Fan Zhangz. PROMOTION IS ONE OF THE MARKET MIX ELEMENTS. A PROMOTIONAL MIX SPECIFIES HOW MUCH...

Promotion

Fan Zhangz

PROMOTION IS ONE OF THE MARKET MIX ELEMENTS. A PROMOTIONAL MIX SPECIFIES HOW MUCH ATTENTION TO PAY TO EACH OF THE FIVE SUBCATEGORIES, AND HOW MUCH

MONEY TO BUDGET FOR EACH. A PROMOTIONAL PLAN CAN HAVE A WIDE RANGE

OF OBJECTIVES, INCLUDING: SALES INCREASES, NEW PRODUCT ACCEPTANCE,

CREATION OF BRAND EQUITY, POSITIONING, COMPETITIVE RETALIATIONS, OR CREATION

OF A CORPORATE IMAGE.

Define promotion. What does promotion do?

What is promotion?

It equals marketing communication. It involves communication about the product the product or service.Promotion is an element in the marketing mix.Communication techniques aimed at informing, influence and persuading customers to buy or use a particular.

Advantages

1. Advertising• Wide coverage• Control of

message• Repetition

means that the message can be communication

• Can be used to build brand loyalty

2. Personal selling• High customer

attention• Message is

customized• Interactivity• Persuasive impact• Potential for

development of relationship

• Adaptable• Opportunity to close

the sale

3. Sales promotion

• Effective at achieving a quick boost to sales

• Encourages customers to trial a product or switch brands.

4. Merchandising

• Displaying products to maximize sales

• Operates at the ‘point-of-sale’

5. Public relations• Can achieve

favorable publicity about the business

• Can communicate effectively with customers and other stakeholders

• Can build the image and reputation of the business and its products, particularly amongst customers

6. Sponsorship• Sponsoring

events that appeal to their market are likely to shape buying attitudes and help generate a positive reaction.

• Promotes the 'Brand Image'

7. Direct Marketing• Focus limited resources on

targeted promotion• Can personalize the marketing

message• Relatively easy to measure

response & success• Easy to test different marketing

message• Cost-effective if customer

database is well managed

What is branding? Branding is establishing an identity for a product that distinguishes it from competitors.The adoption of values, image, awareness, recognition, quality, features, benefits and name for a product.A brand is the sum of the characteristics of a product perceived by user.

Why brand?• To differentiate the product• To aid advertising• To build loyalty• To facilitate recall• To communicate value of the

product• To target segments• To aid recognition• To protect the product• To promote the product• To convey the image of the

product

5 products brandedPepsi-Coke

Lyreco

Dell-Intel

Media clip

PC-IPad

Types of advertising

Informative – provides information

Persuasive – to encourage brand switching

Competitive – to point out differential advantages

5 Ms of advertising

• Mission – objectives

• Money – to pay for the campaign

• Message – to be delivered

• Media – choice of advertising media

• Measure – measuring the impact

1.Print media – newspaper and magazinesAdvantages:• Widely read• Short lead time• Local. Regional and

national papers available

• Color printing adds to impact

• Inexpensive compared to television

Disadvantages:• Short life • Low impact• Not every group

reads a paper• High costs

especially for national newspaper

2. Television

Advantages:• Large audience• Low cost per exposure• High impact – color,

sound and movement• Can target specific

groups

Disadvantage:• Very high overall cost• Limited prime time

space• Short-lived• May not be watched –

visual wallpaper• Proliferation of

channels• Reduces audience• Conveys only a

limited message

3. Radio Advantages:• Relatively

inexpensive• Can target

specific segment

• Relatively mobile

• local

Disadvantage: • Limited impact• No vision• Short life• Listener’s

attention limited• Audio wallpaper• Mainly local

rather than national

4. Cinema

Advantages:• High impact• Captive audience• Can be specifically

targeted• Local audience• Visual,

sound, ,movement

Disadvantages:• Limited audience• Mainly young

audience• Short lived

message• May only be seen

once

5. Outdoor

Advantages:• Repeatedly seen• Target particular

area• May encourage

impulse buying if close to shops

• Local media

Disadvantage:• Message must be

short and simple• Cannot target

socio economic groups

• Rarely attract full attention

• Short lived• Difficult to

measure effectiveness

6. Internet

Advantages:• Cheap• Easy to set up• Easily updated• Number of hits

can be monitored – useful measure of effectiveness

Disadvantages:• Problems of

connecting• Limited audience• Technical problems• Banner adverts not

very effective• Search engine listing

can be costly

TV commercials

These styles are unique. These commercials show good quality and benefits of products. They also provide a lot of useful information about products. Human will be interested in these products because of these advertisements.