This document discusses various aspects of promotion, including its aims, importance, and examples. Promotion aims to persuade customers to buy products, inform them of new features, and remind them of existing products. The importance of promotion depends on factors like market competitiveness, product availability, differentiation, and the product life cycle stage. Promotion occurs both within the supply pipeline between producers and retailers, and outside the pipeline directly to consumers. Examples of promotion methods discussed include point-of-sale displays, sales, competitions, discounts, and public relations activities.

1. PROMOTION
PROMOTION
PROMOTION
PROMOTION
PROMOTION
PROMOTION

2. PROMOTION….
…is about telling potential
customers about products
…should persuade new customers to
buy, or help keep existing customers.

3. THREE AIMS OF PROMOTION:
Persuade eg switch brands
Inform eg new features
Remind

4. IMPORTANCE OF PROMOTION
DEPENDS ON:
Competitiveness of the market – if little competition, promotion less
important
Availability of Product – if in short supply, less need for promotion eg
Morgan cars
Differentiation of Product – if product is obviously different/better,
less need for promotion
Stage of Product Life Cycle

5. PROMOTION INTO THE PIPELINE
Involves promotion between producer and retailer
Used to get retailers to stock their products
Although producers promote to the ultimate
consumer their products are sold through retailers
and wholesalers
If the consumer cannot get the product they see
advertised then the promotion is pointless

6. EXAMPLES OF PROMOTION COULD
INCLUDE
Point of sale displays – window displays, posters, in
store displays
Sale or return
Dealer competitions – prizes to most successful
retailers of product
Staff training
Good credit facilities – allowing retailer to pay for
goods later
Dealer Loaders – Where producers will throw in
branded extras to act as an incentive

7. PROMOTION OUT OF THE PIPELINE
Involves promotion between retailer and consumer
The retailer also wants products to sell, for them to
make profits

8. EXAMPLES OF SALES PROMOTION COULD
INCLUDE
Free samples
Competitions
Buy one get one free (BOGOFs)
Discount vouchers
Coupons
Special offers
Producers also promote their products straight to
the consumer by these methods also

9. ABOVE & BELOW THE LINE
With the Pipeline the focus is on the
Promotional offers; here the focus is on the
advertisements.

10. COMPLETE THE TASK YOU STARTED ON TUESDAY
(WRITING DESCRIPTIONS, ADVANTAGES AND
DISADVANTAGES)
AABBOOVVEE TTHHEE LLIINNEE – independent media
outwith the firm’s control eg TV, cinema,
billboards, radio, newspapers
BBEELLOOWW TTHHEE LLIINNEE – directly controlled by the
firm eg direct mail, sales promotions (BOGOF
etc), trade fairs, personal selling, electronic
promotions eg pop-ups, email promotions

11. ABOVE THE LINE
ABOVE THE LINE
Advantages
Mass audience reached
Raises profile of product
Disadvantages
Can be very expensive
Audience may not receive message eg TV
advertising
Other segments also targetted – not always cost
-effective

12. BELOW THE LINE
BELOW THE LINE
Advantages
Can be controlled by firm
Improved targeting of customers
Cost-effective
Disadvantages
May not raise awareness outwith target group
May not compete with competitors’ advertising

13. PUBLIC RELATIONS (PR)
Improving the image of the product and
organisation
Supporting and promoting a charity
Sponsoring sporting or cultural events
 Press conferences and press releases in times of
difficulty or when good publicity can be obtained
 Product endorsement by celebrities

14. ADVERTISING STANDARDS AUTHORITY (ASA)
Monitor adverts and promotions from
organisations in the UK to make sure they
adhere to specific standards.
They also investigate complaints from the
public and they can move/remove adverts
from TV etc. which are inappropriate or
misleading.

15. TASKS
TASK:
1.Google the ASA website
2.Look for cases which have been
investigated
3.What were the reason for investigation?
4.What is the ruling?