1. Promotion

2. Promotion A means of communicating information to the consumer,
informing and persuading customers to buy or use a particular product
AIDA is an acronym used in marketing and advertising that describes a common list of events that may occur when a consumer engages with an advertisement.
A - Attention (Awareness): attract the attention of the customer.
I - Interest: raise customer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising).
D - Desire: convince customers that they want and desire the product or service and that it will satisfy their needs.
A - Action: lead customers towards taking action and/or purchasing

3. Uses of promotion Increase Sales Attract new customers
Increase Sales
Attract new customers
Encourage customer loyalty
Encourage trial
Create awareness
Inform
Remind potential customers
Reassure new customers
Change attitudes
Create an image
Position a product
Encourage brand switching
Support distribution channel

4. Main aims of promotion –
ensure customers are aware of the existence and positioning of products
persuade customers that the product is better than competing products
remind customers about why they may want to buy

5. Promotional methods used to pursue marketing objectives–
Advertising (offline and online)
Sales promotion and merchandising
Personal selling
Public relations/publicity/sponsorship
Direct marketing

6. Composition of promotional mix depends on:
Stage in the product’s life cycle
For example, advertising and PR often important at the launch stage
Nature of the product
What information do customers require before they buy?
Competition
What are rivals doing? What promotional methods are traditionally effective in a market?
Marketing budget
How much can the firm afford?
Marketing strategy
Other elements of the mix
Target market
Appropriate ways to reach the target market

7. 2 tests of promotional effort:
Was it effective? – did it achieve its objectives, how was response measured?
Was it efficient? – were objectives achieved at the acceptable cost, were any promotional overspends justified by better-than-expected sales?

8. Promotional effectiveness and efficiency
Ineffective
Efficient
Objectives achieved at lowest costs
Effective and cost efficient
Low promotion budget but objectives not achieved
Inefficient
Objective achieved but at high cost
Expensive promotion which fails to achieve objective

9. Advertising Paid for communication Many different advertising media
TV, radio, newspapers and magazines, online, cinema, billboards
Consumers subjected to many advertising messages each day = hard to get through
Mass market advertising is very expensive

10. Advertising Advantages Disadvantages Often expensive Wide coverage
Control of message
Repetition means that the message can be communicated effectively
Can be used to build brand loyalty
Disadvantages
Often expensive
Impersonal
One way communication
Lacks flexibility
Limited ability to close a sale

11. Personal Selling Promotion on a person to person basis
Two way communications
Meeting with potential customers to close a sale
By telephone, at meetings, in retail outlets and by knocking on doors
Highly priced, low volume and highly technical products rely heavily on personal selling

12. Personal Selling Advantages High customer attention
Message is customised
Interactivity
Persuasive impact
Potential for development of relationship
Adaptable
Opportunity to close the sale
Disadvantages
High cost
Labour intensive
Expensive
Can only reach a limited number of customers

13. Sales promotion
Tactical, point of sale material or other incentives designed to stimulate purchases
Short term incentives to increase sales
Some promotions aimed at consumers, others at intermediaries or sales force

14. Examples of sales promotion
Coupons
Money off
Competitions
Demonstrations
Free samples
Loyalty points
Free gifts
Point of sale displays
BOGOF
Merchandising
Trade in offers

15. Sales Promotion Advantages
Effective at achieving a quick boost to sales
Encourages customers to trial a product or switch bands
Disadvantages
Sales effect may only be short-term
Customers may come to expect or anticipate further promotions
May damage brand image

16. Merchandising
The process of maximising the effectiveness of retail distribution
Displaying products to maximise sales
Usually operates at the “point-of-sale”

17. Public Relations (“PR”)
Activities that create goodwill toward an individual, business, cause or product

18. Main Aims of PR To achieve favourable publicity about the business
To build the image ad reputation of the business and its products, particularly amongst customers
To communicate effectively with customers and other stakeholders

19. Typical PR Activities Promoting new products
Enhancing public awareness
Projecting a business image
Promote social responsibility
Projecting business as a good employer
Obtain favourable product reviews/recommendations

20. Sponsorship
Sponsorship takes place when a payment for an event, person, organisation is given in return some consideration of benefit
A specialised form of public relations
Common in the worlds of arts and sport
Sponsorship should benefit both sides

21. Direct Marketing Promotional material directed through mail, email or
telephone to individual
households or businesses

22. Why Use Direct Marketing?
Allows a business to generate a specific response from targeted groups of customers
Allows a business to focus on several marketing objectives:
Increase sales to existing customers
Building customer loyalty
Re-establishing lapsed customer relationships
Generating new business

23. Direct Marketing Advantages
Focus limited resources on targeted promotion
Can personalise the marketing message
Relatively easy to measure responses and success
Easy to text different marketing messages
Cost effective of customer database is well managed
Disadvantages
Response rates vary enormously
Negative image of junk mail and spam
Database expensive to maintain and keep accurate

24. Chewing gum wars in the UK market
Test your knowledge!
Chewing gum wars in the UK market