This post has all you need to know about the Marketing Mix. This post covers PROMOTION.
The Marketing mix can be best described through one quote:
Putting the right product in the right place, at the right price, at the right time.
The Marketing Mix contains for main categories that all begin with the letter ‘P’:
– Product (or service)
– Place
– Price
– Promotion
Promotion is Businesses communicating with customers
Now, Promotion is a general term that covers all the marketing activity that focuses on letting customers know about a product and persuading them to buy that product. Now with any one element of the mix you must ask yourself questions to help identify it’s importance.
Promotion can be categorised into to separate groups:
- Promotion that stimulates short-term sales.
- Promotion that build sales for the long-term.
The Types of Long-Term Sales
Branding
This is when a business try to create a distinctive and lasting identity in the minds of consumers. For example, when you think of Aston Martin, you think of sports car manufacturer. What you think is the identity in the minds of the consumers:
Branding…
Reduces amount spent of promotion keeping advertising costs down.
Encourages more repeated purchases.
Makes it easier to persuade retailers to put their product in store.
Helps promote other products the business also sells.
Key Terms
Persuasive Advertising – Designed to create a distinctive image.
Public Relations – This is the attempt to affect the customer’s image of a product without spending on media advertising. This includes making contracts to journalists to try and get favourable mentions or articles about your product.
The Types of Short-Term Sales
Sales Promotions
This includes things like ‘£1.00 off’ and ‘Buy one get on free’. For further information on Price and Price Strategy, check out this article.
However, Sales Promotion has problems such that customers may stock up extra on the product when product is at a discount, then not need to buy more of that product in the weeks following the offer. E.g. Buying two pots of toothpaste when it’s ‘Buy one get one free’ then not needing to buy it again for another week. It also undermines the brand image.
But, the risks are worthwhile if the promotion succeeds in attracting new customers, who come for the offer and then stay loyal after the offer has ended.
Direct Selling
Direct selling has its definition in its name: where you directly sell your product to customers.
- Potential customers are approached directly.
- Door to door salesmen, nowadays though the main mechanism for direct selling is tele-sales (on phone).
