Promotion

Marketing Mix – Promotion

An organisation must promote its products to gain new customers or keep its existing customers.  The purposes of promotion are to:

  • Inform customers about features and benefits of a new product;
  • Remind consumers of features and benefits of an established product;
  • Persuade customers to buy the product.

Promotion Methods – Advertising

Radio/Television

Adverts are placed in commercial breaks between programmes (broadcast media).

  • Different market segments can be targeted depending on the channel or station chosen and the type of programme.
  • They can reach local or national markets on a large scale.
  • TV adverts allow demonstration of the product.
  • They may be very expensive to run, especially during prime broadcasting times.
  • Customers may move away from the TV during the commercial break.

Newspapers/ Magazines

Print media adverts in colour or black and white.

  • Market segments can be targeted by choice of publication.
  • Adverts can contain more detail in text or numerical format.
  • Customers can cut out and keep printed adverts for future reference.
  • As fewer people are reading printed media these days, the advert may not reach as many people.

Sponsorship

An organisation may sponsor a sporting team or event who will wear clothing endorsed with a logo and display posters/banners around the event.

 

  • Adverts attract the attention of supporters.
  • They may gain additional television coverage.
  • Sponsorship of charities and community clubs can give a caring image which should appeal to its customer base.
  • Sponsorship contracts are renegotiated regularly and become expensive if the team is successful.
  • Once a charitable sponsorship is in place it must continue to risk loss of positive image.

Posters/ Billboards

Adverts displayed in bus stops, sporting venues and roadsides.

  • Adverts may be concentrated so customers view them several times.
  • After a while the customer may stop noticing them, so they need to be changed regularly.

Celebrity Endorsement

Sports or show business personalities are paid to promote a product.

  • This leads to increased sales to fans who want to be like their hero.
  • Social media influencers are sought after to endorse products due to their massive followings.
  • As the celebrity gets more famous their fees will increase.
  • Celebrities can fall out of fashion or can do something that brings negative publicity.

Internet Advertising

Adverts can be placed an organisation’s own website and/or by buying space on websites.

  • Choice of website means the target market will be likely to view.
  • Organisations set up their own social networking sites to gain exposure as adverts can be liked and shared, thus reaching huge numbers of customers.
  • Customers may not follow sites they are not already interested in, so viewers may be limited.

Use of Apps

Apps on smart devices can be linked into advertising which may pop up when the app is in use.

  • By choosing the right app, the organisation can target promotions towards their target markets.
  • Information on Apps is very easy to update.
  • Development costs for an App may be high.

SMS Messaging

Customers may agree to receive marketing messages in return for incentives.

  • Customers will view the text messages ‘on the go’ and will likely view them as soon as they come in.
  • As with direct emails, messages may be deleted without being read.

Direct E-mail Advertising

Sending a promotional email directly to previous or potential customers using a mailing list.

  • Details can be collected when customers buy on-line – so promoting to previous customers.
  • Very cost effective to set up and run.
  • Regulations on adding customers to a mailing list mean permission must be sought.
  • High chance of mail going straight to ‘junk’ if the customer does not mark it as safe.

 

Promotion Methods – Sales Promotions

Sales promotions are special offers to customers eg:

  • BOGOF – Buy One Get One Free;
  • Bonus packs – 50% extra free;
  • Promotional price discounts;
  • Entry into prize draws;
  • Credit facilities eg interest free credit;
  • Free samples linked to money-off vouchers;
  • Loyalty cards which give special discounts or exclusive access.

Advantages

  • Sales promotions can be used to help a product break into a new market, or to re-capture interest in a product that has been around for a while.
  • They can tempt new customers to try the product and develop some loyalty to it so they will continue to buy it.
  • Sales promotions can be used to reward regular customer and encourage them to remain loyal.

Disadvantages

  • If an organisation uses sales promotions too often, customers may hold off buying at full price in the expectation that it will be on offer again.

 

Ethical Marketing Considerations

Environmental & Ethical Responsibility – some consumers make purchasing decisions based on how environmentally responsible a producer is.  An organisation may have to market their environmental credentials by:

  • Publishing information on their carbon footprint – eg using locally sourced supplies, using sustainable sources of materials, using energy efficient production methods, recycling and reusing materials and packaging.
  • Publishing information on their suppliers and whether they are treating them fairly.
  • Promoting themselves as a ‘living wage’ employer – paying on or above the living wage to all staff regardless of their age.

Non-Discriminatory Practices – when marketing products, organisations should take care to portray equal opportunities eg:

  • In their use of characters and scenarios for advertising.
  • Ensuring that their products are accessible to people with a disability eg font sizes on packaging and in product information.
  • Ensure that when direct selling, their sales staff are not taking advantages of vulnerable sectors of the population eg older people, people unable to access credit.

Not Misleading or Offensive – organisations must ensure they are not only compliant with legal requirements on trading and advertising standards, but they should also go beyond this eg

  • Seeking advice on cultural norms so they are not accidentally offending.
  • Ensure that product information is clear and jargon free.