Marketing Mix- Promotion And Place Flashcards
Promotion
The use of advertising, sales promotion, personal selling and public relations to inform customers and persuade them to buy
Advertising
Paid for communication to inform and persuade consumers using media
Direct promotion
A range of promotional activities aimed at targeted customers
Promotion mix
The combination of promotional techniques that a firm uses to sell a product
Sales promotion
Incentives such as special offers or special deal directed to customers or retailers to increase short term sales and repeat purchases by consumers
Success of promotional campaigns could be measured by these objectives
-Increased sales
-Increased consumer recall of an existing product
-Creating or reinforcing the brand image or personality of the product
-Improving the public image of the business rather than the products
Types of advertising
Informative advertising - adverts that give information about a product to potential purchasers, rather than just trying to create a brand image
Persuasive advertising - adverts trying to create a distinct image or brand identity for the product
Role of an advertising agency
-Research the market, establish consumer tastes and preferences
-Advise the most cost-effective form of advertising
-Use their own designers to design adverts for each medium
-Film or print the adverts used
-Monitor public reactions and feed this data back to the client
Advertising methods
-Print advertising
-Brodcast advertising
-Outdoor advertising
-Product placement advertising
-Guerrilla advertising
-Sponsership
-Digital advertising
Factors that depend on the advertising method used
-Cost
-The consumer profile of target audience
-The message and image to be communicated
-Other aspects of marketing mix
-Legal constraints
Sales promotion methods
-Price offers
- Loyalty reward programmes
-Money off coupons
-Point-of-sale displays
-BOGOF
-Games and competition on packaging
Direct promotion methods
-Direct mail
-Telemarketing
-Personal selling
Digital promotion
The promotion of products using digital technologies, mainly on the internet but also including mobile phones
Methods of digital promotion
-Social media marketing
-Email marketing
-Online advertising
-Smartphone marketing
-Search engine optimisation (SEO)
-Viral marketing
Benefits of digital promotion
-World wide coverage
-Relatively low cost
-Easy to track and measure results
-Social media communication builds customer loyalty
-Website convenience increase sales
Limitations of digital promotion
-Time consuming
-Skills and training
-Global competition
-Complaints and feedback
Role of packaging
-Protect and contain the product
-Give information
-Support the brand image of the product
-Make the product attractive ad help the consumer to recognise it
Role of branding
-Aiding consumer recognition
-Making the product distinctive form others
-Giving the product identity or personality
Benefits of branding
-Increases chance if brand recall
-Differentiates the product from competitors
-Makes it more price inelastic
-It increases consumer loyalty
Channel of distribution
The chain of intermediaries a product passes through from producer to final consumer
Single-intermediary channel
Producer to retailer to consumer
Advantage
-Retailers take inventory costs
-Retailers offer after sales service
-Producers focus on production
Disadvantage
-Producer loses control over marketing mix
-Retailers may sell competitors products
-Producers pass on delivery costs to retailers
Direct selling
Producer to consumer
Advantage
-Producer has control over marketing mix
-Quicker than other channels
-Direct contact with consumers offers useful market research
Disadvantage
-All inventory costs taken by producer
-May not be convenient
-No after sales service is offered by shops
Two-intermediary channel
Producer to retailer to wholesaler to consumer
Advantage
-It reduces producers inventory costs
-Wholesalers pay for the costs of transport
-Wholesalers buy in large quantities
Disadvantage
-Product becomes more expensive
-Producers lose further control over marketing mix
-Slows down the distribution chain
Benefits and Limitations of e-commerce
Advantage
-Relatively inexpensive
-Companies can reach a world wide audience
-Consumers can make purchases on websites and leave their important data
-It is convenient for those who have internet
Disadvantages
-Some countries may be harder to access internet
-Consumers may limit the willingness to buy certain goods online
-High product returns increase costs
-Cost and unreliability of postal services may reduce the cost advantage
