CH 14 Promotion

THE MARKETING
MIX –
PROMOTION AND
TECHNOLOGY IN
MARKETING
Chapter 14
IGCSE Business Studies
Presented by: IRAM JAMIL
LEARNING OBJECTIVES
• Role of promotion decisions in the marketing mix
• Aims of promotion
• Different forms of promotions and how they influence sales
• When to use different forms of promotion
• The importance of marketing budget in making promotion
decisions
• How technology influences the marketing mix

PROMOTION
Promotion gives the
customers information about
the rest of the marketing
mix.
Without it, consumers would
not know about the product,
the price it sells, or the place
where the product is sold.
INTRODUCTION TO THE TOPIC
• Promotion includes several different types of promotion and
advertising.
• Most goods are produced for mass market – need advertising and
promoting
• Producers goods are often sold directly to other businesses by sales

representatives but also advertised in magazines or leaflets are sent
out to businesses informing them about the product.
Above-the-line promotion: a form of
promotion that is undertaken by a business
by paying for communication with
consumers.
Advertising: paid-for communication with

consumers to inform and persuade, e.g. TV
and cinema advertising.

Below-the-line promotion: promotion that
is not a
directly paid-for means of communication,
but based on
short-term incentives to purchase.
Sales promotion: incentives such as special

offers or special deals directed at
consumers or retailers to achieve short-
term sales increases and repeat purchases
ADVERTISING
Informative Persuasive
advertisement advertisement
It is where the
emphasis of
advertising or sales
promotion is to give Advertising or promotion which is
full information trying to persuade that they really
about the product. need the product and should buy it.
e.g., laptop
e.g., 1 million by Paco
advertisements
Rabanne

THE ADVERTISING PROCESS

The target audience
refers to the people
who are potential
buyers of the
product or service.
Target Audience
ADVERTISING DECISIONS – WHICH MEDIA
TO USE? Message to be
Size of
Cost communicate
audience
d
Legal and
Other aspects of the marketing
other
mix
constraints
The profile of the target audience in terms

of age, income levels, interests and so on
SALES PROMOTION
Below-the-line Price reductions

promotion. Gifts
BOGOF
Support advertising
and encourage new
or existing Competitions
consumers to buy Point-of-sale displays
the product. Demonstrations
Sales promotion- Used in short term to

Dump bins
incentives aimed to give a boost to sales. Not
After sales services
used for long periods of
consumer to achieve short time.
Free samples
term increases in sales.
SALES PROMOTION
27
PRICE REDUCTIONS
• Reduced prices in shops at specific times of the year
• Money-off coupons to be used when a product is next

purchased – mostly found on the bottom of leaflets, in
newspapers, or on the packet of product itself.
• Can be linked to loyalty cards
• Encourages customers to try the product – in hope to become

regular customer
32
33
GIFTS
• Small gifts are placed in the packaging of a product to encourage
customer to buy it.
• Often used with the products
• Coupons are put on the back of the packets and have to be cut out and
collected. After specific number, gift can be claimed, such as a story
book.
• Require several packets of the products to be purchased
• Aim – customer may continue to buy

BOGOF
• This is where multiple purchases are
encouraged.

37
COMPETITIONS
• Packaging of a product may include an entry
form which allows the customer to enter a
competition.
• The price is often an expensive item such as a

car.
• Encourages customer to buy the product

POINT-OF-SALE DISPLAYS AND
DEMONSTRATIONS
• Point-of-sale is a place where product is being
sold – usually a shop.
• A special display of the product
• Demonstrations of how product can be used

POINT OF SALE
DEMONSTRATIONS
41
AFTER-SALES SERVICE
• Important for expensive products such as car and laptops
• Way of encouraging consumer to buy
• Reassurance that product will be taken back or get

repaired if something goes wrong in first few weeks of
use.
44
FREE SAMPLES
• Most commonly used with products like food and
cosmetics
• It can be handed out in the shop to encourage the

consumer to try and then hopefully buy it.
• Can be delivered to houses
• Can be given away with other products

A marketing
budget is a
financial plan for
the marketing of a
product or product
range for a
specified period of
time.
Marketing budget
THE IMPORTANCE OF THE MARKETING BUDGET
• Promotion decisions – most important factor is marketing
budget
• Size of market budget – It specifies how much money is

available to market the product or range/ how much company
can spend
• Cost effectiveness is necessary
• Compare the cost of advertising with increase in expected sales

51
WHICH TYPE OF PROMOTION SHOULD BE
USED?
The stage of product life cycle that has
been reached
New Product / at the time of launch: informative advertisement
Well established product / at maturity: persuasive advertisement
The nature of the product itself

Advertisement for producer goods vs consumer goods
Cultural issues involved in international
marketing
The nature of the target market

Local, national or international and its size
SPONSORSHIP
Sponsorship is a type of
advertising where a
company pays to be
associated with a specific
event, activity, individual
or project.
SPONSORSHIP
Concerned with promoting good image of company or its products
Raise public awareness of the product

55
HOW TECHNOLOGY INFLUENCES THE MARKETING MIX?
• Integrated into marketing decisions

• Presents new opportunities for businesses
• 4ps – technology


CH 14 Promotion

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CH 14 Promotion

Uploaded by

Copyright:

Available Formats

THE MARKETING

Presented by: IRAM JAMIL

• Producers goods are often sold directly to other businesses by sales

Advertising: paid-for communication with

Presented by: IRAM JAMIL

Sales promotion: incentives such as special

Presented by: IRAM JAMIL

Presented by: IRAM JAMIL

The profile of the target audience in terms

Below-the-line Price reductions

Sales promotion- Used in short term to

• Money-off coupons to be used when a product is next

• Can be linked to loyalty cards

• Encourages customers to try the product – in hope to become

• Often used with the products

• Require several packets of the products to be purchased

• Aim – customer may continue to buy

Presented by: IRAM JAMIL

• The price is often an expensive item such as a

• Encourages customer to buy the product

• A special display of the product

• Demonstrations of how product can be used

• Important for expensive products such as car and laptops

• Way of encouraging consumer to buy

• Reassurance that product will be taken back or get

• It can be handed out in the shop to encourage the

• Can be delivered to houses

• Can be given away with other products

• Size of market budget – It specifies how much money is

• Cost effectiveness is necessary

• Compare the cost of advertising with increase in expected sales

The nature of the product itself

The nature of the target market

Concerned with promoting good image of company or its products

Raise public awareness of the product

Presented by: IRAM JAMIL

• Integrated into marketing decisions

Presented by: IRAM JAMIL

You might also like