Presentation on theme: "Topic 4.5 Promotion Marketing. Syllabus Requirements Types of promotion Above the line Below the lines Distinguish between the different types of promotion."— Presentation transcript:
Syllabus Requirements Types of promotion Above the line Below the lines Distinguish between the different types of promotion Analyse the various promotional tools and discuss their effectiveness Promotional mix Prepare an appropriate promotional mix
Objectives of Promotion Inform Alert the market about a firms products esp. new ones or updated ones Include price and product functions Raise awareness of business, their purpose, their brand with the aim to influence customers purchasing decisions Persuade Encourage customers to make a purchase Switch from rival brands Use product differentiation techniques e.g. branding Use comparision advertising techniques e.g. how product compares to that of rivals May generate impulse buying Remind Ratine customer awareness and interest Suitable for products in the maturity or saturation stage of the PLC
Above-the-line (ATL) Promotion Any form of paid-for promotional technique through independent consumer media Advantages: ads reach large audiences Ads more interesting and appealing Disadvantages: Mass media ads may not appeal to right segments Many ads ignored due to channel switching Expensive ATL Promotion TV AdsRadio AdsCinemaNewspaperMagazines Outdoor ads
Below-the-line (BLT) Promotion All forms of non-media promotional activities. Advantages: No commission has been paid to external media agencies. Instead, the business has direct control over the production of its advertisement. Relatively cheap Disadvantages: No mass audience Not as professional/ interesting BTL Promo Branding/ Slogans Logos/ Packaging P2P WOM Viral Sales Promotions Point of Sales POS Publicity/ Sponsorship Direct Mail Direct Marketing
Promotional Mix the set of tools that a business can use to communicate effectively the benefits of its products or services to its customers UK Chartered Institute of Marketing i.e. the combination of promotions used by a business The idea is that the business should use a combination or above and below the line methods during a planned promotional strategy
Devising a promotional strategy Factors to consider when devising a promotional strategy: Cost of promotional medium – what is an example of very expensive and relatively cheap advertising Nature of the product – What products may be more suited to personal selling/ magazines/ newspapers? Products position in its life cycle – During which stage of the PLC will extensive promotion occur? Legislation – What products are not able to be advertised on TV in Australia?
Advertising Techniques Celebrity endorsement Comparative advertisement Direct response advertising Feel good factor Guarantees Numerical or scientific claims Sex appeal Slogans Personal selling Public relations Sales promotion Guerrilla marketing Confusion marketing Ambush marketing Infiltration marketing Pop-op advertisements