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Advertising and Promotion

Business Studies Year 10

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0% found this document useful (0 votes)
25 views4 pages

Advertising and Promotion

Business Studies Year 10

Uploaded by

joanchoong6
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Advertising and promotion

Promotion methods
Promotion is about communicating with actual or potential customers. Effective promotion
not only increases awareness of products, but also creates images and product personalities
that consumers can identify with.

Advertising is only one form of promotion – other techniques include direct promotion
and sales promotion. The combination of all forms of promotion used by a business for any
product is known as the promotion mix.

The amount a business spends on promotion – the promotion budget – is a


key decision. However, successful communication is not just about the total amount spent. It
is also about how the budget is allocated between the competing forms of promotion
available. The packaging of products is often considered as a separate ‘P’ in the marketing
mix, but it is very closely tied to promotion complementing promotional strategies.

Objectives of Promotion

Businesses allocate resources to promotion to achieve certain objectives. The success of


promotion campaigns can be measured against these objectives. They can include:

• Increasing sales by raising consumer awareness of a product, which is especially important


for newly launched ones.
• Increasing consumer recall of an existing product and its distinctive qualities.
• Increasing purchases by existing consumers or attracting new consumers to the brand.
• Demonstrating the superior specification or qualities of a product compared with those of
competitors, often used when the product has been updated or adapted in some way.
• Creating or reinforcing the brand image or personality of the product. This is becoming
increasingly important in consumer markets where it is often claimed that all products look
the same.
• Correcting misleading reports about the product or the business to reassure the public after a
scare or an accident involving the product.
• Improving the public image of the business, rather than the product, through corporate
advertising.
• Encouraging retailers to hold inventories of the product and actively promote products to
the final consumer.

The promotion mix


There are several elements to the promotion mix. They include all of the marketing tools that
can be used to communicate with consumers.

Advertising promotion

Advertising is communicating information about a product or business through the media,


such as radio, TV and newspapers. These advertisements should be directed towards the
appropriate target market by selecting the right media. Successful advertising campaigns have
led to substantial increases in consumer awareness and sales. This effect can last for a
considerable length of time if brand loyalty is established.

Advertisements are often classified into two types, but in practice this distinction is often
quite blurred:
• Informative advertising – adverts that give information about a product to potential
purchasers rather than just trying to create a brand image. This information could include
price, technical specifications, main features or places where the product can be purchased.
This style of advertising is most effective when promoting a new product that consumers are
unlikely to be aware of, or when communicating a substantial change in price, design or
specification.
• Persuasive advertising – adverts trying to create a distinct image or brand identity for the
product.

They may not contain any details at all about the materials, ingredients used, prices, or places
to buy the product. This form of advertising is very common, especially in markets where
there might be little differentiation between products. Advertisements then try to create a
perceived difference in the minds of consumers.

Perhaps, in reality, there is little difference between these two styles of advertising: ‘The
more informative the advertising, the more persuasive it will be’ (David Ogilvy, Confessions
of an Advertising Man).

. Trade advertising is aimed at encouraging retailers to


stock products and sell them to consumers and, if possible, to promote them in preference to
rival products. This type of advertising is most likely to take place in trade journals and
magazines which are not available to consumers.

Advertising agencies

Advertising agencies are specialists that advise businesses and can offer a complete
promotional strategy and the most effective way to promote products. . This can be
important to a business that does not have its own marketing experts or may be entering a
new market.

They focus on devising a promotional plan:


• research the market, establish consumer tastes and preferences, and identify the typical
consumer profile
• advise on the most cost-effective forms of advertising media to be used
• use their own creative designers to design adverts appropriate for each medium
• film or print the adverts to be used in the campaign
• monitor public reaction to the campaign and feed this data back to the client.

Advertising methods

The following seven advertising methods are the most frequently used:

Print advertising
This includes advertising in newspapers, magazines and specialist publications.
• It can be directed at particular towns or regions, or consumers who read particular special
interest magazines.
• It provides hard copy, which can be cut out and kept by the consumer for future reference.
Print advertising has limitations:
• It is expensive to gain national coverage.
• Evidence suggests that it is now much less effective with younger consumers than digital
communications.

Broadcast advertising

This is advertising on TV and radio, and in cinemas.


• Adverts have visual appeal and can create a brand image through the actors used.
• National or even international coverage is possible.
• It can linger in the memory of consumers for a long time if visually dramatic.
Broadcast advertising has limitations:
• It is expensive to buy media time.
• It is expensive to design and produce the adverts.
• There is no permanent hard copy.

Outdoor advertising

This includes advertising on billboards and bus shelter posters.


• It is low cost compared to other media.
• It can be located in prime positions with many potential consumers passing by.
• It can be read/seen more than once.
Outdoor advertising has limitations:
• The best locations are the most expensive.
• It can be damaged or vandalised.
• Many passers-by will not notice this type of advertising.

Product placement advertising

Products are featured in TV shows and films.


• The chosen shows or films will be targeted at a particular type of consumer.
• This creates a desirable image if the product is associated with famous actors or shows.
• It is not explicit advertising. Some consumers assume the product is being used because it is
desirable, not because a business has paid for the placement.

Product placement advertising has limitations:


• The show, film or actors may become less popular.
• It is very expensive if the show or film is well known.

Guerrilla advertising

Products are advertised at surprising and unconventional events to make the public take
notice.
• It is low cost: graffiti paint on walls is low cost, but it is best to gain permission first!
• It can be creative, inventive and can appeal to young consumers.
• It encourages word-of-mouth communication between potential consumers.
• A staged event can receive free publicity from the media.
Guerrilla advertising has limitations:
• The message may be misunderstood.
• It may be considered irresponsible and lead to a negative backlash.
• It may be remembered for the wrong reasons.

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