Marketing

• Advertising


  One of the strategies used by businesses to promote sales for their product(s) and to build the firm's image
• Informative advertising


  Gives factual information about a product, informs potential customers about the benefits and where the product can be found
• Informative advertising


  • Medication e.g. Tum, Zentel
  • Real estate e.g. VMBS - Richman Estate in St. Ann
• Persuasive advertising


  Tries to entice the consumer to purchase the product by using emotional and psychological appeals
• Persuasive advertising


  • Motor vehicle adverts that appeals to the image associated with ownership of that vehicle
  • Food and drinks adverts that entice persons e.g. Fresshh or KFC
• Comparative advertising


  Compares one product with another
• Comparative advertising


  • Lime advertisement comparing self with the other network (Digicel)
  • Direct TV and Dish
  • Pizza Hut and Domino's
• Reminder advertising


  Serves to inform customer that the product is still available, usually used in areas where there is a lot of competition or when the product has reached maturity stage
• Reminder advertising


  • Colgate toothpaste advertising their product to keep the customers informed about available and new products
• Forms of Advertising


  • Direct: Circulars and catalogues
  • Free samples or souvenirs
  • Indirect: Newspaper, Magazines
  • Television and radio
  • Posters and signs
  • Special shop displays
  • Sound cars – using loud speakers
• Electronic forms of Advertising


  • Radio
  • Television
  • Telephone
  • Telemarketing
• Electronic advertising


  • Lively, convey feelings, colorful and attractive therefore a powerful means of persuading people
  • Build and maintain public and consumer awareness
• Telemarketing


  • Very expensive
  • There may be legal restrictions e.g. Alcohol and tobacco
  • Cannot target only the desired persons
  • Effective based on the time shown
• Printed media advertising


  • More long lasting
  • Can accommodate updates
  • Provides a permanent record
  • More credible when printed in professional journals
• Printed media advertising disadvantages


  • Limited use of colour in news print
  • Very cold and static presentations
  • Cannot be certain that it will be read
• Cinema advertising


  • Impact is vivid
  • Can target a specific audience
• Cinema advertising disadvantages


  • Competition of target group widely varied
  • Limited audience
• Other media advertising


  • Strategically placed
  • Create a strong impact
  • Neon signs have visual impact after dark
• Other media advertising disadvantages


  • Must be constantly updated
  • Expensive to maintain
  • Can spoil the landscape
  • Source of distraction
• Advantages of Advertising


  • It makes consumers aware of the different product choices that are available
  • It encourages competition by keeping consumers aware of the various products choices
  • It increase sales and therefore keeps cost down
  • It encourages the production of goods of high standards
• Evaluation 1 - Activity 7.8 from study guide
• Packaging


  The way in which a salable product is wrapped, displayed and presented to the customer
• Techniques of Selling


  Methods used by salesmen to obtain a sale
• Display of goods


  1. Firms display products attractively to entice clients

  2. Persons trained to do this are called merchandisers
• Jingle, Statement or Rhyme


  A company uses a jingle, statement or rhyme to identify or introduce the firm so consumers associate it with the promotion
• Samples


  Samples given to patrons to be tested at shops and malls, feedback used by firm to enhance product(s)
• Pricing policy and Discounts


  1. Price must be competitive to attract clients

  2. Sellers offer cash or trade discounts to reduce price and encourage sales
• Offers


  Buy one get one free, discounts
• Establishing a pattern of selling


  Salesperson uses same location or is roving to encourage repeat sales
• Good after sales service


  Reliable and efficient service to meet consumer needs, ensures repeat sales and referrals
• Direct Selling


  Goods sold directly from producer to consumer without middlemen, e.g. home visits, mail order, telesales, online
• Lay-a-way


  • Purchaser pays in instalments, goods remain with seller until fully paid
  • Advantages: purchaser pays in small increments
  • Disadvantages: goods remain with seller, no refund of payments
• Credit


  • Payment for purchases made at a later date
  • Disadvantages: no immediate cash for seller, attracts interest for buyer
  • Advantages: method of moving stock for seller, buyer enjoys use of goods while paying
• Hire Purchase


  • Short-term credit for equipment, appliances, vehicles
  • Hirer pays initial payment then instalments until total price paid
  • Advantages: hirer has use of item, easy ownership, facilitates stock movement for seller
  • Disadvantages: very expensive credit, ties up capital for seller, risk of bad debt
• Evaluation 1
• Activity 7..25 from study guide
• Packaging


  • Wrapping
  • Bottle
  • Can
  • Box
• Packaging


  • Has an important part to play in the marketing of goods
• Functions of packaging


  1. Distribution feature

  2. Transportation function

  3. Identification Function

  4. The protection function

  5. The attraction function

  6. The Environmental Friendly function
• Distribution feature


  A business may distribute its products in various sizes, weights to serve the needs of its wide target market (small, medium, large)