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Types of Promotion (Advertising (The activity or profession of producing…
Types of Promotion
Advertising
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The major advantages of advertising are: Introduces a new product in the market, expansion of the market, increased sales, fights competition, enhances good-will, educates the consumers, e.t.c
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Television- Television has an extensive reach and advertising this way is ideal if you cater to a large market in a large area.
Sales Promotion
A business may decide to offer a direct inducement to customers in an attempt to sell more of its product.
The two main advantages of Sales promotion are- the ability to entice new customers and to encourage trial purchases of new products.
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Refunds- Part of the purchase price is given back to those customers who send in a voucher with a specific proof of purchase.
Loyalty reward programs- These offer ‘rewards’ to those ‘loyal’ customers who purchase specified amounts or make repeat purchases.
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Product Endorsement
Product endorsement occurs when celebrities, who act as opinion leaders, express their support for a product. These promotion strategies help improve the customer image of a product or brand.
The benefits of using a celebrity for advertising are the ability to: Build brand equity, meaning brand power is acquired through the name recognition, which allows the company to achieve larger sales and profits.
Using the product/service- This is perhaps the most common in sports and fashion. For example, Kobe Bryant and Michael Jordan are paid millions of dollars to be seen wearing Nike shoes.
Speaking on behalf of the brand- Appearing in ads for a product or service is another popular way for brands to use endorsements.
Unpaid Testimonials- Advertisers have the choice of paying someone to write or say something that can endorse the brand
Sponsorship
Sponsorship provides an opportunity for a business to directly promote its products towards a select group of consumers who have a common interest.
Sponsorship is the material support of an event, activity or organisation by an unrelated partner. It is a good way of increasing brand awareness, which helps to generate consumer preference and to foster brand loyalty.
Put your business front and centre-Your brand will be seen throughout various elements of the event and attendees eager to learn more about your business will come to find you.
Get in front of your target market- If the event you’re sponsoring is the best fit, you’re likely to have access to thousands of people in your target market, who you can build relationships with.
Brand awareness and Media exposure- Gives your brand the opportunity to generate awareness, boost the perceived image of your business and gain media exposure.
Personal Selling
Personal selling involves the activities of a sales representative directed at a customer in an attempt to make a sale. For example, a real estate agent uses personal selling when he or she shows a house and tries to persuade the potential home owner to purchase it.
Personal selling is an important marketing tool for small businesses, particularly those that sell complex or high-value products and services to other businesses, rather than consumers.
Publicity
Businesses rely on being in the public eye. Publicity is any free news story about a business’s products. It differs from advertising in that it is free and its timing is not controlled by the business.
The main aims of publicity are to: Enhance the image of a product, and to raise awareness of a product.
Relationship Marketing
Customers want more individualised treatment. In response, businesses are looking for ways to develop long-term relationships with individual customers, a process known as relationship marketing. The ultimate aim is to create customer loyalty by meeting the needs of customers on an individual basis, thereby keeping customers coming back.
Loyal, returning customers spend far more than one-time customers do.