Business summary Unit 14THE MARKETING MIX: PROMOTION AND TECHNOLOGY IN MARKETINGPages 175-176-177The Role of promotion decisions in the marketing mix

Promotion gives the consumer info about the rest of the marketing mix. Without promotion, consumers would not know about the product, the price it sells for or the place where the product is sold.Most products are produced for the mass market, and so they need advertising and promoting. Promotion is essential when a brand image is being created for a product. Promotion is as part of Marketing mix includes:

-Advertisements: these can take different forms, such as advertising on television, in newspapers, magazines, etc.(above the line promotions)

-Sales Promotion: (below the line promotions). Often used for short periods of time in order to reinforce the above line promotions. These include giving money off coupons, free gifts, etc.

The aims of promotionPromotion includes many activities undertaken by business. All these have the same purpose, which is to raise awareness of the firm's products and encourage consumers to make a purchase.

to inform people about particular issues, often used by government

to create a to increase

to improve the company image

to compete with competitors

To introduce new products on the

Aims of

ADVERTISINGDifferent types of advertising:Advertising can be either Informative or Persuasive, or have elements of both.

Informative: is where the emphasis of advertising or sales promotion is to give full info about the product.

Persuasive: Is advertising or promotion which tries to persuade the consumer that they really need the product and should buy it.

The advertising process

Business needs to see if sales have increased as a result of the advertising or if the product's brand image has improved.

The business will need to decide which is the best type of advertising media to use. The type of target audience they choose will determine

The business will need to decide which sort of advertising campaign to run

The business will need to decide how much to spend on advertising

The business will have to decide the purpose of the

5. Evaluate effectiveness of the

4. Evaluate the media to use

3. create an advertising

2. decide Advertising

Set objectives

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Advertising MediaThrough TelevisionAdvantages:

● The advert is received by millions of people.● The product can be easily shown as attractive.● It reaches the biggest number of consumers. It can reach a Target Audience.

Disadvantages:● Very expensive form of advertising.Examples: food products, cars, etc.●

Through Radio:Advantages:

● Cheaper than tv● Large audience● Uses a memorable song or tune so that the advert will be remembered.

Disadvantages:● No visual image● Quite expensive● The advert needs to be remembered. The customer cannot look back at a hard copy

of the advert.● Not as wide an audience as tv.

Examples: local services or big events.

Through Newspapers:● Large number of people will purchase and read them.● Local newspapers are cheap to place adverts in and are a cost effective way of

advertise.● Adverts are permanent and can be cut out and kept.● A lot of info can be put in the advert.● National newspapers can reach a particular group of consumers and can reach a

target audience.Disadvantages:

● Newspaper adverts are not very eye catching, as they are often in black and white, and small.

Examples: local products, local events, etc. (local newspapers) and cars, banks, etc. (National newspapers).

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SALES PROMOTION

Different types of sales

Promotion is used to support advertising and existing consumers to buy the product.

Sales promotion is used in the short term to give a boost to sales, but it is not used over long periods of time. There are different types of sales promotion that can be used by business. Examples of promotion in marketing:

1. Bogof: this is where multiple purchases are encouraged (for example, “Buy one and get one free”).

2. Competitions: The packaging of a product may include an entry form which allows the customer to enter a competition. The prize is often an expensive item, such as a car. This again obviously encourages the consumer to buy the product.

3. Point-of-sale displays and demonstrations: Point-of-sale is the place where the product is being sold - usually a shop. In the shop, there may be a special display of the product and that could be a good way of encouraging customers to buy.

4. After-sales service: with expensive products, like cars, providing an after-sales service can be a way of encouraging the customer to buy.

5. Free samples: A free sample can be handed out in the shop to encourage the customer to try the product and hopefully buy it.

6. Gifts: these types of gifts are for example when you buy a cereal box and inside of it there is a toy and so children want to buy cereals again and again.

184; 185; 186; 187

Advantages of sales promotion:● It can promote sales at times in the year when sales are traditionally low● It encourages new customers to try an existing product● It encourages consumers to try a new product● It encourages existing customers to buy a product more often or in greater quantities● It encourages customers to buy your product instead of a competing brand

Marketing Budget: is a financial plan for the marketing of a product or product range for specified period of time.

Which type of promotion should be used?There are some points to follow when a business has to chose which type of promotion to use:

● The stage of the product cycle that has been reached: if the product is new and has just been launched it is better to use a more informative advertising, but if it is at maturity the advertising may be persuasive.

● The nature of the product itself: if the product is a producer good, the type of promotion that would be used when promoting will be different to the methods used with consumer goods. A prouduct sold to other business will have informative promotion and a product itself will have persuasive.

● The cultural issues involved in international marketing: if the product is to be sold abroad then different types of promotion may be appropriate. Before promoting previous research has to be done. For example: availability of radio or cinema, culture and economy.

Public relations/sponsorship: Here you promote a good image for the company or its products. Public relations can take many forms such as:

● Sponsoring events● Create publicity

How technology influences the marketing mix:

The new technology presents new opportunities for businesses to market their products and services and it means there are frequent changes to all four elements of the marketing mix.

● The product part of the marketing mix can be changed to respond to new technology.● The businesses can promote their products or their business using technology● The internet allows businesses to gather information about customer purchasing

habits which means dynamic pricing can be used to increase revenue.● The internet facilitates the widespread use of online purchasing.

Benefits to a business on advertising on social networking sites:

● Targets specific demographic group● Guarantees target customers see advert when they go onto facebook● Speed in response to market changes- information can be updated regularly● Cheap to use- it has no costs if just placing advertisements● Reaches groups that are difficult to reach any one

Disadvantages:● Can alienate customers if they find the adverts annoying● Have to pay for advertising if using pop-ups● Lack of control of advertising if used by others● May be altered or used in a bad way and forwarded on to other users giving the

business bad publicity

Business have advantages when they advertise on their own website● No extra cost if own website is already set up● Control of advertising as it is on your own site● Can change adverts quickly and update pictures, prices● Interactive adverts can make the adverts more attractive than those in other forms of

advertising media such as magazines and posters● Can provide more information in adverts and link to other pages with further

information and pictures

Disadvantages● Potential customers may not see the website as the page may come up in a long list

of pages when using a search engine such as google● Relies on customers finding the website● Design costs of the website may be high