Strategy: elements of the promotional mix - advertising, personal selling and relationship marketing, sales promotion, publicity and public relations Flashcards
what is promotion
Promotion describes the methods used by a business to inform, persuade and remind a target market about its products
Promotion attempts to:
➢ attract new customers by heightening awareness of a product
➢ increase brand loyalty by reinforcing the image of the problem
➢ encourage existing customers to re purchase the product
➢ provide information so customers can make informed decisions
CASE STUDY
IKEA has an emphasis on self-service and designs the ‘inspiration points’ in their stores to meet various customer segments and therefore reduce reliance on personal selling with staff involvement. However, the sale of KITCHENS, WARDROBE SOLUTIONS and ENTERTAINMENT SOLUTIONS, requires much greater levels of customisation and therefore personal selling. E.g., the average kitchen includes around 60 items, which is around 10 000 individual pieces. This requires the ‘full-service’ of around 5-9 full-time staff (in Tempe store) who have a greater level of expertise and a minimum of 6 months training and mentoring to fulfil this role.
What is publicity and public relations
Publicity is any free news story about a business’s products. It differs from advertising in that it is free and the timing is not controlled by the business. The main aims of publicity are to:
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
Political views, underpayment of workers, mistreatment of workers- what they have done to rectify is public knowledge and then donate lot’s money to charities
Public Relations (PR) are those activities aimed at creating and maintaining favourable relations between a business and its customers.
PR exposes a business or idea to an audience by using often-unpaid third parties as outlets. This can be done by working with the media, by making speeches on special occasions or by some attention-seeking gesture such as a donation or a give-away sale that is reported by others.
celebrities use and engage with public relations,
There are four main ways in which public relations activities can assist a business in achieving its objective of increased sales:
Promoting a positive image: reinforcing a good reputation
Effective communication of messages
Issues monitoring
Crisis managing
The communication process
● The Communication process – Opinion Leaders, Word of Mouth
The promotional strategies of a business should be effective in communicating to the product’s target group of customers. When developing a promotional campaign, a business should use market research. This will allow the business to develop strategies that will attract the interest of the product’s intended market.
Often customers are willing to purchase a product if the business’s message is communicated via
Opinion leaders
Businesses recognise that certain individuals in the community are highly respected because of their profile in the community, their expert knowledge or their personality.
Opinion leaders are used to sell a product on the basis of their influence.
The benefit of using an opinion leader is that consumers will create a link between the leader’s image and reputation and the product.
Word of mouth
Word-of-mouth is a form of publicity over which many businesses have little or no direct influence.
It involves consumers relating to others their reaction to the use of a product, including the degree to which they were satisfied with it. This can be positive or negative.
It may influence a consumer to either try the product or avoid it, depending on the information the consumer received.
Messina
Collaborations with High Profile Businesses:
Moreover Messina doesn’t have any official ties with brands, but it gets a lot of approaches from brands keen to tap into its community. Declan Lee (co owner): “We do a lot of collaborations with many brands but nothing that’s contractual. We love it. We don’t spend money on advertising or marketing as such. For me, development of our brand is about partnering with like-minded brands on interesting projects.”
Recent collaborations include Bill Granger, Williams Sonoma, Oregano Bakery, Bugaboo, Pottery Barn and Virgin Mobile AU. Messina’s other co-founder and head chef for Carpiagiani Nick Palumbo has also made several guest appearances on MasterChef Australia, which has helped build a national presence for the brand. Messina skips paid ads for two scoops of social - AdNews
- Marketing Strategies
According to co-owner Nick Polamo Gelato Messina do not use a wide variety of mediums such as TV, Billboards, Magazines, and online banners for reach and frequency for its product. Messina solely relies on local (word of mouth) and social media (Facebook, Twitter and Instagram) and online partners (web pages) for advertising.
Personal selling and relationship marketing
Personal selling 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.
Although personal selling is an expensive promotional method, businesses are willing to spend the money on it because it offers three unique advantages.
They are:
- Individualised service to meet consumers needs
- Repeat shoppers
- The consultant can provide after sales services
Customers want more individualised treatment. In response, businesses are looking for ways to develop long-term, cost-effective and strong relationships with individual customers, a process known as:
Relationship marketing aims to create customer loyalty by meeting the needs of customers on an individual basis thereby creating reasons to keep customers coming back.
Ikea family member loyalty program
Case study
Ikea
IKEA has an emphasis on self-service and designs the ‘inspiration points’ in their stores to meet various customer segments and therefore reduce reliance on personal selling with staff involvement. However, the sale of KITCHENS, WARDROBE SOLUTIONS and ENTERTAINMENT SOLUTIONS, requires much greater levels of customisation and therefore personal selling. E.g., the average kitchen includes around 60 items, which is around 10 000 individual pieces. This requires the ‘full-service’ of around 5-9 full-time staff (in Tempe store) who have a greater level of expertise and a minimum of 6 months training and mentoring to fulfil this role.
Advertising
Advertising is a paid, non-personal message communicated through a mass medium. A successful advertising campaign can result in increased sales and profit for a business.
The purpose of advertising is to inform, persuade and remind.
The six main advertising media includes:
● mass marketing — television, radio, newspapers and magazines
● direct marketing catalogues — catalogues mailed to individual households
● telemarketing — the use of the telephone to personally contact a customer
● e-marketing — the use of the internet to deliver advertising messages
● social media advertising — online advertising using social media platforms such
as Facebook and Twitter
● billboards — large signs placed at strategic locations.
The main advantage of advertising is that it provides businesses with the flexibility to reach an extremely large audience or to focus on a small, distinct target market segment.
