Marketing Mix Promotion
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Transcript of Marketing Mix Promotion
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GCSE Business Studies
Marketing Mix - Promotion
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Activity
With the person next to you, list all of the methods that you can think of that businesses use in order to promote their products.
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Activity
Divide the list into threeUsed by small companies onlyUsed by large companiesUsed by both
Add any more methods you can think of
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Activity
Have you included the following for small businesses on a low budget
Local newspapersInternetPersonnel RecommendationBusiness cards
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The Importance of promotionPromotion is concerned with how abusiness is to market its product.
A business must inform customers that ithas a product to sell, and makecustomers feel that they need to buy theproduct.
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Linking Promotion to the other Ps.ProductThe product needs to be brought to the attention of the consumer. Promotion could extend a product life cycle
PriceSome promotions can focus on price
PlaceA business may need to inform customers of a newshop opening or where the product is on sale.
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The aims of promotionTo inform customers about a product (especially when new or changed)
To keep a business ahead of its competitors
To create or change the image of a business
To create a brand and customer loyalty
To maintain or increase sales
To inform customers about where they can buy a product/service
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Methods of PromotionThere are many different methods of promotion that a business might use. These include:
Sales promotion.Public relations.Sponsorship.Advertising.
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1. Sales PromotionSales Promotion can be divided into many parts: Price reductions: e.g. Jan sales (to get rid of old stock)
Loss leaders: Often used by supermarkets. Essential products are reduced so that there is little or no profit being made. This brings customers into the store
Added Value: Often used by the food industry. Involves giving 30% extra free etc.
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1. Sales PromotionGifts: May be given with a product in order to increase sales. Eg: Breakfast Cereals.
Point of sale: Large display of a certain product near the entrance/tills. Used by supermarkets
Competitions: Used to boost sales, where customers are entered into a prize draw.
Free samples: Used in cosmetics and other businesses to let the consumer try the product.
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1. Sales PromotionMerchandising: When a new film is released, certain products on sale are connected to the film.
After-sales service: Can also be used as a sales promotion. A business may offer or extend an existing guarantee.
BOGOF or 3 for 2: Means that people buy more of the product
Sales promotion taskSales promotion task
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1. Sales Promotion - Task
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2. Public relationsPR involves managing information between the company and the public
The main difference between Public Relations (PR) andother promotion methods is that PR is often free.
It can include winning industry awards, working with thepress, organising launch events
PR brings the business to the attention of the public atno cost.
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2. Public relations - Task
Question:
Explain how a local business like the Metro caf inBingham could partake in PR
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3. SponsorshipSponsorship is becoming an ever popular method ofpromoting businesses.
Though the sponsor may have a personal interest inthe team, there is a clear business aim in promotingthe name of the business to as wide an audience aspossible.
With sport on TV, there is an increasing opportunity fora business to make its products known to a world-wideaudience.
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3. Sponsorship - Task
Name 5 companies and the events/programmes theysponsor
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4. Advertising
Advertising is giving information to the public andpersuading them to buy a particular product or service
Examples includeTV (national and local)Radio (national and local)Leaflets/flyersBill boardsNotice boards
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4. Advertising - Task
How could a small company like Metro Caf advertise?