marketing mix: promotion

what are the aims of promotion

to introduce new products to the market

to compete with competitor’s products

to increase sales

to improve image '

to create brand image

to inform people of certain issues

define advertising

communication with potential customers about a product to encourage them to buy it

what are the two types of advertising

informative

persuasive

define informative advertising

where emphasis of sales promotion or advertising is to give full information about the product

define persuasive advertising

where the emphasis of advertising or sales promotion is on persuading the consumer that they really need the product and should buy it

define sales promotion

incentives like special offers or deals aimed at a short term increase in sales

types of sales promotions

BOGOF

after-sales service

gifts

price reductions (specific times of the year & money-off coupons)

free samples

competition

product placement (expensive products on TV)

point-of-sale display & demonstrations

define marketing budget

a financial plan for marketing a product or product range for a specified period of time

what is the importance of marketing budget

the cost of advertising must be compared with the increase in sales

factors to determine the type of promotion used

stage in PLC

nature of the product (producer goods = trade discounts not coupons)

cultural issues and audience preferences in the international market

nature of target market (local, national or international)