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Chapter 14 - The Marketing Mix: promotion and technology in marketing…
Chapter 14 - The Marketing Mix: promotion and technology in marketing
Promotion as part of the marketing mix includes:
advertisements
involves 'above-the-line' promotions. Involves advertising on television, internet, in newspapers and magazines, etc.
sales promotion
involves 'below-the-line' promotions. Often used for short periods of time in order to reinforce the above-the-line promotions.
Aims of promotion
to inform people about particular issues, often used by the government
to introduce new products on to the market
to compete with competitors' products
to improve the company image
to increase sales
to create a brand image
Advertising
Informative advertising
Where the emphasis of advertising or sales promotion is to give full information about the product.
Persuasive advertising
Advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it.
Advertising Media
Television
Advantages
the advert will go out to millions of people
the product can be shown in a very favourable way, making it look attractive
It reaches the biggest number of consumers and can reach a target audience (Refers to people who are potential buyers of a product or a service)
Disadvantages
Very expensive
Radio
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 image
Quite expensive
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 and read it
Relatively cheap and a cost-effective way to advertise
Adverts are permanent and can be cut out and kept
A lot of info can be put
Disadvantages
Often only black and white and not eye-catching
Magazines
Advantages
read by a specific type of person or business
In colour and look more attractive
Disadvantages
Often only published once a month or once a week
Relatively more expensive than newspapers
Posters/billboards
Advantages
Permanent
Relatively cheap
Potentially seen by everyone who passes them
Disadvantages
Can easily be missed as people go past them
No detailed information can be included
Cinemas, DVD and blu-ray discs
Advantages
Can give visual image of the product and show the product in a positive way
Relatively low cost
Can be very effective if your target audience go to see particular films
Disadvantages
Seen only by limited number of people
Leaflets
Advantages
Cheap method
Given out in the street to a wide range of people
Direct mail - could be delivered door to door or mailed to a large number of people
Sometimes contain a money-off voucher to encourage the reader to keep the advert
Adverts are permanent and can be kept
Disadvantages
May not be read
"junk mail" can be annoying and puts customers off buying the product
Internet
Advantages
A large amount of info can be placed on a website
Orders can be made instantly via website
Direct mail sent via mail is cheap
Disadvantages
Internet searches may not highlight the website and it could be missed
In some countries, internet access is limited
There is a lot of competition from other websites
Security issues may discourage customers from buying online
Other forms of publicity
Advantages
Very cheap form of advertising
Disadvantages
May not be seen by customers in the target market
Product Placement (when branded goods and services are featured in television programmes, movies, or music videos)
Advantages
Products are associated with the image in the programme or movie
Can target a specific audience who view the programme, movie, or music video
Disadvantages
Can be expensive
May have negative effects on the consumer if the image is not attractive to them
Sales Promotion
Incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales.
Types
Price Reductions
Gifts
BOGOF
Competitions
Point-of-sale displays and demonstrations
After-sales service
Free samples
Advantages
Can promote sales at times in the year when sales are low
Encourages new customers to try an existing product
Encourages customers to try a new product
Encourages existing customers to buy a product more often or in greater quantities
Encourages customers to buy your product instead of a competing brand
Marketing Budget
A financial plan for the marketing of a product or product range for a specified period of time.
Which type of promotions should be used?
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
How technology influences the marketing mix
Businesses are promoting their business or product on the internet
The internet allows businesses to gather information about customer purchasing habits which means dynamic pricing can be used to increase revenue
The internet has facilitated the widespread use of online purchasing- e-commerce
Benefits to a business of advertising on social media
targets specific demographic group
guarantees target customers see advert when they go onto social media
speed in response to market changes - info regularly updated
cheap to use - no cost if just placing ads
reaches groups that are difficult to reach any other way
Disadvantages to a business advertising on social networking sites
can alienate customers if they find adverts annoying
have to pay for advertising if use pop-ups
lack of control of advertising if used by others
may be altered or used in a bad way and forwarded on to other users giving the business bad publicity
Benefits to business advertising on its own website
no extra cost
control of advertising as it is your own site
can change adverts quickly and update pictures/prices, etc
interactive adverts can make adverts more attractive in other forms of advertising media such as magazines and posters
can provide more info in adverts and link to other pages with further info and pics
Disadvantages to business advertising on its own website
potential customers may not see the website (missed it)
relies on customers finding the website
design costs of the website may be high