Look at test scores on Quia/SPAN Open 4.5 Outline Today’s objectives: – Review the marketing mix – Discuss elements of promotional mix

Review: The Marketing Mix Marketing Mix Promotion Product PlacePrice

Promotion Promotion refers to methods of communicating messages to the market with the intention of selling a product

What is Promotion? Promotion is all of the activities involved in informing and persuading potential customers to buy a product It is not just advertising

Promotion Objectives To inform To persuade To remind

Types of Promotion Promotion can be: ABOVE THE LINE – Direct Advertising through consumer media BELOW THE LINE – All other forms of promotion

Advertising True or False?

TV commercials during Super Bowl XLV in 2011 are estimated to have cost $1 million for a 30- second spot False…… It actually cost $3million

More than $500 billion a year is spent on advertising worldwide True

The average child in America watches over 40,000 television commercials in a year, or over 100 a day True

Starbucks spent $9million on advertising in 2006 False…… They actually spent $95 million

The newest form of marketing is called ‘Viral Marketing’ and involves using blogs and s to advertise a product True

Facebook makes $4billion a year from advertising True

Microsoft allegedly paid the Rolling Stones $20 million to use their hit “Start Me Up” in its Windows 95 advertisements False…… It actually a mere $9million!

Here are some successful adverts What makes them successful?

5 features of a good advert Discuss and agree in pairs what the most important features of a good advert are The features of a good advert are…….

Homework – My favourite advert Bring an advert to share with the rest of the class. Who do you think the product is aimed at? Why do you think it’s effective?

Advertising Media What methods can a firm use to advertise?

Above the Line Promotion Firms must choose advertising media: Television Newspapers – Local or National Magazines Radio Posters/Billboards Leaflets/flyers Internet Outside Advertising

Choice of Media When choosing an advertising media a firm must take into account several factors: Cost Target audience Marketing budget Size of the market Geographical dispersion of the market What competitors are doing Impact Legal constraints

Task What advertising media would you use for these products, and why?

Below the Line Promotion Basically anything the business can do other than advertise to get customers to buy their product…….. Look at these examples

Advertising Any form of paid communication used to develop awareness, perception or attitudes about a business or its products. A successful advertising campaign must be distinct from the competition

Publicity Information that is provided to the public by the media or other sources at no cost to the business, such as TV or print news stories about a business or product. Cannot be controlled by the business, thus it is not always positive

Public Relations (PR) Business activities aimed at establishing and protecting the desired image of an organization. PR is concerned with getting good press coverage without paying for it. Businesses hold press conferences or submit press releases to the news media.

Personal Selling Face-to-face, personalized technique that relies on sales representatives. Can be tailored to the individual needs of the customer.

Sales Promotion Short-term incentives designed to temporarily stimulate sales, such as coupons, contests, sweepstakes, giveaways and free samples. Attracts new customers.

Point-of-Sale/Merchandising Promotion occurs at the place where the purchase is made (check-out line, in-store displays)

Sponsorship Business pays to be associated with an event or organization in return for publicity and/or prime advertising space

Suggest a promotional strategy for the following situations... (include above the line and below the line strategies) Cadbury want to increase sales of dark chocolate by 20% in the next 3 years A car dealership are below their sales target and need to increase sales this month M&S want to get rid of the old fashioned image of their clothing range A gardener wants to attract more clients in his local town

Push vs. Pull Pull promotion promotional technique used to stimulate demand for a product (to pull or attract customers into buying). Includes above-the-line promotional activities. Push promotion promotional methods that rely on intermediaries, such as retail stores, to push products to the customers. Includes below-the- line promotions such as price reductions.

Guerrilla Marketing This isn’t on your syllabus…. But it’s fun!