ch15

• marketing mix:

  • product: good/service
  • price: price product is sold
  • promotion: how product advertised
  • place: channels of disturbution
• promotion: marketing activities that aim to raise awareness

  • generates sales
  • creates brand loyalty
• aim of promotion:

  • increase sales
  • create brand imagine
  • introduce new product on the market
  • compete with competitors products
  • improve company imagine
  • inform about particular issue
• advertising is paid for communication with potential customers
• informative advertising : emphasis is to give full information about product
• persuasive advertising: emphasis is to persuade customers that they need products and should buy them
• advertising process:

  1. set objects
  2. decide advertising budget
  3. create advertising campaign
  4. select media to use
  5. evaluate effectiveness
• advantages of using television to advertise:

  • goes out to large number of people
  • can reach target audience as advertisement is played during programmed potential customers are likely to watch
• disadvantages of using television to advertise:

  • very expensive
  • may not reach young consumers
• advantages of using radio to advertise:

  • cheaper than television
  • usually reaches large audience
• disadvantages of using radio to advertise:

  • can't put across visuals
  • advertisement must be remembered as there is no hard copy to look back on
• advantages of using newspapers to advertise:

  • cheap to place adverts
  • purchased and read by large number
• disadvantages of using newspapers to advertise:

  • not eye catching
  • not purchased by young
• advantages of using magazines to advertise:

  • read by specific people= reaches target audience
  • magazines are in color which makes them attractive
• disadvantages of using magazines to advertise:

  • often published weekly/monthly= not updated
  • more expensive than placing adverts that newspapers
• advantages of using posters/billboards to advertise:

  • permanent
  • relatively cheap
• disadvantages of using posters/billboards to advertise:

  • easily missed when going past
  • cant include detailed information
• advantages of using cinema/DVD/blueray discs for advertising

  • gives visual image
  • low cost
• disadvantages of using cinema/DVD/blueray discs for advertising:

  • seen by limited number of people
• advantages of using leaflets for advertising:

  • cheap
  • given out to wide range of people
• disadvantages of using leaflets to advertise:

  • may not be read
  • may be annoying which puts customer off buying product
• different sales promotion:

  • after-sale service: offers reassurance when purchasing something (usually for expensive products like computers and cars)
  • gifts: may include coupons in packaging that can be collected which aims to continue sales even after promotion is over
  • BOGOF: encourages multiple purchases
  • price reduction: encourages customers to try product and hopefully become regular customer
• different sales promotion: p2

  • competitions: packaging may include entry ticket to draw for prize which encourages purchases
  • point of display and demonstration: can show how product should be used
  • free samples: encourages customers to try product and hopefully become regular customer
  • product placement: featuring product in movies/Programs/music videos
• advantages of sales promotion:

  • promote sales at time they're usually low
  • encourages new customer to try existing product
  • encourages customers to try new product
  • encourages customers to buy more/more often which increases loyalty
  • encourages customers to buy from you instead of competition
• marketing budget:financial plan for marketing product/product range for specific period of time
• factors affecting market budget

  • stage in product life cycle
  • nature of product
  • cultural issues involved in international marketing
  • nature of target market