Marketing Mix - Promotion

Sky Television:
- Claims to be Europe's leading entertainment and communications business.
- Satellite television broadcaster with contract-free streaming services (NOW television and Sky Online).
- Provides broadband, talk, and line rental services in some countries.
- Over 22 million customers.
- In 2015, generated revenue of £ $11283$ million and operating profit of £ $1400$ million (up 5% and 18%, respectively).
Blake Street Blinds:
- Small family business manufacturing and fitting blinds.
- Serves a small town with a population of 50,000.
- Placed an advert in a local weekly newspaper for 4 weeks in 2016 at a cost of £ $45$ . The advert promotes verticals from £ $9.99$ , free same-day delivery, measuring, next-day fit, and discounts for senior citizens.

Above-the-line promotion: Placing adverts using the media.
Below-the-line promotion: Any promotion that does not involve using the media.
Merchandising: The way in which goods are arranged and placed in a store.
Coupons: Printed paper allowing customers to pay less or get a free gift.
Direct mail: Advertisements sent to people in the post.
Public relations: Attempt by a business to communicate with interested parties.
Sponsorship: Financial contribution to an event in return for publicity.
Viral advertising: Direct marketing technique where a company persuades internet users to forward publicity material.
Exposure: Advertising and publicity used to sell a product or service.

Communicating what the product is to consumers.
Aims to persuade customers to buy the product.
Above the line promotion Advertising that uses independent media
Below the line promotion Sponsorship, Public Relations, Direct Mail, Special offers

In 2016, total global advertising expenditure was set to reach US $579000$ million, a 4.9% increase from 2015.
Television advertising accounts for a significant proportion, but is falling in many countries.
Television advertising is growing in China due to its rapidly growing economy and foreign businesses entering the market.

Above The Line (ATL):
- Radio, TV.
- Newspapers.
- Magazines.
- Outdoor.
- Press.
- Focus on rating, frequency, brand awareness, and reach.
Below The Line (BTL):
- Contextual text ads.
- Vertical banners.
- Email marketing.
- Telemarketing.
- Focus on cost per conversion, quantifiable leads, new customers, and real metrics.

Communications activities that attempt to provide added value or incentives to stimulate immediate sales.
Stimulate product interest, trial, or purchase.

Promoting the sale of goods.
Includes display techniques, free samples, on-the-spot demonstrations, pricing, shelf talkers, special offers, and other point-of-sale methods.
Involves planning for the right merchandise or service at the right place, time, quantities, and price.

Organizations communicate directly with target customers.
Goal is to target individual customers and develop a shorter-term relationship that leads to repeat purchases.
More suitable for complex products and services that cannot sell off the shelves on their own such as financial products.

Businesses attend to promote their products.
Set up a stand and promote products face-to-face.
Suppliers and customers may attend.
Advantages:
- Products are tested out by customers before launch.
- Access to many different markets home and abroad.
- Face-to-face interaction allows for questions and answers.
- Attracts media – free press.

Advise PC Tech Centre on which form of promotion would be most effective (9 marks).
PC Tech Centre Ltd. offers computer setup and repair services and plans to spend £ $500$ promoting its business in the local area for the first six months.
Options include:
- Setting up a Website and using pop-up ads on other websites.
- Advert in Yellow Pages.
- Advert in local newspaper.
- Direct mailing 2,000 leaflets through the letterbox.
- Promotion through personal selling employing someone to go door to door to promote their service.

Communicate with stakeholders to increase sales and improve the image of the business.
Approaches include press releases, press conferences, sponsorships, and donations.

Differentiate the product.
Create customer loyalty.
Help recognition.
Develop an image.
Raise prices when the brand and image becomes strong.
Elements: Awareness, Identity, Loyalty, Perception, Value; including identity design, name, color, logo, advertising, marketing.

Which of the following is an example of above-the-line promotion?
- A Radio advert
Which of the following is an example of public relations?
- D Press conference
A business targeting a mass market is most likely to use which method?
- B Television advertising
Which of the following is an aim of promotion?
- C Inform customers about a new product