1. PROMOTION
An attempt to draw attention to a product or business in order to gain new customers.

2. Promotion Promotion is aimed at 2 groups:
Retailers – those who sell the product
Consumers – those who buy the product

3. Into the pipeline promotions
These are used by the manufacturer to encourage the retailer to sell their finished products.
Point of sale displays – this
includes posters, stands to display
products and free samples
Dealer promotions and loaders –
offers given to encourage the retailer to stock products. Prizes for retailer who sells the most, extra products given for volume.

4. Continued ..
Staff training – manufactures provides training and demonstrations so staff are confident in promoting the product.
Sale or return – to reduce the risk of being stuck with stock manufacturers will take back unsold stock.
Extended credit – given to enable retailers to buy stock
Remember MANUFACTUER to RETAILER

5. OUT OF THE PIPELINE PROMOTIONS
These are aimed at consumers to encourage them to buy from retailers:
Free samples
Loyalty schemes
Vouchers
Special offers (BOGOF)
Price reductions (short period only)
Free entry into competitions
Remember RETAILER to CONSUMERS
Why do these promotions encourage customers to buy?

6. Promotion can be: Above the line – aimed at a wide audience
Examples include newspapers, posters, radio, billboards, TV and cinema adverts.
Can be expensive and less effective as it is difficult to appeal to a wide range of people

7. Below the line – aimed at particular groups of people
Examples include sales promotions, direct selling, sponsorship.
Social media (Facebook and Twitter) has become a popular method of raising awareness – organisations can advertise on these site, individuals can comments on products/organisations
Question – what impact has social media had on organisations?

8. Public relations (PR)
Attempts to improve the relationship and communication between the public and the organisation
It provides information that shows the business in a positive way.
It is involved in damage limitation when something goes wrong – faulty product, industrial action, bad customers feedback

9. Task - You work in PR for the Broadway Hotel, the following is part of an article published in the Herald:
Do not pass comment, or risk a £100 penalty. Those are the house rules at Blackpool’s Broadway Hotel.
After Tony and Jan Jenkinson of Whitehaven endured a disagreeable night there in August, they vented their feelings online. “Filthy, dirty rotten stinking hovel run by muppets!” ran the headline of their review on Trip Advisor.
The hotel management took exception to the criticism and invoked a clause in the small print that, they claim, entitled them to debit the couple’s credit card for an extra £100
How are you going to deal with this?

10. Pr activities include:
Press releases
Sponsorship – organisations
will sponsor events where
there is a lot of public attention
Charity donations – seen as being socially responsible

11. Controls on advertising
The Trades Description Act 1968
Products must match the claims made about them in advertisements. It is also illegal to include ingredients on a label that are not present.

12. The Advertising Standards Authority
The UK’s independent watchdog committed to maintaining high standards in advertising and other forms of promotions for the benefit of consumers, advertisers and society at large
According to the Advertising Code “adverts must be legal, decent, honest and truthful and must not cause offence”.
They have codes that organisations must adhere to and adverts can be withdrawn if they break this code

13. Rise in the advertising of bingo/gambling sites. Right or wrong?
Ethical marketing
The growth of social media and electronic devices has increased the number of people being directly targeted with advertising. Many see this as an invasion of privacy.
Ethical marketing avoids businesses making claims that products can change people’s lives. It protects vulnerable groups such as the elderly or those on low income.
Rise in the advertising of bingo/gambling sites. Right or wrong?