Business StudiesPatrick Ahern

What is promotion? Can you provide some good examples of

promotion and explain your reasons? Why does a business need to promote?

Identify Product Placement Define the need for a business to promote. Apply a promotional mix, taking into

consideration target market in a given business.

Analyse how a small business could utilise promotional mix effectively to gain sales.

This was illegal (against the law) in the UK till last year

It is getting a product seen via different media

The last James Bond film made $54million from companies paying to get their product on the film. i.e. Omega and Aston Martin

Promotion is all about communication You are telling customers about a product. The aim is to persuade the customers to

buy the product. Build on brand awareness, and for customer

to choose product ahead of competitors. The part of the marketing mix where it is

decided how a product should be marketed or sold.

Above the line Any fee is paid to an

advertising agency Normally several

different techniques used to achieve effect

Often used to gain brand awareness or get products in the mind of consumers

Below the line Normally focused on

selling the product Personal selling Public relations Direct mail Merchandising Point of Sale

Advertising - is communication with the public through one or more of the range of media available. In business, advertising is one aspect of promotion.

Promotion - The part of the marketing mix where it is decided how a product should be marketed or sold.

Make customers more aware of a product. Increase awareness of a product. Remind consumers about a product. Encourage consumers to switch to rival

product. Increase market share.

Advertising. Direct Selling. Direct Marketing. Public Relations. Incentives. Sales Promotion. Internet – advertising, social media, search

engine. WOM – word of mouth.

The competitiveness of the market.

Availability of product.

Differentiation of the product.

Competitor’s activity.

The product life-cycle.

Cost. Size of target audience. Size of the market. Consumer – changing trends, media they

consume. What competitors are doing. Legal constraints. Other elements of the marketing mix –

integrated marketing campaign.

◦ Awareness - get the customers aware of the product.

◦ Interest - gain their interest and commitment.◦ Desire - arouse their desire through special offers

and sales promotions.◦ Action - get them to buy the product through a call

to action.

Advertising - is paid for communication through media such as television, newspapers or radio. Most advertising can be categorised as either informative or persuasive (or a combination of the two).

This is normally above the line Marketing

Sales Promotion - the use of short term incentives to purchase, such as free offers, sampling and selling. Can be aggressive or defensive. Main purpose:

◦ To create the initial surge of demand to persuade shops to stock a newly launched product.

◦ To attract new buyers who the firm hopes will become a regular customer.

◦ To lock customers into buyer products when under threat from a new competitor.

Personal Selling - through sales representatives, who are mainly used for selling to business, also trade fairs and exhibitions.

Branding - establishing an identity for your product that distinguishes it from the competition. Successful branding adds value to an item and can ensure brand loyalty.

After Sales Service and Customer Care (designed to build up customers’ loyalty so that they keep coming back).

Direct Marketing (through personally addressed mailing etc).

Sponsorship (of a person or an event). Internet – growth of digital marketing. WOM – Word of mouth.

Think about Coca Cola - where and how do they advertise?

Think about local SME’s - where and how do they advertise?

SME = Small Medium Enterprise

Examiners will always want the promotion to fit the firm e.g. small business.

Look at the methods and consider which of these can be applied to the situation you have been given.

Above the line promotion is promotion which is run through media. This includes:

Radio TV Newspapers Cinema

Above the line promotion is used to communicate with a wide audience.

Below the line promotion refers to those promotional methods which do not depend upon media such as TV, radio, cinema and newspapers.

These include: ◦ Direct Selling◦ Direct Marketing◦ Public Relations◦ Incentives◦ Sales promotion

There will be a mixture of activities in a promotional campaign. It will include above the line and below the line promotion.

This is known as the promotional mix.

Identify product placement Define the need for a business to promote. Apply a promotional mix, taking into

consideration target market in a given business.

Analyse how a small business could utilise promotional mix effectively to gain sales.