promotion - term 2 Flashcards
what is promotion
INVOLVES:
advertising
personal selling
relationship marketing,
publicity and public relations
sales promotion
word of mouth
what is advertising
Is a paid, non-personal message communicated through a mass medium
Successful advertising campaign can result in increased sales and profit for a business
what are the most common forms of promotion used by businesses
Electronic forms - TV, social media, radio, internet
Paper forms - newspapers, magazines
Billboards - large signs placed at strategic locations
Direct marketing catalogues - catalogues mailed to individual households
advantages of promotion
Reach wide range of customers
Appeal to large target market
Able to adapt for different regions or markets (economies of scale)
Most memorable
disadvantages of promotion
Expensive
Lengthy process to create and implement
Not very flexible/adaptive
Not individualised
what is personal selling
process of establishing a direct contact between a business and its consumers
Involves the activities of a sales consultant directed to a customer in an attempt to make a sale
It involves the human aspect of promotion and is based on a high level of service and expertise
salesperson sells the benefits of a product to the customer
Generally for expensive, complex or highly individualised products
advantages of personal selling
The message can be modified to suit the individual customer’s circumstances
individualised assistance to a customer can create a long-term relationship resulting in repeat sales.
sales consultant can provide after-sales customer service in relation to product features, installation, warranties and servicing
disadvantages of personal selling
Expensive (staff)
May take time to train employees
Dependant on the personality, skills, qualifications of sales person
what is relationship marketing
Built on the concept of personal selling – individualised treatment of consumers
The process of developing long-term, cost-effective and strong relationships with individual customers
Aim is to create customer loyalty by meeting the needs of customers on an individual basis, thereby creating reasons to keep customers coming back
leads to increased sales
what are the advantages of relationship marketing
Can meet the needs of consumers more effectively
Best way to encourage repeated sales
Can collect information from consumers/target market easily
disadvantages of relationship marketing
Can be expensive (giving away points/rewards/gifts etc.)
Ethical - invasion of privacy
what is publicity and public relations
what is it
main aims
Publicity is any free news story about a business’s products
MAIN AIMS OF PUBLICITY:
enhance the image of the product
raise awareness of a product
highlight the business’s favourable features
help reduce any negative image that may have been created
Involves working with the media, by making speeches on special occasions or donation or a give-away sales that is reported by others
advantages of publicity
When controlled, can add to businesses positive image
Can be seen a proactive measure to minimise harm (public relations and product recall)
Manage crisis by protecting the business against unfavourable rumours
Enhance the image of the product
Raise awareness of a product
Highlight the business’s favourable features
disadvantages of publicity
Difficult to control publicity (can be good or bad)
Can be expensive/time consuming for business
what is sales promotion
Is the use of activities or materials as direct inducements to customers
Aims to entice new customers, encourage trial purchase of a new product, increase sales to existing customers and repeat purchases
