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Promotion Slides

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  • 1. Higher Business Management The Marketing Mix - Promotion
  • 2. Promotional Strategies <ul><li>A promotion is any form of communication used in an attempt to draw attention to a product or service </li></ul><ul><li>An organisation may promote its product/service to gain new customers or to retain existing ones </li></ul>
  • 3. Aims of Promotion <ul><li>Persuading customers to buy a product </li></ul><ul><li>- using a celebrity to endorse the product, comparing the product with another similar product or even using sex appeal </li></ul><ul><li>Informing customers about the product </li></ul><ul><li>- providing information about the product or service e.g. smoking kills </li></ul><ul><li>Reminding customers that the product still exists </li></ul><ul><li>- saturating advertising spaces in a variety of ways – bill boards, TV, magazines, newspapers etc </li></ul>
  • 4. Types of Promotion <ul><li>Above the line </li></ul><ul><li>- independent media such as TV and newspapers, enabling businesses to reach large audiences easily </li></ul><ul><li>- sometimes the promotion can be wasted </li></ul><ul><li>Print media : </li></ul><ul><li>Newspapers </li></ul><ul><li>Magazines </li></ul><ul><li>OUTDOOR media : </li></ul><ul><li>POSTERS </li></ul><ul><li>BILL BOARDS </li></ul><ul><li>TRANSPORT </li></ul><ul><li>BROADCAST media : </li></ul><ul><li>TV </li></ul><ul><li>RADIO </li></ul><ul><li>CINEMA </li></ul><ul><li>INTERNET </li></ul>
  • 5. Types of Promotion <ul><li>Below the line </li></ul><ul><li>- directly controlled by the business e.g. sales promotions, direct mail, trade fairs and personal selling </li></ul><ul><li>- allows businesses to target the consumer they hope will be interested in their product more directly </li></ul>
  • 6. Promotion <ul><li>Advertising </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Public Relations </li></ul><ul><li>Exhibitions &amp; Trade Fairs </li></ul><ul><li>Merchandising </li></ul><ul><li>Direct Mail </li></ul><ul><li>Personal Selling </li></ul>
  • 7. Advertising <ul><li>Informative Advertising </li></ul><ul><li>- used to increase awareness of a product/service and to inform the consumer about the product/service </li></ul><ul><li>- for example: Yellow Pages </li></ul><ul><li>Persuasive Advertising </li></ul><ul><li>- aim to persuade a customer to buy a product by stressing that it’s very desirable to have </li></ul><ul><li>- for example: Marks &amp; Spencer (Food) </li></ul>
  • 8. Advertising* <ul><li>Corporate Advertising </li></ul><ul><li>- promoting the whole company rather than individual products </li></ul><ul><li>- for example: BP – adverts do not try to persuade you to buy their petrol, but convey a ‘green’ image </li></ul><ul><li>Generic Advertising </li></ul><ul><li>- where a number of advertisers or the whole industry come together to promote the industry rather than individual products </li></ul><ul><li>- for example: the Scottish red meat industry – Scottish lamb, beef, pork etc </li></ul>
  • 9. Advertising Mediums <ul><li>Television </li></ul><ul><li>Daily Newspapers </li></ul><ul><li>Sunday Newspapers </li></ul><ul><li>Local Newspapers </li></ul><ul><li>Direct Mail </li></ul><ul><li>Independent Radio </li></ul><ul><li>Cinema </li></ul><ul><li>Outdoor Media </li></ul>
  • 10. Choice of Advertising Media <ul><li>The choice of advertising method will be affected by: </li></ul><ul><li>Cost </li></ul><ul><li>Target Audience </li></ul><ul><li>Competitors’ Advertising </li></ul><ul><li>Impact Required </li></ul><ul><li>The Law (restrictions on tobacco advertising) </li></ul>
  • 11. Controls on Advertising <ul><li>ASA </li></ul><ul><li>- voluntary body set up to monitor advertising in the UK </li></ul><ul><li>- adverts must be legal, honest, truthful and not cause offence </li></ul><ul><li>ITC </li></ul><ul><li>- body which controls advertising on TV and radio </li></ul><ul><li>- restrictions include current newsreaders not being allowed to endorse products &amp; actors not being used in commercials during programmes in which they appear </li></ul>
  • 12. Controls on Advertising <ul><li>Pressure Groups </li></ul><ul><li>- certain pressure groups seek to influence advertising e.g. FOREST who aim to defend the rights of tobacco firms to advertise </li></ul><ul><li>Trade Descriptions Act 1968 </li></ul><ul><li>- law states that the products must match the claims made about them in the advertising </li></ul>
  • 13. Sales Promotion <ul><li>Sales promotions are short-term inducements used to encourage customers to react quickly and make a purchase </li></ul><ul><li>Sales promotions can be given to the wholesaler/retailer or to the customer </li></ul><ul><li>There are 2 main types of sales promotions… </li></ul>
  • 14. Into the Pipeline Promotions <ul><li>Dealer Loaders </li></ul><ul><li>Point of Sale </li></ul><ul><li>Dealer Competitions/Bonuses </li></ul><ul><li>Staff Training </li></ul><ul><li>Sale or Return </li></ul><ul><li>Credit Facilities </li></ul>
  • 15. Out of the Pipeline Promotions <ul><li>Free Samples </li></ul><ul><li>Bonus Packs </li></ul><ul><li>Price Reductions </li></ul><ul><li>BOGOFF </li></ul><ul><li>Demonstrations </li></ul><ul><li>Merchandising </li></ul><ul><li>Competitions </li></ul><ul><li>Coupons/Vouchers </li></ul>
  • 16. Question (2007, Section 2, Q3c) <ul><li>Manufacturers use short term promotional measures to boost sales of products or services to retailers (into the pipeline promotions). </li></ul><ul><li>Identify and describe 2 of these measures. </li></ul><ul><li>(4 marks) </li></ul>
  • 17. Solution <ul><li>Point of sale of materials </li></ul><ul><li>Dealer loaders </li></ul><ul><li>Sale or return </li></ul><ul><li>Competitions </li></ul><ul><li>Staff training </li></ul><ul><li>Credit facilities </li></ul><ul><li>Bulk buying discounts </li></ul><ul><li>(Any 2 correct) </li></ul><ul><li>Must include a description to gain the second mark </li></ul>
  • 18. Question (2001, Section 1, Q6) <ul><li>Festive Bingo is a Private Limited Company with a 30% share of the UK bingo industry. They would like to increase admissions to 6000 per week if it moves to the new site. </li></ul><ul><li>Suggest 2 promotional activities which could be aimed at their existing market segment. </li></ul><ul><li>(2 marks) </li></ul><ul><li>Describe what could be included in Festive Bingo’s marketing strategy to attract a new segment of the market? </li></ul><ul><li>(4 marks) </li></ul>
  • 19. Solution <ul><li>Class to discuss possible solutions… </li></ul>
  • 20. Personal Selling <ul><li>Where satisfying the individual needs of the customer is paramount, personal selling is essential </li></ul><ul><li>In some situations the customer’s needs can only be satisfied by personal contact between buyer and seller: </li></ul><ul><li>- special advice is required e.g. insurance </li></ul><ul><li>- where special benefits are required </li></ul><ul><li>- where negotiation on price is required </li></ul>
  • 21. Personal Selling <ul><li>It involves persuasive communication between buyer and seller </li></ul><ul><li>It’s designed to convince the consumer to purchase the products or services on offer </li></ul><ul><li>The objective is therefore to ‘make the sale’ </li></ul>
  • 22. Question (2004, Section 2, Q4c) <ul><li>Identify and describe 2 appropriate methods of promotion for summer holidays </li></ul><ul><li>(4 marks) </li></ul>
  • 23. Solution <ul><li>Advertising – pictures, dates advertised in magazines and newspapers </li></ul><ul><li>Direct mail – information sent to customers who have used the company before, those who are thought likely to be interested </li></ul><ul><li>Promotional pricing – price reduced for a short period of time, perhaps to encourage early booking </li></ul><ul><li>Free child places – children offered free holiday places when accompanied by adults </li></ul><ul><li>(Any 2 for 2 marks each) </li></ul>
  • 24. Public Relations <ul><li>The activities of an organisation which help it improve its image locally, nationally and internationally </li></ul><ul><li>Includes making donations to charities, event sponsorship, product endorsement, publicity materials, merchandising, press conferences and press releases </li></ul><ul><li>Staff must also deal with bad publicity with the aim to create positive publicity </li></ul>
  • 25. PR Manager/Officer <ul><li>Arranges press conferences </li></ul><ul><li>Deals with any bad publicity </li></ul><ul><li>Issues press releases </li></ul><ul><li>Organises charitable events </li></ul><ul><li>Liaises with celebrities regarding their endorsements </li></ul>
  • 26. Question (2001, Section 2, Q4c) <ul><li>Errors do sometimes occur in manufacturing e.g. a supermarket is unhappy about the quality of one batch of lasagne which has been distributed throughout the UK. </li></ul><ul><li>Explain the role of the Public Relations Officer in dealing with this situation. </li></ul><ul><li>(5 marks) </li></ul>
  • 27. Solution
  • 28. Question (2003, Section 2, Q1b) <ul><li>Oil companies such as BP and Shell see creating a good reputation as an important objective. </li></ul><ul><li>Describe the role of the Public Relations Officer in achieving such an objective </li></ul><ul><li>(5 marks) </li></ul>
  • 29. Solution <ul><li>Organises PR activities </li></ul><ul><li>Prepares Press Releases </li></ul><ul><li>Organises Press Conferences - provision of free products to those attending </li></ul><ul><li>Responds favourably to criticism </li></ul><ul><li>Organises donations to charities </li></ul><ul><li>Sponsorship </li></ul><ul><li>Organises Office/Platform/works tours </li></ul>
  • 30. Publicity <ul><li>Within the organisation by the company itself through press releases or public announcements </li></ul><ul><li>Outside the organisation through news reports or through consumer programmes or publications </li></ul><ul><li>Not usually paid for by the organisation, but can become advertising for the business if it is good publicity </li></ul>
  • 31. PR and Publicity <ul><li>Together PR and Publicity can: </li></ul><ul><li>Provide the public with information about the organisation </li></ul><ul><li>Built confidence in the organisation and awareness of its products </li></ul><ul><li>Develop goodwill in the community and present the organisation in a positive way </li></ul><ul><li>Support and enhance other areas of the promotional mix such as advertising and selling </li></ul>
  • 32. Question (2008, Section 2, Q1d) <ul><li>Describe the methods available to a Public Relations department to improve the image of an organisation. </li></ul><ul><li>(5 marks) </li></ul>
  • 33. Solution
  • 34. Packaging* <ul><li>Shape and weight </li></ul><ul><li>Protection </li></ul><ul><li>Convenience </li></ul><ul><li>Design </li></ul><ul><li>Information </li></ul><ul><li>Environmental Factors </li></ul>
  • 35. Merchandising* <ul><li>An attempt to encourage the customer to buy at the point of sale in shops and petrol stations </li></ul><ul><li>Display material like window displays, in-store posters will attract customers’ attention </li></ul><ul><li>Lighting and smells can also affect consumers’ buying decisions (bright lights to suggest cleanliness and bakery smells to make the customer hungrier) </li></ul>
  • 36. Question (2005, Section 2, Q5c) <ul><li>Explain why organisations choose to spend large sums on money on marketing. </li></ul><ul><li>(5 marks) </li></ul><ul><li>Other than altering prices, describe 2 methods of promotion which are used by organisations. </li></ul><ul><li>(2 marks) </li></ul>
  • 37. Solution

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