Download 3.3.4 Promotion

3.3.4 PROMOTION
Central Question
What is the best
promotional mix?
Factors to consider
•
•
•
•
•
Marketing objectives and strategy
Brand/Product image or type
Above or below the line methods or both?
Your target audience?
Cost vs potential returns?
Learning Outcomes
• To understand the aims of promotion
• To understand the different forms of promotion
(ABOVE & BELOW the Line) and how they influence
sales:
– Advertising
– Sales promotion BOGOF
– Public Relations
– Personal Selling
• To recognise the importance of the marketing
budget in making promotion decisions; Cost vs
Effectiveness?
Which Promotional Methods?
Promotion
• Marketing communications designed to influence
consumer behaviour and spending decisions.
• Promotion is concerned with how a business is
to market (sell) its product/service.
ABOVE THE LINE
Advertising Traditional
use of Media
BELOW THE LINE
Use of other methods
Newspapers, Billboards, TV,
Internet, Magazines
Sponsorship, Sales promotion,
Press Release, Direct Selling,
Personal Selling
Aims of Promotion:
•
•
•
•
•
To inform customers about a product
To persuade
To keep business ahead of its competitors
To create or change the image of business
To maintain or increase sales
• ANY OTHERS?
ADVERTISING
The Process
1. Set Objectives
5. Evaluate the
Effectiveness
2. Decide Budget
3. Create Campaign
4. Select Media
To use
ADVERTISING
• Informative – just give information
• Persuasive – attempt to persuade customers to buy
Choosing the Advertising Media
A firm must consider:
- The Cost of Advertising vs the expected return
- The target market for the product
- Whether part of a campaign or a single advert
Types of Media
Television
Billboards
Radio
Cinemas
Newspapers
Leaflets
Magazines
Internet
Posters
Others
Designing Adverts
Awareness – of product existing
Interest – consumers should want to find out more
Desire – consumers should want to buy it
Action – consumers prompted into action
SALES PROMOTION
•
•
•
•
•
•
•
•
•
Price Reductions –
Loss Leaders –
Added Value Gifts Point of Sale Competitions –
Free Samples Merchandising –
After Sales Service -
OTHER TYPES OF PROMOTION
•
•
•
•
PERSONAL SELLING
PUBLIC RELATIONS
SPONSORSHIP
CUSTOMER SERVICE
PUBLIC RELATIONS (PR)
• PR is often FREE
• Done by releasing stories to newspapers and
other media
• If a famous personality is involved – the chance
of being covered by media is increased
SPONSORSHIP
‘A way of advertising a business by providing
money for an event or a particular team or an
individual’.
Personal Selling
• Used when exact nature of product can vary
• E.g. Car – can have A/C sat nav, range of
engines. You talk to person and discuss options
• Used often in business to business selling
• Customers expect this for high value purchases
e.g cars, TV’s, Hi-Fi’s,
Customer Service
• Three times as expensive to attract new
customer than to keep existing one
• Therefore KEEPING customers is crucial
• Good service may help a product/business stand
out from competition
Good Customer Service
Involves
•
•
•
•
•
Giving Advice about the Product
Delivering goods for customers
Providing credit facilities
Providing product information
After sales service
HAPPY CUSTOMER = LOYAL CUSTOMER !!
Which Type to Use?
Depends on:
The stage of the Product Life Cycle?
Nature of the product?
The advertising budget?
The potential return (revenue generated or units
sold) from the promotion?
• Cultural issues involved when going international
• The nature of the target market
• The Competition – how do you want to compete?
KEY GOAL = COST EFFECTIVE
– what does this mean?
•
•
•
•
TASK – 10 mins
• In your groups discuss the most cost effective
promotional mix for your ideas
• Feedback with justification
Feedback…
Reflection Time – Have we
met our objectives?
• To understand the aims of promotion
• To understand the different forms of promotion
(ABOVE & BELOW the Line) and how they influence
sales:
– Advertising
– Sales promotion BOGOF
– Public Relations
– Personal Selling
• To recognise the importance of the marketing
budget in making promotion decisions; Cost vs
Effectiveness?