chapter 15;marketing mix, promotion

promotions include

* Essential when trying to increase/ create brand loyalty
* Promotion includes:
* Advertisements –
* Above the line
* TV, newspaper, internet
* Sales promotion
* Below the line
* Free gifts, coupons, samples
* Used for short periods

aims of promotion

* To raise awareness about a firms’ products
* Encourage customers to make a purchase
* Increase sales
* Inform people about particular issues, used by the govt
* Introduce new products in the market
* Create brand image
* Improve company’s image
* Compete with competitors

2 types of advertisement

* Informative Advertisement – where the promotion of a product focuses on giving information about a product (i.e. the benefits of the product)
* Persuasive Advertisement – where the promotion of a product focuses on persuading the consumer that they really need the product and they should buy it

types of advertising media

* television
* radio
* leaflets
* newspaper
* magazines
* posters
* cinemas, dvds
* leaflets
* internet
* product placement

sales promotion

when incentives (i.e. special offers/sales) are used to increase sales (short term)

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* price reduction
* gifts
* offers (bogof)
* competitions
* after sales services
* point of sale display.

Marketing Budget

* Marketing budget is the financial plan for marketing product/brand for a period of time
* When deciding which type of promotion to use, marketing budget is an important factor
* Choose the most cost-effective method
* This is where small business struggle compared to big businesses, because their budget is so much smaller.

Factors influencing type of promotion

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* Stage of PLC
* Nature of product
* Cultural issues involved in international marketing
* Media used must depend on:
* Literacy rate
* Poverty rate
* Availability of radio and cinema
* Nature of target market

Public relations and sponsorship

Public relations and sponsorship

* It is concerned with promoting a good image of the brand
* Ways to increase public awareness:
* Sponsor events linked with good causes
* Donate in charities

Social media and website

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* Advertising through social media:
* Target specific demographic group
* Guarantee it reaches customers
* Cheap
* Reach people of all ages
* Quick responses to market changes
* Have to pay for pop ups
* If advertising is annoying, reduce sales
* Lose control
* Maybe altered, reducing business reputation
* Advertising on own website
* No extra costs
* Control adv
* Change info quickly
* Attractive
* High info
* High costs
* May not be located
* High competition