Promotion Flashcards
Methods of promotion
Advertising - paying to communicate with customers. Magazines, newspapers, television, internet, billboards
PR - series of marketing activities trying to ensure free and favorable coverage of a business and products on media. Aim is to present business in a positive way - increase sales
Sales promotions - can offer different short term incentives to persuade. Point of sale display, 2 for 1, free gifts with purchases, product samples, coupons, competitions
Sponsorship - business sponsor range of events to remind customer of business and products
Social media - bring new products, special offers, matters of interest to customers attention
Benefits of advertising
Can reach a large number of potential customers
Can be targeted at particular groups of customers
Disadvantages of advertising
Can be expensive - esp if using TV, social media
Consumers face a lot of advertising - can be difficult to create an effective advert
Advantages of PR
can be cost effective means of production as often no fees to be paid
Can reach a large number of potential customers
Disadvantages of PR
Risky as the PR event may not receive coverage in media
Business has little to no control over the coverage they will receive
Benefits of Sales Promotion
Can be very effective at boosting sales.
May help to increase a businesses profile and sales of its other products
Drawbacks of sales promotion
Can be costly - free gifts may be purchased
May reduce revenue from sales if price reduction have little effect on sales
Benefits of sponsorship
Can quickly raise the profile of a business with its target audience
Can be targeted to reach the business actual and potential customers
Drawbacks of sponsorships
May be costly - esp if a number of business want to sponsor the event
May no help improve the image of the business - sponsoring unsuccessful team
Benefits of social media
Can be relatively cheap form
Can be targeted precisely at target groups or enable new groups of customers to be reached
Drawbacks of social media
Some smaller businesses may not have employees with the skills to use SM
If business doesn’t respond promptly to customers issues they may suffer bad publicity
Factors influencing the promotional mix
Finance available - TV adverts can be expensive, some forms of PR can be free. More money - wider range of methods
Actions of competitors - in some markets business spend a lot on promotion. All business pressured into doing the same.
Nature of product - promotion should reflect the image business wants to create for products
Nature of market - target large market - large number of sales and spend a lot on promotion. Competitive market - large sums on promotion to protect market share. Small business - no finance - opt to use local advertising.
Target market - promotion communicates with people who r most likely to be customers.
Reasons for promotion
To inform/remind customers about a product
To create or increase sales
To create or change the image of the product
To persuade customers to buy the product
