Marketing Mix: Promotion - CCEA

Key facts about promotion:

Promotion: methods include advertising, sales promotion, sponsorship and public relations.

Advertising: uses TV, online, print media; public relations increase awareness.

Sales promotion: techniques like discounts and free samples; sponsorships enhance profiles.

Technology and regulations: technology advances impact strategies; ASA and Ofcom ensure advertising standards.

Promotion is the methods a business uses to communicate information about its products and services among its customers and potential customers. The main aim of promotion is to either persuade customers to purchase or inform about products.

The four methods of promotion are:

• advertising
• sales promotion
• sponsorship
• public relations

What is advertising?

There are a number of advertising methods a business can use. These include:

• television
• newspapers, magazines and billboards,
• online
• radio

What is public relations?

A business can use public relations to increase awareness of the business and its products. This is usually free media coverage such as for the opening of a new store or launch of a new product.

What are sales promotions?

These strategies are used by a business to increase sales in the short term. Sales promotion techniques include:

• discounts
• buy one get one free
• competitions and coupons
• point of sales displays
• free gifts
• free samples

How can sponsorship help promotion?

Businesses can increase the profile of the business by sponsoring sport events, sports teams or television programmes.

Social media can be used by businesses to promote their products and services. This is a cheap way to communicate with their customers about new products or special offers and could be used to take customers to their website.

Social media is a powerful tool for businesses to increase brand awareness and attract new customers. It allows for direct interaction between the business and consumers, such as commenting on posts or asking questions, which the business can then respond to. Additionally, businesses can use social media to conduct market research and identify new trends or fashions.

However, there are some negative aspects to consider. Negative customer reviews can deter other potential customers, and staff are required to manage social media accounts and communicate with customers regularly.

The term competitive environment refers to the pressure placed on a business by its competitors. Businesses that operate in a mass market have a tough competitive environment as there are many other businesses offering very similar products and services. This means that if a business charges too much then its customers will go elsewhere. An example of a business that operates in a mass market is the fast food industry.

Businesses adapt their marketing mix to try to convince customers that their product is better than the products of their competition. The aim of these adaptations is to gain a competitive advantage. They can do this by:

• offering a product or service that fills a gap in the market
• offering better sales promotions, such as buy one get one free (BOGOFF), online discount codes or cashback
• creating a unique selling point (USP)
• developing relationships with existing customers to make them more likely to buy again

Technological advances create many opportunities for businesses. This means that a business’ promotional mix may need to change to enable it to interact with its customers through increasingly popular technologies (such as online messaging and digital advertising).

The use of social media has changed how much many businesses spend on traditional promotional activities (eg TV advertising) and on advertising in other media types (eg newspapers). Sponsorship and influencers on social media are commonly used as a means of promoting products and services.

Examples of ways businesses may adapt to advances and trends in technology include:

• increasing use of e-commerce and m-commerce in businesses
• use of digital media to promote products and maintain consumer interest
• changes to a product’s design to incorporate new technologies
• reduction of prices because of more efficient production methods
• introduction of more competitive pricing because of easy access to price comparisons across retailers

Descriptions must be accurate on:

• quantities/sizes

• method of manufacture/testing

• place and date of manufacture

• who manufactured them

What is the ASA (Advertising Standards Authority)?

The ASA works to prevent consumers from being misled, harmed, offended or otherwise treated unfairly by advertising. Its basic principles are that advertisements should be:

• legal, decent, honest, truthful

• prepared with a sense of responsibility to consumers and society

• in line with the principles of fair competition

The ASA checks about 65,000 advertisements per week and receives complaints from the public about 25,000 advertisements per year.

The ASA’s remit extends to advertising across media such as:

• press ads

• sales promotions

• direct marketing

• electronic advertising

• internet advertising

• social media

• cinema commercials

• outdoor advertisements

• TV

• radio

What is Ofcom (Office of Communication)?

Formed in 2003, Ofcom is an independent organisation which monitors the communication industries. Its basic role is to protect consumers from harmful or offensive material.

So, Ofcom has overall legal responsibility for broadcast advertising standards. If an advertiser doesn't follow an ASA ruling, Ofcom can take legal action.

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