17. Marketing mix - promotion Flashcards
Define promotion
Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others.
What are the promotional objectives?
- To increase sales by raising consumer awareness of a product
- To remind consumers of an existing product and its distinctive qualities
- To create and reinforce brand image
- To correct misleading reports about the product
Define promotion mix
The combination of promotional techniques that a firm uses to sell a product
Define advertising
Paid-for communication with consumers to inform and persuade
What are the 2 types of advertising?
- Informative advertising
- Persuasive advertising - focuses more on brand identity
Define above the line promotion
Above-the-line promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes print, online media, television and cinema advertising
Define below the line promotion
Below-the-line promotions are very specific, memorable activities focused on targeted groups of consumers. e.g. sponsorship, sales promotions, public relations, personal selling, direct marketing
How to determine which media to use?
- Cost
- Size of audience
- The profile of the target audience in terms of age, income levels, interests
- The message to be communicated
- The other aspects of the marketing mix
- The law and other constraints
Define sales promotion
Incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
What are the methods of sales promotion?
- Price promotion - temporary reductions in price
- Money-off-coupons
- Customer loyalty schemes - loyalty cards/ membership cards
Define personal selling
A member of the sales staff communicates with one consumer with the aim of selling the product and establishing a long term relationship between company and consumer
Define sponsorship
Payment by a company to the organisers of an event so that the company name becomes associated with the event
Define public relations
The deliberate use of free publicity provided by newspapers, TV, and other media to communicate with and achieve understanding by the public
Define branding
The strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product. It is a product of promotion
Beneficial effects of branding
- Increase the chances of brand recall by consumers
- Clearly differentiate the product from others
- Reduce price elasticity of demand as consumers have been shown to have preferences for well known brands
- Increase consumer loyalty to brands, which is a major marketing benefit