Business

• Methods of Promotion

  • Advertising
  • Internet
  • Sponsorship
  • Direct mail
  • Personal selling
  • Sales promotion
• Advertising


  A paid promotion that uses various media sites that promotes a product or service
• Internet


  Promoting a product or service via the internet
• Sponsorship


  Promoting a product or service via another person or website
• Direct mail


  A promotion strategy of sending mail
• Personal selling


  A promoting strategy that involves face to face interaction
• Sales promotion


  Incentives used to encourage short term increases in sales
• Factors to consider when choosing a promotion method

  1. How much money do you have? (marketing budget)

  2. Who are your customers? (mass/niche or local/international market)

  3. What do you want to achieve? (marketing objectives)
• Direct distribution


  The fastest channel of distribution
• Direct distribution


  The channel that will give you the best customer service
• Selling through retailers


  The channel that allows you to make the most money
• Demand


  The quantity of goods and services consumers are willing to buy
• Price elasticity of demand


  Measures how much demand for a product changes if there is a change in price
• Price inelasticity of demand


  The change in demand is less than the change in price (percentage)
• Price elastic demand


  The change in demand is greater than the change in price (percentage)
• Product Life Cycle


  Shows the stages that products go through the development to withdrawal from the market
• Primary Research Methods


  • Internet
  • Government publications
  • Newspapers and magazines
  • Internal business records
  • Local library
  • Market research agencies
• Secondary Research Methods


  • Focus groups
  • Observations
  • Test market
  • Consumer surveys
• Market Orientated


  Customer focused, More responsive to changes in the market, Reliant on market research, Often in competitive markets
• Product Orientated


  Little competition, Usually tech industries
• Niche Marketing


  Targets a specific and well defined market segment
• Segmented Marketing


  Targets several groups each with their own marketing mix
• Mass marketing


  Targets a large number of different market segments in order to maximise sales
• Geographic Segmentation


  • Different regions in the same country
  • Different regions of the world
  • Different countries in the world
• Demographic Segmentation


  • Age
  • Family size
  • Ethnic background
  • Social class
  • Income
  • Gender
• The price of a competitor's product goes up

  The demand for your product goes up as it is cheaper
• The price of your product goes up

  The competitors' demand will go up
• Income levels in the economy decrease


  Lower demand because they have less money
• You spend more money on advertising


  The demand for your product should increase
• Birth rates in the economy decrease


  Less people so lower demand