7. Composition of promotional mix depends on: Stage in the product’s life cycle E.g. advertising & PR are often important at the launch stage Nature of the product What information do customers require before they buy? Competition What are rivals doing ? What promotional methods are traditionally effective in a market? Marketing budget How much can the firm afford? Marketing strategy Other elements of the mix Target market Appropriate ways to reach the target market
8. Two tests of promotional effort Was it effective? Did it achieve its objectives? How was response measured? Was it efficient? Were objectives achieved at the acceptable cost? Were any promotional overspends justified by better-than-expected sales?
9. Promotional effectiveness and efficiency Effective Ineffective Efficient Objectives achieved at lowest costs Effective and cost efficient Low promotion budget but objectives not achieved Inefficient Objective achieved but at high cost Expensive promotion which fails to achieve objective
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11. Advertising + / - Advantages Disadvantages Wide coverage Control of message Repetition means that the message can be communicated effectively Can be used to build brand loyalty Often expensive Impersonal One way communication Lacks flexibility Limited ability to close a sale
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13. Personal selling + / - Advantages Disadvantages High customer attention Message is customised Interactivity Persuasive impact Potential for development of relationship Adaptable Opportunity to close the sale High cost Labour intensive Expensive Can only reach a limited number of customers
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16. Sales Promotion + / - Advantages Disadvantages Effective at achieving a quick boost to sales Encourages customers to trial a product or switch brands Sales effect may only be short-term Customers may come to expect or anticipate further promotions May damage brand image
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18. Public relations (“PR”) Activities that create goodwill toward an individual, business, cause or product
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22. Direct Marketing Promotional material directed through mail, email or telephone to individual households or businesses
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24. Direct marketing + / - Advantages Disadvantages Focus limited resources on targeted promotion Can personalise the marketing message Relatively easy to measure response & success Easy to test different marketing messages Cost-effective if customer database is well managed Response rates vary enormously Negative image of junk mail and email spam Databases expensive to maintain and keep accurate
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