Promotion

- Communication devices use to communicate with potential and actual

costumers

Objectives

 To create brand image and loyalty

 Stimulate demand for the production
 Inform – provide info about a new product or changes in existing
product
 Persuade – to convince customers to buy the firms product rather than
competitor
 Remind – the firms aims to reinforce information that was given about
a product

Types of promotion
Above the line (advertisements)

- Promotion that can be seen by anyone outside the targeted audience .

and the business has no direct control over targeted audience

Below the line (everything else)

- Promotion activities where the business has direct control over

targeted or intended audience

Promotional mix tools

1. Advertising - any paid form of non personal presentation of
messages of either ideas or product through the media, by a clearly
defined sponsor or firm

advantages Disadvantages
Successful adverting campaign Very costly
It can be used to introduce new It is impersonal so cannot take
products into the market by account of consumer feedback
creating consumer awareness and queries
Can be used to create or Advertising can be misleading. In
reinforce the brand image or fact, it is not as believable as
personality of the product other methods
 especially in markets where there
are identical products
Can be used to reach a wide Consumers may be persuaded to
audience to attract new buy products they have no need
consumers to brand

Advertising media

Media Advantages Disadvantages

Television 1. Creative 1. Relatively

advertisements can expensive initial
attract attention and cost.
have a great impact as
2. The message is
there is sight, sound
short lived.
and motion.
3. Consumers may not
2. Can reach a vast
watch commercials.
audience so gives
good coverage for 4. There may be a
mass marketing. delay between seeing
the advert and visiting
3. Can demonstrate
the shops.
the product in use.

4. The message can

be reinforced by
continuous
advertisements.

Radio 1. Enables use of 1. Not visual.

sound. Consumers cannot see
the product being
2. Produced cheaply.
advertised.
3. Fairly wide market
2. May not capture the
coverage as most
audience’s attention.
consumer groups
covered. 3. Interruptions to
music may prove
irritating.

4. Offers little option

for creativity.
Newspaper and 1. Fairly wide 1. No movement or
Magazines coverage. sound and may be
limited to black or
2. Relatively cheap.
white.
3. Reader can refer or
2. Individual adverts
pass along to other
may be lost amongst
readers.
large quantities of
4. Detail of the other advertisements.
product can be
3. Competitor’s
provided.
products are also being
advertised.

Internet 1. Relatively cheap 1. Requires internet

and easy to set up. 2. connection. Possible
Advert can be easily technical problems of
changed or updated. connection.

3. Can reach a 2. Consumers may not

global audience. watch commercials.

4. Ability to measured 3. Expensive add

results. Number of prices as some sites
‘hits’ can be may be expensive to
monitored. advertise on.

Posters and 1. Excellent for short, 1. Weather and graffiti

Billboards sharp messages. 2. can ruin the add. 2.
May encourage Limited amount of
impulse buying. information can be
provided.
3. Offers repeated
viewing. 4. Can reach 3. People may not
a fairly wide audience. notice the add.

Factors influencing the choice of media

1) Costs
2) Nature of the message- some ads intend to be more visual so radio
isn’t suitable ,
 3) Desired market coverage -if your market coverage is supposed to be
the whole geographic region billboards aren’t suitable , tv is more
better

4) Target audience -
5) Impact- some products such as sports equipment will benefit from
being shown in action to have the most impact on an audience

6) Frequency of transmission - An advertisement that must run repeatedly

over a specific period of time will need to be communicated through a
medium that will facilitate reruns. Some media do not allow for
repeated transmissions
7) Competitors - a major tv ad campaign by one firm may for example ,
be followed by a Counter campaigns from its competitors

Types of advertising

1) Informative advertising – adverts that give information to potential

purchasers of a product, rather than just trying to create a brand
image
Note
 Information includes , price, technical specifications, main
features, places where the product can be purchase
2) Persuasive advertising- is trying to create a distinct image or brand
image identity for the product and it may contain any details
3) Reminder advertising – these are brief messages that are geared
towards reminding the target customers about a product or where to
buy the product
Note
 Aim is to keep the product in the minds of customers
 Done when the product is in its maturity
4) Competitive advertising- adverts that highlights the better attributes or
aspects of their product in comparison to that of their competitors
5) Collective marketing – adverts where companies cooperate to
adveritise a product or service or to provide some information
regardless of who gets sale
2. Sales promotion – the incentives offered to consumers to
encourage them to purchase the firms products to give a short term
boost to sales of a product
Aims
 Can increase product usage- customers identify products
 Increase the size of target market -
 Attract potential customer – via sampling
 Create brand loyalty – customers will feel rewarded for their
loyalty

Advantages Disadvantages
Effective boosting sales in the Effect is short lived and may not
short run attract long term buyers
Can help build brand image If done wrong can damage firm
reputation
Can help firm gain entry into Incentives given may not be
and existing market recovered by increased sales

Techniques

 Coupons
 Contests
 Samples
 Loyalty cards (massy cards)
 Free gifts
 2 for 1 deal
3. Publicity – it is non personal message via the mass media, but which
not paid for by the firm. The is free publicity provided by the media as
opposed to advertising which is “paid for”

advantages Disadvantages
More believable than other Cost of continuously sponsor
methods therefore can build firm events to get favourable publicity
credibility may not recoup through increase
sales
Less costly than other promotion May not be effective as
advertising which is more explicit
and directed at a target market
Better for image building The company has less control
over what is in the media
Firms benefit from exposure and The company has less control
free advertisement over placement in messages
 Types of publicity employed
 Sponsorship
 Company visits
 Press conferences
 Donations
4. Personal selling – when firms sales teams promotes a product
through personal contact

Advantages Disadvantages
Provides rapid and detailed It can be expensive (sales team
feedback consumer to producer cost )
via the sales representative
Individual consumer needs can Level of success depends on
be dealt with by tailoring the quality of sales person
message to buyer needs and the
product shaped to meet these
needs
Can be used to explain the Not suitable for large dispersed
functions and technical aspects market
of a product
Creates awareness of and Most consumers hate “callers”
interest in a product which can
encourage product trials and test
marketing of a new product
Personal selling steps

1) Prospecting – potential customers are identified by the salesperson

2) Pre approach – the sales person gathers as much information as
possible bout the buyer before making the approach
3) Approaching the prospective buyer – the firm meeting to discuss the
potential purchase
4) Presenting – once the prospective buyer has confirmed their interest
the product is presented to the buyer by the salesperson. This may
include benefits or features to be derived from product use
5) Handling any objections – any queries or objections during the
presentation stage must now be dealt with
6) Closing the sale – the consumer is asked to make an order which will
be processed by the firm (if the product suites their needs)
7) Following up on the sale – the sales person keeps in touch with the
buyer after the sale and gather nay feedback might be given
5. Direct marketing – the use of information and communications
technology (ICTs) through which the firm communicates directly with
its target customer

advantages Disadvantage
Allows the firm to customize Requires investment in formation
promotion to suit the needs of technology which is expense
specific customers
It allows the firm to develop a Data bases must be kept up to
data base of customer with their date and this can be challenging
respective preferences and expensive to achieve
This makes is easier to target Response rates to direct
customers and position products marketing efforts are not often as
is required
It involves the use of information
and communication technology
which facilitates faster
communication