The Marketing Mix Promotion Aims of today’s lesson: To have an understanding of the marketing mix and the role of promotion To understand the difference between above and below the line promotion Starter How would you ‘define’ PROMOTION? Promotion is … Communication techniques to get information, influence and persuade customers. Or…. Getting a way to spread your idea/product to customers! …its all about persuasion! Viral Marketing….. From laptop. From web. So what methods of promotion did this video show us that are traditionally used? Promotional methods Main methods include: Advertising Sales promotion Personal selling Public Relations Direct mail Sponsorship It depends on Stage in the life cycle Budget Target market Nature of the product Competition To the DVD Working Lunch – best of DVD! Session 5 _ brand management What are the Objectives of promotion? Increase sales New customers Retain existing customers Encourage a trials To inform To remind To assure To encourage brand switching To create an image To encourage customer contact. You will need to use these ‘objective’ terms for the following few slides / tasks What’s the Marketing objective? Cola – be yourself Lynx What’s the Marketing objective? Citroen C4 Robotic dancing Stroke Sign of advice What’s the Marketing objective? Two ‘types’ of promotion… Above the line …. Uses independent media Aimed at a wide audience Below the line…. Uses media that the company has some form of control Above the line This uses advertising… Advertising is using any paid form of non-personal presentation. Uses media that company has little direct control over. Below the Line Uses all forms other than advertising Includes Direct mail Exhibitions Sales promotion Branding Merchandising Packaging Sponsorship Exhibitions don’t have to be boring… You decide on which factors are + or – for above / below the line… Adaptable Can only reach a limited number of customers. Control the message Expensive High cost Higher customer attention Impersonal Interactivity Labour intensive Lacks flexibility Limited capacity to close the sale Message is customised One way communication Opportunity to close a sale Potential to develop a relationship Repetition Used to build brand loyalty Wide coverage Benefits and Problems for Above the line promotion Advantages Disadvantages Wide coverage Control the message Repetition Used to build brand loyalty Expensive Impersonal One way communication Lacks flexibility Limited capacity to close the sale Benefits and Problems for Below the line promotion Advantages Higher customer attention Message is customised Interactivity Potential to develop a relationship Adaptable Opportunity to close a sale Disadvantages High cost Labour intensive Expensive Can only reach a limited number of customers. Markets & Media activity You need your whiteboard & pen No cheating… quick fire round Put down your immediate thoughts… Quick fire activity Tell me your immediate thought of the target market and promotional method used…. For the following items…. For example - Playstation Target market = teenage boys Promotional method = Games magazines Quick fire starts here… Bowling Toothpaste Airline travel Dishwasher liquid Crisps Stanna stair lift Local pub quiz Dating Agency Local Farmers market target market and promotional method used…. Viral Marketing – e-commerce! network-enhanced word of mouth Amazon.com encourages their customers to "send a book to a friend". Best example of viral marketing? Cadbury’s – king of viral? What benefits have Cadbury’s gained from these marketing campaigns? More from the DVD Best of Working Lunch - Advertising Homework…. Read article & answer Q’s What is Viral Marketing? Identify 5 traditional Marketing promotional methods. What is a ‘brand’? Select one well known brand, describe how it has maintained its brand leadership. What is a ‘sneezer’? Do you know of any ‘sneezer’ promotions that have caught your attention? Plenary Other than advertising, how else can a business promote its goods & services? Can you name me 3 promotional objectives? What is the difference between above & below the line promotions? Other good clips… Iphone Ipod shuffle Sheila’s wheels Guinness A later homework Q…. To what extent is…….? Exam Skills To what extent is PROMOTION the most important ingredient of the marketing mix? How best to answer this question? Knowledge = DEFINE…. What is the marketing mix? what are the 4 ‘ingredients’ of the marketing mix Application & Analysis Application Use REAL business examples… Analysis Why IS promotion SO IMPORTANT to a business Why is promotion NOT the most important… Aka. Why are the other features as or more important? Evaluation You decide….. Do you think promotion is the most (or not) important part of the marketing mix? It is possible to provide a 2 sided conclusion – by using real business examples where promotion IS and in another case IS NOT important! Homework…. To what extent is PROMOTION the most important ingredient of the marketing mix? (15 marks) K= 3, Ap = 3 An = 4 E=5