IB Business & ManagementUnit 4.5: PromotionLesson 1: Objectives of Promotion (pp. 557-574)

1. Think about it... Advertising is the art of convincing people to spend money they dont have for something they dont need. - Will Rogers (1879-1935) comedianWhat did Rogers mean by this quote?Are we constantly being deceived?Should companies be socially responsible for the advertising they create?

2. Focus Questions1. What are the objectives of promotion?2. List and explain the types of promotion.3. What is above and below the line of promotion?4. What is included in the promotional mix

3. Promotionrefers to methods of communicating messages to the market when selling a firms product.promotion includes, sales promotion, branding, raising publicity (awareness) and advertising campaigns.Objectives of promotion:inform: to alert the market about a firms product.persuade: to encourage customers to make a purchase.remind: used to retain customer awareness and interest of an established product.

4. Types of PromotionFours types of promotion:1. Above-the-line: use of mass media sources (TV).2. Below-the-line: use of non-mass media (free samples).3. Pull promotion: used to stimulate demand.4. Push promotion: rely on intermediaries such as wholesalers and retailers.

5. Above-the-line PromotionATL promotion refers to any form of paid-for promotional technique through independent media. Such as:TVRadioCinemaNewspaperMagazinesOutdoor advertising

6a. Below-the-line PromotionBTL promotion refers to all forms of non-media promotion activities. Business has direct control over the production of all its advertisements. Such as:BrandingSlogansLogosPackagingWord-of-mouthDirect marketingDirect mailPublicitySponsorship

6b. Below-the-line PromotionTwo more types of BTL promotion include:Sales promotion: ways of boosting sales and attracting new customers.money-off couponsfree samplesfree giftscustomer loyalty schemeswin a prize schemesPoint-of-sales promotions:refers to the promotion of a product at the place or location where the customer buys the product.Think about when you go to the check out at a supermarket. What do you see beside you when you are standing in line waiting to check out?

7a. Promotional Mixis the set of tools that a business can use to communicate effectively the benefits of its products or services to its customers.The mix is a range of above and below the line methods used to market a product.When deciding on a promotional mix use AIDA:Attention: should raise awareness of the productInterest: should keep customers interestedDesire: should generate a desire or feeling of need for the productAction: should encourage customers to take actionAnother approach is FAB:FeaturesAdvantagesBenefits

7b. Promotional MixWhen creating a promotional strategy YOU the marketer will want to consider a combination of factors, such as:cost of promotional mediumnature of the productproducts position in its life cyclelegislationUsing a single promotional technique is unlikely to be effective; use many:TVRadioOutdoor advertisingNewspapersWebsites, Cinema, etc.

8a. Four Key ElementsThe Chartered Institute of Marketing suggests four key elements to make up a promotional mix:1. Advertising:the science of arresting the human intelligence long enough to get money from it.used to shape and develop awareness, perceptions, knowledge, and attitudes.advertising can be informative or persuasive, or both.2. Personal selling:relies on sales representatives directly helping and persuading potential and existing customers to make a purchase.is tailored to the individual needs of the customers.

8b. Four Key ElementsThe Chartered Institute of Marketing suggests four key elements to make up a promotional mix:3. Public relations (PR):aimed at establishing and protecting the desired image of an organization.concerned with getting good press coverage.

4. Sales promotion:short-term incentives designed to stimulate sales of a product.can help gain short term competitive head startget rid of excess or old stockencourages customer loyalty

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