The marketing mix:
promotion
L.O: understand the role of promotion
in the marketing mix
Questions to investigate
-
What is the role of promotion in the marketing mix?
What are the aims of promotion?
What are the different forms of promotion and their influence on sales?
When to use different forms of promotion?
What is the importance of the marketing budget?
Assignment
Will be given out at the end of the Promotion unit (2 days)
You will need to know and understand the following
-
Different types of promotion
When to use sales promotions
What advertising should be used for different target markets
What advertising to use at a products different stage of the product life
cycle
Would these promotion strategies work?
a)
b)
c)
d)
e)
f)
Buy one iPhone, get one free
50% off all pizzas on a Tuesday
500 fills off all sun glasses
Buy one bag of Doritos, get one free
Children eat free
Buy 9 coffees, get one free
Aims of promotion
-
Introduce new products to the market
Compete with competitors
Improve company image
Increase sales
Create a brand image
The advertising process
Set objectives what is the
purpose of the
advertising?
Decide the
advertising
budget
Evaluate the
effectiveness of
the campaign
Create an
advertising
campaign
Select the
media to use
What is product placement?
Recap
One advantage, one
disadvantage
A new bicycle has been
produced which is suitable for
using over rough ground and
for cycling up mountains
A new computer game has
been developed
A new restaurant in a small
town has opened
A famous brand of soft drink
wants to expand its sales
Sales promotion
Incentives aimed at customers to achieve short-term sales increase
Supports advertising and encourage new and existing customers to buy the
product
How many sales promotions can we think of that businesses use?
After-sales services
Cars and computers provide
after-sales services
If something goes wrong it
can be replaced or repaired
with no additional charge
Can you think of other
products that provide this
service?
Gifts
Gifts are placed inside the
packaging to encourage
customers to purchase it.
Or coupons/vouchers are
placed on the packaging to be
collected - sometimes several
coupons have to be collected
in order to collect the gift
Why would a business do this?
Price reductions
Reduced prices at different
times of the year
Or, money off coupons for
your next purchase
This encourages customers
to come and purchase again
- to become an regular
customer.
BOGOF - buy one
get one
free/discount
Multiple purchases are
encouraged
Find more about...
What are the following sales promotions?
Why would a business do these? Find two examples of each
Competitions
Point-of-sales displays
Free samples
Product placement
Celebrity endorsement
What sales promotion would work best
a) A new magazine aimed at boys
b) A company that makes football boots
c) A new fast food restaurant that has just opened
Importance of the marketing budget
The financial plan for the marketing of a product or product range for a specified
period of time
-
Deciding which type of promotion
How much money is available and how much can be spent
A large budget you can use many different methods and expensive ones
Small budgets will be reduced
Is it cost effective? Do you expect large number of sales?
The sales should generally cover the cost of the advertising
Which type of promotion should be used
The stage of the
product life cycle
The nature of the
product itself
The cultural issues involved
in international marketing
The nature of the
target market