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Basic Marketing 101



Marketing - Promotion

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Marketing - Promotion

  1. 1. Promotion
  2. 2. What this topic is about• What is promotion?• Effective methods of promotion for different types of product/business• Factors to consider when choosing the promotional mix
  3. 3. Promotion = marketing communication• Communication techniques aimed at informing, influencing and persuading customers to buy or use a particular• It involves communication about the product or service• Promotion is an element in the marketing mix
  4. 4. The Many Uses of Promotion• Increase sales • Change attitudes• Attract new customers • Create an image• Encourage customer • Position a product loyalty• Encourage trial • Encourage brand switching• Create awareness• Inform • To support a distribution channel• Remind potential customers• Reassure new customers
  5. 5. Main Aims of Promotion• The main aim of promotion is to ensure that customers are aware of the existence and positioning of products• Promotion is also used to persuade customers that the product is better than competing products and to remind customers about why they may want to buy
  6. 6. Promotional mix• The specific mix of promotional methods that a business uses to pursue its marketing objectives• The main elements of the mix are: – Advertising (offline & online) – Sales promotion & merchandising – Personal selling – Public relations/publicity / Sponsorship – Direct marketing• The elements must be integrated in a cohesive, consistent and logical manner
  7. 7. Composition of promotional mix depends on:Stage in the E.g. advertising & PR are often importantproduct’s life cycle at the launch stageNature of the What information do customers requireproduct before they buy?Competition What are rivals doing ? What promotional methods are traditionally effective in a market?Marketing budget How much can the firm afford?Marketing strategy Other elements of the mixTarget market Appropriate ways to reach the target market
  8. 8. Two tests of promotional effortWas it Did it achieve its objectives?effective? How was response measured?Was it Were objectives achieved at theefficient? acceptable cost? Were any promotional overspends justified by better- than-expected sales?
  9. 9. Promotional effectiveness and efficiency Effective IneffectiveEfficient Objectives achieved Low promotion at lowest costs budget but objectives Effective and cost not achieved efficientInefficient Objective achieved Expensive promotion but at high cost which fails to achieve objective
  10. 10. Advertising• Paid-for communication• Many different advertising media – TV & radio, newspapers & magazines, online, cinema, billboards• Consumers subjected to many advertising messages each day = hard to get through• Mass market advertising is very expensive
  11. 11. Advertising + / -Advantages DisadvantagesWide coverage Often expensiveControl of message ImpersonalRepetition means that One way communicationthe message can be Lacks flexibilitycommunicatedeffectively Limited ability to close a saleCan be used to buildbrand loyalty
  12. 12. Personal selling• Promotion on a person to person basis• Two way communications• Meeting with potential customers to close a sale• By telephone, at meetings, in retail outlets and by knocking on doors• Highly priced, low volume and highly technical products rely heavily on personal selling
  13. 13. Personal selling + / -Advantages DisadvantagesHigh customer attention High costMessage is customised Labour intensiveInteractivity ExpensivePersuasive impact Can only reach a limitedPotential for development of number of customersrelationshipAdaptableOpportunity to close the sale
  14. 14. Sales promotion• Tactical, point of sale material or other incentives designed to stimulate purchases• Short term incentives to increase sales• Some promotions aimed at consumers; -others at intermediaries or sales force
  15. 15. Examples of sales promotion• Coupons • Free gifts• Money off • Point of sale• Competitions displays• Demonstrations • BOGOF• Free samples • Merchandising• Loyalty points • Trade in offers
  16. 16. Sales Promotion + / -Advantages DisadvantagesEffective at achieving a quick Sales effect may only beboost to sales short-termEncourages customers to Customers may come totrial a product or switch expect or anticipate furtherbrands promotions May damage brand image
  17. 17. Merchandising• The process of maximising the effectiveness of retail distribution• Displaying products to maximise sales• Usually operates at the “point-of-sale”
  18. 18. Public relations (“PR”)Activities that create goodwill toward anindividual, business, cause or product
  19. 19. Main Aims of PR• To achieve favourable publicity about the business• To build the image and reputation of the business and its products, particularly amongst customers• To communicate effectively with customers and other stakeholders
  20. 20. Typical PR Activities• Promoting new products• Enhancing public awareness• Projecting a business image• Promote social responsibility• Projecting business as a good employer• Obtain favourable product reviews / recommendations
  21. 21. Sponsorship• Sponsorship takes place when a payment for an event, person, organisation is given in return some consideration of benefit• A specialised form of public relations• Common in the worlds of arts and sport• Sponsorship should benefit both sides
  22. 22. Direct Marketing Promotional material directed through mail, email or telephone toindividual households or businesses
  23. 23. Why Use Direct Marketing?• Allows a business to generate a specific response from targeted groups of customers• Allows a business to focus on several marketing objectives: – increasing sales to existing customers – building customer loyalty – re-establishing lapsed customer relationships – generating new business
  24. 24. Direct marketing + / -Advantages DisadvantagesFocus limited resources on Response rates varytargeted promotion enormouslyCan personalise the marketing Negative image of junk mailmessage and email spamRelatively easy to measure Databases expensive toresponse & success maintain and keep accurateEasy to test different marketingmessagesCost-effective if customerdatabase is well managed
  25. 25. Test Your Understandinghttp://www.tutor2u.net/business/quiz/promotion/quiz.html
  26. 26. Promotion

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