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BM 4.5 Promotion

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IB Business and Management (Standard Level) …

IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007

Published in: Business

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Transcript

  • 1. IB Business & Management
    • Unit 4.5: Promotion
    • Lesson 1: Objectives of Promotion (pp. 557-574)
  • 2. 1. Think about it...
    • “ Advertising is the art of convincing people to spend money they don’t have for something they don’t need.” - Will Rogers (1879-1935) comedian
      • What did Rogers mean by this quote?
      • Are we constantly being deceived?
      • Should companies be socially responsible for the advertising they create?
  • 3. 2. Focus Questions
    • 1. What are the objectives of promotion?
    • 2. List and explain the types of promotion.
    • 3. What is above and below the line of promotion?
    • 4. What is included in the promotional mix
  • 4. 3. Promotion
    • refers to methods of communicating messages to the market when selling a firm’s product.
    • promotion includes, sales promotion, branding, raising publicity (awareness) and advertising campaigns.
    • Objectives of promotion :
      • inform: to alert the market about a firm’s product.
      • persuade: to encourage customers to make a purchase.
      • remind: used to retain customer awareness and interest of an established product.
  • 5. 4. Types of Promotion
    • Fours types of promotion :
      • 1. Above-the-line: use of mass media sources (TV).
      • 2. Below-the-line: use of non-mass media (free samples).
      • 3. Pull promotion: used to stimulate demand.
      • 4. Push promotion: rely on intermediaries such as wholesalers and retailers.
  • 6. 5. Above-the-line Promotion
    • ATL promotion refers to any form of paid-for promotional technique through independent media. Such as:
    TV Radio Cinema Newspaper Magazines Outdoor advertising
  • 7. 6a. Below-the-line Promotion
    • BTL promotion refers to all forms of non-media promotion activities. Business has direct control over the production of all its advertisements. Such as:
    Branding Slogans Logos Packaging Word-of-mouth Direct marketing Direct mail Publicity Sponsorship
  • 8. 6b. Below-the-line Promotion
    • Two more types of BTL promotion include :
      • Sales promotion : ways of boosting sales and attracting new customers.
        • money-off coupons
        • free samples
        • free gifts
        • customer loyalty schemes
        • win a prize schemes
      • Point-of-sales promotions :
        • refers to the promotion of a product at the place or location where the customer buys the product.
        • Think about when you go to the check out at a supermarket. What do you see beside you when you are standing in line waiting to check out?
  • 9. 7a. Promotional Mix
    • is the set of tools that a business can use to communicate effectively the benefits of its products or services to its customers.
    • The mix is a range of above and below the line methods used to market a product.
    • When deciding on a promotional mix use AIDA :
      • Attention: should raise awareness of the product
      • Interest: should keep customers interested
      • Desire: should generate a desire or feeling of ‘need’ for the product
      • Action: should encourage customers to take action
    • Another approach is FAB :
      • Features
      • Advantages
      • Benefits
  • 10. 7b. Promotional Mix
    • When creating a promotional strategy YOU the marketer will want to consider a combination of factors, such as:
      • cost of promotional medium
      • nature of the product
      • product’s position in its life cycle
      • legislation
    • Using a single promotional technique is unlikely to be effective; use many:
      • TV
      • Radio
      • Outdoor advertising
      • Newspapers
      • Websites, Cinema, etc.
  • 11. 8a. Four Key Elements
    • The Chartered Institute of Marketing suggests four key elements to make up a promotional mix:
      • 1. Advertising:
        • “ the science of arresting the human intelligence long enough to get money from it.”
        • used to shape and develop awareness, perceptions, knowledge, and attitudes.
        • advertising can be informative or persuasive, or both.
      • 2. Personal selling:
        • relies on sales representatives directly helping and persuading potential and existing customers to make a purchase.
        • is tailored to the individual needs of the customers.
  • 12. 8b. Four Key Elements
    • The Chartered Institute of Marketing suggests four key elements to make up a promotional mix:
      • 3. Public relations (PR) :
        • aimed at establishing and protecting the desired image of an organization.
        • concerned with getting good press coverage.
      • 4. Sales promotion :
        • short-term incentives designed to stimulate sales of a product.
        • can help gain short term competitive head start
        • get rid of excess or old stock
        • encourages customer loyalty
  • 13. End