mix Promotion

Learning Objectives All students: To state 4 ways a business can promote itself Most students: To list 2 ways you can promote a product Some students: To define each way a business can promote itself

What is Promotion? Promotion is concerned with how a business is to market its product. It is linked very closely with the other three P’s

PROMOTION PLACE PRODUCT PRICE A business may need to inform customers about a new shop, or that it’s distribution is so good to attract new customers. The product is brought to the attention of the customer, normally through advertising. A product near the end of its life cycle might be promoted to extend its life. The price should be set carefully to attract customers. At certain times it might be necessary to promote price to maintain sales.

Aims Promotion has four aims – what do you think they are? To inform customers about a product To keep business ahead of the competition To create or change the image of a business To maintain or to increase sales

Methods of Promotion Sponsorship Branding/Packaging Promotion Public Relations Sales Promotion Advertising Merchandising

Sales Promotions These are offers designed to increase short term sales by giving consumers incentives to buy the product

Sales Promotion Merchandising Competition Price Reductions Free Samples Sales Promotion Loss Leaders Point of Sale Added Value Gifts After-sales Service

Sales Promotions Price reductions, special offers and free gifts persuade new customers to try a product and can give a boost to sales and that lasts longer than the promotion Free samples can increase awareness of a new product Competitions attract customers to new and existing products

Sales Promotions Brochures and catalogues inform customers about a product and present an image of the business Point of sale promotion such as in-store displays encourage impulse buying Internet based using a web site and e-mail depends on customers knowing where to look and providing an e-mail address After sales involves providing service backup and information as well as warranties and guarantees

Merchandising This is about the visual presentation of the product at the point-of-sale. http://news.bbc.co.uk/1/hi/england/8695002.stm

Public Relations The aim is to increase sales by enhancing the reputation of the business – this method is often free Options for PR a business can use? Press releases Launch parties (even being seen at them) Editorial features Media events Charity Support/Education support Sponsorship Competitors

Sponsorship Becoming very popular – bringing the name of a business to different customers Typically used by businesses to sponsor sporting teams

Direct Marketing Direct Mailing – AKA ‘Junk Mail’ Involves sending out information in the post to potential customers To be fully effective this needs to be specifically targeted at the market segments you are aiming your products.

Above the line and below the line The way in which promotion is targeted is split into two types: Above the line promotion – paid for communication in the independent media e.g. advertising on TV or in the newspapers. Though it can be targeted, it could be seen by anyone outside the target audience. Below the line promotion – promotional activities where the business has direct control e.g. direct mailing and money off coupons. It is aimed directly at the target audience.

Methods of Promotion Sponsorship Branding/Packaging Promotion Public Relations Sales Promotion Advertising Merchandising

Exam question Explain one possible use of the Boston Matrix for a new sports shop. (4 marks) Analyse two ways in which a washing powder brand might respond to a new competitor setting up in its market. (8 marks)

Learning Objectives All students: To state 4 ways a business can promote itself Most students: To list 2 ways you can promote a product Some students: To define each way a business can promote itself

Advertising

Learning Objectives To state all three types of advertising To name at least four advertising media To state 1 advantage and 1 disadvantage for each type of media

Advertising What is the difference between an advertisement and an advertising campaign? An advertisement might just be a one off A campaign is a whole series of advertisements built up over a period of time

Past Campaigns http://www.youtube.com/watch?v=VwRCBHhyr AA&safe=active http://www.youtube.com/watch?v=HLv77vwD2ts

Marketing Campaigns What benefits does running a Marketing Campaign have over an Advertisement? Keeps profile Raises Interest Grows sales Interest in them Recognised!

Nescafe Gold Blend First aired in 1987, these advertisements focused on the sexual chemistry between a couple, played by Anthony Head and Sharon Maugham, acted out in a mini soap opera The advertisements gripped the whole nation, featuring as frequently as Eastenders or Coronation Street as topics of conversation This original series of advertisements ran for ten years, increasing sales of Gold Blend by 40% in the first five years Such was the profile of these advertisements, that they even featured as a news article on the ‘News at Ten’. http://www.youtube.com/watch?v=vZHnhItTmQs

Advertising Informative Advertisements which simply give information without trying to persuade the customer to buy a specific item For example?? Sale starts Monday 9AM – Tells readers what?? – doesn’t say how good the sale is or what's on offer!

Advertising Persuasive Try to persuade a customer to buy the product For example?? e.g. The most fantastic sale ever starts on Monday at 9am. Bargains for everyone that no one should miss Goes beyond giving simple information and tries to persuade people to go by saying bargains for everyone

Advertising Generic Advertisements which are for an industry as opposed to a specific business i.e. Milk

Voluntary Codes Advertising industry is ‘self-regulated’ by Advertising Standards Authority (ASA) ASA is independent of industry and government and is paid for by levies

The ASA – What Does it Do? Investigates complaints Protects consumers by ensuring adverts are: Legal – Anything illegal cannot be advertised Decent – Adverts must not cause offence Honest – An advert must be clear – must not tell lies or mislead people Truthful – All claims must be true Prepared with sense of responsibility to consumers & society Follow principles of fair competition accepted in business

TASK Advertising Media In pairs list every type of advertising media you can think of State as many advantages and disadvantages of each type of media Use the table to help you!

Advertising Television: expensive and wide coverage Any paid form of non-personal communication of ideas or products in the "prime media” Television: expensive and wide coverage Radio: cheaper and smaller audience; no visual stimulus Cinema: local audience Newspapers and magazines: can be expensive but more specialised; if kept can be long lasting Posters: cheaper; have impact but may be ignored; little opportunity for targeting Leaflets: delivered to peoples homes or distributed in the street; cheap but little opportunity for targeting

What affects type of media to use in advertising? The cost – A small business may not have much money to spend on advertising Target market for the product – Advertise where the target market will see it Whether the advertisement is part of a campaign or stand alone

TASK Advertising Media In your groups state which advertising media you would use to advertise each product You need to be able to explain why you have chosen that media! Bear in mind that more than one media may be appropriate!

Learning Outcomes You should now… Be able to state all three types of advertising Name at least four advertising media Be able to state 1 advantage and 1 disadvantage for each type of media