Chapter 39
Promotion
Overviews
1. Above the line and below the line promotion techniques
2. Public relations- improving company image/brand
3.
How technology is used in promotion; targeted advertising online, viral advertising,
social media and e-newsletters
4. The importance of band
Promotion
5. strategies for different market segments; advertising, sponsorship, product
trials, special offers, branding
1. Promotion
• There are 2 method of promotion
Above-the-line
1) : involves advertising on TV, via the internet and other form of madias
2)
Below-the-line : involves sales promotion e.g. Coupon, free gifts, but 1 get 1 free,
product placements in TV.
The aims of promotion
• To inform people about particular issues, often used by a government.
• To introduce new products on to the market
• To compete with competitors’s products
• To create a brand image
• To increase sales
2. Above-the-line promotion
: involves advertising on TV, via the internet and other form of madias
Advertising Media Advantages Disadvantages
Television • Get more audience • Very expensive
(eg. household • The product can be shown
products) in an attractive way.
Radio • Cheaper than TV • Cannot put visual message.
(eg. Local • Usually reach large audience • Quite expensive relative to
services) other methods.
•
Newspapers • Can be selected to target a • It is often black and white, so
(eg. local events) particular group of people. not very eye-catching.
• Relatively cheap
• Adverts are permanent and
can be cut and kept.
Magazines • It is a very effective way to • Magazines are often
(e.g. golf) reach a specific target published once a month or a
group. week.
• Magazine adverts are in • It’s more expensive than
color and therefore more newspapers.
Poster/Billboards • Permanent • Not detailed information can
(eg. Local event / • Relatively cheap be included.
Airlines) • Potential seen by everyone • Can easily be missed as
people go past them.
Cinemas, DVD • Can give visual image of • Seen by a limited number of
product people.
• Relatively low cost
Leaflets • Cheap • May not be read
• Given out on the street can • Direct email could be
reachout a wide range of delivered door to door or mail
people. to large people.
• Annoying some of the
consumers.
Internet • Order can be made • Internet access is limited in
some
areas.
• It is cheaper
TV
• There is a lot of competition
• A large amount of from other websites.
information can be placed
on websites which can be • Security issues may
seen by large people. discourage customers from
buying online.
• Can select a group of
customers.
Other forms of • Very cheap form of • May not be seen by
publicity advertising eg T-shirt, customers in the target
Delivery vehicles market
Product • Products are associated with • Can be expensive to pay for
placement the image in the programme the placement of the product.
(When brand or movie
goods and
services are
featured in
television, music
3. Below the line promotion
3.1) Sale promotion
• at consumers to achieve short-term increases in sales. This can encourage new,
aims
existing consumers to buy the product.
•Price reduction: reduce price in shops at specific times of the year and money-off
coupons to be used when a product is next purchased. E.g. discount 20 percent after
spending 10,000.-
•Gift : is placed in the packaging of a product to encourage the consumer to buy it.
• BOGOF (Buy one get one free)
• After sale service e.g. Warranty 1 years.
•
Free sample : can be handed out in the shop to encourage the consumer to try the
product and hopefully buy it.
3.2) Merchandising and packaging
•
Some businesses may arrange point of sale that is eye catching to encourage sales,
called merchandising
3.3) Direct mailing
• Is where businesses send households leaflets or letters or emails.
3.4) Direct selling or personal selling
Involve a salesperson calling at households or businesses hoping to sell products.
3.5) Exhibitions and trade fairs
Some businesses attend trade fairs or exhibitions to promote their products.
3.6) Public relations
•
Press release: some information about the business may be presented to the media
Press• conference: this is where representative face the media and present information
verbally.
• Sponsorship: linking business brands with sporting events through sponsorship.
Sponsorship means making a financial contribution to an even in return for publicity.
4. Using technology in promotion
1) Online targeted advertising; it can be directed at people who are likely to be
interested in the product.
Viral
2)advertising: direct marketing technique in which a company pursuades internet
users to forward its publicity material in emails or via social media
3) Social media; Facebook, twitter, instagram
Advantaged of social media
• Cheap
• Business can respond immediately
• Business can communicate directly with customers
• Business can reach out many customers
• Adverts can be accurately targeted
4) E-newsletters; it is sent to customers who have already purchased some goods or
services or have expresses an interest in the company
5. Branding : Branding is used to
• Differentiate the products
• Create customer loyalty
• Help recognition
• Development an image
• Raise price
6. The use of promotion strategies in different market segment
1. Advertising
E.g. mass markets => use TV advertising or social media
E.g. niche market => specialist magazine or specialist website
2. Sponsorshop
E.g. used int he markets where image or product positioning is important such as Rolex,
sponsor of golf tournament
3. Product trials e.g. gym and fitness
4. Special offers; price discount on fast moving consumer goods.
