2.2.3 Promotion Flashcards
What do business’s use promotion to do?
- create customer awareness of, interest in and desire for their products
- persuade consumers to buy a product or service
- remind consumers about the benefits of a product or service
What will effective promotion allow?
will allow a business to build a strong brand image and help boost sales at various times
Importance of strong branding:
- customers may instantly recognise the brand and what it represents
- customers may associate positive characteristics with the brand
- a well-known brand may become a first-choice for customers, increasing brand loyalty
- customers may trust a strong brand
- a strong brand may allow a business to charge a premium for their products and services
Brand:
- represents the characteristics and personality of a business
- not just a logo or slogan
Advertising:
- An advert is a paid-for message designed to influence consumer purchase
- Adverts do this using emotive language, which is designed to make people feel a certain emotion, including excitement, sadness or fear
Examples of advertising:
- TV
- radio
- billboards, posters
- websites
- point-of-sales displays
- print e.g. newspapers, leaflets, magazines and brochures
Benefits of advertising:
can have a big impact and grab customers’ attention if the advert is in the right place and uses the right medium
Drawbacks of advertising:
can be expensive + also difficult to work out the impact of advertising on sales
Sponsorship:
- provide financial support to an event, person or organisation, either through free products or services, or through a financial payment
- In return, the business, product or service is prominently displayed
Examples of sponsorship:
- at sporting evens
- conferences
- exhibitions
- good causes e.g. environmental causes, educational causes, charity events etc.
Benefits of sponsorship:
- can provide a business with a lot of exposure and can associate it with a good cause
Drawbacks of sponsorship:
communicates very little information about features and benefits of products and services
Product trials:
designed to encourage consumers to try a product either for free or at a reduced cost
Examples of product trials:
- free miniatures/samples
- free trials
- trial offers
Benefits of product trials:
can encourage customers to use a new products or service that they might not have tried otherwise
Drawbacks of product trials:
can be very expensive to give away free products
Special offers:
offer incentives to persuade consumers to make a purchase
Examples of special offers:
- BOGOF offers
- free prize draws
- discounts
- competitions
- free gifts
- money-off vouchers
- loyalty cards
Benefits of special offers:
can boost short-term sales and clear stock levels
Drawbacks of special offers:
not sustainable in the long-term as selling at a discount will reduce profits
Branding:
- businesses often want to establish a positive brand image
- when a new product is launched under an established brand name, consumers may be more likely to purchase it because of their knowledge of the existing brand
Examples of branding:
using a recognisable logo on all promotional materials so that customers remember it and associate it with the product/business
Benefits of branding:
can encourage customers to connects with the brand, trust it and become loyal to it
Drawbacks of branding:
takes a long time to develop a strong brand and brand image can be damaged quickly by bad publicity
What will building a promotional strategy depend on?
- the size of the business
- how much the business has to spend on promotion
- the market segments that it is aiming to reach
How is targeted advertising online used in promotion?
- Website owners can track the online activity of consumers who visit their site by using cookies
- They can use cookies to build a profile of consumers’ interests
- They can then serve adverts for products suited to the individual consumer or market segment
How is viral advertising via social media used in promotion?
- cheap form of communication that provides opportunities for viral advertising
- Viral marketing involves producing marketing materials that can be shared, usually on social media
- It requires content, such as a video, that appeals to users to encourage them to share it
- This can be used to support a campaign, as well as to market a product or service
How are e-newsletters used in promotion?
- e-newsletters can be tailored to the needs and interests of customers
- a good way for a business to keep in touch with consumers who have previously purchased, or shown an interest in, products that the business sells
How are apps used in promotion?
- business’ apps for consumers and the opportunity to advertise through 3rd party apps
- enable businesses to personalise promotional materials and offers for specific consumers + can enhance customer convenience
- businesses can advertise within an app, and apps also enable innovative interaction with customers
