Chapter 15 Marketing Mix: promotion Flashcards
What is promotion
marketing activities aim to raise customer awareness of a product or brand generating sales and helping to
create brand loyalty.
What are the 2 general types of promotion
explain both
Advertisements - above the line - advertising to the masses
Sales promotions - below the line - advertise to target audience and used for short periods of time
What are the aims of promotion
Increase sales Improve company image Create a brand image Intro new products to market Compete with comp's products inform people about particular issues, often used by government
What is advertising
2 types
explain both
paid for communication with potential customers about a product to encourage them to buy it.
Informative - is where the emphasis of advertising or sales promotion is to give full information about the
product.
Persuasive - advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it.
What is the process of advertising
explain each
Set objectives - decide the purpose of advertising
Decide on advertising budget - How much money they want to spend on advertising
Create an ad campaign - What sort of ad campaign to run
Select the media to use - What is the best type of adveritsing media to use
Evaluate campaign effectiveness - if the advertising campaign met it’s objective
What is the target audience
people who are potential buyers of a product or service
Adv and disadv of TV
Adv:
Reach a very large audience
Product can be shown in a favourable way
Can reach a target audience at times when potential buyers are going to watch tv
Disadv:
Very expensive
May not be able to target young audience who don’t watch TV anym
Adv and disadv of Radio
Adv:
cheaper than TV
Can reach a large audience
Often uses a memorable song or tune so that the advert will be remembered
Disadv:
Cannot put across a visual message
Quite expensive relative to other methods of advertising
The advert needs to be remembered, the customer
cannot look back at a hard copy of the advert
Not as wide an audience as television
Adv and disadv of newspaper
Adv:
Can reach a large target audience
Adverts are permanent
Lots of info can be put on the ad
Disadv:
Only black and white so isnt eye-catching
Youth doesn’t read newspaper
Adv and Disadv of magazines
Adv:
Magazines are read by a specific type of person so can reach target audience effectively
Coloured ads - more attractive
Disadv:
Only published once a month/week
Very exp
Adv and disadv of billboards
Adv:
Permanent
Cheap
Potentially seen by everyone who passes
Disadv:
Can be easily missed
No detailed info can be included in the ad
Adv and Disadv of CD, DVD and Blu ray
Adv:
low cost
Can be very effective if the target audience goes to see particular films
Can give visual image of the product and show the product in a positive way
Disadv:
Can be outdated
Few people go and buy CDs or DVDs
Adv and Disadv of leaflets
Adv:
Cheap
Permanent
Given to a wide range of people
Disadv:
May not be read and could be junked
Can annoy customers
Adv and Disadv of the Internet
Adv:
Large amount of people can see
Orders can be made instantly
Direct mail via email is cheap
Disadv:
• Internet searches may not highlight the website and it
could be missed
• In some countries internet access is limited
• There is a lot of competition from other websites
• Security issues may discourage customers from buying online
What are sales promotions
incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales
Types of sales promotoins
Buy 1 get one free Free gifts After sales services Free samples Price reductions Money-off coupons Product placement - in TVs and movies n all
Adv and disadv of sales promotions
» It can promote sales at times in the year when sales are traditionally low (off-season purchases).
» It encourages new customers to try an existing product.
» It encourages consumers to try a new product.
» It encourages existing customers to buy a product more often or in greater quantities, increasing consumer loyalty.
» It encourages customers to buy your product instead of a competing brand.
What is the marketing budget
a financial plan for the marketing of a product or product range for a specified period of time.
Factors that affect the type of promotion that is used
Stage of product life cycle. New product - informative. Existing/well known product - persuasive
Nature of product - a producer good, a consumer good, technical etc
The nature of the target market
The cultural issues involved in international marketing
Why is the need for cost effectiveness in spending the marketing budget very important?
A business will need to compare the cost of advertising with the increase in expected sales.
