Transcript Marketing Mix Promotion and Place - MrB-business

Marketing Mix
Promotion
Promotion
• Communicating with your potential
customers, to create awareness of your Brand,
product and company. This will most often
drive sales to you and away from your
competitors.
• Advertising, Sales Promotions, Trade Fairs,
sponsorship.
Promotion Objectives
• What Objectives Might a Marketing Team set for
promotion?
- Increase Sales by raising awareness of particular
product.
- Remind Consumers of existing product and its
benefits.
- Attract new customers to your brand.
- Reinforce USP over competitors.
- Reinforce your brand image and personality.
The Promotion Mix
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Combination of promotional techniques that a firm
uses to sell its products.
Advertising
Sales Promotion
Personal Selling
Direct Mail
Trade Fairs and exhibitions
Sponsorship
PR
Advertising
• Paid for communication with consumers to
inform or persuade eg TV, radio, print etc
• This is often referred to as above the line
promotion, and marketers need to be careful
that the align the strategy with there target
market and select the correct medium (TV,
Radio, Print, Internet) to display there
product/service.
Advertising
• Informative Advertising – giving consumers
specific information about your product rather
then pushing brand. Often used in brochures,
mail outs.
• Persuasive Advertising – Trying to give your
product/service and identity so consumers will
choose you over the competitors.
Advertising
• Advertising Agencies – These businesses can
be expensive, but it can mean that instead of
employing a fulltime worker to do your
promotion, you can contract it out and
possibly save money in the long run.
Which Media to use?
• With the growing amount of options to
interact with your market, marketers need to
consider what is the most appropriate
medium with which to advertise there
product.
• Is the most expensive always the most
effective?
Factors to consider
• Cost – TV, Radio, Magazines, Cinema, Newspaper.
They all have a cost and in some cases can be very
prohibitive to a campaign.
• Size of Audience – all mediums will provide stats on
the circulation or number of consumers
watching/listening at a particular time. Do they
match your consumer profile is the question you
need to ask.
Factors To Consider
• Consumer Profile – Make sure the medium
you use is where your target is looking ie you
wouldn’t advertise fencing products during
desperate housewives.
• The communicated Message – Is it an
informative advert or image based. If it needs
to be referred to by consumers would be best
suited to a magazine.
Factors to consider
• The Marketing Mix – what image have you
presented for your product that should match
where you advertise it i.e. perfume in a car
magazine does that fit?
• The Law – The BSA (Broadcasting Standards
Authority) dictates what can be shown when.
Ie vulgar and indecent ads can be taken of the
air. The Toyota Bugger Ad is one example.
Banned Ads
When To Spend
• Old adage in business is “you have to spend
money to make money” reality is when things
are going well we tend to spend more and
when things are struggling we cut our budget.
• Do you think spending More during recession
is a good strategy?
Sales Promotion
• Sales promo’s include special offers, or deals to
attract short term sales from consumers.
• Considered Below the line promotion
• What deals could a business offer?
- Temporary Price Reduction
- Loyalty schemes
- Coupons
- Buy one get one free
- Games and Competitions
- POS displays
Personal Selling
• A sales person is hired to communicate with
customers, in the aim of building a relationship
between the company (Brand) and consumer.
• Very common in B2B where the product doesn’t sell
its self.
• Used in Retail as well.
• NOTE: The salesman/women is the face of a business
if they present a bad image all you have been
working towards can be lost.
Direct Mail
• Often called ‘Junk Mail’ sent direct to
consumers within a particular market. The
warehouse catalogues, farmers, briscoes and
rebel sport all do this regularly. Can be good
for exposure but often ineffective due to cost
and consumers not paying attention to your
message.
Trade Fairs Exhibitions
• These are direct meetings with potential
clients, can be considered a very effective
form of marketing as all consumers who
attend shows have an interest in the products
on display. Great way to launch a new product
and create brand awareness.
Sponsorship
• Sponsoring good causes or events as a way to
tap into the advertising and promotional
budget of an event. Also extends to sports
people and radio spots and even TV segments
ie Sport bought to you by LG. creates greater
exposure to your brand and increases visibility
amongst your consumer group.
Public Relations
• The use of editorial, and other free mediums
of advertising to promote your product and to
give the consumers an understanding of what
you stand for as a company. This can be
fantastic for a company if you can get the
journalists to write about your product or
service. Invite them to a launch or company
event so they will write about it.
Branding
• This will drive the image of your product or service
and is integral to ensuring the consumers associate
with you. There are Brand specialists who can create
an image for you by researching the market.
• Common benefits of a strong brand.
– Increase chances of recall with your product.
– Differentiates product from competitors.
– Reduce price elasticity of demand as consumers choose
well known brands.
– Loyalty to your brand.
Branding Exercise
• Write down everything you think/know about
the below brands? (Brand image, associations
etc)
Marketing/Promotion Budget
• All Businesses are provided with a certain
budget on which to market/promote there
products or service. All companies use
different approaches to this but it is important
to ensure that the budget is aligned to the
overall company objectives and marketing
strategy and not just ad hoc. Ie spending
money without any real direction.
Marketing Budget - Approaches
1. A Percentage of Sales – the budget will
increase and decrease dependent on what
happens with sales. Normally a set
percentage ie 10% of sales.
2. Objective based budget – based on meeting
company objectives for sales and providing a
promotion budget to meet these aims.
Marketing Budget - Approaches
3. Competitor Based – Trying to match the spending
off a similar sized competitor, this could mean
spending a lot of money on promotion.
4. Affordability – Ad Hoc marketing no real direction
business will spend money on marketing if there is
some available.
5. Incremental – Adding a percentage each year to
last years budget, usually based on sales.
Tracking Performance
• Tracking the performance of a promotion or
advertisement, is crucial in today's society as more
and more managers are concerned about ROI
(Return on Investment).
- Sales performance before and after promotion
- Consumer awareness data
- Consumer Panels
- Response rates to advertisements.
Packaging
• Packaging is an important aspect to consider
as often it is one of the first images consumers
get of your product, and therefore the
perception of your product can be forever
altered if you get it wrong it needs to support
your promotion strategies. I.e. high class
product high class packaging, environmentally
friendly packaging and cost considerations
PLACE
Place
• Can be referred to the physical place in which
you sell your product. Ie the supermarket. This
is aligned with were your target market are.
But mainly refers to your channel of
distribution how does the good/service get
from the producer to the final consumer.
Distribution
• “Right product, Right consumer, Right time
and place”
• Getting your product to your consumers that
is the most convenient and is the lowest cost
option is important for the business.
Customer Service
• This can be overlooked in business but it is
crucial to ensuring your products success,
picking your distribution strategy should not
always just be about cost, that’s important but
the consumer is concerned with the
‘experience’ or being able to purchase and
receive the good when they want/need it.
Channel Strategy
• Businesses need to select carefully what channel that should
distribute there products. Like all other decisions they should
be linked with the overall corporate objectives for the
organization and they should also distribute through a
channel that matches there brand image.
Distribution Channels
• Direct selling – from manufacturer to consumer. (no
intermediaries) becoming very common due to the
advancement of the internet.
• Single Intermediary – Manufacturer to retailer then
to consumer. Supermarkets are an example of this.
• Two Intermediaries – Manufacturer to wholesale
then retailer and finally consumer. A lot in B2B
market.
Factors Influencing Choice of
Distribution Channel
• Geographical dispersion of your market could
make it difficult to direct sell.
• The level of after service required.
• Technical complexity of the product.
• Unit Value of the product.
• Size of your market, how do you sell direct to
40 million customers?
Distribution Channels
• The advancement of the internet has seen
direct selling become more popular in
business, this means that some of the more
traditional intermediaries have gone out of
business.
• In business it can be wise to use many
methods of distribution i.e. sell to the market
and also retailers so you don’t miss any
potential customers. Eg Hotels
Online Marketing
• This revolutionized how ‘businesses’ interacted with
there market, now consumers can buy online get real
time information about your products and collect
data about the market which was previously costly
and hard to obtain. This has made a lot of the older
retail environments go out off business particularly in
the music industry where downloading music online
as opposed to buying CD’s has become popoular.
Advantages
Low Cost
Disadvantages
Low Speed internet
connections can cause
issues
Large Audience –
Consumers cant touch,
Worldwide
feel or use product
Greater Consumer
Product returns increase
interaction with business due to dissatisfaction
Convenient for
Website must be kept up
consumers
to date
Tracking is possible
Internet security worries
enhances marketing
strategies
Viral Marketing
• This has become the new buzz word in
marketing, it is the use of Social Media
(Twitter, Facebook, My Space, You Tube) and
cell phones to increase brand awareness and
sell products. It is all about the consumers
passing on the information through these
mediums. We are in the digital age and enjoy
passing interesting clips and promotions on.
(Snow Ball Effect)
Evaluation
• Promotion and Place are important elements
of the Marketing Mix and cannot be
overlooked when making decisions. Clearly
promotion creates your image and drives
customers to your product, and now with the
emergence of viral and online marketing Place
and Promotion go hand in hand. Consumers
will always have options and businesses what
there product to be top of the mind.
Integrated Marketing Mix
• The Four ‘P’ s don’t stand alone we need make sure
our branding and all decisions remain consistent
across the board as consumers will make decisions
based on what businesses present to them. So being
contradictory is a sure fire way to fail in marketing.
Sometimes the smallest mistake in one element can
lead to a huge failure. Make sure that your marketing
mix is aligned to your overall strategy and objectives
as the old saying goes.