3.3.4 PROMOTION

Central Question What is the best promotional mix?

Factors to consider Marketing objectives and strategy Brand/Product image or type Above or below the line methods or both? Your target audience? Cost vs potential returns?

Learning Outcomes To understand the aims of promotion To understand the different forms of promotion (ABOVE & BELOW the Line) and how they influence sales: – Advertising – Sales promotion BOGOF – Public Relations – Personal Selling To recognise the importance of the marketing budget in making promotion decisions; Cost vs Effectiveness?

Which Promotional Methods?

Promotion Marketing communications designed to influence consumer behaviour and spending decisions. Promotion is concerned with how a business is to market (sell) its product/service. ABOVE THE LINE Advertising Traditional use of Media BELOW THE LINE Use of other methods Newspapers, Billboards, TV, Internet, Magazines Sponsorship, Sales promotion, Press Release, Direct Selling, Personal Selling

Aims of Promotion: To inform customers about a product To persuade To keep business ahead of its competitors To create or change the image of business To maintain or increase sales ANY OTHERS?

ADVERTISING The Process 1. Set Objectives 2. Decide Budget3. Create Campaign 4. Select Media To use 5. Evaluate the Effectiveness

ADVERTISING Informative – just give information Persuasive – attempt to persuade customers to buy Choosing the Advertising Media A firm must consider: -The Cost of Advertising vs the expected return -The target market for the product -Whether part of a campaign or a single advert

Types of Media TelevisionBillboards RadioCinemas NewspapersLeaflets MagazinesInternet PostersOthers

Designing Adverts A wareness – of product existing I nterest – consumers should want to find out more D esire – consumers should want to buy it A ction – consumers prompted into action

SALES PROMOTION Price Reductions – Loss Leaders – Added Value - Gifts - Point of Sale - Competitions – Free Samples - Merchandising – After Sales Service -

OTHER TYPES OF PROMOTION PERSONAL SELLING PUBLIC RELATIONS SPONSORSHIP CUSTOMER SERVICE

PUBLIC RELATIONS (PR) PR is often FREE Done by releasing stories to newspapers and other media If a famous personality is involved – the chance of being covered by media is increased

SPONSORSHIP ‘A way of advertising a business by providing money for an event or a particular team or an individual’.

Personal Selling Used when exact nature of product can vary E.g. Car – can have A/C sat nav, range of engines. You talk to person and discuss options Used often in business to business selling Customers expect this for high value purchases e.g cars, TV’s, Hi-Fi’s,

Customer Service Three times as expensive to attract new customer than to keep existing one Therefore KEEPING customers is crucial Good service may help a product/business stand out from competition

Good Customer Service Involves Giving Advice about the Product Delivering goods for customers Providing credit facilities Providing product information After sales service HAPPY CUSTOMER = LOYAL CUSTOMER !!

Which Type to Use? The stage of the Product Life Cycle? Nature of the product? The advertising budget? The potential return (revenue generated or units sold) from the promotion? Cultural issues involved when going international The nature of the target market The Competition – how do you want to compete? KEY GOAL = COST EFFECTIVE – what does this mean? Depends on:

TASK – 10 mins In your groups discuss the most cost effective promotional mix for your ideas Feedback with justification

Feedback…

Reflection Time – Have we met our objectives? To understand the aims of promotion To understand the different forms of promotion (ABOVE & BELOW the Line) and how they influence sales: – Advertising – Sales promotion BOGOF – Public Relations – Personal Selling To recognise the importance of the marketing budget in making promotion decisions; Cost vs Effectiveness?