Transcript Promotion - Appliedbusinessnodehill

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=xFIU9ASB9k&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.
Advertising
Sales
Promotion
The
Promotional
Mix
Direct
Marketing
Personal
Selling
Public
Relations
Things to think of…
• The promotional method you use will reflect
on your:
– Product
– Your target market
– Budget
– Competitor Activity
Think about the product life cycle of your product and how
your promotion may change.
SALES
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.
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.
Stage 4
Maturity
Stage 5
Saturation
New promotion can
be introduced if you
take on an extension
strategy
Extension
Strategy
Stage 3
Growth
Stage 6
Decline
Stage 2
Introduction
Stage 1
Development
TIME
Promotional Communication
• 2 distinct areas:
Controllable
NonControllable
Word of Mouth
Carefully directed
promotion to
achieve objectives
Personal
Recommendations
Consumer
Perception
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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?
Main Controllable Promotion Methods
•
•
•
•
•
Advertising
Direct Marketing
Public Relations (PR)
Personal Selling
Sales Promotion
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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?
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Types of Promotional Media
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•
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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
12
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 selling is personal communication between the business and a
customer, most often by a salesperson.
Direct
Mail
Telephone
Door-todoor
drops
Personal
Selling
Direct Mailing
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
16
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?
Sales Promotion
Sales 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
18
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
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Appendix – Things to help with
choosing and evaluating your
promotional method.
Attention
Interest
Desire
Action
Measuring
Campaign
Effectiveness
 What is the purpose of the promotion for your
product:
Attention – To grab attention and make people
aware
Interest- To stimulate interest
Desire – make people feel deprived without product
Action – Encourage purchase of product
Will it be effective?
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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-ofadvertising
Here are some advantages/disadvantages of promotion, please find some
more for your coursework...
Mix Element
Advantages
Disadvantages
Advertising
Good for building awareness
Impersonal - cannot answer all a customer's
questions
Effective at reaching a wide audience
Not good at getting customers to make a final
Repetition of main brand and product positioning helps purchasing decision
build customer trust
Personal Selling
Highly interactive - lots of communication between the Costly - employing a sales force has many hidden
buyer and seller
costs in addition to wages
Excellent for communicating complex / detailed
product information and features
Not suitable if there are thousands of important
buyers
Relationships can be built up - important if closing the
sale make take a long time
Sales Promotion
Public Relations
Can stimulate quick increases in sales by targeting
promotional incentives on particular products
If used over the long-term, customers may get used
to the effect
Good short term tactical tool
Too much promotion may damage the brand image
Often seen as more "credible" - since the message
Risk of losing control - cannot always control what
seems to be coming from a third party (e.g. magazine, other people write or say about your product
newspaper)
Cheap way of reaching many customers - if the
publicity is achieved through the right media
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..