Chapter 14

Which type of promotion should be used

Sales promotion

Advertising

The Role of promotion decisions in the Marketing Mix

How technology influences the marketing mix

Advertisements- this involves 'above-the-line" promotions. E.g. advertising on TV, Internet, Newspaper, Magazines etc

Sales promotion- This involves 'below-the-line' promotions. These are often used for short periods of time in order to reinforce the above-the-line promotions. E.g giving money-off coupons, free gifts, or product placements in television programmes or newly released films.

Informative

Persuasive

Informative & Persuasive

Process:
Set Objectives - Decide the advertising budget - Create an advertising campaign - Select the media to use - Evaluate the effectiveness of the campaign

TV (Food products, Cars & household products)
Advantages:

  • Advert will go out to millions of people
  • The product can be shown in a very favourable way (attractive)
  • It reaches the biggest number of consumers and can reach a target audience

Disadvantages:

  • Very expensive

Radio (Local services/events)
Advantages:

  • Cheaper than television
  • Usually reaches a large audience
  • Often uses a memorable song or tune so that the advert will be remembered

Disadvantages:

  • Cannot put across a visual message
  • Quite expensive relative to other methods of advertising
  • The advert needs to be remembered
  • Not as wide an audience as television

Newspapers (national or local)
Advantages:

  • Can be selected to target a particular group of people
  • A large number of people will purchase and read national newspapers
  • Local newspapers are relatively cheap to place adverts in and are a cost-effective way
  • Adverts are permanent and can be cut out and keep
  • A lot of information can be put in

Disadvantages:

  • Newspapers are not eye-catching

(Local products, Cars, Banks)

Magazines

Cinemas, DVD, Blue-ray

Posters/Billboards

Advertising on Social Media network
Advantges

  • Targets specific demographic group
  • Guarantees target customers see advert
  • Speed in response to market changes- info can be updated regularly
  • Cheap to use
  • Reaches groups that are difficult to reach any other way

Disadvantages

  • Can alienate customers if they find the adverts annoying
  • Have to pay for advertising if using pop-ups
  • Lack of control
  • May be altered

Advertising on Own Website
Advantages

  • No extra cost
  • Control of advertising
  • Can change adverts quickly and update pictures/prices etc
  • Interactive adverts can make the adverts more attractive
  • Can provide more information in adverts

Disadvantages

  • Potential customers may not see the website
  • Relies on customers finding the website
  • Design costs of the website may be high

Consider:

  • The stage of the product life cycle that has been reached
  • The nature of the product itself
  • the cultural issues involved in international marketing
  • The nature of the target market
  • Gifts
  • BOGOF
  • Competitions
  • Point-of-sale displays and demonstrations
  • After-sales service
  • Free samples

Leaflets

Internet & Other forms of publicity