Promotion

Elements of the promotion mix

Promotion mix is the various methods used to promote a good or service.

Methods include:

Advertising
Personal selling and relationship marketing
Sales promotions
Publicity and public relations.

1. Advertising media- refers to the many forms of communication used to reach an audience.

• Mass marketing — television, radio, newspapers and magazines

• Direct marketing catalogues — catalogues mailed to individual households

• Telemarketing — the use of the telephone to personally contact a customer

• E-marketing — the use of the internet to deliver advertising messages

• Social media advertising — online advertising using social media platforms such as Facebook and Twitter

• Billboards — large signs placed at strategic locations

Example

Coles spends over $53 million each year on advertising on multiple different media.

2. Personal Selling & Relationship marketing

i) Personal selling involves the activities of a sales representative directed to a customer in an attempt to make a sale.

It offers 3 unique advantages.

They are:

• The message can be modified to suit the individual customer’s circumstances.

• The individualised assistance to a customer can create a long-term relationship resulting in repeat sales.

• The sales consultant can provide after-sales customer service in relation to product features, installation, warranties and servicing.

The success of the marketing plan often depends on the competency of the business’s sales force, without which sales and revenue would soon decrease.

ii) Relationship marketing is the development of long-term and cost-effective relationships with individual customers through the use of loyalty programs.

Example

https://www.sitepoint.com/relationship-marketing-examples/

3. Sales promotion is the use of activities or materials as direct inducements to customer

• Coupons -These offer discounts of a stated amount on particular items at the time of purchase. Coupons work best for new or improved products. Mostly now down online.

• Premiums - A premium is a gift that a business offers the customer in return for using the product. For example, a food producer may offer customers a cookbook as a premium.

• Refunds/cash back - Part of the purchase price is given back to those customers who send in a voucher with a specific proof of purchase. In recent years, refunds have become widely used on power tools and kitchen appliances

• Samples - A sample is a free item or container of a product. For example, when you visit a supermarket, you will often find a sales representative encouraging you to taste a product such as cheese, fruit, biscuits or cake.

• Point-of-purchase displays - Special signs, displays and racks are supplied and installed by the manufacturer in retail outlets. They are usually located at the end of aisles in supermarkets to gain consumer attention and make more efficient use of floor space.

4. Publicity is any free news story about a business’s products.

Public relations (PR) are those activities aimed at creating and maintaining favourable relations between a business and its customers.

There are 4 main ways in which public relations activities can assist a business in achieving its objective of increased sales.

1. Promoting a positive image: reinforcing the favourable attitudes and perceptions consumers have regarding the business’s reputation

2. Effective communication of messages: using advertising, sales promotions, publicity and personal selling to convey information about the business and its products

3. Issues monitoring: protecting sales by providing an early warning of public trends that could affect the business’s sales. Remedial action can be taken before much harm is done to sales.

4. Crisis management: protecting a business’s reputation as a result of negative or unfavourable rumours and adverse publicity, which, if left unchecked, might result in a loss of sales

The Communication Process

Noise - is any interference or distraction that affects any or all stages in the communication process

An opinion leader is a person who influences others. Their opinions are respected and they are often sought out for advice.

Marketing managers use opinion leaders as information outlets for new products or to endorse an existing one. Actors, athletes, musicians and models are regarded by some groups as opinion leaders and many businesses use celebrity endorsement as part of their marketing strategies

Consumers tend to trust word-of-mouth communication more than business-sponsored commercials, especially if the message is being communicated by a friend or opinion leader. This is because the receiver places more trust in someone they know as opposed to a business advertising its products. When people influence each other during conversations it is called word-of-mouth communication.

Businesses are increasingly using social media platforms such as Facebook and Twitter to engage in a form of word-of-mouth communication. Friends’ recommendations can be a powerful influence, especially when there are many competing products from which to choose.

Social influences

https://www.theguardian.com/technology/2018/jul/22/what-would-you-do-if-your-teenager-became-an-overnight-instagram-sensation-

HSC Questions

2013

Q12

A car company advertises its new luxury car as more exciting and fun to drive than its competitors’ cars. What strategy is the car company using?

(A) Opinion leader

(B) Personal selling

(D) Public relations

2014

Question 27 (20 marks)

Assess the importance of using a mix of promotional strategies in the marketing of goods and services.

2015

Q12 Which of the following is an example of publicity for a restaurant?

(A) Changing the menu to include vegetarian dishes

(B) A review of the restaurant by a food critic on his blog

(D) Establishing a loyalty scheme with rewards for regular diners

2016

Q13

A beauty company sends samples of its new lip balm to members of its loyalty program and to online beauty bloggers. What strategies is the company using?

(A) Publicity and global branding

(B) Global branding and opinion leaders

(D) Relationship marketing and opinion leaders

Q19

A small business has developed a new piece of gym equipment that it wants to sell to gyms throughout Sydney. What would be the most appropriate marketing strategy for this?

(A) Advertising on billboards on main roads

(B) Placing its logo on a sporting team’s uniform

(D) Advertising on television during football games throughout the season

2018

17 Staff members at VAL’s vegan restaurant wear uniforms with a large letter V on them. They are expected to greet customers with a smile and clean up any spills immediately.

Which element of the marketing strategy are these requirements an example of?

A. Packaging

B. Positioning

C. Promotion mix

D. Physical evidence

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