Presentation Transcript

1. Promotion

   Miss Lay
2. Lesson Objectives By the end of this lesson you should: Understand the basic elements of the promotion mix Applied appropriate promotional methods to you products Evaluated you chosen promotional method
3. 5 minute Starter to get you thinking about promotion! Guess the advert http://www.youtube.com/watch?v=x-FIU9ASB9k&feature=related
4. What is promotion? In the context of marketing, promotion is the process of communicating with customers or potential customers. Promotion is designed to either inform customers about a product or service, or to persuade them to buy it.
5. Things to think of… The promotional method you use will reflect on your: Product Your target market Budget Competitor Activity
6. Think about the product life cycle of your product and how your promotion may change. Promotion is likely to be defensive or helping to hold the products position in the market as competitors with younger products may be threatening to take custom away. The roll of promotion here is to remind people about the product. Stage 4 Maturity Stage 5 Saturation New promotion can be introduced if you take on an extension strategy Promotion will be less intense as the product finds its own impetus and both retailers and consumers make repeat purchases. Extension Strategy SALES Stage 3 Growth High initial expenditure on the promotional mix. Advertising is needed to get the products name and benefits known. Stage 6 Decline Stage 2 Introduction Stage 1 Development TIME
7. Promotional Communication 2 distinct areas:
8. Word of Mouth Essential promotional tool your business will need Cheap, could even say free! More memorable than media adverts that bombard people constantly, if someone says something good about a product people are more likely to go and try it out! How will you achieve it? Social Media?
9. Main Controllable Promotion Methods Advertising Direct Marketing Public Relations (PR) Personal Selling Sales Promotion
10. Advertising Promotion through media is known as ‘Advertising’ Advertising is a 'paid for' communication. Heavy presence in everyday life Most expensive method Multinationals spend large amounts It is used to develop attitudes, create awareness, and transmit information in order to gain a response from the target market. It is non-personal promotion Can you think of a very effective advertisement you have seen recently?
11. Types of Promotional Media Think about what, when and where.. Choice of media depends on the number of target customers Mediaincludes: Television: expensive but wide coverage Radio: cheaper & 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: homes street - cheap but little targeting opportunity You need to do some secondary research and find out the cost implications of the form you want to use
12. Advertising Fact and Figures Some statistics for you: Evidence suggests TV advertising is more than 3 times effective than the next best form of advertising 43% of adults say they are likely to respond to television advertising Only 13% say they are likely to respond to magazine or newspaper advertising If you can find more statistics to support your choice....use them
13. Direct Selling Direct selling is personal communication between the business and a customer, most often by a salesperson.
14. Direct Mailing
15. Personal Selling Personal Selling is an effective way to manage personal customer relationships Using ‘face-to-face’ interaction to gain a sale. Examples are: Retail shop staff Door-to-door selling Exhibitions and shows Home visits such as life assurance salesmen
16. Personal Selling Are there any opportunities to use personal selling? Is your product complicated and needs to be explained by a specialist? Would you sell your product at a local festival of some sort? Event? Exhibition? Market? In store? Think about locations where you would take your product and do some personal selling How will you get the target customer’s attention? What will be your main approach? Samples? Handouts? Benefits explained?
17. Sales Promotion Sales promotion is often aimed straight at the customer to raise awareness and increase sales. When introducing your product you may chose to use BOGOF promotion (Buy One Get One Free) or couponing, money-off promotions, competitions, free accessories (such as free blades with a new razor), introductory offers (such as buy digital TV and get free installation), and so on. Each sales promotion should be carefully costed and compared with the next best alternative. Is it worth the money it will cost you? Examples are: Coupons – discounts/extra club points Competitions – newspaper promotions Special offers – Buy one, get one free Loyalty schemes – Club cards, air miles Trade incentives – free gifts, extra discounts on more sales
18. Public Relations (PR) Public Relations is defined as: 'the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics' (Institute of Public Relations). It is relatively cheap. Often seen as more "credible" - since the message seems to be coming from a third party (e.g. magazine, newspaper) Risk of losing control - cannot always control what other people write or say about your product. Methods of Public Relations include: Press releases Features – TV, magazines, newspapers Trade fairs Familiarisation trips Press conferences Lobbying – ABTA for example

19. Appendix – Things to help with choosing and evaluating your promotional method.

20. Measuring Campaign Effectiveness What is the purpose of the promotion for your product: Attention – To grab attention and make people aware Interest- To stimulate interest Desire – make people feel deprived without product Action – Encourage purchase of product Will it be effective?
21. Information you need for your chosen promotion method Costs – research internet and add to your secondary research in section b. Location – What TV channel will you choose? What type of magazine? Where will you personally sell your product? You should have evidence to support your choice Time – When will you advertise in order to attract your target audience and achieve real value for money Why? – Explanation of why you chose what channel, time Evaluate your choice – Advantages and disadvantages, would it be effective at targeting the right audience? http://www.itvmedia.co.uk/advertising-on-itv/cost-of-advertising
22. Here are some advantages/disadvantages of promotion, please find some more for your coursework...
23. Evaluation is Key!! Fully justify why you have chosen your promotional method showing originality of thought Say why you have used that promotional method – link back to your target market, budget/price of product etc..