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Theory on

Marketing

For Lesson 21

Promotion

Promotion

 http://www.thinkbox.tv/server/show/nav.1250

 TV asked a panel of 8000 viewers to vote for their favourite ads of the last ten years. From dancing eyebrows and talking meerkats, to a car made of cake and the world’s longest waterslide, these are some of the TV ads that made us smile, think and want more.

Promotional

Mix

Promotion is all about communication. ‘Promotion is how marketers communicate with their target markets that include existing customers and prospective customers’.

Promotional Mix is the process and variety of promotional methods used to communicate information about a product, service and product offering.

 Reasons for promotion

 ‘Promotion can build or destroy a brand, it can change attitudes, and it can influence the view that society as a whole has of the company and its products.’

Methods of

Promotion

 Advertising

 Sales Promotion

 Personal Selling

 Direct Marketing

 Public Relations

 Sponsorship

 Celebrity Endorsement

Advertising

Advertising is one of the most important parts of promotion.

The purpose of advertising:

1.

Inform people – make potential customers aware of your product and benefits

2.

Persuade people to make a purchase – inform people about the benefits or sell at a lower price

Advertising is made up of:

 message – what you want to tell customers

 medium – how you choose to advertise

Most effective advertising methods

Advertising Medium

1 Moving images (TV or Cinema advert)

2 Print (newspapers or magazines)

3 Ambient (public spaces, sides of buses)

4 Digital (websites, email, text messages)

5 Audio (radio adverts)

Sales

Promotion

 “Sales Promotion is the process of encouraging customers to buy the products by offering an incentive”

 Price promotion – discount on product e.g. 50p off,

BOGOF, 25% extra free

 Coupons – discount or free gift

 Competitions – instant win offers in the package

 Money refunds – cashback, e.g. mobile phones

 Loyalty incentives – collect stamps for a free drink

Personal

Selling

Personal selling is where businesses use people (the

“sales force”) to sell the product after meeting face-toface with the customer.

 Methods include:

 Face to face – saleperson watches body language to adapt sales pitch

 Telephone – listen to customers tone of voice to adapt sales pitch

 Email- send attachments of deals to customer

 Video or web conferencing – connect all over the world

Public

Relations

• Public relation are activities a business does to put information into the media, but without paying for it

• Exhibitions – present and display products to get people interested in buying

• Sponsorship – pay to display brand at event (creates a positive image)

• Press releases – statement sent to journalists to get them to write something interesting about your company

Direct

Marketing

• Business communicates directly with the customer

• Direct Mail – letters posted to the customer giving information about new products

• Mail order Catalogues – shows the different products in comfort of your own home

Video

 Watch this video:

 http://www.bbc.co.uk/learningzone/clips/businessstrategy-promotion/12270.html

 http://www.bbc.co.uk/learningzone/clips/shortintroduction-to-promotion-and-advertising/10959.html

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