Unit 4 - Marketing (Marketing mix: Promotion) Flashcards
What is promotion?
Promotion is any form of communication between a business and its customers.
Why promote?
- Inform and remind current and potential customers.
- Explain the potential benefits of a product.
- Persuade customers to buy the product.
- Show why a product is different or better than competitors.
- Present, change or improve an image of a business.
Promotional strategies for different segments
- Advertising
- Sponsorship
- Product trials
- Special offers
- Branding
What is advertising?
Advertising is any method of promotion that is paid for.
Types of advertising media
- Websites
- Printed media
- Billboards
- Television
- Radio
Benefits of advertising
- Wide coverage.
- Control of message.
- Repetition.
- Building brand awareness and loyalty.
- Often visual.
Drawbacks of advertising
- Expensive.
- Impersonal.
- One way communication.
- Limited ability to close a sale.
Television
Advantages:
- Important for large businesses wanting to reach a wide audience.
- Targeted advertising possible - choose specific programme to advertise in or time of day.
- Visual
Disadvantages:
- Expensive.
- Most people don’t watch the adverts.
- Not useful for small, local businesses
Print media - Leaflets
- Target a specific market in a local area, therefore cost effective.
- Cheap to produce.
- Visual.
- Can contain detailed information.
- Lasts for more than 30 seconds.
- Often ignored by consumers - “junk mail”.
- Environmental impact of production.
Print media - Newspapers and Magazines
- Provide an opportunity to target a specific market eg. specialist magazines or specific political/income groups.
- Visual
- Often hidden amongst other adverts.
- Most people don’t look at the adverts.
- Less people reading magazines.
Billboards
- Outdoor advertising on billboards, on posters at bus stops/train stations can be very effective in gaining the attention of a captive audience in a particular area.
- Cost effective way to advertise.
- Visual.
- Most people don’t look at the adverts.
Radio
- Cheaper than TV advertising.
- Radio advertising more common on local radio.
- Often used by smaller business wanting to target a local area.
- Unable to see images of the good or service, which may be an important factor for some products/businesses.
Websites
- They are an excellent way to keep customers, new and old, informed about product ranges, locations of stores and prices etc.
- Dynamic and easy to change.
- Can lead immediately to a sale eg. click and buy.
- They must be regularly updated to provide correct and accurate information.
- May not get many visits if low down on search pages.
Sales promotion and special offers
Sales promotion are short term incentives to encourage customers to buy the product to increase sales. Some promotions are aimed at consumers; others at intermediaries or sales force.
Benefits and drawbacks of sales promotion
- A quick boost to sales.
- Encourages customers to trial a product or switch brands.
- Effect may only be short-term.
- Customers may come to expect or anticipate further promotions.
- Damage brand images.
Sponsorship
Sponsorship is when a business all donate money to an event, team or individual, in return for which they display the business name or logo. This will build brand awareness.
Product trials
In some markets business offers trials of their products or services. Customers try it either for free or at a reduced rate.
Branding
Aim of many businesses is to develop a powerful brand image. Using:
- Product name
- Terms
- Slogan
- Sign
-Symbols
Public relations
PR is arranged by businesses in order to gain free media coverage of its business activities or a specific product.
- Help raise a business’s profile and improve its reputation.
- Can be a cost-effective way to get a message to a large audience.
- Business cannot exactly control how it is portrayed by the media, when the message will appear and where it will be placed.
- Time spent writing a press release may not even be published.
Social media
Social media marketing is the use of social media platforms to connect with your audience to build your brand, increase sales, and drive website traffic.
Using social media to promote a business
- Relatively cheap.
- Engagement with the customer.
- Target specific market segments.
- Ideal way to reach a large target audience.
- Customers may not use social media.
- Negative comments can go viral.
- Too much traffic; messages can be ignored or missed.
