4.

1
4.1 Marketing
Marketing
4.2
4.2 Advertising
Advertising
4.3
4.3 Sales
Sales Promotion
Promotion
4.4Marketing
4.4Marketing Research
Research
O level Commerce, Edexcel
Your syllabus…..
 Meaning of marketing
• Marketing is the performance of business
activities that direct the flow of goods
and services from the producers to the
consumers. The activities of marketing are
product development, packaging, pricing,
distributing, advertising, sales promotion
etc.
 Purposes of marketing
• Maximization of consumption
• Maximization of consumer satisfaction
• Maximization of consumer choice
• Maximization of life quality
 Meaning of advertising
• Advertising consists of all the activities
involved in presenting to group an oral or
visual message regarding a product,
service or idea. This message, called an
advertisement, is disseminated trough one
or more media and is paid for by the
advertiser who is usually the producer of
the product of services.
 Purposes of advertising

• To inform the public of availability of the

availability of a new product or services
which is being sold in the market.
• To pursue the consumers
• To promote a brand name
• To increase sales
2.Benefits of advertising

• To the consumer:
To the producer:
1. A reminder of certain
product
2. Introduction to new 1. Increased sales
product
3. Better informed 2. Economies of
consumers scale
4. Wider choice
5. Lower price 3. Higher profits
6. Cheaper and better
quality product
7. subsidization
production
 4.Dangers of advertising

• To the consumer: • To the producer:

1. He may mislead by false 1. His production cost
claims increases
2. He may have difficulties 2. His expenditure may not
in choosing the brand be justifiable
3. He may make 3. He may incurs financial
unnecessary purchase losses
4. He may be irrational in
his buying.
 Types of advertising
• Informative
• Persuasive
• Collective
• institutional
Advertising media
• News paper
• Magazine
• Radio
• Television
• Film
• Direct mail
• Outdoor Hoarding and signs
• Pamphlets and samples
• Travelling and salesman
• Window display and exibition
 Advantages and
disadvantages of each
media
• Page 159
Factors affecting choice
of medium
• Nature of the product or services
• Target
• Extent of market : local, national,
international
• Cost
 Methods of appeal
• Sex appeal:
• Romance appeal:
• Economy appeal:
• Appeal for manliness:
• Appeal for family love:
• Appeal for motherly love:
• Appeal for cleanliness
• Appeal for safety
• Appeal to safety
• Appeal to prestige or status
Importance of advertising agency
to business activities
• Firms can arrange their own advertising, when large sums of
money are involved often employ specialists to handle it for
them. This specialists are advertising agencies. Which have
five functions:
• Market research
• Creating the advertising
• Producing the advertising
• Booking space for advertising
• Advice.
 Control of advertising
• The advertising standard authority
• The independent broadcasting
authority
• The trade description act 1968
• The consumer credit act 1974
 Meaning of sales
promotion
• Sales promotion is one of the four aspects of promotional mix. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Media and non-media marketing communications are
employed for a pre-determined, limited time to increase consumer demand,
stimulate market demand or improve product availability. Examples include:
• contests
• point of purchase displays
• rebates
• free travel, such as free flights
• Sales promotions can be directed at either the customer, sales staff, or
distribution channel members (such as retailers). Sales promotions targeted
at the consumer are called consumer sales promotions. Sales promotions
targeted at retailers and wholesale are called trade sales promotions. Some
sale promotions, particularly ones with unusual methods, are considered
gimmick by many.
 Methods of sales
promotion
• Consumer sales promotion
• Trade sales promotion techniques
Consumer sales promotion techniques
• Consumer sales promotion techniques
• Price deal: A temporary reduction in the price, such as
happy hour
• Loyalty rewards program: Consumers collect points,
miles, or credits for purchases and redeem them for
rewards. Two famous examples are Pepsi Stuff and
AAdvantage.
• Cents-off deal: Offers a brand at a lower price. Price
reduction may be a percentage marked on the package.
• Price-pack deal: The packaging offers a consumer a
certain percentage more of the product for the same
price (for example, 25 percent extra).
• Coupons: coupons have become a standard mechanism for
sales promotions.
• Loss leader: the price of a popular product is
temporarily reduced in order to stimulate other
profitable sales
• Free-standing insert (FSI): A coupon booklet is inserted into the
local newspaper for delivery.
• On-shelf couponing: Coupons are present at the shelf where the
product is available.
• Checkout dispensers: On checkout the customer is given a coupon
based on products purchased.
• On-line couponing: Coupons are available on line. Consumers print
them out and take them to the store.
• Mobile couponing: Coupons are available on a mobile phone. Consumers
show the offer on a mobile phone to a salesperson for redemption.
• Online interactive promotion game: Consumers play an interactive
game associated with the promoted product. See an example of the
Interactive Internet Ad for tomato ketchup.
• Rebates: Consumers are offered money back if the receipt and
barcode are mailed to the producer.
• Contests/sweepstakes/games: The consumer is automatically entered
into the event by purchasing the product.
• Point-of-sale displays:
– Aisle interrupter: A sign the juts into the aisle from
the shelf.
– Dangler: A sign that sways when a consumer walks by
it.
– Dump bin: A bin full of products dumped inside.
– Glorifier: A small stage that elevates a product
above other products.
– Wobbler: A sign that jiggles.
– Lipstick Board: A board on which messages are
written in crayon.
– Necker: A coupon placed on the 'neck' of a bottle.
– YES unit: "your extra salesperson" is a pull-out fact
sheet.
 Trade sales promotion
techniques
• Trade sales promotion techniques
• Trade allowances: short term incentive offered to induce
a retailer to stock up on a product.
• Dealer loader: An incentive given to induce a retailer to
purchase and display a product.
• Trade contest: A contest to reward retailers that sell the
most product.
• Point-of-purchase displays: Extra sales tools given to
retailers to boost sales.
• Training programs: dealer employees are trained in selling
the product.
• Push money: also known as "spiffs". An extra commission
paid to retail employees to push products.
• Trade discounts (also called functional discounts): These
are payments to distribution channel members for
performing some function
 Distinction between sales promotion
and advertising
• Advertising and sales promotion distinguished
• 3.1 There is an important difference between advertising and sales
promotion. The former is acceptable, but the latter will more likely
than not be unacceptable publicity by attorneys.
• 3.2 The Economist Pocket Guide to Marketing defines sales
promotion as follows -
• "The use of sales incentives designed to produce immediate customer
response, such as price reductions, redeemable coupons, premium
offers, two for ones or multi-packs, give-aways, competitions. (Sales
promotion incentives are) usually offered at the point of purchase and
for a limited period."
• 3.3 The principal differences between advertising and sales
promotion are the following -
• advertising uses the media to inform and persuade;
• sales promotion is the offering of an incentive to lure a customer into
a purchase.
• 3.4 Thus, sales promotion may be understood as "non-advertising
promotional methods": the prospective customer or client is offered
some benefit or advantage aside from the product or service which is
being advertised or promoted.
 Modern Trend in advertising:

• Digital bill board

• Internet
 What is billboard
• A billboard is a large outdoor advertising
structure (a billing board), typically found in
high traffic areas such as along side busy
roads. Billboards present large advertisements
to passing pedestrians and drivers. Typically
showing large, witty slogans and distinctive
visuals, billboards are highly visible in the top
designated market areas
 digital billboard
• Digital billboards
• New billboards are being produced that are entirely digital
(using LED and similar techniques), allowing static
advertisements to rotate in succession. Even holographic
billboards are in use in some places.

• Interaction is an emerging process identified with digital

billboards. In Piccadilly Circus the Coca-Cola billboard responds
to the weather and responds with an animated wave when
passersby wave at it.[1] London movie theatres are
experimenting with billboards which contain an embedded
computer chip which can interact with the web browser found in
many cell phones to provide more information on the subject of
the advertisement
 Internet
• The Internet is a global system of
interconnected computer networks
that interchange data by
packet switching using the
standardized
Internet Protocol Suite (TCP/IP).
It is a "network of networks" that
consists of millions of private and
public, academic, business, and
government networks of local to
global scope that are linked by
copper wires, fiber-optic cables,
wireless connections, and other
technologies.
• The Internet carries various
information resources and services,
such as electronic mail, online chat,
file transfer and file sharing, online
gaming, and the inter-linked
hypertext documents and other
resources of the World Wide Web
(WWW).
 Define marketing research
and explain its purposes
• Market research is a process which is
undertaken so that a firm can identify:
1. The market for the product, that is, whether a
product is likely to sell in sufficient quantity.
2. The appropriate marketing activities to use if
production did take place.
 Meaning of Primary
research
• Primary research (also called field research) involves the
collection of data that does not already exist. This can be
through numerous forms, including questionnaires and
telephone interviews amongst others.
The term is widely used in market research and
competitive intelligence.
• May be very expensive because many people need to be
confronted.
• By the time the research is complete it may be out of date.
• People may have to be employed or avoid their primary
duties for the duration of the research.
• People may not reply if emails or letters are used.
 Meaning of Desk
Research
• Desk Research (sometimes known as secondary data or
secondary research) involves gathering data that already
exists either from internal sources of the client,
publications of governmental and non-governmental
institutions, free access data on the internet, in
professional newspapers and magazines, in annual reports of
companies and commercial databases to name but a few. In
many projects, carrying out an initial desk research stage is
strongly recommended to gain background knowledge to a
subject as well as providing useful leads that will help to get
the maximum from a research budget.
• In archaeology and landscape history, desk research is
contrasted with fieldwork.
 The purpose of desk
research
• The purpose of desk research is to raise the quality of
marketing research and has two aspects:
1. optimal technical quality of marketing research (standards)
and
2. optimal usefulness of the research in business decisions
(client's needs).
• To ensure the optimal usefulness of the research in
business decisions, it is necessary that the client gives full
and accurate instructions for the research. Desk research
starts with preparation of a proposal, continues with the
research, and ends when the client usefully applies the
results in his business decisions.
Advantages and disadvantages
of desk research
Advantages of Desk Research:
• Cheap
• Time Effective
• Large amounts of information can be received very
quickly
Disadvantages of Desk Research:
• Results may be out of date
• Results may be incorrect
• The amount of information available may be very
limited
 Methods of marketing
research
• Test marketing
• Field investigation
• Consumer panel
• Investigation into similar products
already in the market.
• Research into statistics to say
population trends of income level
 Importance of market
research in business
• It helps to know
1. Where there is a market for the firms products
2. Product development- what type of product to be
produced
3. Pricing
4. Packaging
5. What types of distribution channel should take.
6. Methods of advertising
7. Methods of sales promotion
8. Information about competitors