Promotion Flashcards
Key purposes of promotion
To build a positive relationship with the target market
To encourage customers to purchase the products from the business
Outcomes of promotion
Increase in sales/revenue Increase in customers Repeat purchases Expansion Survival Financial stability Increase profit Increase costs
Methods of promotion
Advertising Sales promotion Personal selling Direct marketing Public relation (PR)
The message
What the communication needs to say
The medium
How to get the message across
Advertising
Moving image and video Print Ambient Digital Audio
Sales promotion
Coupons Competition Money off or discounts Loyalty schemes Free samples Buy one get one free
Purpose of sales promotions
To boost sales figures
To entice people to come into the business/target market to buy the product
To attract first time customers to the business
To encourage people to try a new product
To clear old stock or goods that are close to sell buy date
Personal selling
A promotion where a representative of a business will contact potential customers directly (they will try use their interpersonal skills to persuade potential customers to buy their product)
Advantage of personal selling
Personal and direct
Demonstrates the products
Able to answer questions
Disadvantage to personal selling
More staff needed
Staff need training
Poor sales people could put customers off
Methods of personal selling
Face to face
Telephone
Email
Video or web conferencing
Advantages of advertising
Introduce new or improved product into the market Expansion of the market Increased sales/revenue/profit Fights competition Educates customers
Disadvantage to advertising
Adds to costs
Confuses buyers sometimes
Bad adverts may offend, undermines social values, loose customers
Advantages of sales promotion
Creates differentiation
Word of mouth
Reason to buy
Increase sales
Disadvantage of sales promotion
Short term (so boost of sales are short period) Quality image tarnished
Direct marketing purpose
Business can communicate directly with customers to try sell something (personal information)
A business will use direct marketing to…
Build a relationship with customers
Inform customers of new products
Methods of direct marketing
Post
Telephone
Digital
Advantages to direct marketing
Helps build relationships with customers
Tests appeal of products or service
Increase sales/revenue/profit
Tells which marketing approach reach your target market
Reach audience with a personal touch
Can send specific messages particularly groups
Disadvantages of direct marketing
Intrusive=annoying, people dislike marketing mail Environment=using leaflets or paper Low response rates=1-3% waste of money Competition Cost Legal issues
Public relations (PR)
Involves promoting the business by releasing information to the media
It involves managing the image of the enterprise and links to the brand image
Encourages positive publicity through the media
Encourages the target market to have positive views
Methods of PR
Press release
Exhibition
Sponsorships
Advantages of PR
Some methods free
A positive story will reach a wider audience
Can improve business reputation and sales
People tend to believe/pay attention to the media more
Disadvantage of PR
Hard to control as it’s presented by the news/magazine/news channel
No guarantee the story will be published
Negative headline can damage reputation/brand image
