Marketing - Promotion
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Promotion involves communicating with customers to inform, influence, and persuade them to buy a product. The promotional mix includes advertising, sales promotions, personal selling, public relations, direct marketing, and merchandising. The optimal promotional mix depends on the product's life cycle, nature, competition, marketing budget, strategy, and target market. Promotion aims to increase awareness, change attitudes, and encourage purchase. Effectiveness is measured by whether objectives are achieved, while efficiency considers objectives achieved relative to costs.
Marketing - Promotion
- 1. Promotion
- 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. 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. 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. 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. 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. Composition of promotional mix depends on: Stage in the E.g. advertising & PR are often important product’s life cycle at the launch stage Nature of the What information do customers require product 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 mix Target market Appropriate ways to reach the target market
- 8. Two tests of promotional effort Was it Did it achieve its objectives? effective? How was response measured? Was it Were objectives achieved at the efficient? acceptable cost? Were any promotional overspends justified by better- than-expected sales?
- 9. Promotional effectiveness and efficiency Effective Ineffective Efficient Objectives achieved Low promotion at lowest costs budget but objectives Effective and cost not achieved efficient Inefficient Objective achieved Expensive promotion but at high cost which fails to achieve objective
- 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. Advertising + / - Advantages Disadvantages Wide coverage Often expensive Control of message Impersonal Repetition means that One way communication the message can be Lacks flexibility communicated effectively Limited ability to close a sale Can be used to build brand loyalty
- 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. Personal selling + / - Advantages Disadvantages High customer attention High cost Message is customised Labour intensive Interactivity Expensive Persuasive impact Can only reach a limited Potential for development of number of customers relationship Adaptable Opportunity to close the sale
- 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. 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. Sales Promotion + / - Advantages Disadvantages Effective at achieving a quick Sales effect may only be boost to sales short-term Encourages customers to Customers may come to trial a product or switch expect or anticipate further brands promotions May damage brand image
- 17. Merchandising • The process of maximising the effectiveness of retail distribution • Displaying products to maximise sales • Usually operates at the “point-of-sale”
- 18. Public relations (“PR”) Activities that create goodwill toward an individual, business, cause or product
- 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. 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. 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. Direct Marketing Promotional material directed through mail, email or telephone to individual households or businesses
- 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. Direct marketing + / - Advantages Disadvantages Focus limited resources on Response rates vary targeted promotion enormously Can personalise the marketing Negative image of junk mail message and email spam Relatively easy to measure Databases expensive to response & success maintain and keep accurate Easy to test different marketing messages Cost-effective if customer database is well managed
- 25. Test Your Understanding http://www.tutor2u.net/business/quiz/promotion/quiz.html
- 26. Promotion