Elements of Promotion Mix and AIDA

Flash cards about the elements of the promotion mix with applied examples.

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Public Relations

Gaining favourable publicity through the media.

  • Involves liasing with the media, writing press releases and answering enquires.
  • Brouchers, newsletters and leaflets.
  • Involved with product launch and confrences.

Denenhams profits fell in Jan 2013 due to the bad weather, Michael Sharp explains how profit was lower than anticipated.

  • Cost-effective if successful
  • Unreliable
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Branding

The process of differenciating a product or service from its competitors through the name, sign, symbol, design or slogan linked to that product or service.

  • Can add value to a product
  • Can be individual products (e.g. Sprite) or a range (e.g. HEINZ)
  • Distinguishing packaging

Coca cola's glass bottle design was originally targetted for woman due to the curves and elegance compared to a can. This design can be seen transferred onto plastic bottles.

  • Name can add value. People are more likely to buy Coca Cola rather than Cola.
  • Reputation is damaged by one product due to the same brand, hence same identity.
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Merchandising

Attempts to persuade consumers to take action at 'point of sale' (PoS) aka point of purchase (PoP)

  • Special stands that sell specific products by a firm, containg their brand.
  • Psychological research of attractive smells in a shopping centre
  • Colourful displays and effective display (i.e. Tic Tac displays).

Many Coca Cola drinks fridges and Duracel battery stands in stores and supermarkets. Candy King Pick 'n' Mix are another example.

  • Recognition of brand and availabillty/ access.
  • Only successful if customers are brought to PoS.

 

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Sales Promotions

Short-term incentives used to persuade consumers to buy a particular product

  • BOGOF
  • Product Placement
  • Introductory offers
  • Boost sales

McDonalds Monopoly Fortunes is used in April-May every year to encourage sales with competitions and coupons.

  • Could gain loyal customers who may not have purchased the product beforehand.
  • Careful assesing to be cost-effective. Sales need to be booosted for a reason!
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Direct Selling

The process of communicating directly to the individual consumer throuh an appropriate form of communication (e.g. telephone).

  • Direct Mail - Boots Card offers sent directly to consumer (e.g. double points)
  • Telephone - Many household discarded junk mail
  • Door-to-door drops - Aldi and Lidl offers, takeaway menu's. Loyalty cards & databases are effective at targetting correct market.
  • Personal Selling - Car salesman with expertise

 

  • Efective when targetted at the right people - TEXTBOOK: "People are less likely to be rude over the phone.
  • Personally, they are annoying and I discard them, therefore it can be unsuccesful - time consuming and money wasting, creating negative images of the firm
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Advertising

The process of cummunicating with customers or potential customers through specific media.

  • Television - Ideal for the mass market. Ads can be targetted at market segments by channel and time. Visual's and easily memorable.
  • Radio - Flexible: Local or national markets. Cheaper. Catchy slogans/jingles.
  • Cinema - Specific audiances (e.g. 'The Hunger Games' will feature different ads than 'Hope Springs').
  • (Regional/National) Newspapers
  • Posters - Railways are effective (waiting places).
  • Magazines - Specialised in a particular market segment.
  • Internet - Cost-effective. iPlayer's also feature adverts, like TV.

A new Wagamama restaurant in Maidstone will be in regional newspapers, the internet and local radio's. Posters would be placed in Maidstone and other nearby areas.

  • Combined correctly, can be very effective. CPT can be low despite advertising costs. (e.g. ads during The X Factor will be more expensive than ads during Jeremy Kyle).
  • People tend to change channel and not focus on ads. Mute & fast-foward.
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Sponserships

Giving financial assistance to an individual, event or organisation.

  • Generate publicity
  • Targetted towards particular audiance
  • Good will for good cause

Dominoes Pizza allows you to round up your bill to the closest pound and have it donated to charity. These include ' Rays of Sunshine' and 'Special Olympics Great Britain'. Of course, you see sponsers before some TV shows and at sporting events.

  • Publicity towards particular market segment and can emit positive brand image.
  • Unpredictable
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AIDA

Mnemonic that demonstrates aims of promotion.

  • Attention - Awareness of brand & product via advertising to target market segment. However, with products such as books, the front cover needs to be appealing to the market segment. It should be clear and concise and have the audiance engaged.
  • Interest - Hearing the brand name repeatedly to gain trust. Basis depends on market segment. McDonalds Happy Meal advert creates a link with children and boxes - a true fact and can therfore create trust with some potential customers.
  • Desire - Specific reasons for purchasing. Currys/ PC World will tell you about the product features as well as imagery of design. (Laptop with 1TB hardrive).
  • Action - PoS and sales promotions may induce a response to purchase products as well as successful advertising and other promotions.

Evian dancing baby adverts generated approval of the brand, as did the drumming Gorilla advert by Cadbury. The two firms successfully grabbed attention.

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