PAPER 3- Bullet Point 3 Flashcards
Define promotion
The use of methods to communicate with existing and potential customers to buy your product
Types of promotion
- advertising- tv, radio
- personal selling- sales people, telemarketing
- publicity- speeches, PR stunts
- sales promotion- vouchers, deals, BOGOF
- sponsorship- business sponsor and Individual or event
define above the line promotion
examples
focus is on mass media promotion to reach a large audience
e.g. tv advertising, newspaper, billboard
define through the line
examples
use an integrated approach of both above and below the line methods to reach their target customer base
e.g. social media, targeted video ads on mass videos
define below the line
examples
focus on directed marketing to reach a small, targeted audience.
e.g. word of mouth direct selling sponsorship celebrity endorsement sales promotion personal selling public relations stunt product placement
define marketing
management process of identifying, understanding and meeting customer needs and wants: providing products or services to meet those and creating profitability
- through promotion and selling
Define marketing mix
combination of factors (4 p’s) to help the business take into account the customers needs when selling a product
define marketing strategy
• a plan of medium - long term actions to achieve the company’s marketing goals
describe the marketing strategy appropriate for mass markets
- heavy promotion (mainstream media)
- product should be differentiated but not niche
- lower costs as mass produced (EoS)
describe the marketing strategy appropriate for niche markets
- direct advertisement at target market segment (e.g. Ferrari advertise in sports car mag)
- develop relationship with consumer so they build brand loyalty
- focus the marketing on reinforcing the distinctive characteristics of each product
describe the marketing strategy appropriate for business to business markets
•when a businesses main customers is another business or org.
- business don’t buy with emotion they just want most reliable service for lowest price
- advertising must be informative and clear
- focus on understanding and meeting the businesses needs (most reliable but cheapest service)
describe the marketing strategy appropriate for business to consumer markets
- emotional connection built with customer by advertising emotionally
- must maintain good relations with customers (build brand loyalty)
- high need to research customers and adjust every aspect of product or service to fit their needs (as their loyalty builds is essential)
impact of Ronaldo’s actions at Euro 2020, where he snubbed Coca Cola for water instead
market value dropped by $4 billion
how much do red bull spend on sporting sponsors
161.87 million in 2021
define emotional branding
name the 3 powerful tools in emotional branding
- process of forming a relationship between a consumer and a product or brand by provoking emotions in them
- e.g. Nike using adverts with famous sportsmen to show how products can enhance happiness and self esteem
e. g. ethos (credibility), pathos (imagination), logos (logic)
benefits of emotional branding
- differentiation from compeition
- generate brand loyalty –> greater retention and consumer lifetime value
- positive brand recognition and human connection
define global marketing
the worldwide marketing strategy that aims to find a fit between between worldwide or localised focuses, in order to reach global objectives
define a global marketing strategy
applying the same marketing strategy to target all markets on a global scale
e.g. Coca Cola, Tiffany
define global localisation (glocalisation)
adapting your global marketing strategy to meet the requirements of the tastes and cultures in local geographic markets
describe the 3 different marketing approaches, in the EPG model
• ethnocentric - (domestic)
- – promotion of product of based on the beliefs of the home nation
- decision making and production, centralised in domestic
• geocentric - (mixed)
- promotion of products is focused on overall world’s point of view
- marketing focus on the getting the greatest possible benefit (where it’s marketed, or how, is flexible based on what would bring about most success)
- aim to build global brand
- –> try to manage global matters ethnocentrically and local needs polycentrically
• polycentric - (local)
- promotion of product based on beliefs of host nation where business is operating/ selling
- marketing based on local culture, religion and values of host nation are deemed important
- decisions making de-centralised, key personnel are recruited locally
pros and cons of a global marketing strategy
PROS:
• marketing and distribution economies of scale
• spread risk as may not work in one country but will in another
• conistent message, builds brand identity and power in market
CONS:
• marketing message may be translated wrong or misinterpreted
• nature of market may not suit this strategy (e.g. food tastes are not same all over world)
• product may not align with legal requirements
pros and cons of a glocalisation marketing strategy
PROS:
• tailor product to customer’s needs, optimise market share
• cultural respect from customers
CONS:
• more layers of communication
• may be hard to enter new markets and overcome strong local brand loyalty
• R&D and market research is spenny
pros and cons of ethnocentric approach to marketing
pros:
• create more highly perceived brand image
• standardisation creates significant EoS
• low market research cost
cons
• may lose out on sales, as not market orientated
• marketing may not be understood or be misinterpeted
pros and cons of geocentric appeal approach to marketing
pros
• able to be agile in decision making
• better appeal to locals or nations behind athletes
cons
• may not be clear what the best strategy for different markets is best (ethnocentric/ polycentric)
