This is any form of communication used to draw attention to a product. Use it to gain new customers or retain existing ones.
AIMS OF PROMOTION 3 aims: 1. To persuade customers to buy 2. To inform customers about the product 3. To remind customers about a product
ABOVE-THE-LINE PROMOTION This is using independent media. Basically it is about advertising.
ADVERTISING 2 Types 1. Informative – used to tell customers about products, whether new or modified. 2. Persuasive – used to get customers to buy a product. Normally qualitative information.
DIFFERENT METHODS MEDIUMADVANTAGESDISADVANTAGES TV National coverage Reaches wide group Dynamic Expensive Target wrong areas Daily Papers National coverage Belief in papers High attention value Market segments identified. Can be expensive Only read by particular groups
MEDIUMADVANTAGESDISADVANTAGES Radio Less expensive than TV Captive audience Message is only in sound Hard to reach target market Listeners may lose interest Cinema Combines visuals, sound and colour Can target locally Limited market coverage Expensive Outdoor Media High visual impact Frequently seen by passers-by Wide choice of location May go unnoticed Can be expensive.
CONTROLS ON ADVERTISING Advertising Standards Authority (AQA) Independent Television Commission (ITC) Pressure Groups Trades Descriptions Act (1968)
PRODUCT ENDORSEMENT Famous celebs/sports people are paid to wear and use a particular product. Advantages include: Gives a good image of the firm Consumers may buy to be like the celebs Increases sales if personality is successful Consumers associate products with that person
Disadvantages include: High costs involved Image can suffer if personality has a problem Choice has to be made carefully to ensure right image is portray
PRODUCT PLACEMENT Paying for the firms products to be used in a film or TV programme.
BELOW-THE-LINE PROMOTION This is controlled directly by the business. It allows the firm to target the consumer they hope will want to buy their products.
SALES PROMOTIONS 2 types 1. Into-the-Pipeline Used to increase sales to shops and help them sell the product. Includes: competitions, point of sale materials, sale or return, staff training, credit facilities, bulk buying discount.
2. Out-of-the-Pipeline Used to help trade outlets persuade customers to make a purchase. Includes: free trial packs, bonus packs and money off coupons, loyalty cards, competitions