4.7: Promotion

why is promotion important?

- tells customers about a new product
- reassure and remind customers of existing products
- reach a widely geographically dispersed target audience
- dismiss rival products
- improve or develop brand image

methods of promotion

- above the line promotion
- below the line promotion

above the line promotion

advertising in the media

methods of above the line promotion

- television
- newspapers and magazines
- cinema
- radio
- billboard and posters
- internet

television - advantages

- huge audience
- demonstrated use of products
- creative adverts
- target groups

television - disadvantages

- expensive
- short lived message
- viewers avoid television adverts
- delay between seeing adverts and shopping

newspapers and magazines - advantages

- national and local reach
- readers can refer back
- adverts can be linked to articles and features
- opportunity to target with specialist magazines
- relatively cheap

newspapers and magazines - disadvantages

- no movement or sound
- sea of adverts
- rivals' products may be advertised alongside

cinema - advantages

- big impact with big screen
- local and national advertising
- specific age groups targeted
- use of sound and movement

cinema - disadvantages

- limited audience
- message seen once and short lived

radio - advantages

- use of sound
- minority audiences targeted
- cheap production
- targets youngsters

radio - disadvantages

- not visual
- may be ignored and lack impact
- can be irritating

billboard and posters - advantages

- national campaigns
- seen repeatedly
- good for short sharp images
- big impact

billboard and posters - disadvantages

- vandalism
- limited information
- difficult to evaluate effectiveness

internet - advantages

- updated regularly
- users can be targeted
- effectiveness can be measured
- cheap

internet - disadvantages

- pop-ups are irritating
- technical problems

below the line promotion

promotion not involving the meida

methods of below the line promotion

- sales promotions
- merchandising and packaging
- direct mailing
- direct selling
- exhibitions and trade fairs

sales promotions

incentives to encourage people to buy products

sales promotions - examples

- free gifts
- coupons
- loyalty cards
- competitions
- BOGOF
- money off deals

merchandising and packaging

some businesses' point of sale is that they're interesting and eye catching and encourage sales

examples of merchandising and packaging

- product layout
- display material
- stock

product layout

- strategic layout of products in a store
- shoppers follow particular routes
- target selling products are placed in eye-view

display material

- posters and leaflets for persuasion
- lighting and special effects
- window displays

stock

well stocked shelves are important

direct mailing

- businesses send households leaflets or letters
- contain informatiom about products
- email has resulted in personalisedd marketing

direct selling or personal selling

- a salesperson calls potential customers hoping to sell products
- features of the product can be discussed
- can be irritating

exhibitions and trade fairs

- businesses set up a stand and promote products
- commercial buyers attent

advantages of exhibitions and trade fairs

- product testing before full launch
- overseas exhibitions can be used to break into foreign markets
- physical demonstration
- media attention
- customers can speak to business personnel personally

public relations (PR)

- businesses communicating with stakeholders and increasing sales by improving brand image
- cheap method of promotion
- deliberately seeking bad publicity raises business profile but is risky

PR methods

- press release
- press conference
- sponsorship
- donations

press release

business information presented to the media used for media content

press conference

representatives face the media and present information verbally allowing for questioning and feedback

sponsorship

- companies attract publicity by linking their brands with sporting events
- global projection of brand name without payment

donations

donations improve brand image and are reported in the media

methods of using technology in promotion

- online targeted advertising
- viral advertising
- social media
- e-newsletters

online targeted advertising

- adverts direction at people likely to be interested
- usage of browsing habits and data collected to make them personalised
- tailors advertising and avoids misdirected adverts

viral advertising

- strategies encouraging people to pass on e-messages about a product
- potential for exponential growth by message exposure

social media

businesses target adverts effectively by using user information

advantages of using social media for promotion

- relatively cheap
- immediate response to developments
- improved customer service
- huge reach
- accurate targeting
- links draw traffic

e-newsletters

- documents sent electronically to interested parties containing a range of content
- personalised
- develop customer relationship and new buying opportunities

branding

- businesses aim to build a powerful brand
- branding allows consumers to differentiate the business from competitors

advantages of branding

- differentiates product
- customer loyalty
- recognition
- image development
- increased profit

methods of promotion strategies in different market segments

- advertising
- sponsorship
- product trials
- special offers
- branding

advertising - mass markets

large businesses use TV or social media to reach large audiences

sponsorship

- used in markets where image or product positioning is important
- businesses also sponsor events to target attending audience

product trials

- used where people are encouraged to try a product at a reduced rate before full committment
- subscription pricing

special offers

- price discounts are used in markets selling fast moving consumer goods
- create old stock
- generate quick cash flow
- create interest in a new product

branding

businesses can establish their name and generate increased revenue