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Promotion
IB Business and Management
Sha Tin College Business Education Department
Promotion Quotes
“There is a great deal of advertising that is much better
than the product. When that happens, all that the good
advertising will do is put you out of business faster.”
~ Jerry Della Femina (advertising guru)
“Doing business without advertising is like winking at a
girl in the dark. You know what you are doing, but
nobody else does.”
~ Stuart Henderson Britt, Advertising consultant, 1970
Sha Tin College Business Education Department
Promotion
 What is promotion?
 Why do companies need
promotion?
 Why do consumers need
promotion?
Sha Tin College Business Education Department
Communicating a
message to a
potential customer
with intention of
increasing sales
Fact…
The producers of the first Spider-Man movie spent
US$50 million on its marketing campaign in 2002.
Can this spending be justified?
Sha Tin College Business Education Department
Because it’s worth it…
“Advertising is not money down the drain it is an investment in the future of your
brand.”
~ Stelios Haji-Loannou (founder of easyJet and the
easyGroup)
Sha Tin College Business Education Department
Objectives of Promotion
 Inform
 Persuade
 Remind
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Types of Promotion
 Above-the-line
 Below-the-line
Sha Tin College Business Education Department
Above the line promotion
Above the line promotion (ATL) refers to any form of
paid-for promotional technique through independent
consumer media, such as:
Television
Radio
Cinema
Magazines
Billboards
Newspapers
Internet
Sha Tin College Business Education Department
Above the line (cont’d)
 Due to the potentially large audience number, above
the line promotions can reach a huge number of
customers , but…
 This comes at a cost… “Time is money, especially
when you are talking to a lawyer or buying a
commercial.” ~ Frank Dane
Sha Tin College Business Education Department
Advertising Media







USA - 2004
Television
Radio
Newspapers
Magazines
Posters
Billboards
Internet
Rank the media based starting
with the most effective.
Sha Tin College Business Education Department
Rank the media starting
with the most expensive.
Advertising
 Strengths
 Weaknesses









Wide coverage
Control the message
Repetition
Builds Loyalty
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Expensive
Impersonal
One way communication
Lacks flexibility
Little opportunity to close the
sale
The business of advertising
Google facts…
• Largest online advertiser in the (cyber)
world
• Revenue is larger that of Ford Motor
Company(!)
• Consistently voted by employees as the
“Best Employer” in Europe and USA
So how does Google make money?
Sha Tin College Business Education Department
Exercise
 List as many advantages
and disadvantages for each
advertising media
•
•
•
•
•
•
•
Television
Radio
Newspapers
Magazines
Posters
Billboards
Internet
Sha Tin College Business Education Department
Below the line Promotion
Below the line promotion refers to all forms of
advertising or promotion that do not use external
media agents. Examples include…
Branding
Slogans
Logos
Packaging
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Word of Mouth
Publicity
Direct marketing
Sales promotions
Below the Line
 Sales Promotions
•
•
•
•
•
•
•
Price reductions
Special offers (BOGOF)
Coupons
Free samples
Loyalty programs
Gifts
Competitions
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Below the Line
 Point of sale
 After sales service
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Logos
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Logos
“This is a truly innovative
brand logo that graphically
captures the essence of the
London 2012 Olympic
Games”
~ President of the International
Olympic Committee
But did it really need to cost £400,000 to design???
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Logos and NPOs
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Celebrity Endorsements
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Word of Mouth (WOM)
“Ordinary people can spread good and bad
information about brands faster than
marketers.”
~ Ray Johnson (1927-1995), American artist
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Trade shows
AIDA!
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Would you trust these guys???
Public Relations (PR)
Edward Bernays (1891-1995), considered as the
father of public relations, defined the concept as
the…
“management function which tabulates public
attitudes, defines the policies, procedures and
interest of an organisation followed by executing a
program of action to earn public understanding
and acceptance.”
Sha Tin College Business Education Department
Public Relations
 Business activities to create
and maintain a positive
image for the company
 Publicity
• News
• Press releases
• Free
 Sponsorship
• Donations
• Give product/services
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Spon$or$hip
The world’s top 5 football shirt sponsors
Football Club
Sponsor
Value of deal
Manchester United
Juventus
Bayern Munich
Chelsea
Real Madrid
AIG
Tamoil
Deutsche Telekom
Samsung
Siemens Mobile
€20.0m
€18.5m
€17.0m
€16.0m
€14.0m
Source: Forbes, 2006
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Below the Line
 Why?
• Direct contact with customer
• Usually less expensive
• Encourage people to try
product
 Why not?
• Limited audience
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Personal Selling
 Strengths
•
•
•
•
•
Customer attention
Customized message
Interactive
Customer relationship
Opportunity to close
 Weaknesses
• Labour intensive
• Expensive
• Limited reach
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Guerilla Marketing
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Guerilla Marketing
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Guerilla Marketing
Sha Tin College Business Education Department
Promotion knows no limits
Sha Tin College Business Education Department
Promotion knows no limits
Sha Tin College Business Education Department
Promotion knows no limits
Sha Tin College Business Education Department
AIDA
In deciding on a promotional mix, marketers often
consider the marketing acronym AIDA:
Attention
Interest
Desire
Action
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Promotional Mix
 Companies need to decide
the combination of the
different promotional activity,
the Promotional Mix.
 Depends on:
•
•
•
•
•
•
Stage in product life cycle
Nature of product
Competition
Marketing budget
Market Mix (the other P’s)
Target Market
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Promotional Mix
“the set of tools that a business can use to
communicate effectively the benefits of its
products or services to its customers.”
- The Chartered Institute of Marketing
i.e. the range of above and below the line methods
used to market a product as part of the larger
marketing mix.
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Successful?
 Effective
 Were the objectives
achieved?
 Efficient
 Were they achieved with the
lowest costs possible?
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Promotion and Strategy
“In this age of more products in the
USA and the world than we ever
knew we needed, it is increasing
important to have a logo to quickly
communicate your brand.”
BrandingAndMarketing.com
Sha Tin College Business Education Department
Learning Outcomes
 Types of promotion
• Above the line
• Below the line
 Distinguish between the different types of promotion.
 Analyze the various promotional tools and discuss
their effectiveness.
 Promotional mix Prepare an appropriate promotional
mix.
Sha Tin College Business Education Department