Btec Enterprise Component 3 LAA

Aims of promotion

create positive image of the business and encourage current and potential customers to buy products.

Promotional mix

the mix of different methods of communication.

Target market

group of people who are most likely to buy the products.

Promotional mix methods

direct marketing, public relations advertising, sales promotion, personal selling.

Message

what the communication needs to say

Medium

how to get the message across to current and potential customers

Purpose of advertising

to inform or to persuade

Methods of advertising

moving image, print, ambient, digital, audio

Factors influencing choice

potential sales, cost, characteristics of target market, type of product

Aim of sales promotion

to get products known in the target market

Purpose of sales promotion

to entice people into shops to then buy other products, boost sales, attract first time buyers, sell off older less fashionable goods, maintain customer loyalty.

What sale promotion choice depends on

size of enterprise and type of product

Methods of sales promotion

coupon, free sample, competition, money off/ discounts, loyalty incentives, BOGOF

Direct marketing

communicates with customers

Purpose of direct marketing

build up a relationship, know target market so can tailor message

Methods of direct marketing

direct mail, mail order catalogue, magazines, telemarketing

Benefits of direct marketing

build positive association with brand, may introduce new customers to products

Limitations of direct marketing

unexpected phone calls may be unwelcome, customers may ignore written communications

Public relations

building and maintaining an enterprise's reputation through media

Methods of public relations

press release, exhibition, sponsorship, promotional stunts

Press release

written piece of 150-200 words. Who, what, when, where, why

Exhibition

similar enterprises exhibit the products or explain the service they offer

Sponsorship

enterprises pay to have name and brand displayed at major events.

Promotional stunts

one off events to catch the attention of media and public.

Benefits of public relations

free positive publicity, reaches wide audience, improves brand image

Limitations of public relations

no control over how journalists write up stories, may not be picked up by the media, difficult to measure impact

Business to business

sells goods to other enterprises

Business to customers

sells directly to customers

Pull strategies

promote directly to consumers to create demand

Push strategies

promote to B2B market and give incentives to buy large quantities

What impacts choice

budget and staff availability

Segmentation

each segment is made up of consumers with shared characteristics, needs and interests.

Why use segmentation

better understanding of needs of market, develop products that suit needs, choose promotional methods best suited to these needs.

Demographic

based on shared population characteristics

Geographic

based on shared location characteristics

Psychographic

based on shared psychological characteristics

Behavioural segmentation

spending and consumption, loyalty, usage rate, desired benefits

Demographic segments

age, gender, income, social class, ethnicity, religion, family size, geography

Budget

amount of money designated for a specific activity or period of time

Factors influencing the choice of promotion

size of enterprise, budgetary constraints, appropriateness for product, target market