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4.5 The four Ps - product, price, promotion and place (Introduction -…
4.5 The four Ps - product, price, promotion and place
Introduction - promotion
Definition
the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy
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Effective promotion not only increases awareness of products, but can create images and product 'personalities' that consumers can identify with.
Promotional objective
aim to:
- increase sales by raising consumer awareness of a new product
- remind consumers of an existing product and its distinctive qualities
- encourage increased purchases by existing consumers or attract new consumers
- demonstrate the superior specification or qualities of a product compared to those of competitors - often used when the product has been updated or adapted in some way
- create or reinforce the brand image or 'personality' of the product
- correct misleading reports about the product or the business & reassure consumers after a 'scare' or an accident involving the product
- develop or adapt the public image of the business - rather than the product
- encourage retailers to stock & actively promote products to the final consumer
Above-the-line promotion
Advertising
- Advertisements that give info to potential purchase of product, rather than just trying to create a brand image.
- This info could include price, technical specifications or main features and places where the product can be purchased.
- Most likely effective to promote a new product that consumers are not aware of or when communicating a substantial change in price, design or specification.
- Involves trying to create a distinct image or brand identity for the product.
- It may not contain any details at all about materials or ingredients used, prices or places to buy it
- this advertising is very common, especially in those markets where there might be little actual difference between products & where advertisers are trying to create a perceived difference in consumers' minds.
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Below-the-line promotion
Sales promotion
- price deals
- loyalty-reward programmes
- money-off coupons
- point-of-sale displays in shops
- buy 1 get 1 free (BOGOF)
- games and competitions (on cereal packets)
- public relations
- sponsorship
Sales promotion can be directed either at:
- the final consumer to encourage purchase (pull strategy)
or
- the distribution channel e.g. the retailer, to encourage stocking & display of the product (push strategy)