Promotion Above the Line.
What is Promotion? Promotion is the attempt to draw attention to a product or business in order to gain new customers or to retain existing ones. Different methods of promotion are shown below: Businesses often refer to promotion above the line and below the line. Above the line promotion is through independent media, such as television and newspaper. These allow a business to reach a wide audience easily. Most advertising is done above the line. But, some methods of advertising is done where the business has direct control, E.G, through direct mailing. These are known as below the line promotion. The Objective of Promotion The main objective is to obtain and retain customers. Others include: * To increase awareness of the product * To reach a target audience that may be geographically dispersed * To remind the consumer about the product * To show a product is better than it's competitor * To develop or improve the image of a business, rather than a product * To reassure consumer's after the product has been brought * To support an existing product To measure the effect of the businesses advertising, a business can use the DAGMAR (defining advertising goals for measured advertising results). A business can see how far the group targeted has progressed aside a scale of unawareness, awareness, comprehension, conviction and action, as a result of advertising. The
Marketing Strategy - the marketing mix - promotion - product - price - place
My Marketing Strategy As previously mentioned in this report, there are several aspects, that play a big part in a products successes or downfall. These are classified as the marketing mix, and are again shown below, Pricing Pricing is one of the key features of the marketing mix. The producer sets the price of a product with great caution, as incorrect pricing can result in product failure, and sometimes even market failure. If the price of a product is too high, then consumers will simply not be willing to pay for it, and yet if a product is priced too low, people will view the product as cheap, and so it will loose its exclusivity, and demand from consumers. There are many different pricing methods used by companies today including, Cost-plus pricing This involves setting a price by calculating the average cost of producing a product, and then adding a "mark-up" (profit margin) on to that price. If it costs £35.00 to produce a small television, firms usually add up to 100% profit margin on top, and so the consumer would have to pay £75.00 for the television. Cost plus pricing has a number of disadvantages though such as it doesn't take into account the needs, wants and opinions of the consumers. Market orientated pricing These methods are those which are based upon a careful analysis of the market at which products are aimed, and so are much more effective
Marketing Mix. There are four Ps to the marketing mix. They are product, price, place and promotion.
Marketing Mix Kotlers definition of marketing mix - The set of marketing tools that the firm uses to pursue it's marketing objectives in the target audience. There are four P's to the marketing mix. They are product, price, place and promotion. The Product is something that has features on it that suits your customer to his or hers needs and wants. The price is decided on the quality of the product. The place is where the product is sold and distributed. The promotion is the advertisement for where and what a product is. Products There are four different levels of a product. They are core product, actual product and the augmented product. The core product is all the benefits that a product could bring to a customer and if they will want it. The actual product is the item itself. It's if it is branded by a good business or if it has features that other products similar to it don't have. The augmented product is any additional things that you can get from a product such as free delivery and warranty. Some businesses will sell only one product and not make any others. But most businesses sell a wide range of different kinds of products. If a business sells for example cars then they will make different kinds of cars suited to there customers. Such as a family car or a work car. The product life cycle is development, introduction, growth, maturity, saturation and decline.
The marketing mix
The marketing mix The marketing mix is probably the most common phrase in marketing, the marketing mix refers to the elements in the marketing tactics, they are price, product, place and promotion, also referred to as the four ps. A business can change how they market a service or product by changing one of the elements in the marketing mix. It is very important for business to pay attention to their marketing mix, since it is essential for marketing an item and will enable you to change how you market an item by changing one of the four ps. You can compare the marketing mix to a cake mix. All cakes contain eggs, milk, flour and sugar. However you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar. It is the same with the marketing mix. The offer you make to the customer can be altered by varying the mix elements. So for a high profile brand increase the focus on promotion and desensitize the weight given to price. In my business I will be targeting many different segments. In the marketing mix we use segmentation to focus on different groups of customers, we do this to aid our marketing mix. Since my business is a clothes shop I will be targeting four major segments, they are age, gender, income and lifestyle. I will be using a mass market, as I will be producing many of the same clothes. I will not use a
Promotion is an essential part of making a new business successful. There are two types of promotion, above the line promotion, and below the line promotion. Above the line promotion is advertisements that a company has control over
Promotion Promotion is an essential part of making a new business successful. There are two types of promotion, above the line promotion, and below the line promotion. Above the line promotion is advertisements that a company has control over, usually this causes below the line promotion to occur. Below the line promotion is when a business creates a good image for itself through word of mouth. What type of advertising would you say affects you most? In my questionnaire I asked the question "what type of advertising would you say affects you most?" from this question I found that people were affected most by television advertising, 60% of the people asked chose television. The second most chosen type of advertising was Radio with 20%. Newspaper advertising was third with 15% and finally other types of advertising were last with a mere 5%. Television Advertising I found that television advertising was the most effective way of promotion. With the average adult watching over 26 hours of TV a week, it is easy to see why. Despite being the most effective advertising platform, I don't think that I will use television advertising; this is because of the massive costs of around £7,500 for an advert at off peak time, and £30,000 at peak time for a 30 second advert. I think that it would be worthless advertising on television because my business will only be small, not a
The Marketing mix Price
Task 6 - The Marketing mix Price Cost based - It is when a business works out the total cost of producing a product by adding together all the fixed variables costs. Then it adds an amount for a profit, often called mark up, to give the selling price. The mark up is usually expressed in the form of a percentage. For example, if the kosher food shop works out that the total cost for producing a kosher chicken is £10. They decide they want to add a 10% mark up to create profit for them. This would give the following calculations: Total cost £10 Percentage mark up per chicken 10% of the total cost £10 x 10 divided 100 = £1.00 Total price = £11.00 Market based - It is when a business looks at how much other business are selling a product for and selling the same product for around the same price or maybe a bit lower to gain the advantage amongst its competitors. For example if a kosher chicken at La Boucherie cost £11.00, my shop will sell it at £10.60. This generally happens in an environment where there is a lot of competition and opposition. Promotional pricing - Pricing to promote a product is a very common application. There are many examples of promotional pricing including offers such as Buy One Get One Free and 2 for the price of 1. Skimming pricing - Charge a high price because you have a large competitive advantage. The high price attracts new
marketing mix
Running head: MARKETING MIX PAPER Marketing Mix Paper University of Phoenix Sustainable Customer Relationships - MBA 570 Marketing Mix Paper The 4 P's, also known as the marketing mix, is a concept created by Neil H. Borden. According to author Laura Lake, "your marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives" (Lake, 2009, ¶ 1). The four variables that make up the 4 P's are Product, Price, Place (Distribution), and Promotion. This paper will further detail each element of the 4 P's and will provide a description of Caterpillar Inc., and how each element of the marketing mix impacts the development of Caterpillar's marketing strategy and tactics. Organizations must understand that creating an effective marketing mix will require experimenting and market research in order to see increased results. By using variations of the 4 P's, organizations will gain the ability to reach a magnitude of consumers within their targeted market. Furthermore, the 4 P's were designed to focus on an organization's target customers to identify the value of the product or service and to determine how well the product or service will be received. Product The first variable, Product can be defined as the products or services an organization offers to its customers. Product is concerned with creating the right product or service for
Marketing & Marketing Mix usb
Marketing Mix A Definition of Marketing This is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers. Market is also used for groups of people wanting to purchase a product or service. Some products may exceed more than one market. This is the location where people meet to buy and sell. Marketing is more than just selling or advertising. It is the art of making it as easy as possible to get the potential customer to buy your product. A Definition of Marketing Mix and what it Contains The four main elements used by a marketing manager to market goods and services. These elements are product, price, place, and promotion.In order for marketing to succeed a range of different activities should take place.This is called the Marketing Mix. The four P's are the key to the product being marketed. Product This is a key part as its quality and appearance etc. are made.It makes the design ,quality, appearance, special features, number of models or sizes etc. The product is essential to be rightly packaged and the branding name suiting the product. In marketing, companies are always trying to make as much profit as possible. They try to establish good famous brands. If a company has a good brand it can produce bucket loads of money. So companies try to extend the life of profitable brands. An
marketing mix
The Marketing Mix A Market is the coming together of buyers and sellers exchanging their goods for money. For innocent the buyers would be the customers and the sellers would be the workers at the shops or supermarkets. In innocents case the goods would be mainly refreshments like smoothies, but also others such as veg pots, thickies etc. Marketing is where companies try to maximise their sales and profits by satisfying the consumers' needs and wants and turning them into profit. The marketing mix is also known as the 4 P's. These are: Product Price Place Promotion. Product Market segmentation Market segmentation can be split up in many ways, for example Age and Sex, Geographical area and Occupation and Income. Here is an example of this; Classification Who is included A Higher Management, administrative and professional B Middle management, administrative or professional C1 Supervisory or clerical, junior management C2 /skilled manual workers D Semi-skilled and Unskilled manual workers E State pensioners, students, casual workers, Unemployment For supermarkets the market segmentation is the way in which the market is split up into smaller markets where the customers have the same needs. This can be many different segments, for example the basics such as bottle sizes, food (veg pots), but also others like business makers, sellers etc. Price To set a
The Marketing Mix
E1. The Marketing Mix A. Promotion There are many methods I can use to promote Classic Cola. I can use above the line promotion methods, where I can use media to get through to potential and actual customers. I can also use below the line promotion, such as personal selling. But I think I will use above the line promotions methods as I think it will be more affective. I will use television adverts as over 90% of homes have television sets in them. Also I will have the choice to choose the timings of when I can advertise Classic Cola, as different advertising spaces during the day target different people. B. Price I will have to chance the price of Classic Cola from the current price, which is 64p for a 2-litre bottle. I have decided to change the price to 55p and lower as time goes. I say this because I will make sure the production of Classic Cola will benefit from Economies of Scale, which then I can pass the benefits over to the consumers via lower prices. C. Place I will also place Classic Cola in national and international stores, in order for more people to actually know and buy the product. I say this because not everyone has seen or heard about Classic Cola, so by placing the product nationally and internationally there is more change of people taking an interest in the product, resulting in an increase of sales for Classic Cola. D. Production Classic
