Download CHAPTER 21. The Marketing Mix : Promotion

CHAPTER 21.
THE MARKETING MIX : PROMOTION
THIS UNIT WE WILL EXPLAIN :
 The
role of promotion in the
marketing mix
 The aims of promotion
 The advertising process
 Different types of advertising
 Different types of promotion
THE ROLE OF PROMOTION
 Gives
information about the rest of the
marketing mix
 Essential
for brand image
 Remember
: advertising does not
necessarily increase sales and profits
PROMOTION INCLUDES…
ADVERTISEMENTS
PROMOTION
PERSONAL SELLING
PUBLIC RELATION
THE AIMS OF PROMOTION
Different Activities
Same Purpose
:raise awareness & encourage purchase
Aim Of Promotion
1. Inform particular issues
2. Introduce new products
3. Compete with competitors’ products
4. Create a brand image
5. Increase sales
6. Improve the company image
THE ADVERTISING PROCESS
Set
objectives
Decide the
advertising
budget
Create on
advertising
campaign
Evaluate the
effectiveness
of the
campaign
Select the
media to use
QUESTION TIME
Coca-cola is a very popular
company with huge adverts
all around the world. It’s
adverts are played 24/7 worldwide.
Question : Identify the aims of Coca-cola’s
adverts.
DIFFERENT TYPES OF
ADVERTISING

Advertising can be either persuasive or
informative or have both elements.
Informative Advertising
Persuasive advertising
The emphasis of
advertising or sales
promotion is to give
full information about
the product
Advertising or
promotion which is
trying to persuade the
consumer that they
really need the
product and should
buy it
TYPE OF ADVERTISING
1
TELEVISION
Advantages
 Can go out to millions of people
 Shown in a very favourable way, makes it look
attractive
 Reaches the biggest number of consumers
 Reach target segment easily.
Disadvantages
 Very expensive
TYPE OF ADVERTISING 2
RADIO
Advantages
 Cheaper than TV
 Reaches a large audience
 Use memorable song or tune-remembered
Disadvantages
 No visual image
 Quite expensive
 Not as wide as an audience on TV
 The advert need to be remember, radio isn’t the
best method for remembering
TYPE OF ADVERTISING 3
NEWSPAPERS
Advantages
 Target their audience easily
 Many people purchase national newspapers
 Permanent & Can be cut out
 A lot of info. can be put into these adverts
(informative)
Disadvantages
 Not graphic –black & white
 Not attractive
TYPE OF ADVERTISING 4
MAGAZINES
Advantages
 Read by specific type of person
 Easy to reach target audience
 Coloured - more attractive
Disadvantages
 Only once a month/week
 Usually more expensive than in newspapers
TYPE OF ADVERTISING
5
POSTER/BILLBOARDS
Advantages
 Permanent
 Relatively cheap
 Seen by everyone who passes them
Disadvantages
 Can be missed as people go past them
 No detailed information
TYPE OF ADVERTISING 6
CINEMAS
Advantages
 Give image of the product
 Show the product in a positive way
 Relatively low cost
 Effective if target audience sees the
advertisement
Disadvantages
 Only seen by a limited number of people
TYPE OF ADVERTISING 7
LEAFLETS
Advantages
 Cheap
 Delivered to peoples houses
 Permanent & Kept for the future
 Sometimes contain money-off coupons
Disadvantages
 People may not receive nor read leaflets
TYPE OF ADVERTISEMENT 8
INTERNET
Advantages
 A large amount of info. can be placed
 Can instantly order the product
 Seen by many people
Disadvantages
 Limited Internet access
OTHER TYPES OF ADVERTISING
Neon signs
-name of the
product
-city center /
outside business
Bags
-name of the shop
on them are given
out with purchases
Delivery vehicle
-have the company
name or product on
their side
QUESTION TIME
Advertising Media
Television
Radio
Newspapers
Magazines
Poster/Billboard
Cinemas
Leaflets
Internet
Others
Advantages
Disadvantages
ACTIVITY (P302)
Which type of advertising media should be used
for…?
A) A new bicycle has been produced which is
sustainable for using over rough ground and for
cycling up mountains.
magazine
B) A new restaurant in a small town is opened.
local newspapers, billboards, leaflets etc.
DESIGN OF ADVERTS

When a designer of an advert creates an advert
they follow the AIDA model:
A – attention, consumers have to be made aware
that the product exists
I – interest, consumers need to be made interested
in the product
D – desire, consumers need to be made to want to
buy the product
A – action, consumers need to be prompted into
action to buy the product
QUESTION TIME
Discuss how Coca-cola designs it’s adverts
according to AIDA model.
A- How do they catch our attention?
I- How do they make us interested?
D- How do they make us desire their product?
A- How do they prompt us to buy Coca-cola?
THE ROLE OF PROMOTION


The aims of promotion in a business is to support
advertising and encourage new or existing
consumers to buy the product.
Advertising is only used for short periods of time
to give sales a boost. Promotion is never used for
long periods of time.
TYPES OF PROMOTION
There are many ways in which a business can
promote themselves. These methods include:
Price reductions
 Gifts
 Competitions
 Point-of-sale & Display and demonstration
 After- sales services
 Free samples

PRICE REDUCTION
What is it? Price reduction includes a decrease in
price of products and services. This also include
money-off coupons which give discounts for now
and the future.
PRICE REDUCTION
Advantages
 More likely to buy in bulk
 Encourages customers to come back
 Keeps customers satisfied
Disadvantages
 Profit can be lost
 Can decrease the brand image of the product
 Discourages some people to purchase their
products
GIFTS
What is it? Some large companies give away free
gifts with there products. They are usually
included with products like breakfast cereals.
Business also include coupon exchange, which is
the collection of a certain number of coupons for
exchange of a free gift.
GIFTS
Advantages
 Higher probability of consumers buying your
product/gift
 Consumers are more likely to become consistent
in buying the product
 Beyond customers expectations
Disadvantages
 Consumers will now have high expectations
 Consumers may only buy your product once for
the gift
COMPETITIONS
What is it? Again large companies mainly use this
method. Companies include entry forms for
competitions on there products. The prize is
usually something expensive like a car, which
attracts customers easily.
COMPETITIONS
Advantages
 Product should sell rapidly when competitions
are involved
 Prize easily attracts consumers
Disadvantages
 Product sales may drop once competition is over
POINT-OF-SALE DEMONSTRATION
What is it? This occurs when a product is being
displayed in a special way. The product will be
used in a ‘demonstration’ situation. Showing
consumers how the product looks and how it is
used. This usually occurs with food products.
POINT-OF-SALE DEMONSTRATION
Advantages
 Consumers are more likely to impulse buy
 Product image becomes clearer if it previously
wasn’t
Disadvantages
 Time consuming for
consumers to watch
 Can be expensive
AFTER-SALES SERVICE
What is it? After-sales services mainly talks about
refunds and exchanges. If after-sales services is
offered to consumers it reassures them that they
are able to refund the product. If a business
doesn’t include after-sales services people may
not want to buy your product.
AFTER-SALES SERVICES
Advantages
 Reassures customers and will increase impulse
buying because refunds and exchanges are
possible
 Will give the business good brand image
Disadvantages
 Profit can be lost
 Products may loose quality
FREE SAMPLES
What is it? When free-trials/samples of the product
are given to consumers whom are interested in
buying the product. Free samples aren't given to
everybody only to the intended audience. If free
samples were given to everybody the business
would loose profit.
FREE SAMPLES
Advantages
 Encourages consumers to buy the product if they
liked the free sample
 Free sample of product can be delivered to houses
for free
Disadvantages
 Business can loose profit
if consumers don’t like the
product
CASE STUDY EXAMPLE (P305)

Dolly Dee sell a range of dolls for young children.
A new doll has just been introduced that will eat
special food provided with the doll. To show
children what the doll will do, a representative of
the company is visiting toy shops to demonstrate
the doll. Also, with each purchase of the new doll
there is a chance to enter a prize draw – the first
prize is a trip to Disneyland.
OVERALL ADVANTAGES OF PROMOTION

Promote sales when sales are low (off-season
purchase)

Encourages new customers to try a product

Encourage consumers to buy a new product


Encourages existing customers to buy a product more
often in greater quantities
Encourages customers to buy a product instead of a
competing brand
WHICH TYPE OF PROMOTION IS IDEAL?
When a business wants to decide which type of
advertising to use they must consider the
following:
The stage of the product life cycle it has reached
 The nature of the product
 The advertising budget
 The culture issues involved in international
marketing
 The nature of the target market

THE STAGE OF THE PRODUCT LIFECYCLE
THAT IT HAS REACHED
What does this mean? This basically means if the
product its adverts will be informative. However
if the product is quite old or older its adverts will
aim to be more persuasive.
THE NATURE OF THE PRODUCT ITSELF
What does this mean? This means you need to
consider the method of advertising that is best
suited for the PRODUCT itself. Not all products
will be promoted in the same way.
Example: A wrapping machine & A perfume
The advertising for the machine will be
informative, and the perfume persuasive.
THE ADVERTISING BUDGET
What does this mean? All businesses will advertise
according to their budget. If there budget is small
then advertising on television is not ideal. But if
the budget is large then television is a good
option. The budget should be spent carefully as
most businesses can’t afford to over-spend.
INTERNATIONAL MARKETING
CULTURAL ISSUES
What does this mean? When advertising abroad it
is crucial to consider which method of advertising
which is most appropriate.
Example : no point in advertising products in TV if
most of the population don’t have them.
Some countries – NO alcohol advertisement
THE NATURE OF THE TARGET SEGMENT
What does this mean? This basically means that a
business needs to decide:
 Where the product is sold
 Is the product specialist or not?
decide local, national or international.
When these decision have been made the method
of advertising will be easier to choose.
ACTIVITY (P307)
In your notebooks, write down five products
that you are familiar with. Now decide
what type of promotion(s) is used for these
products.
ACTIVITY (P307)
For each of the following five products decide the
best method of promotion to use.
A)
B)
C)
D)
E)
A new magazine aimed at teenage boys.
A new type of pen which is very comfortable to
use and does not smudge.
A company making a famous brand of football
boots want to expand sales
A new fast food takeaway opens in a small town
A soft toy has been invented that changes colour
when hugged.
PERSONAL SELLING
Customers discuss their requirements
 Price can vary
 Advice on appropriate service
 Expensive product

Selling to other businesses
 Large order – discounts negotiated
 Trade fare

PUBLIC RELATIONS

Promoting a good image

Donating products to charity
Raise Awareness &
Public choose the company’s product
QUESTION TIME


In pairs or groups discuss the difference between
public relation and personal selling.
In public relation, which of the following brands
are likely to be used to support a football match?
A) LG
B) Oishi
C) Nokia
D) Seventeen magazine
CUSTOMER SERVICE
 Objective
: retain its customer base
 Good customer service gives extra
value to the product
CUSTOMER SERVICE 1
GIVING ADVICE ABOUT THE PRODUCT

Result in repeat business and positive comments
CUSTOMER SERVICE 2
DELIVERING GOODS FOR CUSTOMERS
More convenient for customers
 Encourages impulse buying

CUSTOMER SERVICE 3
PROVIDING CREDIT FACILITIES
More expensive goods
 Makes it more affordable
 Widens the market segment

CUSTOMER SERVICE 4
PROVIDING PRODUCT INFORMATION
Important for both new and existing customer
 Gives confidence in the staff
 Helpful in computer equipment

CUSTOMER SERVICE 5
AFTER SALES SERVICE
Dedication to customer satisfaction
 Lead to repeat business
 Potential new customer purchases
 Emphasize the customer importance &
relationship between the business and customer

REVISION QUESTION 1.
Why is promotion an important part
of the marketing mix?
Answer : Promotion gives consumers information about the
rest of the marketing mix. Without it consumers wouldn’t
know anything about the product.
REVISION QUESTION 2.

What four types of promotion
form this part of the
marketing mix?
Answer :
advertisements, promotion, personal selling, public relations
REVISION QUESTION 3.

What is the difference between
informative advertising and
persuasive advertising?
Answer :
Informative advertising is where the emphasis or sales
promotion is to give full information about the product.
Persuasive advertising is trying to persuade the consumer
that they really need the product and should buy it.
REVISION QUESTION 4.

What is a ‘target audience’?
Answer :
people who are potential buyers of the product of service
REVISION QUESTION 5.

Name eight different types of advertising media.
Answer :
REVISION QUESTION 6.

Why is advertising likely
to be very important in
determining the success of
a new product?
Answer :
If the advertisement is successful, then the product will also
be successful. However if the advert is not successful,
then the product will not be successful.
REVISION QUESTION 7.

What are six different types of promotion?
Answer : price reductions,
Gifts,
Point-of-sale and demonstration,
Competition,
After sales services,
Free samples
REVISION QUESTION 8.
When should a business use
personal selling to promote
their product?
Answer:
When the exact nature of the product itself can change,
When customers need advice on how their requirements may
be met
REVISION QUESTION 9.

How does public relation help to promote a
product?
Answer:
It helps to promote a good brand image for the business
REVISION QUESTION 10.

What are five steps
involved in the
advertising process?
3.
Answer :
1.
Set objectives
2.
Decide the advertising budget
Create an advertising campaign
4.
Select the media to use
5.
Evaluate the effectiveness