Chapter 20: The marketing mix - place and promotion

• Promotion


  communicating with potential customers through advertising, sales promotion to inform and persuade them to buy
• Promotion objectives

  •Increasing sales revenue by raising brand awareness.

  •Increasing consumer recall by highlighting distinctive qualities of a product.

  •Make the product look better than competitors' products.

  •Encouraging retailers to hold inventories.

  •Improving public image of the business.
• advertising


  long-term communication strategy to inform and persuade consumers. building brand awareness and conveying consistent message to wide audience EX: TV, radio
• direct promotion

  range of promotional activities aimed directly at target consumers
• sales promotion


  short-term tactic designed to stimulate immediate sales EX: discounts, coupons, limited offers
• promotion mix


  the combination of promotion techniques a firm uses to sell a product
• digital promotion


  the promotion of products using digital technology, mainly on the internet
• e-commerce


  buying and selling of products by businesses and consumers online
• Benefits of digital promotion


  •Worldwide coverage

  •Relatively low cost

  •Easy to track and measure results.

  •Personalization.

  •Builds customer Loyalty.

  •Content Marketing.

  •Website convenience increase sales.
• Limitations of digital promotion

  •Time Consuming

  •Skills and training

  •Global Competition

  •Complaints and feedback.
• The role of packaging

  •Protect and contain the product during transportation and in stores.

  •Give information  to consumers e.g cooking instructions assemble instructions.

  •Support the brand image.

  •Make the product attractive and make the consumer recognize it.
• Channel of distribution


  the chain of intermediaries a product passes through from producer to final consumer.
• Direct selling: quicker, direct contact with customers - not convenient for consumers, expensive

  
  

  Single Intermediary Channel: retailers have the cost of holding inventory, are in locations close to consumers - not exclusive as

  competitors also use it, loss of control over marketing mix

  
  

  Two Intermediary Channels: low inventory costs, wholesalers buy in bulk - loose control of marketing mix, slower
• Factors influencing the choice of distribution channel

  Type of Product

  Costs of distribution channels

  Size of market

  If ecommerce channel is used

  Cost of holding inventory.
• integrated marketing mix


  the key marketing decisions complement eachother and give customers consistant message about the product
• above-the-line promotion

  marketing activities that reach a broader audience through mass media channels such as TV, radio, etc. It focuses of building brand awareness.
• below-the-line promotion

  involves targeted more personalised marketinf effort directed at a specific audience through direct mail, sponsorships,event, etc. They aim to engage a narrower group of consumers.
• role of branding in promotion


  • customer recognition
  • differentiating from competitors
  • giving the product an identity
• digital distribution: the delivery or distribution of digital media content such as tv programmes, films


  physical distribution: the activities that combine to achieve the efficient movement of finished products from the end of the production operation to the consumer