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Promotion and Place - Coggle Diagram
Promotion and Place
Promotion
Objectives
Increase sales
Remind consumers
Increase purchases
Demonstrate the superiority
Create/reinforce brand image
Correct reports
Develop public image
Encourage retailers to stock
Advertising
(Above-the-line promotion)
Types
Informative advertising
Persuasive advertising
Planning the promotion
Research the market
Advise on the best media to use
Devise adverts
Film or print adverts
Monitor public reaction
Media
Factors
Cost
Size of audience
The profile of the target audience
Message to be communicated
Other aspects of the marketing mix
Legal and other constraints
Examples
Radio
Cinema
Social media
Newspaper
Internet
E-commerce
Online and mobile advertising via company website
Visitors leave details
Collect market research data
Dynamic pricing
Other
Trade fairs and exhibitions
Sponsorship
Public relations (PR)
Viral Marketing
TV
Sales Promotion
(Below-the-line promotion)
Examples
Price deals
Loyalty reward programmes
Money-off coupons
POS displays
BOGOF
Games
Competitions
Other
Personal Selling
Direct mail
Directed at:
The final consumer
The distribution channel
Branding
Aims
Aiding consumer recognition
Making the product distinctive from competitors
Product identity
Benefits
Increase the chances of brand recall
Differentiate the product from others
a 'family' of closely associated products
Reduce PED
Increase consumer loyalty to brands
Marketing
Spending limit
A percentage of sales
Objective-based budgeting
Competitor-based budget
What the business can afford
Incremental budgeting
Assessment
Sales performance (before & after)
Consumer awareness data
Consumer panels
Response rates to advertisements
Society
Benefits
Informs about new products
Increases competition between firms
Reducing average cost of production
Income for TV, radio, newspaper businesses
Drawbacks
Waste of resources
Persuade to buy the un-needed
Promotes consumerism
Encourages consumption
Packaging
Protect and contain
Give information
Support the image
Aid the recognition
Distribution (Place)
Factors
Industrial products tend to be sold directly
Geographical dispersion of the target market
Technical complexity
Level of service expected
Unit value
No. of potential customers
Importance
Wide market coverage with correct image
Proximity to retailers
Easy access to consumers
Channel
of Distribution
Direct selling
Benefits
No profit margin by other businesses
Complete control
Quicker
Fresher
Market research
Drawbacks
Storage costs
Limited 'see and try'
Inconvenient for consumer
Producer does ALL advertising
Transport costs to customers
Single-intermediary (Retailer)
Benefits
Retailer pays inventory costs
Retailer provides product displays & after-sales services
Convenient retailer locations
Can focus on production
Drawbacks
More expensive final price
Lose control
Retailers sell competitors' products
Transport costs to retailer
Two-intermediaries (Wholesaler -> Retailer)
Benefits
Buys in bulk
Reduces stock-holding costs
Wholesaler pays for transport costs to retailer
'Breaks Bulk'
Easier to enter foreign markets
Drawbacks
Make final good even more expensive
Loses further control
Slows down the distribution chain
Channel
Strategy
Sold directly?
Sold through retailers?
Length of the channel?
Where is product available?
Internet as main channel?
Inventory cost?
Business' control?
Support by channel?