• Look at test scores on Quia/SPAN
• Open 4.5 Outline
• Today’s objectives:
– Review the marketing mix
– Discuss elements of promotional mix
Review: The Marketing Mix
Product
Promotion
Marketing
Mix
Place
Price
Promotion
• Promotion refers to methods of communicating messages
to the market with the intention of selling a product
What is Promotion?
Promotion is all of the activities involved in
informing and persuading potential customers to
buy a product
It is not just advertising
Promotion Objectives
• To inform
• To persuade
• To remind
Types of Promotion
Promotion can be:
• ABOVE THE LINE – Direct Advertising through
consumer media
• BELOW THE LINE – All other forms of promotion
Advertising
True or False?
TV commercials during Super
Bowl XLV in 2011 are estimated to
have cost $1 million for a 30second spot
False…… It actually cost $3million
More than $500 billion a year
is spent on advertising
worldwide
True
The average child in America
watches over 40,000 television
commercials in a year, or over
100 a day
True
Starbucks spent $9million on
advertising in 2006
False…… They actually spent $95 million
The newest form of marketing is
called ‘Viral Marketing’ and
involves using blogs and emails to
advertise a product
True
Facebook makes $4billion a
year from advertising
True
Microsoft allegedly paid the
Rolling Stones $20 million to use
their hit “Start Me Up” in its
Windows 95 advertisements
False…… It actually a mere $9million!
Here are some successful
adverts
What makes them successful?
5 features of a good advert
Discuss and agree in pairs what the most important
features of a good advert are
The features of a good advert are…….
•
•
•
•
•
Homework – My favourite
advert
• Bring an advert to share with the rest of the
class.
• Who do you think the product is aimed at?
• Why do you think it’s effective?
Advertising Media
What methods can a firm use to
advertise?
Above the Line Promotion
Firms must choose advertising media:
• Television
• Newspapers – Local or National
• Magazines
• Radio
• Posters/Billboards
• Leaflets/flyers
• Internet
• Outside Advertising
Choice of Media
When choosing an advertising media a firm
must take into account several factors:
• Cost
• Target audience
• Marketing budget
• Size of the market
• Geographical dispersion of the market
• What competitors are doing
• Impact
• Legal constraints
Task
• What advertising media would you use for these
products, and why?
Below the Line Promotion
Basically anything the business can do
other than advertise to get customers to
buy their product…….. Look at these
examples
Advertising
• Any form of paid communication used to develop
awareness, perception or attitudes about a business
or its products
.
• A successful advertising campaign
must be distinct from the
competition
Publicity
• Information that is provided to the public by the media or
other sources at no cost to the business, such as TV or
print news stories about a business or product.
• Cannot be controlled by the business,
thus it is not always positive
Public Relations (PR)
• Business activities aimed at establishing and
protecting the desired image of an organization.
• PR is concerned with getting good press coverage
without paying for it.
• Businesses hold press conferences or submit press
releases to the news media.
Personal Selling
• Face-to-face, personalized technique that relies
on sales representatives.
• Can be tailored to the individual needs of the customer.
Sales Promotion
• Short-term incentives designed to temporarily
stimulate sales, such as coupons, contests,
sweepstakes, giveaways and free samples.
• Attracts new customers.
Point-of-Sale/Merchandising
• Promotion occurs at the place where
the purchase is made (check-out
line, in-store displays)
Sponsorship
• Business pays to be associated with an event or
organization in return for publicity and/or prime
advertising space
Suggest a promotional strategy for
the following situations... (include
above the line and below the line
strategies)
Cadbury want to increase
sales of dark chocolate by
20% in the next 3 years
A car dealership are below their sales
target and need to increase sales this
month
A gardener
wants to attract
more clients in
his local town
M&S want to get rid of the old fashioned
image of their clothing range
Push vs. Pull
Pull promotion
• promotional technique used to stimulate demand for a product
(to pull or attract customers into buying). Includes above-the-line
promotional activities.
Push promotion
• promotional methods that rely on intermediaries, such as retail
stores, to push products to the customers. Includes below-theline promotions such as price reductions.
Guerrilla Marketing
This isn’t on your syllabus…. But it’s fun!