Theory on MarketingFor Lesson 21

Promotion

Promotion

http://www.thinkbox.tv/server/show/nav.1250

TV asked a panel of 8000 viewers to vote for their favourite ads of the last ten years. From dancing eyebrows and talking meerkats, to a car made of cake and the world’s longest waterslide, these are some of the TV ads that made us smile, think and want more.

Promotional Mix

Promotion is all about communication. ‘Promotion is how marketers communicate with their target markets that include existing customers and prospective customers’.

Promotional Mix is the process and variety of promotional methods used to communicate information about a product, service and product offering.

Reasons for promotion

‘Promotion can build or destroy a brand, it can change attitudes, and it can influence the view that society as a whole has of the company and its products.’

Methods of Promotion

Advertising

Sales Promotion

Personal Selling

Direct Marketing

Public Relations

Sponsorship

Celebrity Endorsement

Advertising

Advertising is one of the most important parts of promotion.

The purpose of advertising:

1.Inform people – make potential customers aware of your product and benefits

2.Persuade people to make a purchase – inform people about the benefits or sell at a lower price

Advertising is made up of:

message – what you want to tell customers

medium – how you choose to advertise

Most effective

advertising methods

Advertising Medium

1 Moving images (TV or Cinema advert)

2 Print (newspapers or magazines)

3 Ambient (public spaces, sides of buses)

4 Digital (websites, email, text messages)

5 Audio (radio adverts)

Sales Promotion

“Sales Promotion is the process of encouraging customers to buy the products by offering an incentive”

Price promotion – discount on product e.g. 50p off, BOGOF, 25% extra free

Coupons – discount or free gift

Competitions – instant win offers in the package

Money refunds – cashback, e.g. mobile phones

Loyalty incentives – collect stamps for a free drink

Personal Selling

Personal selling is where businesses use people (the “sales force”) to sell the product after meeting face-to-face with the customer.

Methods include: Face to face – saleperson watches body language to

adapt sales pitch Telephone – listen to customers tone of voice to adapt

sales pitch Email- send attachments of deals to customer Video or web conferencing – connect all over the world

Public Relations

• Public relation are activities a business does to put information into the media, but without paying for it

• Exhibitions – present and display products to get people interested in buying

• Sponsorship – pay to display brand at event (creates a positive image)

• Press releases – statement sent to journalists to get them to write something interesting about your company

Direct Marketing

• Business communicates directly with the customer

• Direct Mail – letters posted to the customer giving information about new products

• Mail order Catalogues – shows the different products in comfort of your own home

Video

Watch this video:

http://www.bbc.co.uk/learningzone/clips/business-strategy-promotion/12270.html

http://www.bbc.co.uk/learningzone/clips/short-introduction-to-promotion-and-advertising/10959.html