chapter 17- promotion Flashcards
promotion
letting the public know that a product is on sale
get them interested in the product and motivated to buy it
communicating and persuading consumers to buy product
advertising
communication of information to a target market so they know the business has something for sale
convince them to purchase it
use different media (TV, radio, social media)
AIDA
Awareness
Interest
Desire
Action
functions of advertising
1 give information 2 remind about a product 3 persuade to buy 4 offset competitors’ advertising 5 increase sales and profits
list types of advertising
reminder informative persuasive generic comparative
reminder advertising
maturity
decline
Paddy power is fun
informative advertising
factual
recall a product
concert
eg salmonella
persuasive advertising
consumers need the product shows benefits
eg actimel
generic advertising
entire industry
eg buy Irish
comparative advertising
compare against competitors
eg Lidl vs Tesco
advertising media internet
global audience cost effective social media websites pictures, sound, and movement can be copied customers ignore internet ads
advertising media TV
can see products working most seen medium in Ireland targets a specific market pictures, sound, and movement expensive skip ads
advertising media radio
cheaper than TV
reach local people
targets specific audience
only have sound
advertising media newspapers
detailed can be reread costs less than TVs target a specific audience reach local people quality not as good as TV seen 1 day only
advertising media billboards
cost less than TV ad displayed for a long time reach a local target market only 1 add per billboard no detailed info hard to target market
advertising media direct mail
personalise ad reach target market only 1 ad expensive consumers ignore mail
selecting an advertising media
list
habits target market
nature of product
the message
the cost
selecting an advertising media explain fully
1 habits target market
media used by your target audience- toys advertised when kids watch TV
2 nature of product
if it must be seen working, TV may have to be used
eg washing powder
3 the message
how much detailed info is required- written advert
4 the cost
promotion budget
local radio is cheaper than national
ASAI
advertising standard authority ireland regukares advertising in Ireland protects consumers from false, misleading and offensive advertisements public can complain to the ASAI ASAI can ask an ad to be removed
consumer protection act 2007
makes it an offence for an advert to make false claims about goods CCOV enforces the act prohibition notices compliance notices on the spot penalties consumer protection list
sales promotion
the use of short-term incentives/“gimmicks” to attract customers. It adds to the attractiveness of the product
aims of sales promotion
useful for stimulating sales
aims to attract new customers for the product and rewarding loyal consumers
increasing buying frequency among occasional consumers
factors to consider when deciding the selling price
1 cost per unit of the product 2 competitor prices 3 consumer expectations 4 legal regulations 5 market demand
customer loyalty programmes
offering discounts
cash back points
reward the loyal
eg 1 free coffee for every 10
special offers
free gift
may encourage the occasional customer to avail of the service more often
eg fulfill protein bars- 2 for €4
competitions on social media
could encourage customers to share posts
this could be a reward for the loyal customers
eg Bodyfirst Nutrition (like and share competitions)
merchandising
displaying products in an attractive way
could encourage impulse buying eg chewing gum at checkouts
eg fulfill bars at tills
public relations PR
refers to all activities related to creating a good public image for the product it aims to achieve favourable publicity build corporate image long term objective PRO public relations office
functions of PR
1 attract publicity when launching new products eg Michael o Leary as Pope to promote flights to Rome
2 targets certain customers- targets events for target market
3 build a positive image eg Ronald Mcdonald house
4 defend products that have bad publicity
Morgan Spurlock- 30 days gained weight- statement saying fruit salads are available too
types of PR
sponsorship
businesses pay money so that their product name will be displayed
builds relationship with local community
creates awareness and brand loyalty
eg Kellogs GAA cúl camps
types of pr
social media
FB/Twitter/ instagram
respond to negative comments
release official statements
types of pr
charity partnership
good publicity
tesco blue tokens
types of pr
celebrity endorsement
celebrities are paid to endorse/be associated with product
hope to drive up sales and have a positive impact on profits
eg michael jordan and nike
personal selling
sales people meeting customers face to face
build a relationship
high tech items
benefits of personal selling
persuasion- buy add on
information- educate consumers, better choice, repeat business, loyal
sales conversion- puts pressure on customer
challenges of personal selling
staff training not be too aggressive
staff costs % of sales as a bonus
ruining the shop experience annoy customers
mcdonalds promotional method
PR
sponsor children’s charities
target market is children, good public image
mcdonald’s promotional methods
advertising
‘I’m lovin it’ Justin Timberlake song
association with stars helps control with target market
mcdonald’s promotional methods
sales promotions
free gifts- toys
works as kids want free toy from the latest movie etc
promotion impact of ICT
advertising
ICT has led to online advertising, much bigger impact on younger market segments. Younger consumers spend more time online- more money is spent advertising there
promotion impact of ICT
public relations
ICT has allowed companies to use social media (Twitter, IG, etc) to interact with consumers. Businesses enhance their image through endorsements from social media users with lots of followers
promotion impact of ICT
sales promotions
ICT has allowed for a much wider range of ‘share and win’ competitions on social media to incentives sales. Businesses also ask consumers to sign up for newsletters in exchange for discount codes. Businesses use pop-ups on browsers and websites
promotion impact of ICT
personal selling
ICT has allowed salespeople to use smartphones to illustrate products in action. Live chat is used for direct online interaction
