3a. Promotion

What role does promotion play in the marketing mix?

Generating customer awareness, interest and desire for a product/service

How can a business use pricing to stand out from competitors?

By setting prices that reflect its value proposition, a business can attract customers and differentiate itself from competitors

What does promotion help a business to do?

Build brand awareness and loyalty which can lead to repeat purchases and referrals

What are the types of promotion?

• Special offers

• Branding

• Sponsorship

• Advertising

• Product trials

Why is it important for businesses to choose the right promotion method?

It ensures the message reaches the target audience effectively while staying within budget

What is advertising, and its advantages and disadvantages?

Promotion occurs through paid channels such as TV, radio, print media (magazines), and online advertising

• It can reach large audiences and increase brand awareness

• Can also be used to create a specific brand image or message

• Can be expensive

• The effectiveness of it can be difficult to measure

• Many customers tune out or ignore ads

What is branding, and its advantages and disadvantages?

The process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product/service or company from its competitors

• Establishes recognition and identity

• Builds trust and credibility

• Differentiates a business from its competitors

• Is expensive

• Developing a strong brand takes time

What are special offers, and its advantages and disadvantages?

These are temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards and rebates (customers have to mail in to receive money back)

• Can quickly boost sales or customer engagement

• Can help to clear out stock or promote a new product

• Can encourage impulse purchases

• Can be targeted to specific segments of customers

• Can be expensive especially if the promotion requires heavy discounting

• Can attract deal-seeking customers who may not be loyal to the brand

• May reduce the sales of full-priced products

What are sponsorships, and its advantages and disadvantages?

An agreement in which a company provides financial or other support to an event, team or organisation in exchange for marketing exposure. Can take many forms, such as, logo placements or naming rights

• Can help build brand awareness or credibility

• Can create emotional connections with target audiences

• Can support specific business objectives, such as entering new markets or reaching new customers

• Can be expensive, especially for high-profile events or properties

• May not directly drive sales

• May be subject to negative publicity if the sponsored entity experiences a scandal or controversy

What are product trials and its advantages and disadvantages?

Involves testing the market by first selling the product in a confined area such as South West London, to gauge demand and collect feedback on the product

• Customer reaction may generate information on how the product or marketing mix can be improved

• May not be suitable for all types of products

• Takes time and money to be effective