The marketing strategy: Promotion Flashcards
Advertising elasticity of demand AED
- It shows the extent to which spending on advertising will affect sales
- percentage change in demand / percentage change in advertising spend
How to interpret results of AED
- Over 1 = elastic in relation to advertising spending (responsive)
- between 0 and 1 = inelastic in relation advertising spending (not responsive)
- 1 = response equals advertising spend
- 0 = no change in sales
- Bellow 0 = this would mean that as you spend more on advertising, your sales actually decrease
Promotion
The collection of techniques used to inform and persuade consumers to buy a product or service
Above the line
Promotion which uses media where there is no direct contact with the potential buyer
bellow the line promotion
Promotion where the business comes into direct contact with the potential buyer
Television promotion Pros/Cons
- reaches a mass audience, exposing more people to the product
- the visual / sound aspect are easy to remember
- very expensive in comparison to other mediums
Billboards pros & cons
- tend to be placed by roads
- high impact but limited info
- more cost affective
- less people are exposed as they are static
Radio
Radio pros
Radio cons
Magazines
Magazines pros
Magazines cons
Cinema
Cinema pros
Cinema cons
Sponsorship
Sponsorship pros
Sponsorship cons
Newspapers
Newspapers pros
Newspapers cons
Personal selling
Where there is a direct link between sales person and the customer. Includes sales assistants, door-to-door sales and telesales (phone)
Personal selling pros
- Cost affective.
- Exposure is guaranteed.
- Targeted and personal towards the business its aimed at.
- Build a better relationship with customers.
- Easier to find out info and usually sales people are knowledgable (customer point of view).
- More convenient for the customer
- Easier to judge affectiveness of it
Personal selling cons
- increased competition
- higher overall costs (travel & lodging costs)
- very time consuming
- very limited exposure
- high training cost
- high set up cost
Trade fairs
An exhibition at which businesses in a particular industry promote their products and services.
Trade fairs pros
- raise awareness
- meet in person
- helps generate brand awareness
- better relationships with customers
- targeting the market
Trade fairs cons
- High cost (travel / set up / accommodation)
- close proximity to competitors
- turnout may be low
Duh
Emails pros
- very cheap
- fast
- wide outreach
- environmentally friendly
- can get a lot of info on it
- can be very visual
- can lead onto other meathods
Email cons
- can go to junk
- easily ignored
- removes the personal aspect of the selling
- can be misinterpreted
Telesales
Selling of goods / services over the phone.
Telesales pros
- low overhead costs
- extend business reach
- work from home
- can create resentment from customers
- quality staff cost more
- not everyone answers
- misinterpretation
Product sampling
As it says on the tin
Product sampling pros
- customers can try the product
- helps build customer relationships
product sampling cons
- No guarantee of sales
- loosing money on it
- targeting right people is difficult
Leaflet distribution pros
- cheap to produce
- very visual
- target customers directly
- can mass market
Leaflet distribution cons
- high rejection rate
- not very cost affective
- not that targeted
Social media
Duh
Social media pro
- Cost effective
- customer interaction more personal
- social media presence can boost traffic to a businesses website
- target audience reached by platforms they’re e likely to use
- success is easy to measure
- advertising is constant
Social media cons
- reasources will have to be dedicated to creating / posting the content as well as responding to customer feedback
-brand reputation may be damaged from inappropriate posts, failing to reply to customers & not engaging with customers - business may become negatively affected by influencer controversy
Brand
A name, sign, symbol, design or slogan linked to a particular product or service in order to differentiate from competition
Viral marketing
Th use of social media sites to increase brand awareness, and is so called because the advert will be shared like a computer virus
Social media facts
- social media users in the uk = 45million
- social media with highest members = facebook
- two male & female groups that use facebook the most = 25-34 & 35-44
- most engaging content on facebook = videos
- % of users that follow a brand on instagram = 80%
Viral marketing
The use of social media sites to increase brand awareness, and is so-called because the advert will be shared like a computer virus.
Drip marketing
- A automated process that sends a set of messages(usually emils) to customers to move them through the sales cycle
- e.g. “new in season”, “complete your shopping” emails.
- when a consumer subscribes to a emailing list, they will receive multiple emails.
- e.g. welcome emails, communicating new stock, reminding them they have items in their baskets. Etc
