Please have last weeks homework on your desk ready to be collected This weeks homework is task 2 – Due 22/10/12 Make sure you write it in your organiser.

Please have last weeks homework on your desk ready to be collected This weeks homework is task 2 – Due 22/10/12 Make sure you write it in your organiser

Marketing mix: Promotion GCSE Business studies Unit 2 – Section 7: Marketing

Learning objectives £ I can explain the meaning of promotional activity ££ I have analysed the different methods of promoting a product £££ I am able to evaluate the most suitable method of promotion for a given product

In this section we look at promotional activities in more detail and consider their importance to a growing business.

You need to know both of these by the end of this section. 1.How promotional activities enable growth 2.How to select the right promotional mix

What is promotion???

Promotion recap Promotion is about communicating about the business and its products. A business may communicate in order to: Inform customers about the business Try to persuade customers to buy a product Remind customers of the advantages of the product

Activity 1

Personal selling Advertising Public relations Sales promotions Read the description in this half of the box, then jot it down using the correct term from the left hand box as the subheading…

Activity 1 Personal selling Advertising Public relations Sales promotions These appear on TV, in magazines, newspapers and posters. This form of communication has to be paid for

Activity 1 Personal selling Advertising Public relations Sales promotions These include discounts, BOGOFs, competitions and coupons

Activity 1 Personal selling Advertising Public relations Sales promotions These are actions used by the business to arrange free media coverage of its products. The only problem being you cant control what is said about your business. Last summer Thorpe park issued a bogus press release that people with bad BO would be thrown off rides. The whole thing was just a publicity stunt!

Activity 1 Personal selling Advertising Public relations Sales promotions Many businesses will have a sales force to help promote their products. Members of the sales team may visit stores to get them to stock their products, and highlight the benefits of the product

Red bull energy drink is sold all over the world. Over 4 billion cans are bought each year. Rather than spending millions of pounds on traditional advertising, like posters and TV, Red bull uses a range of different promotional activities

For example it sponsors extreme sport events such as snowboarding, cliff diving and surfing. They also give cars featuring large red bull cans to students to drive round universities an get others interested.

Factors influencing the promotional activities of a growing business

Costs Some forms of promotion are much more expensive than other. For example advertising on TV is much more expensive than advertising on local radio

Costs The amount of money a business has can affect the different forms of promotion it can afford. In general a growing business will have more resources than a small of start-up business, which means it has more options when it comes to promotion.

Who is your target audience and how do you reach them? Crazed N Dazed

Mix & match A company selling bespoke badges to people all over the world Local newspaper National newspaper Local radio National radio TV Internet Blimp

Mix & match A new magazine aimed at soap watchers Local newspaper National newspaper Local radio National radio TV Internet Blimp

Mix & match A second hand car dealer based in Brentwood who is offering 0% finance on all cars bought this weekend Local newspaper National newspaper Local radio National radio TV Internet Blimp

Mix & match A small shop just set up in Shenfield wanting to promote its opening Local newspaper National newspaper Local radio National radio TV Internet Blimp

You must remember the two key elements when deciding how to promote…

Target audience Reach

Method of communication If you want to communicate with words, sounds and pictures then TV is a good form of communication. If you only need words and images then a poster campaign can work.

Every form of communication has its disadvantages and disadvantages. For example a printed advert can be read several times, whereas a radio advert can only be heard once. Keep in in that a number of forms of communication may be best!

Method of communication When selecting promotional activities to undertake, a business needs to think about: The coverage of the promotion – how many people will see it? The quality of the promotion – how effective is it likely to be? The cost The different media options (e.g. film, print or sound)

The right mix of promotional activates depends on a number of factors and you will need to think about the precise situation. Is it trying to reach high income earners? Young people? How much money does it have to spend?

9 Mark question Which method of promotion do you think is most suitable to launch the new