the marketing mix the 4 p’s promotion. learning objectives identify differences between sales...
TRANSCRIPT
The Marketing Mix
The 4 P’s
Promotion
Learning Objectives
Identify differences between sales promotion and advertising, above-the-line and below-the-line promotion
Analyse different promotional tools and discuss their effectiveness
Prepare an appropriate promotional mix
Start with this
• Speak to the people on your table and find out what they think was the best form of promotion they have seen
• Ask them to explain why
Preying on those addicted
Manipulation of the media
Does sex sell…cigarettes?
Promotion• The use of advertising, sales promotion, personal selling,
direct mail, trade fairs, sponsorship and public relations to inform customers and persuade customers to buy
• Promotional objectives should aim to– Increase sales by raising customer awareness of a new product– Remind customers of an existing product and its distinctive qualities– Encourage increased purchases– Demonstrate the superior specification or qualities of a product
compared to those of competitors – Create or reinforce brand image– Correct misleading reports – Develop or adapt public image– Encourage retailers to stock and actively promote products to the
final consumer
Objectives of Promotion
Notify target market about product
Wants to learn more about product
Wants to own the product
Product purchased
Objectives of Promotion
AAwareness
IInterest
DDesire
AAction
Notify target market about product
Wants to learn more about product
Wants to own the product
Product purchased
What’s the Marketing objective?
Cola – be yourself
Lynx
What’s the Marketing objective?
Stroke Sign of adviceCitroen C4 Robotic dancing
The Marketing Funnel
Audience
Prospects
Leads
Customers
Loyalty
Aware (Inform)
Express Interest (Interact)
Take Action (Buy)
Return (Buy Again)
Talk (Word-of-Mouth)
Above the Line (ATL)
Below the Line (BTL)
Two ‘types’ of promotion…
Above the line• Uses independent media• Aimed at a wide audience
Below the line• Uses media that the company has some form
of control over
Above the line
• This uses advertising
• Advertising is using any paid form of non-personal presentation
• Uses media that company has little direct control over
• There is informative advertising and persuasive advertising although they go hand in hand
Above the line
• Which media to use?• Limited resources restrict options• Choosing the right media means considering a
number of factors– Cost– Profile of the target audience– Type of product and the message to be communicated – Other aspects of the marketing mix– The law and other constraints
Below the line
• Promotion that is not a directly paid for means of communication but based on short term incentives to purchase
• E.G. sales promotion techniques
Below the Line
• Uses all forms other than advertising
• Includes– Direct mail – Exhibitions– Sales promotion– Branding– Merchandising– Packaging– Sponsorship
Exhibitions don’t have to be boring
Method Explained Possible Limitations
Price promotions – these are temporary reductions in price, also know as price discounting. They are aimed at encouraging existing customers to buy more and attracting new customers to buy the product
• Increased sales gained from price reductions will affect gross profit on each item sold
• There might be a negative impact on the brand’s reputation from the discounted price
Money-off coupons – these are more versatile and better focused way of offering a price discount.
• May simply encourage customers to buy what they would have bought anyway
• Enough stock may not be held• Proportion of customers using coupon may be small
Customer loyalty schemes – such as air miles or customer loyalty cards. Focused on encouraging repeat purchases and discouraging customers from shopping with competitors. Info stored through loyalty cards provide info about consumer buying preferences
• Discount offered cuts gross profit• Admin costs• ‘loyalty’ impact is reduced as most companies now have
these
Money refunds – offered when the receipt is returned to the manufacturer
• Forms to be filled out by the customer• Delay before refund is received
BOGOF – encourages multiple purchases, which reduces demand for competitors’ products too
• Could lead to substantial reduction in gross profit • Reputation
Point-of-sale displays – maximum impact on consumer behaviour is achieved by attractive, informative and well positioned displays in stores
• Best display points are usually offered to market leaders• New products may struggle for best positions in stores
Public relations – the use of free publicity provided by newspapers, TV and other media to communicate with and achieve understanding of the public
• Not easily controllable as some free publicity may not be positive
Sponsorship – payment by a company to team owners or event organisers so that the company name becomes associated with the event
• Success of the sponsorship is largely out of the company’s control. If a team fails this may reflect badly on the sponsor
Benefits and problems for above the line promotion
Advantages
• Wide coverage• Control the message• Repetition• Used to build brand
loyalty
Disadvantages
• Expensive• Impersonal• One way communication• Lacks flexibility• Limited capacity to close the sale
Benefits and problems for below the line promotion
Advantages• Higher customer attention• Message is customised• Interactivity• Potential to develop a relationship• Adaptable• Opportunity to close a sale
Disadvantages• Labour intensive• Expensive• Can only reach a limited number of customers
Task
• Tell me your immediate thought of the – Target market
and – promotional method used
• For the following items
For example - Playstation
• Target market
– teenage boys
• Promotional method– games magazines
Task• Bowling • Toothpaste• Airline travel• Dishwasher liquid• Crisps• Dating Agency• Local farmers market
target market
and
promotional method used….
Viral Marketing – e-commerce!
• network-enhanced word of mouth
• Amazon.com encourages their customers to "send a book to a friend"
TASK
In groups of 2 – 3, using either an above the line technique or a below the line technique, create an advertisement for the cigarette brand Luck Strike
• http://workbench.cadenhead.org/news/3495/mad-men-smoke-smoke-smoke-cigarette
Promotional MixComponent What it is
Advertising Deliver messages using paid media; develop attitudes, build awareness, inform, persuade
Paid media, identified sponsor, inexpensive & inefficient
Public Relations (PR) & Publicity
Creating a positive image, or delivering “interesting” information (publicity)
Unpaid media
Direct Marketing Highly targeted messages to target audience No personal contact
Sales Promotion Stimulate sales; coupons, competitions, visual merchandising, etc.
No media, no personal contact
Personal Selling Delivering messages directly to customer; person-to-person.
Expensive & efficient
The combination of promotional techniques that a firm uses to communicate the
benefits of its products to customers
Promotional Mix
• Eight stages in deciding on a promotional mix1. Decide on the image of the product2. Develop a profile of the target market3. Decide on the messages to communicate4. Set an appropriate budget5. Decide how the messages should be communicated 6. Establish how the success of the promotional mix is to be
assessed7. Undertake the promotional plan and the mix elements of
it8. Measure its success
The Promotional Mix
Advertising
Direct Marketing
Sales Promotion
Public Relations
Promotional Goals
1. Persuade, Remind, Inform the Market about Products
2. Create a Positive Public Image
Support Each Other
Messages to Customers & Public
Personal Selling
Promotion and the product life cycleStage of the cycle Promotional options
Introduction • Informative advertising • Sales promotion offering
free samplesGrowth • Focus shifts to brand
building• Sales promotion to
encourage repeat purchase• Attempt to develop brand
loyaltyMaturity • Advertising to emphasize
specification of product• Sales promotion incentives
to encourage brand development
Decline • Minimal advertising• Sales promotion