17-Marketing #2 Flashcards
promotion
communicating with customers to let them know about a product and persuade them to buy it
methods of promotion
advertising
sales promotion
public relation
personal selling
advertising
paid non-personal communication of info about a product through various media
types of advertising
reminder informative persuasive generic comparative
reminder adverts
let customers know a well known product is still around and keeps it in consumer’s mind e.g. coca cola
informative advert
provides factual info about a product e.g. sale starts at 10am
persuasive advert
convince consumers that they must have a product e.g. lynx effect
generic
advertise product for entire industry e.g. buy irish
comparative
show how much better in comparison to competitors e.g. lidl and tesco
functions of advertising
information reminds persuades competes increased sale and profits
advertising media
different places where a business can place an ad
types of advertising media
internet tv direct mail radio newpaper
advantages of internet as advert medium
global audience
social media
advantages of radio as advert media
local people-local stations
cost effective
disadvantages of newspaper as advert medium
only seen for one day
poor quality images
disadvantages of tv as advert medium
skip ads
expensive
advantages of newspaper as advert media
re-read (lots of info)
costs less than tv
disadvantages of internet as advert media
info can be copied
ignore pop-up ads blocker software
disadvantages of radio as advert media
sound only
advantages of tv as advert media
see product working
most common media
Factors when choosing an advertising medium
media habits of target audience e.g. toys during kids programmes
nature of product e.g. washing powder needs to be seen
message e.g. computer specs very informative
cost
Advertising Standards Authority for Ireland
regulate ad. industry
ensure consumers protected from false and misleading ads
voluntary-no legal power
investigate complaints
offensive ad
Hunky Dorys
misleading ad
penelope cruz loreal
Sales promotion
incentives/short term offers that a business gives consumers to encourage them to buy more of a product and sooner
types of sales promotion
free samples money off vouchers merchandising competitions loyalty cards free gifts
Money-off vouchers
discount off product to encourage price-conscious consumers to buy e.g. tesco receipt vouchers
Free samples
free trial,encourages consumers to try product and hopefully buy in future e.g. Supervalu
Free gifts
offer free gift with purchase e.g. happy meal
Merchandising
displaying products in attractive and eye catching way
Public Relations
efforts of business to create and maintain positive image of business in minds of consumers and build a good relationship with them by obtaining positive publicity
Public Relations Officer
help to build a positive image
Functions of PR
Attract publicity when launching a new product-PR stunt with the aim of being in newspapers/media e.g. ryanair new route to rome
Target certain customers-by sponsoring events that appeal to target market e.g. meteor irish music awards
Build image that reflects well-charitable actions e.g. Ronald Mcdonald
Defend product with bad publicity-share their side e.g. Dominos
Techniques of PR
events
news conferences
public service activities
sponsorship
Event (public relations)
hold an event to attract PR e.g. exhibition
News conference (public relations)
invite news papers and media when they have a newsworthy announcement e.g. product launch or new jobs
Public Service Activities (public relations)
help local community e.g. Tesco for schools and clubs
Sponsorship (public relations)
business donates money to a team or venue in return for showing its brand name e.g. aviva stadium
Personal selling
business’s salespeople meeting with consumers face to face to give them personalised advice specific to their needs and build a relationship with them to get them to buy a product
relies on knowledge and expertise
e.g. carphone warehouse
Evaluation of promotion methods:McDonalds
Public relations:Ronald Mcdonald Children’s Charity for Children’s Hospital,Crumlin
Advertising: slogan ‘I’m Lovin It’ with Justin Timberlake song
Sales Promotion:free gift with Happy Meal
Marketing Mix-Place
deciding where the product will be available for purchase and how the product gets from manufacturer to retailer
Traditional channel of distribution
producer
wholesaler:buys from producer in huge quantities and sell on to retailer in smaller quantities
retailer
consumer
Direct channel of distribution
Producer
Consumer
e.g. Dell
Importance of distribution
Impact on sales,profit margins (more stages,more expensive) and consumer satisfaction
Factors when choosing a channel of distribution
Cost-more stages,more expensive
Nature of product-heavy,bulky,perishable goods sell direct.
Location of customers-small area,direct.Global,use many wholesalers and retailers
Ecommerce-sell directly using website
Payment-cash flow implications.Retailer may insist 30 days credit
Evaluation of Marketing Mix (Red Bull)
Product:energy drink made by Austrian entrepeneur Dietrich Mateschitz.USP-tastes like no other soft drink and benefits consumers energy and concentration.
Price:premium pricing strategy.
Promotion:events e.g. Red Bull Air Race or cliff diving
Place:intensive distribution strategy-available in variety of places.
Marketing Plan
written plan that sets out business marketing objectives and the means by which it will achieve these
essential part of overall business plan
steps in a marketing plan
investigate market
select target market
research target market
develop marketing mix
marketing plan:investigating the market
SWOT to find gap in market
e.g. coca cola researh-customers were not buying as many fizzy drinks due to sugar tax-launched coke zero
marketing plan:selecting target market
split market into segments and target one or more of these segments
e.g. people who like coca cola but are health-conscious
marketing plan:research target market
find out exactly what consumers want
e.g. field research showed 50% consumers had no idea coke zero had no sugar
marketing plan:develop marketing mix
right product,price and place
promote in appealing way
e.g.coca cola renamed to coke zero sugar
adverts on TV and free samples
Advantages of marketing plan
Roadmap
Helps control progress
Useful to investors
