1. Handout 16: Marketing strategies and methods of promotion
PowerPoint presentation
Unit 320 (B&A 59): Principles of business
Handout 16: Marketing strategies and methods of promotion

2. Groups customers according to different factors
Market segmentation
Groups customers according to different factors
Helps promotion of products by targeting customers’ needs
Segmentation factors:
Primary
Geographic
Demographic
Psychographic
Market segmentation – breaking down of the market into groups of customers.
Primary segmentation - customers who just need different products/services, eg a vehicle manufacturer is unlikely to sell trucks to private individuals.
Geographic – by region or country. The climate has an impact on what products/services people will want, eg umbrellas and rainwear, snow chains for cars.
Demographic– by gender, age, nationality, religion.
Psychographics - by life-style – a person’s attitudes, beliefs, interests and habits. This taps into how people identify themselves within society.

3. Above-the-line promotion Below-the-line promotion
Way the organisation communicates the benefits of its products to a customer
Above-the-line promotion
Below-the-line promotion
Above-the-line promotion - traditional methods of advertising, eg in magazines and newspapers, billboards or on television or online. This form of promotion is expensive and less certain of reaching the mass audiences required through advertising.
Below-the-line promotion - uses a range of promotional activities to engage its target audience, usually mixing traditional media eg sponsorship deals, public relations, direct marketing and social media.

4. Marketing strategies
Use the marketing mix
Aim to meet an objective
Change according to specific aims
Examples of marketing objectives:
Increase sales by 20%
Launch a new product next year
Break into the international market

5. B2B vs B2C
Strategies differ
B2B strategies focus on the results/benefits the product/service will bring, eg in terms of saving time, money or resources
B2C strategies also focus on emotional elements, eg desirability, as well as different distribution channels

6. Attention: to attract the customer’s attention
AIDA
Attention: to attract the customer’s attention
Interest: to provoke the customer’s interest by highlighting advantages and benefits of the product/service
Desire: to convince customers that this is the product/service they need
Action: to lead customers to purchase or commit
AIDA describes the effects that an advertisement aims to have on a customer.