3.3.4 Promotion Flashcards
What is promotion?
marketing activities used to communicate with customers and potential customers to inform and persuade them to buy a business’s products.
What are the aims of promotion?
- Inform customers about a new product
- Persuade customers to buy the product
- Create a brand image
- Increase sales and market share
What are some different types of promotion?
- advertising
- sales promotion
- below-the-line promotion
- personal selling
- direct mail
- sponsorship
What is advertising?
Paid-for communication with consumers which uses printed and visual media like television, radio, newspapers, magazines, billboards, flyers, cinema etc. This can be informative (create product awareness) or persuasive (persuade consumers to buy the product).
What is the process of advertising?
- set objectives
- decide the advertising budget
- create an advertising campaign
- decide a media to use
- evaluate the effectiveness of the campaign
What is sales promotion?
using techniques such as ‘buy one get one free’, occasional price reductions, free after-sales services, gifts, competitions, point-of–sale displays (a special display stand for a product in a shop), free samples etc. to encourage sales.
What is below-the-line promotion?
promotion that is not paid for communication but uses incentives to encourage consumers to buy. Incentives include money-off coupons or vouchers, loyalty reward schemes, competitions and games with cash or other prizes.
what is personal selling?
sales staff communicate directly with consumer to achieve a sale and form a long-term relationship between the firm and consumer.
what is direct mail?
also known as mailshots, printed materials like flyers, newsletters and brochures which are sent directly to the addresses of customers.
what is direct mail?
also known as mailshots, printed materials like flyers, newsletters and brochures which are sent directly to the addresses of customers.
What are sponsorships?
payment by a business to have its name or products associated with a particular event. For example Emirates is Spanish football club Real Madrid’s jersey sponsor- Emirates pays the club to be its sponsor and gains a high customer awareness and brand image in return.
What affects the promotional decisions?
- stage of the product on the PLC
- the nature of the product
- the nature of the target market
- cost-effectiveness
How does the stage of the product on the PLC affect the promotional decisions?
introduction - high advertising activity to boost customer awareness
growth - promotional activity high to continue persuading customers
maturity - promotional activities are aimed at reminding the customers that the products are still available
decline - the product is only available in profitable outlets
How does the nature of the product affect the promotional decisions?
If it’s a consumer good, a firm could use persuasive advertising and use billboards and TV commercials. Producer goods would have bulk-buy-discounts to encourage more sales. The kind of product it is can affect the type of advertising, the media of advertising and the method of sales promotion.
How does the nature of the target market affect the promotional decisions?
a local market would only need small amounts of advertising while national markets will need TV and billboard advertising. If the product is sold to a mass market, extensive advertising would be needed. But niche market products such as water skis would only need advertising in special sports and lifestyle magazines.
