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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?
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 LINEAdvertising Traditional use of Media
BELOW THE LINEUse 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?
ADVERTISINGThe Process
1. Set Objectives 2. Decide Budget 3. Create Campaign
4. Select MediaTo use
5. Evaluate the Effectiveness
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 MediaTelevision 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 -
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?
• 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?
Depends on:
TASK – 10 mins
• In your groups discuss the most cost effective promotional mix for your ideas
• Feedback with justification
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?
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