Promotion

Miss Lay

Lesson Objectives

• By the end of this lesson you should:

– Understand the basic elements of the promotion mix

– Applied appropriate promotional methods to you products

– Evaluated you chosen promotional method

5 minute Starter to get you thinking about promotion!

• Guess the advert• http://www.youtube.com/watch?v=x-FIU9ASB

9k&feature=related

What is promotion?

• In the context of marketing, promotion is the process of communicating with customers or potential customers.

• Promotion is designed to either inform customers about a product or service, or to persuade them to buy it.

The Promotional Mix

Advertising

Personal Selling

Public RelationsDirect Marketing

Sales Promotion

Things to think of…

• The promotional method you use will reflect on your:– Product– Your target market– Budget – Competitor Activity

SA

LES

TIME

Stage 2Introduction

Stage 3Growth

Stage 4Maturity

Stage 5Saturation

Stage 6Decline

Extension Strategy

Stage 1Development

Think about the product life cycle of your product and how your promotion may change.

High initial expenditure on the promotional mix. Advertising is needed to get the products name and benefits known.

Promotion will be less intense as the product finds its own impetus and both retailers and consumers make repeat purchases.

Promotion is likely to be defensive or helping to hold the products position in the market as competitors with younger products may be threatening to take custom away. The roll of promotion here is to remind people about the product.

New promotion can be introduced if you take on an extension strategy

8

Promotional Communication

• 2 distinct areas:

Controllable

Carefully directed promotion to

achieve objectives

Non-Controllable

Word of Mouth

Personal Recommendations

Consumer Perception

Word of Mouth

• Essential promotional tool your business will need

• Cheap, could even say free!• More memorable than media adverts that

bombard people constantly, if someone says something good about a product people are more likely to go and try it out!

• How will you achieve it?• Social Media?

10

Main Controllable Promotion Methods

• Advertising• Direct Marketing• Public Relations (PR)• Personal Selling• Sales Promotion

11

Advertising• Promotion through media is known as ‘Advertising’• Advertising is a 'paid for' communication.• Heavy presence in everyday life• Most expensive method• Multinationals spend large amounts• It is used to develop attitudes, create awareness, and

transmit information in order to gain a response from the target market.

• It is non-personal promotion

• Can you think of a very effective advertisement you have seen recently?

12

Types of Promotional Media • Think about what, when and where..• Choice of media depends on the number of target customers• Media includes:

– Television: expensive but wide coverage

– Radio: cheaper & smaller audience; no visual stimulus

– Cinema: local audience

– Newspapers and magazines: can be expensive but more specialised; if kept can be long lasting

– Posters: cheaper; have impact but may be ignored; little opportunity for targeting

– Leaflets: homes street - cheap but little targeting opportunity

• You need to do some secondary research and find out the cost implications of the form you want to use

Advertising Fact and Figures

Some statistics for you:• Evidence suggests TV advertising is more than 3

times effective than the next best form of advertising

• 43% of adults say they are likely to respond to television advertising

• Only 13% say they are likely to respond to magazine or newspaper advertising

• If you can find more statistics to support your choice....use them

Direct Selling

Direct Mail Telephone Door-to-door drops

Personal Selling

Direct selling is personal communication between the business and a customer, most often by a salesperson.

Direct Mailing

16

Personal Selling

• Personal Selling is an effective way to manage personal customer relationships

• Using ‘face-to-face’ interaction to gain a sale. Examples are:– Retail shop staff– Door-to-door selling– Exhibitions and shows– Home visits such as life

assurance salesmen

Personal Selling

• Are there any opportunities to use personal selling?• Is your product complicated and needs to be

explained by a specialist? • Would you sell your product at a local festival of some

sort? Event? Exhibition? Market? In store?– Think about locations where you would take your product

and do some personal selling• How will you get the target customer’s attention?• What will be your main approach? Samples?

Handouts? Benefits explained?

18

Sales PromotionSales promotion is often aimed straight at the customer to raise awareness and increase sales.

When introducing your product you may chose to use BOGOF promotion (Buy One Get One Free) or couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on.

Each sales promotion should be carefully costed and compared with the next best alternative.

Is it worth the money it will cost you?

Examples are:

• Coupons – discounts/extra club points• Competitions – newspaper promotions• Special offers – Buy one, get one free• Loyalty schemes – Club cards, air miles• Trade incentives – free gifts, extra discounts on more sales

19

Public Relations (PR)

•Public Relations is defined as:

'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations).

•It is relatively cheap. •Often seen as more "credible" - since the message seems to be coming from a third party (e.g. magazine, newspaper)•Risk of losing control - cannot always control what other people write or say about your product.•Methods of Public Relations include:

• Press releases• Features – TV, magazines, newspapers• Trade fairs• Familiarisation trips• Press conferences• Lobbying – ABTA for example

Appendix – Things to help with choosing and evaluating your promotional method.

Measuring Campaign Effectiveness

What is the purpose of the promotion for your product: Attention – To grab attention and make people

awareInterest- To stimulate interestDesire – make people feel deprived without productAction – Encourage purchase of product

Will it be effective?

21

Attention

Interest

Desire

Action

Information you need for your chosen promotion method

• Costs – research internet and add to your secondary research in section b.

• Location – What TV channel will you choose? What type of magazine? Where will you personally sell your product? You should have evidence to support your choice

• Time – When will you advertise in order to attract your target audience and achieve real value for money

• Why? – Explanation of why you chose what channel, time• Evaluate your choice – Advantages and disadvantages, would it be

effective at targeting the right audience?

http://www.itvmedia.co.uk/advertising-on-itv/cost-of-advertising

Mix Element Advantages Disadvantages

Advertising Good for building awareness

Effective at reaching a wide audience

Repetition of main brand and product positioning helps build customer trust

Impersonal - cannot answer all a customer's questions

Not good at getting customers to make a final purchasing decision

Personal Selling Highly interactive - lots of communication between the buyer and seller

Excellent for communicating complex / detailed product information and features

Relationships can be built up - important if closing the sale make take a long time

Costly - employing a sales force has many hidden costs in addition to wages

Not suitable if there are thousands of important buyers

Sales Promotion Can stimulate quick increases in sales by targeting promotional incentives on particular products

Good short term tactical tool

If used over the long-term, customers may get used to the effect

Too much promotion may damage the brand image

Public Relations Often seen as more "credible" - since the message seems to be coming from a third party (e.g. magazine, newspaper)

Cheap way of reaching many customers - if the publicity is achieved through the right media

Risk of losing control - cannot always control what other people write or say about your product

Here are some advantages/disadvantages of promotion, please find some more for your coursework...

Evaluation is Key!!

• Fully justify why you have chosen your promotional method showing originality of thought

• Say why you have used that promotional method – link back to your target market, budget/price of product etc..