AS Business - JDC - Chapter 7 (Promotion)


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Promotion is...

  • Techniques aimed at communicating with the customer or market.
  • Usually to inform or influence about products.
  • Generally to make sales (encouraging product purchase.)
  • Promotion is more than just advertising - just one method of many in promotion!
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Objectives of Promotion

The objectives of promotion are to...

  • Raise or maintain customer awareness - Reminding usual customers the product still exists or informing potential ones it's available.
  • Generate interest/customer contact - Giving the customers info to find out more.
  • Make sales - Encouraging purchase, emphasis on benefits and qualities.
  • Gain repeat business/recommendations - Providing reassurance and support to build customer confidence.
  • Encourage customer loyalty - By providing regular incentives for regular custom.
  • Improve image of the business - Rather than a product (corporate advertising.)
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Above the Line (Advertising)

  • Abovethe line advertising is through independent media.
  • Which the business has little control of (through marketing/advertising agencies.)
  • No direct contact with customer.
  • Medias include radio, TV, newspapers,or any kind of well known promotion where the business is not contacting you.
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Above the Line (Advertising)

Advertising is catergorised into either informative or persuasive.

This can depend on advertising media, the nature of the product and the market.

There is a large range of medias of advertising open for a business to use, but it needs to choose wisely for effective results, they need to consider...

Product (more complex products may need to be on paper formats),

Selectivity (getting the right target market, appropriate to media),

Reach (number likely to be reached),

Degree of impact (will it be effective?),

Permanance (TV/Cinema/Radio adverts are only on air for a few seconds, printed ads are permanent, which is most appropriate.)

Relative Cost.

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Above the Line (Advertising) - Different medias: P

  • Newspapers:
  • Large variety (local, sunday, national), they generally have a large readership.
  • Can also target socio economic groups and areas (for local). This is cheap, especially at local level.
  • But can be low impact (no movement, sound, possibly no colour and loss between other ads.)
  • Magazines: Like newspapers large variety of different magazines to choose from, infact a better variety, so much so you can even target niche markets or market segments
  • Theres a good reproduction, long life and read at leisure usually. But this can be very expensive, slightly better impact than papers but not great.
  • Posters: Available on public transport, billboards.
  • Billboards can be seen by anyone, can be geographic and can attract impulse buying.
  • Posters in public transport can be cheap, geographic and can capture the audience, it's the same for outside public transport but there's also an outside audience.
  • Cons of these are the message has to be short and simple, can't target socio-economic groups and it's difficult to measure effectiveness.
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Above the Line (Advertising) - Different medias: S

  • Radio: Can be mobile and relatively cheap - rates vary on times and length of advert. Even actual broadcast method (e.g FM will be expensive as most popular, AM and DAB usually by small/low audiencestations so could be cheaper)
  • Radio can target socio-economic and geographic groups (most commercial radio is local.)
  • Cons of radio are the limited national advertising available (only 2 national commercial stations in UK.) But this can be overcome by making an agreement with multiplestation holding companies.
  • Also limited impact, no visual, short life and limited listner attention.
  • TV: Generally hasa very large audience with high coverage.
  • Because of this the cost per person exposed is lower.
  • Very high impact, both sound and vision.
  • TV can target socio-economic and geographic groups.
  • BUT: TV can be very expensive, there's limited prime time space, generally shortlived, no control over target markets watching the channel of advertising, viewers consider adverts annoying and will ignore them/switch over/go away when they're on.
  • Cinema: Can be high impact, reinforce TV ads, and can be targeted specifically and localised to cinemas. But they may only be seen once, have a short lived message, limited and restricted audience.
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Above the Line (Advertising) - Different medias: I

  • Company Websites:
  • Can be cheap and easy to set up and are asily updated.
  • Effectiveness can be monitored.
  • - Limited Audience.
  • - Potential technical problems.
  • Banner Ads:
  • Adverts on relevant websites.
  • Business pays for every click on advert.
  • Good as costs are based on results.
  • Exposure to a larger audience.
  • -But quality leads might not be produced.
  • Search engine/directory listing:
  • Websites offering searchable databases.
  • Most are free, but superior listings cost (-this CAN BE COSTLY).
  • -Needs monitoring.
  • Link Exhange
  • Mutual exchange of links between similar sites. Favour has to be returned.
  • Free, simple.
  • Exposure.
  • -Return favour links may distract customers away from site.
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Below the Line

  • Below the line is without the use of independent media and uses direct methods which the firm controls.
  • Methods: Personal selling, direct mail, sales promotion, mechandising, packaging, sponsorship, PR, trade fairs, sales promotion.
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Below the line - methods

  • Sales promotion is incentives given to reps, retailers, distributors, etc... of a firms products to increase sales. Can be immeadiete or delayed. Packaging, merchandisng, branding essential.
  • Packaging is what the product actually comes in, this generally reflects the product inside. Packaging should protect, preserve, promote (be eye catching, well designed) show legal info and be convenient.
  • Merchansiding aims to influence customers at point of sale, it includes display stands, store layout, stock/storage space and ambience (appropriate lighting.)
  • Personal selling is oral presentations, discussions with potential customers and can be done through deliveries, exhibitions, free trials. Personal selling consists of prospecting, pre-approach, approach, presentation, close and follow up. This can be expensive, but very effective.
  • Exhibtions & Trade fairs show how a product works, test consumer reactions, answer customer queries and attract free press coverage.
  • Public Relations (PR) managing relations with the public, usually through news media. Generally government, employees, pressure groups and customers are 'significant publics'. PR aims to increase sales through image improvement which can be done via press and news releases (free newspaper space), charity donations, sponsorship and product endorsements from public figures.
  • Direct Mail promotional material through the letterbox by hand, post or newspaper. Mail drop is sent to an addressee, mail shot is unaddressed. Direct mail is hidden from competitors, highly targeted, personal, with few distractions but it can be expensive, invasive, limited impact and end up in the bin.
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AIDA & DAGMAR - Decision making methods


Awareness Interest Desire Action: the moel suggests advertising should raise awareness, create interest, stimulate desire and promote action.


Defining Advertising Goals for Measured Advertising.

Recognition that customers go through a psychological process over a product...

Unawareness - Awareness - Comprehension (products use, pros, cons)- Preference - Conviciton (buy?)

Promotional actvity aims to move customers through this process.

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