The Marketing Mix
Promotion
Learning Objectives

All students: To state 4 ways a business can promote
itself

Most students: To list 2 ways you can promote a product

Some students: To define each way a business can
promote itself
What is Promotion?

Promotion is concerned with how a business is to market its product.

It is linked very closely with the other three P’s
PROMOTION
PLACE
A business may need
to inform customers
about a new shop, or
that it’s distribution
is so good to attract
new customers.
PRODUCT
The product is
brought to the
attention of the
customer, normally
through advertising.
A product near the
end of its life cycle
might be promoted
to extend its life.
PRICE
The price should
be set carefully to
attract customers.
At certain times
it might be
necessary to
promote price to
maintain sales.
Aims

Promotion has four aims – what do you think they are?

To inform customers about a product

To keep business ahead of the competition

To create or change the image of a business

To maintain or to increase sales
Methods of Promotion
Sponsorship
Branding/Packaging
Promotion
Public
Relations
Sales Promotion
Advertising
Merchandising
Sales Promotions
• These are offers designed to increase short term sales
by giving consumers incentives to buy the product
Sales Promotion
Merchandising
Competition
Price Reductions
Free Samples
Loss Leaders
Sales
Promotion
Point of Sale
Added Value
After-sales Service
Gifts
Sales Promotions

Price reductions, special offers and free gifts persuade
new customers to try a product and can give a boost to
sales and that lasts longer than the promotion

Free samples can increase awareness of a new product

Competitions attract customers to new and existing
products
Sales Promotions

Brochures and catalogues inform customers about a product and
present an image of the business

Point of sale promotion such as in-store displays encourage impulse
buying

Internet based using a web site and e-mail depends on customers
knowing where to look and providing an e-mail address

After sales involves providing service backup and information as
well as warranties and guarantees
Merchandising
This is about the visual presentation of the product at the point-of-sale.
http://news.bbc.co.uk/1/hi/england/8695002.st
m
Public Relations

The aim is to increase sales by enhancing the reputation of
the business – this method is often free
Options for PR a business can use?

Press releases

Launch parties (even being seen at them)

Editorial features

Media events

Charity Support/Education support

Sponsorship

Competitors
Sponsorship

Becoming very popular – bringing the name of a
business to different customers

Typically used by businesses to sponsor sporting teams
Direct Marketing
• Direct Mailing – AKA ‘Junk Mail’
• Involves sending out information in the post to
potential customers
• To be fully effective this needs to be specifically
targeted at the market segments you are aiming your
products.
Above the line and below the
line

The way in which promotion is targeted is split into two
types:

Above the line promotion – paid for communication in
the independent media e.g. advertising on TV or in the
newspapers. Though it can be targeted, it could be seen
by anyone outside the target audience.

Below the line promotion – promotional activities
where the business has direct control e.g. direct mailing
and money off coupons. It is aimed directly at the
target audience.
Methods of Promotion
Sponsorship
Branding/Packaging
Promotion
Public
Relations
Sales Promotion
Advertising
Merchandising
Exam question

Explain one possible use of the Boston Matrix for a new
sports shop. (4 marks)

Analyse two ways in which a washing powder brand
might respond to a new competitor setting up in its
market. (8 marks)
Learning Objectives

All students: To state 4 ways a business can promote
itself

Most students: To list 2 ways you can promote a product

Some students: To define each way a business can
promote itself
Advertising
Learning Objectives

To state all three types of advertising

To name at least four advertising media

To state 1 advantage and 1 disadvantage for each type of media
Advertising

What is the difference between an advertisement and an advertising
campaign?

An advertisement might just be a one off

A campaign is a whole series of advertisements built up over a period of
time
Past Campaigns

http://www.youtube.com/watch?v=VwRCBHhyr
AA&safe=active

http://www.youtube.com/watch?v=HLv77vwD2ts
Marketing Campaigns

What benefits does running a Marketing Campaign have over an
Advertisement?

Keeps profile

Raises Interest

Grows sales

Interest in them

Recognised!
Nescafe Gold Blend

First aired in 1987, these advertisements focused on the sexual
chemistry between a couple, played by Anthony Head and Sharon
Maugham, acted out in a mini soap opera

The advertisements gripped the whole nation, featuring as frequently
as Eastenders or Coronation Street as topics of conversation

This original series of advertisements ran for ten years, increasing sales
of Gold Blend by 40% in the first five years

Such was the profile of these advertisements, that they even featured
as a news article on the ‘News at Ten’.
http://www.youtube.com/watch?v=vZHnhItTmQs
Advertising
Informative
 Advertisements which simply give information without
trying to persuade the customer to buy a specific item

For example??

Sale starts Monday 9AM – Tells readers what?? –
doesn’t say how good the sale is or what's on offer!
Advertising
Persuasive

Try to persuade a customer to buy the product

For example??

e.g. The most fantastic sale ever starts on Monday at
9am. Bargains for everyone that no one should miss

Goes beyond giving simple information and tries to persuade
people to go by saying bargains for everyone
Advertising
Generic

Advertisements which are for an industry as opposed to a specific business

i.e. Milk
Voluntary Codes

Advertising industry is
‘self-regulated’ by
Advertising Standards
Authority (ASA)

ASA is independent of
industry and government
and is paid for by levies
The ASA – What Does it Do?
• Investigates complaints
• Protects consumers by ensuring adverts are:
Legal – Anything illegal cannot be advertised
Decent – Adverts must not cause offence
Honest – An advert must be clear – must not tell lies or
mislead people
Truthful – All claims must be true
• Prepared with sense of responsibility to consumers &
society
• Follow principles of fair competition accepted in
business
Advertising Media

In pairs list every type of advertising media you can think of

State as many advantages and disadvantages of each type of media
Use the table to help you!
Advertising
• Any paid form of non-personal communication of ideas or
products in the "prime media”
•Television: expensive and wide coverage
• Radio: cheaper and smaller audience; no visual stimulus
• Cinema: local audience
• Newspapers and magazines: can be expensive but more
specialised; if kept can be long lasting
• Posters: cheaper; have impact but may be ignored; little
opportunity for targeting
• Leaflets: delivered to peoples homes or distributed in the
street; cheap but little opportunity for targeting
What affects type of media to use
in advertising?

The cost – A small business may not have much money to spend on
advertising

Target market for the product – Advertise where the target market will see
it

Whether the advertisement is part of a campaign or stand alone
Advertising Media

In your groups state which advertising media you
would use to advertise each product

You need to be able to explain why you have
chosen that media!

Bear in mind that more than one media may be
appropriate!
Learning Outcomes
You should now…

Be able to state all three types of advertising

Name at least four advertising media

Be able to state 1 advantage and 1 disadvantage for
each type of media