A presentation on what the promotional mix is and applied to Next and M&S

1. P1
UNIT 9
Lewis Appleton
1

2. PROMOTIONAL MIX
The promotional mix is used to describe how a
business communicates with its customers.
This mix is a small part of the marketing mix.
The promotional mix consists of five elements
which are advertising, personal selling, sales
promotion, public relations, and direct
marketing. All of these elements are blended
together to form the mix.
Lewis Appleton
2

3. ELEMENTS
 Advertising
This is the use of things such as the radio, newspapers and television where a business can promote its items. This is good
for reaching a large audience and building awareness but it doesn’t always answer all the customers questions. An example of
this is including offers in a newspaper so that readers can see them and take advantage of the low costs or deals.
 Personal selling
This is when someone is targeted to buy a product. The person selling may attempt to build a relationship with the customer
which would make them more likely to want to buy the product, this usually results in the seller trying to close the sale. An
example of this is when a staff member may see something that the customer is taking an interest in and they would go over
and try to encourage them to purchase.
 Sales promotion
The sales promotion is when sales are stimulated by targeting incentives on a particular product. This is good for a short term
boost to sales. This can be bad if used for a long time because the customers may get used to the effect, and it can also
damage the brand image. An example of this is when in a supermarket they may list offers on the speakers for customers to
hear.
 Public relations
This is the use of media without directly paying for the time or space it takes up and it promotes the communication of the
product, brand or the business. This can be seen as more persuasive to people as the information is from a third party such as
a newspaper or magazine. It is also a free way of promoting the business. However because the information is from a third
party it is not fully controllable by the business and it can get out of hand and be negative. An example of this is when
someone writes a review on a product or the service provided by a store and it tells the good and bad things of it for readers.
 Direct marketing
This is where a business directly promotes its products to the consumer and can be done through mailers and brochures. The
positive results can directly be measured this way by a business and about 10% usually reply. An example of this is a store
sending a brochure with all of their latest offers to their customers or potential customers, they may also put leaflets with
customers shopping.
Lewis Appleton
3

4. NEXT PLC OBJECTIVES
The main objective for Next is to deliver long term growth in the earnings per share. Next
believes that the way to achieve this is by continuing with the strategies they currently use;
 The improvement of the product range, success being reflected in the sales and
performance. This can be achieved by using sales promotion, Next could tell customers
about current offers depending on the products they purchase and which may suit them.
 An increase in selling space while meeting financial criteria before investments are made
and the success of this is monitored with the sales and profit contribution. Next could
advertise about their increase in space meaning that there is more stock available and
therefore more products that customers could purchase.
 An increase to the number of customers and the amount they spend averagely. Next could
achieve this by direct marketing, they could send out a bulk amount of brochures and
flyers to influence potential customers to take advantage of the offers and therefore spend
more by including offers such as “50% off every item past spending £50”.
 Better product sourcing, cost control and management of stock to manage the gross and
net profit margins.
 Maintain the financial strengths using an efficient balance sheet and structure for finance.
 Exchanging shares when the earnings are increasing and in the shareholders general
interests.
Lewis Appleton
4

5. M & S OBJECTIVES
The objectives for Marks and Spencer's are;
 To focus on the UK; they will improve on the brand, stores, clothing
range, home department and food products. M & S could achieve this by
promoting more of their clothing range and food products with price cuts
and special limited time offers, this would allow them to introduce more
new products.
 To distribute products over a variety of channels; meaning customers will
be able to buy products in store, over the phone and online. M & S could
promote their services with direct marketing, they could have on their
shopping bags about online shopping, they could possibly promote free
delivery when a certain amount of money is spent which may encourage
online shopping.
 International; they want to have higher international sales for the
markets they operate in. public relations would help here, if a popular
newspaper gives a good review on a product or service more people in
other places will be influenced to buy products.
 IT, logistics and supply; increase cost savings and increase capital
investment, reduce dependence on supply chain and have greater
control.
Lewis Appleton
5

6. NEXT PLC CORPORATE IMAGE
Next try to address any issues that have
business related social, ethical and
environmental impacts and run their business
in a responsible way. Next ensure that they
exceed their customers expectations providing
excellent products and services.
Lewis Appleton
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7. M & S CORPORATE IMAGE
Marks and Spencer's is one of the largest
retailers and they product many stylish and
high quality product. They have a five year eco
plan which will reduce the amount of landfill
that they create. In the plan they have made
commitments to helping local parks and raise
awareness of breast cancer.
Lewis Appleton
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8. NEXT PLC COORDINATED PROMOTIONAL MIX
Next PLC will have the same products such as
the same clothes in all different ways of
promoting their product, this means that the
same products will be seen in magazines such
as the ones on TV. For example the Next offers
on the website that state some items are half
price will also be seen in magazines and other
places so that the same message is sent to
potential customers.
Lewis Appleton
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9. M & S COORDINATED PROMOTIONAL MIX
M & S have a section on their website for offers
and it includes things such as the deal of the
day, this is unlikely to be seen in a magazine or
newspaper but offers that have time limits such
as the 20% off men's clothing may be
promoted so that potential customers can see
the offers while they are still available. This
helps M & S to send the same promotional
message to the potential customers.
Lewis Appleton
9