1.

PRODUCT

2.PRICE

3.PLACE

4.PROMOTION
• Definition of promotion: marketing
activities used to communicate with
customers and potential customers to
inform and persuade them to buy a
business’s products.
• The main aim of promotion is to
increase sales.
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion
• Advertising involves communicating with the customer
through media, e.g newspapers, magazines, radio,
television, and internet.
• The usage is often depend on the available budget
• Two main forms:
– Informative advertising: information about the product is
communicated to consumers to create product awareness
and attract their interest.
– Persuasive advertising: communication with consumers
aimed at getting them to buy a firm’s product rather than a
competitor’s product.
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion

Informative Advertising Persuasive Advertising

 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion
• Sales Promotion: incentives used to encourage
short term increases in sales or repeat
purchases.
• Called as below-the-line promotion (BTL) :
promotion that is not paid for communication
but uses incentives to encourage consumers
to buy.
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion

Money-off coupons or vouchers Competition and games with

cash or other prizes

Loyalty reward schemes

Point of sales (POS) displays in
shops
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion
• Personal selling is most often used when
selling expensive items that have a high profit
per unit.
• Sales staff communicate directly with the
consumer to achieve a sale and form a long-
term relationship between the firm and
consumer.
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion
• Direct mail involves posting leaflets or other
printed materials directly to the business
offices or homes, or potential customers.
• This is a very good way to communicate with a
larger market over a wide geographical area.
• It is also might considered as ‘junk mail’ and
thrown away before being read.
 Advertising Sales Promo Personal Selling Direct mail Sponsorship

Methods of Promotion
• Sponsorship is where a business pays to have
its name or products associated with a
particular event.
 E-commerce
• E-commerce is the use of the internet and other technologies
used by businesses to market and sell goods and services to
customers
• Examples: online shopping, online tickets, hotel reservations,
electronic payment, online auctions, internet banking.
 E-commerce – cont’d
Opportunities of e-com. to
businesses
Increased market – able to
sell its goods and services
throughout the world
Reduced costs –
The staffing and other cost
of shops are saved
Better information –
Provide potential
consumers with all
information needed about
the products
Threats of e-com. to
businesses
Increased competiton –
from any part of the world,
not only local market
Unfamiliarity – consumers
are less likely to buy
products from new
businesses they don’t
know
Opportunities of e-com. to
consumers
Convenience – any time of
day at their comfort of
their homes
Wider choice – able to buy
goods which they would
not have access to if they
were only able to use local
shops
Lower prices – worldwide
competition reduces prices
Better information –
consumers able to review
from consumers who have
bought the products
Threats of e-com. to
consumers
Fraud – take the money
but not deliver the goods
Hacking – details or bank
account details might be
‘stolen’
No personal service –
No face-to face contact
Returning items –
incovenient and expensive
to return goods that do not
meet the needs
Social media marketing