Blog

Promotion

Promotion

  • Informative, increase consumer awareness
  • Persuasive, pressure consumers to buy a product from a certain brand over rivals targeted at emotions e.g. fear or use celebrity endorsement
  • Reassuring, aimed to existing customers

ABOVE THE LINE = MEDIA

BELOW THE LINE = DOES NOT INVOLVE ADVERTISING

Advantages and disadvantages of advertising in the media

Media             Advantages               Disadvantages

Television

  • Huge audiences can be reached
  • The use of products can be demonstrated
  • Very expensive
  • Message may be short lived

Newspaper & Magazines

  • National and local coverage
  • Scope for targeting with specialist magazines
  • Relatively cheap
  • No movement or sound
  • Individual ads may be lost in a ‘sea of ads’

Cinema

  • Can be used for local and national advertising
  • Specific age groups targeted
  • Limited audience
  • Message may be only seen once
  • Message is short lives

Radio

  • Minority audiences allow targeting
  • Cheap production
  • Not visual
  • May be ignored

Internet

  • Can be updated regularly
  • Can be targeted
  • Hits and response can be measured
  • Some ads such as pop-up ads are irritating
  • Possible technical problems

Sales promotion – Incentives used to encourage people to buy products.

They are used to boost sales in the hope that is new customers are attracted they will continue to buy the product. They might be used to break into a new market. They might be used to reward loyal customers and allow businesses to measure the impact of promotion, by counting the number of returned coupons, as an example.

  • FREE GIFT
  • COUPONS
  • LOYALTY CARDS
  • COMPETITIONS
  • BOGOF OFFERS
  • MONEY-OFF DEALS

Public relations (PR)

Some businesses communicate with stakeholders using public relations. The main purpose of PR is to increase sales by improving the image of the business. Several approaches might be used by a business to attract publicity.

 

  • PRESS RELEASE,
  • PRESS CONFERENCES,
  • SPONSORSHIP,
  • DONATIONS

Merchandising:

Some business may arrange the point of sale so that it is interesting and eye catching, and likely to encourage sales. This is called merchandising.

  • PRODUCT LAYOUT – the layout of products in a store is often planned very carefully to encourage shoppers to follow routes and look at certain products. Products that stores want you to buy are placed at prominent locations, such as the end of aisles and at eye level.
  • DISPLAY MATERIAL – posters, leaflets and other materials may be used to display certain products with the aim of persuading customers to buy. Lighting and other special effects can improve the shopping environment. Window displays are considered important by retailers as they can draw in customers.
  • STOCK – businesses must keep shelves well stocked because empty shelves create a bad impression. Also, if items are out of stock customers may shop elsewhere.

Direct mailing

This is where businesses mail out leaflets or letters to households. Sometimes personal letters are used. They may contain information about new products or details of price changes, for example. Increasingly, email and text messages are being used to contact customers rather than the postal system. The development of ICT and use of customer databases has resulted in more use of personalised marketing

Direct/personal selling

This might involve a sales rep calling at households or businesses hoping to sell products.

It could also be a telephone call from a call centre where a battery of sales staff is employed to sell over the telephone. One advantages of this approach is that the features of the product can be discussed. However, people are often irritated by this approach because the callers have not been invited.

Exhibitions & trade fairs

Some businesses attend the trade fair or exhibitions to promote their products. Businesses set up a stand and promote their products face-to-face. Trade fairs can be attended by commercial buyers or consumers or both. There are certain advantages of this method of promotion:

  • Products can be tested out in consumers before a full launch
  • Some exhibitions are overseas and can be used to break into foreign markets
  • Products can be physically demonstrated, and questions answered
  • Exhibitions often attract the media
  • Customers can speak to business owners or senior personnel face-to-face

Benefits of branding

  • Added value
  • Ability to charge premium prices
  • Reduced ped

Ways to build a brand:

  • Exploit USP
  • Advertising
  • Sponsorship
  • Social media

Social trends:

  • Viral marketing
  • Social media