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4.5: The four P's – product, price, promotion and place PART 2…

- - - - Advertising Decisions
        
        Cost
        
        depends on time of the day transmitted & size of potential audience
        
        TV & radio
        
        National Newspapers :heavy_plus_sign: expensive than Local
        
        posters, magazines and cinema advertising
        
        advertisement has to be written and produced and the use of celebrities in TV, radio or cinema can increase the total cost
        
        Profile of Target Audience
        
        terms of age, income levels, & interests
        
        reflect the target consumer profile of the market being aimed for
        
        Type of Product & Message
        
        written forms are most effective for giving detailed information about a product
        
        if an image-creating advertisement is planned then a dynamic and colourful TV advertisement is possibly more effective
        
        Other Aspects of Marketing Mix
        
        link between other parts of the mix could be crucial to success
        
        Law & Constraints
        
        may depend on country
      - communicate through media
      - directed towards the appropriate target market by selecting the right media
      - leads to substantial increases in consumer awareness and sales
      - often classified into :two: types
      - Informative Advertising
        
        advertisements that give information to potential purchasers
        
        include price, technical specifications or main features and places where the product can be purchased
        
        effective when promoting a new product
        
        communicating a substantial change in price, design or specification
      - Persuasive Advertising
        
        create a distinct image or brand identity for the product
  - - - sales promotion: incentives such as special offers or special deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers
      - Price Deals
        
        temporary reduction of price
        
        encourage existing customers to buy more
        
        attract new customers to buy the product
      - Loyalty-Reward Programmes
        
        consumers collect points, air miles or credits for purchases and redeem them for rewards
        
        encouraging repeat purchases
        
        discourage from shopping with competitors
      - Money-Off Coupons
        
        redeemed when the consumer buys the product
        
        more versatile and better-focused
      - Games & Competitions
      - Sales Promotion
        
        pull strategy: the final consumer to encourage purchase
        
        push strategy: the distribution channel
      - Point-of-Sale Displays
        
        ‘aisle interrupter’: a sign that juts into the supermarket aisle from a shelf
        
        ‘dump bin’: a free-standing bin centrally placed and full of products ‘dumped’ inside to attract attention
      - Public Relations
        
        the use of free publicity provided by newspapers, TV and other media
      - Sponsorship
        
        payment by a company to team owners so that the company’s name becomes associated with the team
      - ‘Buy One Get One Free’ (BOGOF)
        
        encourages multiple purchases
  - - - Decide Image of Product
      - Develop Profile of Target Market
      - Decide Messages to Communicate
      - Set an Appropriate Budget
      - Decide How Messages Should be Communicated
      - Establish How Success will be Assessed
      - Undertake Promotional Plan & the Mix Elements of it
      - Measure Success
    - - online marketing: refers to advertising and marketing activities that use the internet, email and mobile communications to encourage direct sales via electronic commerce
      - :check:
      - :forbidden:
      - lack of skill
      - time investment
      - improved audience reach
      - targeted mareting
      - interactivity
      - performance metrics
      - speed of transmission
      - negative feedback
      - performance metrics
      - security issues
    - - viral marketing: the use of social media sites or text messages to increase brand awareness or sell products
      - can be in the form of video clips, interactive flash games, e-books and text messages
      - identify individuals with high socialnetworking potential (influencers)
    - - guerrilla marketing: an unconventional way of performing marketing activities on a very low budget
      - Jay Conrad Levinson
      - taking the consumer by surprise, making a memorable impression and creating a social buzz
      - RISKS
        
        guerrilla marketing tactics might not be well received by conventional consumers
        
        reserved for ‘edgy youth culture’ products
        
        devices could result in misunderstandings with consumers
        
        promotional event receives lesser attention than expected and develops no meaningful feedback
        
        get the attention of a large audience, but the image created could be negative,
- - - - consumers may need easy access to products
      - manufacturers need outlets for their products that give wide market coverage
      - retailers will sell producers’ goods but will demand a mark-up to cover their costs and make a profit
    - - answer a list of key quesitons
      - Influencing Factors
        
        industrial products sold more directly than consumer goods
        
        geographical dispersion of target market
        
        level of service expected by consumers
        
        technical complexity of the product
        
        unit value of the product
        
        number of potential customers