Promoting and Selling Flashcards
The nature of product promotion?
The role of promotion is to inform, persuade and remind consumers about a business’s products with the aim of:
Attracting new customers by awareness of a particular product
Increasing brand loyalty be reinforcing the image of the product
Encouraging existing customers to purchase more of the produc
What are some procuring promotion strategies?
Personal selling
Advertising
Publicity
Sales promotion
Sponsorship and product endorsement
Relationship marketing
Types of advertising?
Mass marketing - television, radio, newspapers and magazines
Direct marketing catalogues - catalogues mailed to individual customers
Telemarketing - the use of telephone to personally contact a customer
E-marketing - the use of the internet to deliver advertising messages
What is relationship marketing
The development of long-term relationship with individual customers
The ultimate aim is to create customer loyalty by meeting the needs of customers on an individual basis, thereby keeping customers coming back.
what is Sponsorship and product endorsement
Sponsorship promoting - promoting a product by associating it with a specific event
Product endorsement - when celebrities express their appreciation and support for a product
what is publicity
Publicity is any free news story about a business’s product. It differs from advertising in that it is free and its timing is not controlled by the business
The main aims of publicity are to:
Enhance the image of a product
Raise awareness of a product
This could include magazine, articles, reviews, word of mouth
Examples of sales promotions are?
- Coupons. These offer discounts on a particular items by a stated amount at the time of purchase
- Loyalty reward programs. These offer “rewards” to those “loyal” customers who purchase specified amounts or make repeat purchase
- Premiums. A premium is a gift that a business offers the customer in return for using the product
- Refunds. Part of the purchase price is given back to those customers who send in a voucher with a specific proof of purchase.
- Samples. A sample is a free item or container of a product.
What is he role of gender in product promotion
There are different ways companies use gender in promotions
First is the use of stereotypical images of male and female roles.
For example, in most advertisements it tends to be the male who uses the power tools, or who watches sport with his mates. Females, on the other hand, are portrayed preparing meals, cleaning the house or caring for the children.
The second major criticism refers to the overuse of sexual themes and connotations to sell products
Some advertisers target certain groups and appeal to personal desires such as physical and sexual attractiveness.
Unrealistic images are portrayed as attainable
Advertisers use such zeal to suggest to consumers that the product will increase the attractiveness of charm of the user.
What is market segementation
When the total market is subdivided into groups of people who share one or more characteristics.
The main features used to segment the total market are:
Age
Gender
Income level
Educational background
Geographical location
Lifestyle
Family structure
The ultimate aim of market segmentation is to increase sales and profits by better understanding and responding to the desires of the target customers.
A business that is marketing motor vehicles, for example, would not direct its marketing efforts towards every person in the total vehicle market. Some people might only want a sports car; others might want a four-wheel drive. The business would thus direct its efforts towards a particular segment of the total market for motor vehicles.
What does to term “target market” mean?
Target market refers to the group of customers to which a business intends to sell its product. Once the target market has been identified, the business concentrates its promotion efforts on that group.
For example, an exclusive women’s fashion boutique in central Sydney would normally aim its promotion strategies at female, 25 -50 year-old and city-based professionals with a high income.
Sometimes, a business may be able to identify both a primary target market and a secondary target market
A business’s primary target market will generate most of its revenue. These are the customers who are loyal to a particular business and make repeat purchases.
The secondary target market provides an alternative in case there is a loss of customers from the primary market.
What are “niche markets”
Some businesses target a very small segment of the total market. This is known as niche marketing.
In a sense, it is a segment within a segment, or a ‘micro-market’
For example, look around any newsagent and you will see row upon row of magazines, each appealing to a specific niche market - male, female, young, old, urban, rural, outdoor lifestyle, indoor lifestyle and so on.
What is misleading advertisement
Misleading advertising claiming that a product has environmentally friendly qualities is not only a breach of ethics but may actually be illegal. For example, labelling which states a product has ‘50 percent more recycled material than before’ is misleading if the recycled content has increased only from 2 percent to 3 percent.
Examples of misleading advertising
Exaggerated claims: These cannot be proved. For example, a claim that a certain shampoo is superior to any other on the market cannot be confirmed by consumers.
Vague statements: This involved words so ambiguous that the consumer will assume the advertiser’s intended message. For example, helps is a common vague word, as in ‘helps fight against’ or ‘helps restore’. Vague statements allow the marketer to deny any intention to mislead or deceive.
Before and after advertisements: consumers may be misled when ‘before’ images are worsened and ‘ after’ images are enhanced.
Special offers: It is misleading to imply that a special offer is available for a limited period when, in fact, the offer is continuously available.
Ethical issues?
Truth in advertising
Children’s advertising
Invasion of privacy
Materialism
Product placement
What is truth in advertising?
Often advertisements use vague terms or terms that could be intereprested in a variety of ways
For example, what precisely does the word “special” mean when it is displayed above a product for sale? Most consumers would take this to mean the item is for sale at a cheaper than normal price: however, this may not be the case. The business may interpret the word “special” to mean that the product has a distinct quality, that it is different from what is ordinary or usual.
If the business uses this word attempting to knowingly mislead customers, then this would not only be unethical, it would also be illegal, if the business wants to advertise the fact that the product is available at a bargain price, then the words “on special” would have a clearer meaning.
