1. PROMOTION

4. What is it?
Promotion can be defined as a way(s) of communicating to the market with the intention of selling a firm’s products
Promotional activity is categorized into two types:
Above the line (the use of mass media - tv, radio, magazines)
Below the line (the use of non mass media – samples, coupons, added value deals)

5. Above the line promotion
Persuasive advertising
Aimed to convince consumers to buy a certain product
Effective but can be controversial
Informative advertising
Aims to make consumers aware of features/characteristics of products
Customers can make own decision based on info
Common with Government campaigns (e.g. anti smoking)

6. Below the line promotion
Methods of below the line promotion:
Price promotions
Discounts, aim to increase sales
Direct marketing/selling
Mail outs (letterbox drops/ s), cold calling, businesses must be careful of not damaging reputation
Loyalty cards/regular purchase discounts
Points with purchase, helps businesses to collect data on purchasing habits
Point of sale displays
Impulse bars, draws customers’ attention
Public relations
Try to create brand awareness through activities like sponsorship

7. Promotional mix
The combination of promotional techniques that a firm uses to communicate the benefits of its product to customers.
All forms of promotion can be effective, but the right form has to be used for the right situation. Businesses must consider a number of factors:
Who is the product aimed at?
Should I target the whole market or smaller segments?
How much will it cost?
Do I have the finance to cover promotional activity?
How effective will my promotion be?
Am I sure that I will get a return on the investment?

8. So what’s the right mix?
More often than not, businesses will use a number of different methods to promote a product. Using a variety of methods will hopefully achieve a balance between effectiveness and cost.
The combination of methods is the promotional mix.
Businesses will constantly change and adapt the mix to get as many customers as possible

9. TASK
In pairs, select a local business that you believe is poorly promoted. Prepare a suitable promotional mix to improve the effectiveness of its promotion.
Ensure you justify/explain the choices you have made in the promotional mix.
Present your promotional mix in PowerPoint format
Present your promotional mix to the class