1. The Marketing Mix
Promotion

2. 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

3. 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

4. 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.

5. 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

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

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

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

9. 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

10. 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 depends on customers knowing where to look and providing an address
After sales involves providing service backup and information as well as warranties and guarantees

11. Merchandising
This is about the visual presentation of the product at the point-of-sale.

12. 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

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

14. 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.

15. 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.

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

17. 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)

18. 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

19. Advertising

20. 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

21. 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

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

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

24. 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’.

25. 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!

26. 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

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

28. 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

29. 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

30. 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!

31. 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

32. 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

33. 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!

34. 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