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