CHAPTER 17.docx

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Management Information Systems
MGIS 317
Ronald Schlenker

CHAPTER 17: PROMOTION AND PLACE Promotion Promotion is the use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship and public relations to inform consumers and persuade them to buy. Promotion objectives These are all about communicating with the target consumer. These aims can be focused on the short term – such as an increase in sales next month – or on the longer term – such as to change the image of the business. These aims should be linked to the overall objectives of the business. They include: - To increase sales by raising consumer awareness of a product – especially important on newly launched ones - To remind consumers of an existing product and its distinctive qualities - To encourage increased purchases by existing consumers or to attract new consumers to the brand - To demonstrate 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 - To create or reinforce 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 - To correct misleading reports about the product or the business and to reassure the consuming public after a scare or an accident involving the product - To develop or adapt the public image of the business – rather than the product – through corporate advertising - To encourage retailers to stock and actively promote products to the final consumer Promotion decisions – key issues The promotion mix The combination of promotional techniques that a firm uses to sell a product it is most unlikely that just one method of promotion will be sufficient to achieve promotional objectives. There are several elements of the promotion mix. They include all of the marketing tools that can be used to communicate with consumers 1. Advertising Advertising is paid-for communication with consumers to inform and persuade them, e.g. TV and cinema advertising. This form of advertising is sometimes referred to as “above-the-line-promotion”. Above- the-line-promotion is a form of promotion that is undertaken by a business by paying for communication with consumers. Advertisements are often classified in two types: 1. Informative advertising: these are adverts that give information to potential purchasers that give information to potential purchasers of a product, rather than just trying to create a brand image. This information could include price, technical specifications or main features and places where the product can be purchased. This method of advertising could be particularly 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. 2. Persuasive advertising: this is trying to create a distinct image or brand identity for the product and it may not contain any details at all about materials or ingredients used, prices or place it to buy it. This form of advertising is very common, especially with those markets where there might be little actual difference between products and where advertisers are trying to create a perceived difference in the minds of consumers. Perhaps, in reality, there is little difference between these two styles of advert
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