Marketing Mix - Promotion Flashcards
What is promotion?
Promotion lets people know that a product exists and tries to encourage them to buy it. Advertising is part of promotion but it isn’t the only part of it.
What are the features of promotion above the line?
- Mass media promotions to a large range of people, for example, through newspapers, posters, TV and cinema adverts, radio advertising, billboards and other forms of mass media advertising
- Technology is playing a major role in above the line promotions through, for example, internet websites, social media, e-mail and mobile applications
- Product Placement used by companies to subtly promote their products through appearances in film, television, or other media
What are the advantages of above the line promotion? (3)
- Promotes a good image and name for the organisation
- People often want to buy products to be associated with the celebrity
- If the celebrity is successful, it can increase sales levels
What are the disadvantages of above the line promotion? (3)
- Celebrities are expensive to pay
- The celebrity has to be carefully chosen to match the image the product needs to have
- Negative publicity about the celebrity can impact negatively on sales of the product
What is below the line promotion?
Promotions to focused groups of people, for example, sales promotions, public relations and direct selling.
What do Public Relations (PR) activities include?
- Press Release: A press release is usually a written statement o the press that communicates activities within the organisation.
- Sponsorship: Organisations may sponsor events where there is likely to be a lot of public attention. The company name is displayed on material that the sport or charity is distributing
- Charity donations: Organisations may donate sums of money to charities in the hope of not only helping a good cause, but also being seen as socially responsible. This will raise awareness of the organisation.
What is the feature of below the pipeline: Special offers?
Special offers or sales promotions might include discounts on buying a product, free samples or a free gift when you purchase something. They are usually on offer for a limited period of time and try to encourage people to buy the product. Loyalty cards are examples of sales promotions
What is the feature of below the pipeline: Public Relations?
Public relations (PR) attempts to improve the relationship and communication between the general public and an organisation. Effective PR will give the organisation a good image which in turn can increase sales.
What is the feature of below the pipeline: Direst selling?
Direct Selling activities include catalogues or newsletters you may receive by post or email
What is promotion into the pipeline?
Manufacturers encourage retailers to stock their products, for example, point of sale materials, dealer leaders, sale or return, competitions, staff training and credit facilities
What is promotion out of the pipeline?
Retailers encourage customers to buy from them, for example, free samples, loyalty schemes, credit facilities, demonstrations, competitions, offers and vouchers
What is the into the pipeline promotion: Point of Sale Materials?
Often free posters, display standards and other materials are given to retailers to display products to customers.
What is the into the pipeline promotion: Sales or Return?
The manufacturer gives the retailer the opportunity to return products to reduce the risk of being stuck with stock that has not sold.
What is the into the pipeline promotion: Staff Training
The manufacturer may provide training and demonstrations to the retailer’s staff so that they feel confident in promoting the manufacturer’s product.
What is the into of the pipeline promotion: Dealer (retailer) Loaders
These are offers given to encourage the retailer to stock the manufacturer’s products (eg buy so many and get one free).
