1. Using the Marketing Mix: Promotion
AS Business Studies
Using the Marketing Mix: Promotion

2. Lesson Aims You will understand:-
the different elements of the promotional mix
the influences on the choice of the promotional mix

3. The Promotional Mix

4. Advertising Advertising is a paid for means of communication.
Long term strategy to build brand loyalty.
Type of Media
Newspapers
Radio
Television
Billboards
Web Advertising (Banners)
Resources available: Mass Market?

5. Is it effective? Need to calculate return on investment?
Magners heavy investment in advertising boosted sales by 225% in 2006.
Can this be attributed to advertising?

6. Your Turn
Think of an advert you have seen recently and explain what message you think it was trying to communicate. (5 mins)

7. Sales Promotions
Sales promotions are attempts to boost sales using techniques such as promotional offers, competitions and price cuts (e.g. 10% off, B.O.G.O.F.F)
Short term boost in sales.
Need to consider:-
Cost
Brand Image
Likely impact on sales
To what extent it will be effective

8. Personal Selling
Based on face to face contact with the customers. B2B/B2C
Sales forces are used when the product is technical or complex and needs explaining.
Financial services (mortgages, insurance, pensions)
Photocopiers
Tobacco

9. Public Relations
Public relations activities involve contact with the media and the various groups the firm deals with. It creates a story to send messages about the products/services.
Usually free of charge
Press releases
Events
Handling customer complaints
Sponsorship

10. Key Terms
The promotional mix refers to the combination of ways in which the business communicates about its products.

11. Direct Mail
Mail shots
Sophisticated database enable powerful segmentation and targeting techniques to be deployed.
Developed now to and text campaigns.

12. Branding
A brand is a name, design, logo, symbol or indeed anything that makes a product recognisable or distinguishes it from the competition in the eyes of the customer.
Increase loyalty.
Potential to increase prices.
Easier to introduce new products/services.
Protection of brand

13. Branding
What do the you associate with the following brands?

14. Merchandising
Merchandising refers to marketing activities that use a brand image or name on a range of other items.
Used in P.O.P. (Point of Purchase) Displays

15. Other Methods Celebrity Endorsements Exhibitions
Buzz or Viral promotion (buyers are targeted online with messages to get them talking to products with their friends)

16. Pros & Cons
Method
Advantages
Disadvantages

17. Pros & Cons Method Advantages Disadvantages Advertising Wide Coverage
Control over message
Used to build brand loyalty
Can be expensive e.g. T.V.
Public Relations
Can be relatively cheap
Cannot control the way the story is covered in the media
Direct Mail
Relatively cheap
May not get read
Sales Promotions
Can entertain and interest the consumer
Often short-term effects
Can encourage brand switching
Personal Selling
Two-way communication; can answer customer enquiries
Can be expensive
Can only reached limited number of customers

18. How did we get on? Do you will understand:-
the different elements of the promotional mix
the influences on the choice of the promotional mix