Factors affecting promotion

1. Factors affecting promotion

2. Product Life Cycle Affect on Promotion Introduction – Promotion aimed at innovators and aims to promote product awareness Growth – Aimed at a broader target audience Maturity – Emphasises differences to competitors Decline - None

3. Competition • What sort of promotion are your rivals doing

4. Marketing Budget • How much have you got to spend? Marketing Strategy • The rest of the 7P’s and how you are planning to use them

5. Target Audience • Different promotional methods will work for different audiences

6. Promotion objectives • The five types of objectives for promotional activities are: • • to provide information • • to increase demand • • to differentiate the product • • to accentuate the value of the product • • to stabilize sales

7. Promotional Strategy should address the following issues: What is the goal of the promotion? What types of promotion should be used? What effect should the promotion have on the customer? Which promotion is working? Which promotion is not working? What are the costs of the promotion compared to the benefits?

8. Some ideas to start you off • Sales promotions – • direct incentive to buy products, such as an offer e.g.freecinema ticket • Merchandising – • display equipment to communicate the benefits of a product and/or present the product in a favourable way, • Personal selling – • personal, face-to-face communication • Exhibitions • Venues like Careers fairs • Advertising – • through mass media, such as television, radio and newspapers. • Public relations – • raising awareness through obtaining favourable publicity in the media. • E.g. arrange a launch event to get coverage in local newspapers • Sponsorship – • e.g. football teams, allowing them to put the business name or logo on the kit and giving them good publicity.