unit 2 business management

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Unit 2 Business ManagementArea of Study: Managing the marketing function

+Goal

To be able to explain why promotion is a key aspect of the marketing function.

+Accessing prior knowledge What is the best advertisement you have ever seen? Why was it so powerful? Did it make you buy the product?

+Three key promotional activities businesses use to attract customers

1. Advertising

2. Direct marketing

3. Sales promotion

+Advertising

+The AIDA model is used to plan and design promotional activities

Getting Attention Holding Interest Arousing Desire Getting Action

+Advertising Advertising is paid, non-personal communication

about products and services.

Two categories of advertising:

1. Product advertisements Attempts to persuade the consumer to purchase a

product or service

2. Corporate advertisements A corporation or organisation promotes itself and

attempts to enhance its public image

+The advertising campaign

These are seven steps in developing an effective advertising campaign.

1. Identify the target group

2. Develop marketing objectives

3. Calculate the budget

4. Decide on the key message

5. Decide on the advertising medium

6. Create the advertisement

7. Evaluate the advertising campaign

+How much does advertising cost?

+Step 1: Identify the target group

Be specific about the potential buyer Details such as: Age, gender, nationality, social class,

marital status, occupation and income Most effective advertisements target smaller audiences

+Step 2: Develop marketing objectives The marketing objectives need to tie in with the overall

business objectives, be specific and include a timeframe

Expressed in a way that results will be measurable.

+Step 3: Calculate the budget

Advertising can be expensive The budget can be used to determine the success of an

advertising campaign.

+Step 4: Decide on the key message Advertising messages can persuade, inform, remind,

instruct and entertain. The key message for an advertisement should be

stated clearly in one sentence.

+Step 5: Decide on the advertising mediumAdvertising may take place

via:

the internet and pop-ups television daily newspapers magazines and journals posters

email radio local papers mail-outs and leaflets brochures

+Step 6: Create the advertisement Mojo’s principles for creating good advertisements1. Get back to basics

2. Keep It Simple Stupid

3. Get it noticed

4. Appeal to the heart

5. Make it friendly and human

6. Make it sympathetic to the medium

7. Make it vernacular

8. Give it a long life

9. Repeat

+Step 7: Evaluate the advertising campaign There is often a lot of planning and development before

the public sees any new ad. Some companies pre-test the advertising to see if it

communicates the right message to the target audience.

A pre-test can involve group discussion with potential customers, questionnaires before and after exposure and in-depth interviews.